United Oil Targets Jamaica Farm-Out Deal by October

United Oil & Gas Plc says it is aiming to bring a joint-venture partner on board for its offshore Jamaica exploration project by October 2026, as growing interest in energy security boosts attention on the country’s offshore acreage.

The London-listed company reported that discussions with prospective partners have advanced, with several parties already engaged under non-disclosure agreements as it seeks a farm-out deal for its Walton Morant licence. According to Chief Executive Brian Larkin, the company believes the quality of the licence and the progress made in advancing the project have attracted strong interest from potential partners.

Supporting those efforts are findings from a seabed survey completed in February 2026, which detected butane and pentane hydrocarbons in seabed core samples collected across the Walton Morant licence area. The results are expected to strengthen the company’s ongoing technical evaluation of the offshore block and support negotiations with prospective investors.

United also pointed to an independent risking study released in September 2025, which indicated that a successful survey could significantly improve the probability of drilling success on two of its priority prospects. The study suggested the chances of success at the Colibri prospect could improve from one in five to one in three, while the Oriole prospect could improve from one in eight to one in five.

The company reported that it recorded a post-tax loss of US$1.25 million for the year ended December 2025, an improvement from the US$2.4 million loss reported a year earlier. Cash balances also increased to US$1.7 million at year-end.

Larkin said shifting global energy dynamics have created a more favourable backdrop for frontier exploration. He noted that conflict involving Iran earlier this year and the effective closure of the Strait of Hormuz disrupted about 20 per cent of global seaborne oil and liquefied natural gas supplies, increasing demand for energy resources outside the Gulf region.

He added that stronger oil prices and renewed interest from major international energy companies have increased the appeal of Atlantic-facing exploration assets with direct access to key markets, placing Jamaica in a favourable position.

The Walton Morant licence covers approximately 22,400 square kilometres of offshore territory south of Jamaica and is estimated to contain around seven billion barrels of unrisked mean prospective resources. An independent assessment by Gaffney Cline and Associates also estimated more than 2.4 billion barrels of recoverable unrisked mean prospective resources across five identified prospect zones.

The offshore exploration licence is valid until January 2028.

Remember to share this article on Facebook and other Social Media Platforms. To submit your own articles or to advertise with us please send us an EMAIL at: [email protected]