United Oil & Gas PLC (AIM:UOG) shares plummeted in Thursday morning’s trade as the explorer revealed that the "preferred potential partner" in its Jamaican farm-out has decided to exit the process.
The AIM-quoted exploration company, in a statement, said it would now focus on the recent positive interest that has been shown by other parties in potentially participating in "the high impact exploration opportunity".
It added that the board believes the renewed interest in exploration opportunities worldwide, driven by the strong future demand for oil and gas, will support United’s farm-out efforts.
“Although the potential partner that we had been in discussions with for a number of months has taken the decision to withdraw from the process at this time, we remain committed to delivering value from this potentially high impact exploration opportunity," chief executive Brian Larkin said in a statement.
“Our efforts are now firmly focussed on the other parties that we have engaged positively with through our process with a view to securing a partner for United to take this project forward, in parallel to securing an extension to the current phase of the licence."
United told investors it continues talks with the Jamaican authorities to secure an extension to the current licence period for the Walton Morant asset, which is currently set to expire at the end of January 2024 – aiming to agree a negotiated work programme to comprise technical work to de-risk the licence prior to drilling an exploration well.
United also announced today the appointment of Simon Brett as interim chief financial officer. Brett was previously chief financial officer at Barryroe Offshore Energy.
In London, United shares were down 24.25%, changing hands at 0.73p each.