United Oil & Gas PLC (LON:UOG) told investors that it has completed the farm-in and transfer of a 20% stake in the Walton-Morant Licence offshore Jamaica.
The junior oil firm is now the minority partner in the Tullow Oil-operated project, where a new 3D seismic exploration programme is due to start in March.
United agreed to acquire the stake back in late November, and in return it will cover a proportionate share of the cost back to the date of the agreement (November … ).
Walton-Morant spans more than 32,000 square kilometres. It is described as being a “a commanding Caribbean exploration opportunity”.
Eleven wells have been drilled in the area so far though there have been difficulties with well locations, due to a “lack of seismic control”.
Presently, the attentions are on existing and new seismic.
Tullow has a large portfolio of legacy 2D seismic data, and it has acquired some 3,650 kilometres of new 2D seismic in recent years. The operator now intends to gather 3D seismic with a programme that’s due to start later this month.
The plan is to capture 2,000 square kilometres, focussing on the “high grade” Colibri lead.
Desktop work has the elements for a working petroleum system. Additionally, technical work has providing confidence that there is the potential to find significant commercial volumes within the licence.
Brian Larkin, who was previously at Tullow and Providence Resources, back in November said: “This acreage is well known to the United team and we are very excited at the prospect of participating in this high impact campaign.”
“The current low-cost environment has allowed United to take a material 20% equity position in this high potential frontier exploration license and we look forward to working with Tullow Oil in the coming months to advance the 2017 and 2018 work programmes.”