United Oil & Gas Advances Jamaica Drilling Readiness as Farm-Out Process Continues

United Oil & Gas Plc (AIM: UOG) has commissioned a drilling rig and long-lead equipment study for its Walton-Morant Licence offshore Jamaica, advancing preparations for potential exploration drilling while supporting the company’s ongoing farm-out process.

NRG Well Management has been appointed to assess offshore rig availability, market day rates, mobilisation requirements, long-lead equipment and procurement schedules for a potential future drilling campaign.

The work will focus particularly on the Colibri prospect, which has gross unrisked mean prospective resources of 406 million barrels of oil, and the Thunderball lead, which contains 603 million barrels of gross unrisked mean prospective resources.

Together, the two targets represent more than one billion barrels of mean prospective resources, within a wider Walton-Morant portfolio which United estimates contains more than 7 billion barrels of prospective resource potential.

The company said commissioning the study will provide up-to-date operational and commercial information that can be used in its continuing discussions with potential farm-out partners.

Colibri and Thunderball drilling options assessed

NRG will engage directly with international drilling contractors and supply-chain providers to determine which offshore rigs could potentially undertake the programme and the likely commercial terms.

Colibri is located in approximately 750 metres of water in the Walton Basin and is defined by 3D seismic as a large structural closure. In addition to its 406 million barrel mean prospective resource estimate, it has a P10 high case of 966 million barrels.

Its water depth means the prospect could potentially be drilled using a relatively broad range of floating rigs, including suitable semi-submersibles and drillships.

NRG will also assess the requirements for drilling Thunderball, located in substantially deeper water of around 1,900 metres in the Morant Basin.

Thunderball has estimated mean prospective resources of 603 million barrels and a P10 high case of 1.36 billion barrels.

The lead forms part of a series of large tilted fault-block structures identified from 2D seismic across the Morant Basin, giving United potential follow-on opportunities should future exploration prove successful.

NRG’s work will examine whether rigs could technically accommodate both targets, alongside the availability and procurement times for critical well equipment and specialist drilling services.

The study will also assess potential logistics and supply-chain infrastructure across the Gulf of Mexico, Guyana, Suriname and Trinidad, together with the readiness of Jamaican ports to support offshore drilling operations.

United expects the study to be completed within the coming weeks.

Chief operating officer Donal Meehan said the work would provide current market information on rig suitability, availability, commercial conditions and long-lead equipment while helping position the company for operational readiness ahead of any future drilling campaign.

He said the information would also support United’s efforts as it pushes to conclude the Jamaican farm-out process.

The company stressed that commissioning the study does not represent a commitment to drill. Any exploration well would remain dependent on securing the necessary regulatory approvals from the Jamaican government and completing the required commercial agreements.

The Walton-Morant Licence covers approximately 22,400 square kilometres offshore Jamaica, with United’s portfolio of identified prospects and leads carrying an arithmetic total of approximately 7.28 billion barrels of unrisked mean or mid-case prospective resources.

With the farm-out process continuing, the new NRG study represents another step towards establishing the practical requirements and potential costs of drilling some of the largest targets within United’s Jamaican exploration portfolio.