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Saturday, June 19, 2021

New report points to over 2.4-billion-barrel oil potential in Jamaica

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The unprecedented oil exploration success in Guyana is raising hopes for countries throughout the region and this is seeing a renewed emphasis being placed on the search for black gold.

An independent evaluation of Prospective Resources offshore Jamaica prepared by Gaffney Cline & Associates (Gaffney Cline) show that there is potential for more than 2.4 billion barrels of oil across 11 prospects and leads covering the Walton Morant licence. This licence is now held 100% by United Oil & Gas, a U.K. based oil and gas company.

The report points to a 406 MMbbls gross unrisked mean Prospective Resource estimate for the Colibri Prospect, the prime exploration target on the Walton Morant licence.

“United has long held the view that the Walton Morant Basin is a highly prospective and exciting basin, with billion-barrel potential,” said Jonathan Leather, Chief Operating Officer of United Oil and Gas. “This is the second independent report on the licence and the first to explore prospects across the full basin.”

He said the results are exceptionally positive and support the company’s strong conviction that Walton Morant Basin is a transformational asset.

“While the 77% uplift in the unrisked mean Prospective Resource estimate for Colibri, our main target in the Walton Basin, is an excellent result, we are just as excited about seeing the multi-billion-barrel potential of the licence as a whole,” he said. “A successful outcome for Colibri now opens up even greater possibility in this region.”

Leather said since concluding the agreement with the Jamaican Government to take on operatorship earlier this year and informed by feedback from companies who have engaged with United and the previous licence operator in the data-room process, United has been making good progress on the committed work programme. He said results from the report will help the company move towards reaching the goal of being in position to drill the first exploration well offshore Jamaica for over 40 years.

“We are actively seeking partners to join us in making this happen – and unlocking the potential that is clearly present in Jamaica. This latest verification of potential will greatly help in that goal,” he said.

The Walton Morant licence covers an area of 22,400km2. Eleven wells have been drilled to date (9 onshore, 2 offshore), and all except one contained hydrocarbon shows.

United was granted a 100% stake in the licence in 2020 by the Jamaican Government. This included an 18-month extension to the Initial Exploration Period, with a drill-or-drop decision required by January 21, 2022. As part of this agreement, the company was mandated to carry out a low cost, geotechnical work programme, building on the $30m+ that has been invested to date.

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