21st Feb 2019 12:39
LONDON (Alliance News) - United Oil & Gas PLC said Thursday it has seen an upgrade in oil resources for the undrilled Colibri prospect in the Walton-Morant licence, offshore Jamaica.
An independent Competent Person's Report by ERC Equipoise Ltd reported gross mean oil prospective resources of 229 million stock tank barrels, up from 219 mmstb compared to the most recent estimate in 2017.
The geological chance of success has also increased to 20% from 16%.
United Oil & Gas holds a 20% equity interest in te 32,065 square kilometres licence, with the remaining 80% operating stake held by Tullow Jamaica Ltd, a unit of Tullow Oil PLC.
"This is a standout outcome, as it is not uncommon for volumes to be downgraded when structures, that have previously been identified on 2D seismic, are mapped on a 3D dataset. The upgrade in the resources assigned to Colibri is testament to the work carried out by the partners, the quality of the licence and the strength of the geological model we have put in place," said Chief Executive Officer Brian Larkin.
"The next step for Colibri would be making the decision to drill what could be a transformational well for United and with this in mind we are working closely with Tullow on a forward plan for the Licence," Larkin added.
Shares in United Oil & Gas were down 5.5% at 4.30 pence on Thursday. FTSE 250-listed Tullow was down 2.2% at 226.37p.
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