London-listed United Oil & Gas (AIM:UOG) 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.
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