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United Oil & Gas PLC   -  UOG   

Delivery of 3D seismic for Jamaica licence

Released 07:00 13-Aug-2018

RNS Number : 5353X
United Oil & Gas PLC
13 August 2018
 

United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil & Gas

 

United Oil & Gas PLC ('United' or 'the Company') 

Delivery of fast track 3D seismic data on Tullow Oil-operated licence, offshore Jamaica

 

Highlights

·     Delivery of fast track 3D seismic data following completion of 2,250 sq km survey over Walton-Morant licence ahead of schedule and under budget

·     High-grade Colibri target can be clearly identified on this new dataset

·     Processing and interpretation of data underway - initial opinion is that the product is of excellent quality, and work now focused on further de-risking multiple targets including Colibri

 

United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce that the fast track version of the recently acquired 3D seismic dataset over the Walton-Morant licence ('Walton-Morant' or 'the Licence'), offshore Jamaica, has been delivered by the operator, Tullow Jamaica Ltd ('Tullow'). Encouragingly, the high-grade Colibri target, which had previously been mapped on 2D seismic, has been clearly identified on the fast track version of the 3D seismic dataset.  This follows the completion of a 2,250 sq km 3D seismic acquisition survey on the Licence (see announcement of 14 May 2018 for further details).  United holds a 20% equity interest in the 32,065 sq km Licence, with the remainder held by Tullow, a wholly owned subsidiary of leading independent oil and gas exploration and production company Tullow Oil plc (LSE: TLW).

 

The 3D seismic survey, which is the first to have been acquired in Jamaica, forms part of a programme focused on de-risking highly prospective Cretaceous and Tertiary aged clastic and carbonate reservoir targets that have been mapped by Tullow on 2D seismic data.  Among these is Colibri, which has been estimated from 2D data to hold gross mean-case prospective resources of over 200mmbbls.  The technical case for Colibri has been further strengthened by the recent identification of an active thermogenically derived offshore oil seep to the south of the structure.

 

Initial opinion is that the fast track 3D seismic data is of excellent quality with the Colibri structure clearly visible on the newly acquired dataset.  Processing and interpretation work is now underway and the Company will provide a further update to the market once this has been completed and final volumes are available.  

 

United Oil & Gas Plc CEO, Brian Larkin, said, "The work programme to de-risk the 200mmbbl Colibri target on Walton-Morant continues to proceed on schedule and under budget.  Being able to clearly identify Colibri on the 3D seismic at such an early stage is highly encouraging and with this in mind, we are looking forward to the processing and interpretation work being completed.  

 

"United has a dual focused strategy to expose shareholders to multiple near-term value drivers from its portfolio of low-risk development and appraisal assets in Europe and potentially transformational exploration projects in Latin America, the Caribbean and Africa.  Our 20% interest in Walton-Morant represents high impact exploration, however, near-term needle-moving activity is not confined to Jamaica.  In Europe, the Podere Maiar gas discovery in Italy is being progressed through the permitting process ahead of being brought into production; while in the UK, the near-shore Colter Discovery, which lies in the same play as the prolific Wytch Farm field, is due to be drilled in Q4 2018.  Activity with significant re-rating potential is being undertaken across our portfolio 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, including the Colibri lead.

 

**ENDS**

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

For more information please visit the Company's website at www.uogplc.com or contact: 

 

United Oil & Gas Plc (Company)


Brian Larkin

brian.larkin@unitedoilandgas.eu



Optiva Securities Limited (Broker)


Christian Dennis

+44 (0) 20 3137 1902



Beaumont Cornish Limited (Financial Adviser)


Roland Cornish and Felicity Geidt

+44 (0) 20 7628 3396



Murray (PR Advisor)

+353 (0) 87 6909735

Joe Heron

jheron@murrayconsultants.ie



St Brides Partners (Financial PR/IR)


Frank Buhagiar and Juliet Earl

+44 (0) 207 236 1177

 

 

Notes to Editors

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  United was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

 

The following table outlines the company's licences:

 

 

Country

Licence

Operator

United Interest

Italy

Podere Gallina Licence

Po Valley Energy Limited

20%

United Kingdom

Waddock Cross Field

Egdon Resources UK Limited

26.25%

United Kingdom

PL090 Exploration

Egdon Resources UK Limited

18.95%

United Kingdom

P1918

Corallian Energy Limited

10%

United Kingdom

PEDL 330

Corallian Energy Limited

10%

United Kingdom

PEDL 345

Corallian Energy Limited

10%

Jamaica

Walton-Morant

Tullow Jamaica Ltd

20%

 

 

 




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Delivery of 3D seismic for Jamaica licence - RNS