United Oil & Gas PLC Latin America Farm-In Agreement (5287X)

TIDMUOG

RNS Number : 5287X

United Oil & Gas PLC

27 November 2017

27 November 2017

United Oil & Gas Plc

("UOG", "United" or the "Company")

Latin America Farm-In Agreement

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce an agreement to farm-in to the Tullow Jamaica Ltd ("Tullow") operated Walton-Morant licence, offshore Jamaica.

Subject to approval from the Petroleum Corporation of Jamaica (PCJ), United has signed an agreement with Tullow to farm-in to the Walton-Morant licence at a 20% equity interest. Tullow entered the Walton-Morant licence, which covers an area in excess of 32,000km(2) , in October 2014. In addition to securing a large portfolio of legacy 2D seismic data, Tullow also acquired a further 3,650km of 2D seismic in 2016 and 2017. Interpretation of the data set has identified attractive Cretaceous and Tertiary aged clastic and carbonate reservoir targets and Tullow now intends to conduct a 2,000km(2) 3D seismic survey in H1 2018 focusing on the high-graded Colibri lead.

The Walton Morant Licence, offshore Jamaica, offers a commanding Caribbean exploration opportunity with access to play diversity across three geological basins. Only 11 wells have been drilled in the area to date, and despite difficulties with well placement due to a lack of seismic control, 10 of these encountered hydrocarbon shows. Recent work, including extensive onshore fieldwork, has confirmed the presence of all the elements required for a working petroleum system, and has also identified a thermogenically derived offshore oil seep close to the main prospect of interest, providing further confidence that there is the potential to find significant commercial volumes within the licence.

Brian Larkin, United CEO, commented:

"We are delighted to announce our new Jamaican partnership with Tullow Oil. At our time of listing, we outlined a clear strategy of building a low-risk business in Europe whilst 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 at the prospect of participating in this high impact campaign.

The current low-cost environment has allowed United to take a material 20% equity position in this high potential frontier exploration license and we look forward to working with Tullow Oil in the coming months to advance the 2017 and 2018 work programmes. In addition to our new Jamaican interest, we continue to evaluate further potential farm-in and acquisition opportunities and we look forward to updating our shareholders in the coming months."

United's investment will involve paying a 20% share of costs from 1(st) November 2017 into Phase 1c of the current exploration programme.

ENDS

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For more information please visit the Company's website at www.uogplc.com or contact:

 
 United Oil & Gas Plc (Company) 
=====================================  ================================ 
 Brian Larkin                           [e-mail] 
=====================================  ================================ 
 
 Optiva Securities Limited (Broker) 
=====================================  ================================ 
                                        [phone] 
 Christian Dennis                        1902 
=====================================  ================================ 
 
 Beaumont Cornish Limited (Financial 
  Adviser) 
=====================================  ================================ 
 Roland Cornish and Felicity            [phone] 
  Geidt                                  3396 
=====================================  ================================ 
 
 Murray (PR Advisor)                     [phone] 
=====================================  ================================ 
 Joe Heron                              [e-mail] 
=====================================  ================================ 
 

Editor's Note:

About United Oil & Gas

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. United was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the company's licences.

 
 Country           Licence              Operator            United 
                                                             Holding 
----------------  -------------------  ------------------  --------- 
                   Podere Gallina 
 Italy              Licence             Po Valley Energy    20% 
----------------  -------------------  ------------------  --------- 
                   Waddock Cross 
 United Kingdom     Field               Egdon Oil Plc       26.25% 
----------------  -------------------  ------------------  --------- 
 United Kingdom    PL090 Exploration    Egdon Oil Plc       18.95% 
----------------  -------------------  ------------------  --------- 
 Jamaica           Walton-Morant        Tullow Oil plc      20% 
----------------  -------------------  ------------------  --------- 
 

Click on, or paste the following link into your web browser, to view the associated PDF document of the Licence Location

http://www.rns-pdf.londonstockexchange.com/rns/5287X_1-2017-11-26.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 27, 2017 02:00 ET (07:00 GMT)