United Oil & Gas PLC (AIM:UOG) told investors it extended its exploration licence offshore Jamaica.
The Walton Morant licence was approved by the Jamaican Cabinet for a two-year extension. The new expiry date is January 31, 2024.
The extension is a boost for United in Jamaica. The explorer sees the potential for some 2.4bn barrels of oil – with 11 high graded leads and prospects identified so far. Earlier this year the company started a farm-out process which seeks to bring a partner to help take the project forward.
"We are delighted to have received approval for the two-year licence extension in Jamaica,” said chief executive Brian Larkin.
“United has done extensive technical work on this asset, which has over 2.4bn barrels of unrisked oil potential and the basin-opening Colibri prospect at a drill-ready stage.
“The extension allows us to continue the farm-out campaign with confidence as we look for a strategic partner(s) to unlock the vast potential in this region.”
Specifically, United is looking for a partner in a drill programme, starting with Colibri which has been estimated at 406mln barrels of prospective resources.
Larkin added: “With the licence extension, the outlook for higher commodity prices, sentiment for exploration and anticipated recovery of the investment cycle we look forward to pursuing this significant opportunity in the region for the benefit of all stakeholders."