TIDMUOG
RNS Number : 6816H
United Oil & Gas PLC
07 December 2020
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
7th December 2020
United Oil & Gas PLC
("United" or the "Company")
New Independent Report indicates over 2.4 billion barrel
potential in Jamaican licence
United Oil & Gas Plc (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets , is pleased to announce the results of an
independent evaluation of Prospective Resources that has been
prepared by Gaffney Cline & Associates (Gaffney Cline) covering
the Walton Morant licence, offshore Jamaica, which is now held 100%
by United.
Highlights(1)
-- New independent Prospective Resource report from Gaffney
Cline deepens understanding of the world class potential of Walton
Morant licence
-- Unrisked mean prospective resources of over 2.4 billion
barrels assigned across 11 prospects and leads(2)
-- 406 MMbbls gross unrisked mean Prospective Resource estimate
for the Colibri Prospect, the prime exploration target on the
licence - an uplift of 77% compared to previous independent
report
-- First independent review of Morant Basin indicates major
potential including Thunderball lead with mean unrisked recoverable
prospective resources of 603 MMbbls
(1) All resources figures referred to above are mean unrisked
prospective resources stated both gross and net to United
(2) Summation made by UOG management based on the GaffneyCline
analysis
Jonathan Leather, Chief Operating Officer, United Oil and Gas,
commented:
"United has long held the view that the Walton Morant Basin is a
highly prospective and exciting basin, with billion-barrel
potential. This is the second independent report on the licence and
the first to explore prospects across the full basin. The results
are exceptionally positive and support our strong conviction that
this is a transformational asset.
"While the 77% uplift in the unrisked mean Prospective Resource
estimate for Colibri, our main target in the Walton Basin, is an
excellent result, we are just as excited about seeing the
multi-billion-barrel potential of the licence as a whole. A
successful outcome for Colibri now opens up even greater
possibility in this region.
"Since concluding the agreement with the Jamaican Government to
take on operatorship earlier this year, and informed by feedback
from companies who have engaged with United and the previous
licence operator in the data-room process, United has been making
good progress on the committed work programme, and the CPR results
here are another step towards reaching the Company's ultimate goal
of being in position to drill the first exploration well offshore
Jamaica for over 40 years. We are actively seeking partners to join
us in making this happen - and unlocking the potential that is
clearly present in Jamaica. This latest verification of potential
will greatly help in that goal."
Walton Morant Licence
United is the 100% equity holder and operator of the Walton
Morant licence offshore Jamaica. The licence covers 22,400km (2) .
11 wells have been drilled to date (9 onshore, 2 offshore), and all
bar one contained hydrocarbon shows.
United were granted a 100% stake in the licence in 2020 by the
Jamaican Government. This included an 18-month extension to the
Initial Exploration Period, with a drill-or-drop decision required
by 31(st) January 2022. As part of this agreement, the Company was
mandated to carry out a low cost, geotechnical work programme,
building on the $30m+ that has been invested to date.
United have made significant progress on the work programme
items, including a re-interpretation of the Morant Basin. The
update to the CPR was commissioned based on this new work. As well
as a review of the drill-ready Colibri prospect, with an updated
reservoir model based on the Pre-Stack Depth Migration ( PSDM) 3D
data-set that was acquired and processed in 2018-19, for the first
time the CPR also included a review of the wider prospectivity
across the basin. In total, 11 prospects and leads were reviewed,
and the results are shown in Table 1. These highlight overall
prospective resources of over 2.4 billion barrels.
Table 1. Gross Prospective Resource estimates for the Walton
Morant Licence
Basin Name Prospect Prospective Resources (MMbbl) Pg%
/ Lead
U1 U2 U3 Mean
-------- ------- -------- -------
Colibri P 33.4 223 966 406 19
-------------- ------------------- -------- ------- -------- ------- ----
Oriole P 44.7 172 453 220 13
-------------- ------------------- -------- ------- -------- ------- ----
Streamertail P 35.6 160 480 221 13
-------------- ------------------- -------- ------- -------- ------- ----
Tody P 9.4 39.8 113 53.2 14
-------------- ------------------- -------- ------- -------- ------- ----
Walton Euphonia P 6.5 28.8 81 38.3 14
-------------- ---------- -------- ------- -------- ------- ----
Thunderball L 76.3 417 1,356 603 10
-------------- ------------------- -------- ------- -------- ------- ----
Moonraker L 44.9 225 718 323 10
-------------- ------------------- -------- ------- -------- ------- ----
Moneypenny L 30.8 128 370 173 10
-------------- ------------------- -------- ------- -------- ------- ----
Blofeld L 29.9 129 361 171 8
-------------- ------------------- -------- ------- -------- ------- ----
Goldeneye L 41.1 140 346 174 10
-------------- ------------------- -------- ------- -------- ------- ----
Morant Jaws L 6.7 28.3 82.4 38.5 8
-------------- ---------- -------- ------- -------- ------- ----
Notes
1. Gross Prospective Resources are 100% of the volumes estimated to be recoverable from the prospect(s)/lead(s) in the event that a discovery is made and subsequently developed.
2. The Chance of Geologic Discovery (Pg) reported here
represents an indicative estimate of the probability that drilling
the prospect(s)/lead(s) would result in a discovery. This does not
include any assessment of the risk that the discovery, if made, may
not be developed (i.e., it does not include a Chance of Development
(Pd)).
3. The volumes reported here are "unrisked" in the sense that no
adjustment has been made for the risk that no discovery will be
made or that any discovery would not be developed.
4. Prospective Resources in this table are UOG's working
interest fraction of the gross Prospective Resources; they do not
represent UOG's actual Net Entitlement under the terms of the PSA
that governs the asset, which would be lower.
5. Identification of Prospective Resources associated with a
prospect is not indicative of any certainty that the Prospect will
be drilled, or will be drilled in a timely manner.
6. Prospective Resources should not be aggregated with each
other, or with Reserves or Contingent Resources, because of the
different levels of risk involved.
7. U1 is the low (P90) estimate, U2 is the best (P50) estimate and U3 is high (P10) estimate.
8. Figures reported in line with SPE PRMS guidelines
9. Mean volumes are reported at the request of UOG management.
10. UOG are 100% equity holders and operators of the Walton Morant Licence
At Colibri, the new reservoir model has led to unrisked mean
prospective resources of 406 MMbbls being assigned to the primary
drill candidate. This is an increase of 77% compared to the
previous value of 229 MMbbls that was estimated in a CPR completed
at the end of 2019. The fact that billion-barrel potential has been
recognised in the Morant basin, away from the existing 3D seismic
data, suggests there is significant follow-on potential should
there be a basin-opening success at Colibri.
The new independent Prospective Resource report builds on the
existing evaluation of the Licence and provides further
encouragement on the potential that is held within the Walton
Morant Basin. It will form part of the data-room that United is
holding to attract farm-in partners in 2021.
The full Prospective Resources report is available for download
on the Company's website www.uogplc.com
Jonathan Leather, an Executive Director of the Company, who has
over 20 years of relevant experience in the oil and gas industry,
has reviewed and approved the information contained in this
announcement. Dr Jonathan Leather is a qualified person as defined
in the guidance note for Mining Oil & Gas Companies of the
London Stock Exchange and is a member of the Petroleum Exploration
Society of Great Britain and the Society of Petroleum
Engineers.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
S
Glossary
bbl, bbls means barrel, barrels
CPR means competent person's report
M means thousand
MM means million
PRMS means the 2018 Petroleum Resource Management System
(SPE)
SPE means Society of Petroleum Engineers
'Prospective Resources' means those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development. They are further subdivided
in accordance with the level of certainty associated with
recoverable estimates assuming their discovery and development and
may be sub-classified based on project maturity.
Lead means a project associated with a potential accumulation
that is currently poorly defined and requires more data acquisition
and / or evaluation to be classified as a prospect
Prospect means a project associated with a potential
accumulation that is sufficiently well defined to represent a
viable drilling target
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0) 20 3137 1902
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) +44 (0) 20 7397 8900
Derrick Lee and Pete Lynch +44 (0) 131 220 6939
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
Camarco (Financial PR/IR)
Billy Clegg +44 (0) 20 3757 4983
Georgia Edmonds uog@camarco.co.uk
James Crothers
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a
portfolio of low-risk, cash generative production and development
assets across Egypt, UK, Italy and a high impact exploration
licence in Jamaica.
Led by an experienced management team with a strong track record
of growing full cycle businesses and partnered with established
industry players, the Company is well positioned to deliver future
growth through portfolio optimisation and targeted
acquisitions.
United Oil & Gas is listed on the AIM market of the London
Stock Exchange. For further information on United Oil and Gas
please visit https://www.uogplc.com/
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END
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