United Oil buys into Jamaican licence

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).

More on this topic

Providence Resources targets more licences off south coastProvidence Resources targets more licences off south coast

Shell cuts dividend for first time since World War IIShell cuts dividend for first time since World War II

Blow to pension savers as Shell cuts dividend for first time since 1945Blow to pension savers as Shell cuts dividend for first time since 1945

US oil price plunge means the end of Trump's 'American shale' revolution    US oil price plunge means the end of Trump's 'American shale' revolution


More in this Section

China warns of a new cold war in latest US rebukeChina warns of a new cold war in latest US rebuke

Austria leads revolt against €500bn Franco-German EU rescue planAustria leads revolt against €500bn Franco-German EU rescue plan

Irish tourism expected to see 80% drop in business this year due to coronavirusIrish tourism expected to see 80% drop in business this year due to coronavirus

Cruises Are Coming Back. Here’s What They’ll Look LikeCruises Are Coming Back. Here’s What They’ll Look Like


Lifestyle

Last week, I wrote about 'small is beautiful' as a key to an improved environment for all living things after this Covid crisis is finally over. As I wrote, I saw, in the mind's eye, the village where I live in west Cork and from which my wife and I are temporarily exiled.Damien Enright: Community spirit can ensure we pull through - together

Fifty years ago, a fox was spotted in Dublin’s St. Stephen’s Green. The unfortunate animal was chased by local ‘gurriers’. It took refuge in a tree but was promptly stoned to death.Richard Collins: Wildlife taking back the streets of our cities

The north pier on Cape Clear has been eerily quiet these last few months as no visitors disembark. The ferry is not unloading boatloads of tourists from Baltimore, 45 minutes away, or from Schull, as it would normally.The Islands of Ireland: Cape Clear tells its side of the story

If the Donegal postman and amateur weather forecaster has it right, we could be in for water shortages in the coming months. Michael Gallagher, who predicted the scorching summer of 2018 and the 2010 freeze-up, says we’ll have a ‘lovely’ summer.Donal Hickey: Demand for water to soar

More From The Irish Examiner