United Oil completes rig and logistics study

United Oil & Gas said on Tuesday that it completed a rig and logistics study outlining the requirements for potential drilling offshore Jamaica.

“The completion of this study is an important step forward for the Walton-Morant licence. It supports our ongoing farmout process, providing practical insight into rig and equipment availability and critical path items required to access the greater than 1 billion barrel mean prospective resources,” Chief Executive Brian Larkin said in the company’s release.

The study brings the company a step closer to attracting investors to fund offshore drilling in Jamaica.

The London-listed explorer disclosed positive results from a drilling-rig and logistics assessment conducted by NRG Well Management. The review found a sizeable pool of suitable offshore rigs, identified critical equipment requirements, and outlined a Jamaica-based logistics model capable of supporting future drilling operations.

The findings come as United intensifies its farm-out process, under which a larger industry partner would finance the costly drilling programme in exchange for a stake in the licence.

For investors and potential partners, the study addresses a practical question that often arises long before a drill bit reaches the seabed: whether the equipment, contractors and supply chain needed for a deep-water campaign can realistically be assembled.

The report suggests that if United secures a farm-in partner, the company now has greater visibility on how an exploration programme could be executed. Rather than simply having geological prospects on paper, United can point prospective partners to available drilling rigs, equipment procurement timelines, and a logistical support plan based largely in Jamaica.

Larkin said the analysis provides “immediate, practical and usable information on the potential delivery of a future exploration campaign” for prospective partners.

The company stressed that the study does not amount to a decision to drill. Any future well would still depend on securing commercial agreements, obtaining regulatory approvals, and completing the farm-out process.

The study identified a double-digit pool of drilling rigs that could potentially be deployed within the company’s preferred timetable.

The work focused on two of the licence’s largest prospects. The Colibri target, located in about 750 metres of water, is estimated to contain mean prospective resources of 406 million barrels of substances resembling oil. A second prospect, known as Thunderball, in around 1,900 metres of water, is estimated at 603 million barrels of substances resembling oil.

“With this work now complete, our immediate focus remains on concluding the farm-out process,” Larkin said.

United’s Walton-Morant licence covers some 22,400 square kilometres offshore southern Jamaica, making it one of the largest offshore exploration blocks in the Caribbean. The company holds a 100 per cent working interest in the acreage and estimates the licence contains more than seven billion barrels of unrisked prospective resources across dozens of leads and prospects.

United secured a two-year extension of the licence earlier this year, pushing its expiry to January 2028 while it seeks a drilling partner capable of funding what the company has estimated could cost roughly US$30 million for an initial exploration well. The extension was intended to give the company additional time to conclude farm-in negotiations and further de-risk the project.

business@gleanerjm.com