United Oil & Gas Plc ("UOG") 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.
· 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 leads2
· 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
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 22,400km2. 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 31st 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. These highlight overall prospective resources of over 2.4 billion barrels.
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.