RCS - United Oil & Gas PLC - Technical and Operational Update on Walton Morant

United Oil & GasAnnouncement

10/04/2025 07:00

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RNS Number : 4121E  United Oil & Gas PLC  10 April 2025

For immediate release

10 April 2025

United Oil & Gas plc

("United" or the "Company")

Technical and Operational Update on Walton Morant Licence, Jamaica

United Oil & Gas Plc (AIM: "UOG"), is pleased to provide a technical and
operational overview on the Walton Morant Licence offshore Jamaica. This
detail follows the Company's recent announcement confirming an early two-year
licence extension to 31 January 2028, and renewed momentum in the farm-out
process with multiple parties now under NDA.

 

Operational and Economic Highlights:

·      Early two-year licence extension to 31 January 2028

·      Multiple parties under NDA and farm-out process advancing

·      c. 7 billion¹ barrels of potential unrisked prospective
resources

·      c.$8.5/bbl¹ estimated development cost and c. $25/bbl¹
breakeven in success case

·      United's Internal estimate NPV10 of c. $23 billion based on
Gaffney Cline 2.4 billion unrisked mean prospective resource (at $80/bbl oil,
2% inflation)

·      Attractive fiscal terms Work programme permitting underway

·      Strong government support

 

Farm-Out Process and Industry Engagement

United have re-engaged with selected parties who had previously expressed
interest before the farm-out process was suspended in December 2024, as well
as new interest from additional groups. At present, multiple companies are
under Non-Disclosure Agreements (NDAs) and actively reviewing data as part of
the farm-out process. Further updates on the farm-out process and technical
progress will be provided

 

Jamaica: A Unique Frontier Oil & Gas Opportunity

Jamaica represents one of the last great frontier exploration opportunities
globally. The Walton-Morant Licence is a world-class asset, comparable in
scale and geological potential to ExxonMobil's prolific Stabroek Block in
Guyana, where over 11 billion barrels of recoverable oil have been
discovered. Like Stabroek, Walton Morant features large structural traps with
high-quality reservoir potential but remains substantially underexplored,
presenting a compelling investment opportunity.

 

The Walton-Morant Block: A Transformational Exploration Opportunity

The 22,400km² Walton-Morant block hosts over 40 identified leads and
prospects. Eleven of these have been independently verified by Gaffney-Cline
in a Prospective Resources Report ("PRR"), collectively estimated to hold over
2.4 billion barrels of unrisked mean prospective resources. Internal estimates
from UOG and previous operators indicate that licence's total exploration
potential could exceed 7 billion barrels.

 

The licence comprises two distinct geological basins, each offering
high-impact exploration potential.

 

Walton Basin:

·    Several large, high-impact prospects including Colibri (406 MMbbl3),
Oriole (220 MMbbl3), and Streamertail (221 MMbbl3).

·    29 leads and prospects including five PRR-certified.

·    Potential upside exceeding 4 billion barrels(1) identified across
identified leads and prospects.

Morant Basin:

·    Several high-impact structures, including Thunderball (603 MMbbl(3))
and Moonraker (323 MMbbl(3)).

·    11 leads identified to date on 2D seismic, including six
PRR-certified leads.

·    Potential upside exceeding 3 billion barrels(1) across identified
leads.

Key Licence Attributes:

·    Vast Exploration Potential - over 40 identified leads and prospects,
with combined unrisked prospective resources exceeding 7 billion barrels(1).

·    Globally Competitive Fiscal Terms supporting exploration and
long-term investment.

·    Access to 2,250km² of high-quality 3D seismic data, allowing
detailed subsurface imaging to refine prospects and reduce exploration risk.

·    Strong government support, providing clear regulatory processes to
facilitate exploration and development activities.

Advancing the Farmout and Work Programme

UOG remains focused on securing a farmout agreement to unlock the full
potential of the Walton Morant Licence, with multiple high-calibre industry
players under NDA and evaluating the asset.

United's work programme is in the planning and permitting stage, focusing on
further technical de-risking activities. This includes piston core sampling to
enhance reservoir understanding, and reprocessing of existing seismic data to
refine prospectivity across the licence.

 

Brian Larkin, CEO of United Oil & Gas, commented:

 

"With our early licence extension secured, we are pleased to present this
technical and economic overview, highlighting the world-class exploration
potential and compelling economics of the Walton Morant Licence.

 

With over 2.4 billion barrels independently certified prospective resources
and internal estimates exceeding 7 billion barrels, this licence remains one
of the most compelling, frontier exploration opportunities globally.

 

Strong renewed interest from multiple potential partners is clear validation
of the scale and potential value of this licence. We remain focused on
securing the right farm-out deal for our shareholders."

Notes

(1) Based on UOG's arithmetic sum of the Unrisked Mean or Mid-Case Prospective
Resources for each prospect or lead identified within the Walton Morant
Licence boundary by UOG and/or previous operators

(2) Prospective Resources Audit by Gaffney Cline & Associates, Dec 2020

(3) Unrisked Mean Prospective Resources as per GaffneyCline PRR

(4) Unrisked Mid-Case Prospective Resources in leads of varying maturity
identified by previous operators

 

Appendix 1: Table of Certified and Uncertified Leads and Prospects Across the
Walton Morant Licence

Appendix 2: Selection of Leads and Prospects identified on the Walton Morant
Licence.

The figure below illustrates a selection of the leads and
prospects identified across the Walton-Morant Licence. The 11 leads and
prospects independently certified in the Prospective Resources Report
(PRR) are highlighted in orange.

 

ENDS

For further information

 United Oil & Gas Plc (Company)
 Brian Larkin, CEO                     brian.larkin@uogplc.com (mailto:brian.larkin@uogplc.com)

 

Notes to Editors

United Oil & Gas is an oil and gas company with a development asset in
the UK and a high impact exploration licence in Jamaica.

 

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