Tullow Exits Jamaican Exploration License, Transfers Interest to UOG
Tullow Oil Plc has withdrawn from the Walton-Morant license offshore Jamaica, and transferred its 80% operated interest to block partner United Oil & Gas Plc (UOG) for a nominal fee. As a result, UOG will hold a 100% operated interest in the license.
Concurrently, UOG has been granted an 18-month extension for continuing exploration work on the license, and has also initiated a sales process to seek a farm-in partner for exploration drilling on the Colibri prospect planned for 2021.
In November 2017, AIM-listed independent UOG had entered into a farm-in agreement with Tullow for a 20% interest in the Walton-Morant license. UOG was established in 2015 by a team of former Tullow employees with the aim of building an international E&P company with assets across Europe, Latin America, the Caribbean, and Africa. The company currently holds interests in upstream exploration licences in Italy, Jamaica, and the United Kingdom.
The Walton-Morant license comprises of 10 blocks covering an area of 22,400 sq. km located off the southern coast of Jamaica in water depths of 25 to 2,000 meters. The license contains the Colibri Prospect as well as several follow-on exploration targets. According to UOG’s latest estimates, the license contains Unrisked Mean Prospective Resources of approximately 229.0 million barrels (MMbbls) of oil.
“Walton-Morant has the potential to have a major impact on United Oil & Gas and we are delighted to have successfully concluded an agreement with the Jamaican Government to take on operatorship and to develop this license for the benefit of all stakeholders,” said Brian Larkin, UOG’s CEO.
“The United team know this license well, having worked on it for many years. Our experience and understanding of the licence and conviction about it was critical to the Jamaican Government’s decision to grant us operatorship, 100% interest, and an 18-month extension. We are confident in the quality of this license and in the opportunities that exist not only in the Colibri prospect, but across the full 22,400 km2 area,” he added.