United Oil & Gas reports 'drill or drop' extension from Tullow Oil
Francesca Morgan
Company News - 2 mins
09:27, 14th January 2020

London-listed United Oil & Gas (AIM:UOG) FOLLOW told investors on Tuesday that the Initial Exploration Period at the Walton Morant Basin, of which United has a 20% interest, has been extended until 31st July 2020.

According to United, Tullow Jamaica, partner and operator of the Jamaican offshore licence, has reached a decision to amend the period by a further six months.

This means that a ‘drill-or-drop decision’ will be decided by 31st July instead of 31st January 2020 to determine whether a commitment is made to drill an exploration well at the site.

A joint farm-down effort is currently being led by Tullow, the wholly owned subsidiary of Tullow Oil, in preparation for the anticipated exploration drilling in 2021 on the Colibri prospect.

The company explained how a number of interested parties were continuing their evaluations of the licence data and that the extension would provide sufficient time for these to be completed.

“We have seen additional interest in the licence towards the end of 2019, and this extension will allow those parties to fully evaluate this excellent opportunity,” said Brian Larkin, Chief Executive of United Oil & Gas.

Larkin added that the group continues to be excited by exploration potential in the Colibri prospect and other areas across the licenced acreage.

United agreed to farm-in to the Tullow Oil operated Walton Morant licence, which extends for over 32,000km² in November 2017.

In December, Dorothy Thompson, Executive Chair of Tullow Oil expressed disappointment on behalf of the Board regarding Tullow’s business after the group published a full business review highlighting senior management changes and revised capital expenditure budgets.

The company explained that a full financial and operational update will be provided at Tullow’s Full Year Results on 12 February 2020.

Follow News & Updates from United Oil & Gas here: FOLLOW

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Comments
info
Login or register to post comments

Recent Articles
Watchlist