United Oil shares jump 12% on UK deal

Shares in Dublin-based exploration company United Oil and Gas jumped more than 12% on the news of it buying into three licences in the south of England.

United Oil shares jump 12% on UK deal

Shares in Dublin-based exploration company United Oil and Gas jumped more than 12% on the news of it buying into three licences in the south of England.

The company, established by former Tullow Oil executives, has taken a 10% share of three licences operated by privately-owned British explorer Corallian, and has an option to buy a further 10% of them.

In return, United will cover over 13% of the costs associated with drilling one of the prospects, the Colter well, in the second quarter of this year.

The Colter discovery lies adjacent to the Wytch Farm field, on England’s south coast, which has produced more than 450 million barrels of oil.

Wytch Farm is currently ranked as the largest oil field in Europe.

The total costs of the drill will be around £7m (€7.87m), of which United’s share will be around £933,100 (€1.05m).

The new licences give United both an onshore and offshore presence in the UK, where it already has one licence.

In addition, United and Corallian have agreed to jointly identify and target further opportunities in the same area.

“This, our second cluster of UK licences and fourth in total, gives United’s shareholders access to a near-term, drill-ready target in a highly prospective region,” said United Oil’s chief executive Brian Larkin. United has stated its plan is to build a presence in Europe, Latin America and Africa.

It recently bought into one of Tullow Oil’s prospects in Jamaica and saw initial positive results from its maiden drill in Italy.

More in this section

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up