United Oil buys into Jamaican licence

Dublin-based explorer United Oil and Gas is actively looking at further deal opportunities after expanding its asset base via the purchase of a 20% stake in a Tullow Oil licence offshore Jamaica.

The company has farmed into the Walton-Morant licence off the coast of Jamaica, which is operated by Tullow. The licence covers more than 32,000sq km in the Caribbean Sea and initial testing has already hinted at attractive reservoir targets. Tullow is due to carry out a further 3D seismic study in the first half of next year. While only 11 wells have been drilled in the area, 10 have encountered oil.

“At our time of listing, we outlined a clear strategy of building a low-risk business in Europe while also adding blue sky exploration upside in Latin America and Africa. This acreage is well known to the United team and we are very excited about the prospect of participating in this high impact campaign,” said United Oil and Gas chief executive Brian Larkin.

“In addition to our new Jamaican interest, we continue to evaluate further potential farm-in and acquisition opportunities,” he said.

After floating earlier this year, the company said it may consider acquiring Irish offshore licences in the mid-term. United Oil and Gas should also know initial results, in the coming weeks, of its maiden drilling round at its Podere Gallina licence in Italy.

Meanwhile, Merrion Capital has upped its rating on Tullow Oil to ‘buy’, on the back of a strong recent trading update and oil price recovery and has upped its price target for the stock to £2.20 (€2.46).

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