United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, has announced the completion of a 2,250 sq km 3D seismic acquisition survey over the Walton-Morant licence ('Walton-Morant' or 'the Licence'), offshore Jamaica, which includes the high-graded Colibri target. United holds a 20% equity interest in the 32,065 sq km Walton-Morant licence, with the remainder held by the operator, Tullow Jamaica Ltd ('Tullow'), a wholly owned subsidiary of Tullow Oil plc, the leading independent oil and gas exploration and production company.
The 3D seismic survey, the first in Jamaica, was completed safely, under-budget, approximately a week ahead of schedule by the Polarcus Adira vessel. The survey is centred on de-risking a number of highly prospective Cretaceous and Tertiary aged clastic and carbonate reservoir targets that have previously been mapped by Tullow on reprocessed and reinterpreted 2D seismic data. As mentioned these include the Colibri target, which has been estimated to hold gross unrisked mean-case prospective resources of over 200MMstb. The technical case for Colibri is further strengthened by the recent identification of an active thermogenically derived offshore oil seep to the south of the structure.
The Company expects to receive a fast-tracked version of the data by mid-July 2018 with the final processed data-sets due to be available later in the year. Subject to the results, an exploration well could be drilled in 2020-2021, with success significantly de-risking numerous follow-up structures that have already been identified across the Licence.
United CEO, Brian Larkin, said, "With prospective resources of over 200mmbbl estimated for the Colibri target alone and with multiple copycat structures already identified, Walton-Morant has clear potential to be transformative for United. The completed 3D seismic survey is key to de-risking Colibri and other structures to the point where they are drill ready. We are highly encouraged that the survey has been completed ahead of schedule and we now look forward to receiving the fast-tracked data set in Q2 2018.
"Walton-Morant is just one of a number of projects within United's growing portfolio of exploration and development projects. While offshore Jamaica is a high impact exploration opportunity, the recently drilled Podere Maiar gas well in the Po Valley region of Italy and the UK near shore Colter Discovery, which lies in the same play as the prolific Wytch Farm field, are low risk development opportunities. With work underway to bring the Podere Maiar well into production, appraisal drilling on the Colter structure on course to commence in H2 2018, and the 3D seismic survey now completed in Jamaica, we are delivering on our objective to expose our shareholders to a diverse series of value trigger events. This is an exciting period for United and I look forward to providing further updates on our progress."
Further Information on Walton-Morant Licence
The large 32,065 sq km Walton-Morant Licence, offshore Jamaica, is exposed to a number of different plays across three geological basins including the Walton and Morant Basins. To date, only 11 wells have been drilled across the whole of Jamaica's onshore and offshore, and despite challenges with well placement due to a lack of seismic control, 10 of these encountered hydrocarbon shows. Oil-prone source rocks have been identified in the Eocene and in the Cretaceous, with migrant oil identified in onshore wells and outcrop samples. This provides good evidence of the presence of regional source rocks.
Recent work, including extensive onshore fieldwork, has confirmed the presence of all the elements required for a working petroleum system, and has also identified a thermogenically derived offshore oil seep close to Colibri, the main prospect of interest, providing further confidence that there is the potential to find significant commercial volumes within the Licence. Colibri has been high graded on the basis of its position in relation to migration routes out of an identified Eocene kitchen.
Tullow entered the Walton-Morant licence in November 2014. In addition to securing a large portfolio of legacy 2D seismic data, Tullow also acquired a further 3,650 km of 2D seismic in 2016 and 2017. Interpretation of the data set has identified attractive Cretaceous and Tertiary aged clastic and carbonate reservoir targets. The 3D seismic survey is designed to further de-risk these targets, specifically the high-graded Colibri lead.