United Oil and Gas shares surge on 'bonus' discovery

United Oil and Gas shares surge on 'bonus' discovery
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Shares in Irish exploration company United Oil and Gas surged by nearly 10% on the back of drilling at one of its UK licences uncovering a "bonus" discovery.

United is a 10% junior partner at the offshore Colter field, located in the south of England.

"Initial results from Colter have delivered a bonus in the form of an additional hydrocarbon structure, which has excellent initial oil and gas shows," said United chief executive Brian Larkin. "This offers opportunity for future appraisal and to increase the overall value of the Colter licence," he said.

More work will be required to determine the resource potential within the structure, the company said.

United, last week, announced an independent report increased the resource estimate from the Jamaican licence it co-owns with Tullow Oil.

Elsewhere, British mineral exploration company Erris Resources is considering new mining licence opportunities in Ireland as it looks to build its asset base here.

The company, which is also active in Sweden and Finland, is looking at opportunities in a number of countries. Ireland is high up on its list as the majority of its operational team is based in Sligo, also the location for the company's Abbeytown zinc-lead-silver-copper project.

The company is also awaiting approval for a number of mining licence applications, in the Galway region, it lodged last year.

"We are reviewing several new projects that fit the Erris model. These are opportunities that either have defined mineral resources or show significant exploration upside," said Erris chief executive Anton du Plessis.

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