Independent evaluation gives more hints that Jamaica has oil
Report points to unrisked mean prospective resources of over 2.4 billion barrels of oil
An independent evaluation carried out by a leading petroleum consulting company headquartered in the United Kingdom has given more hints that Jamaica has commercially viable oil for exploration.
The detailed and technical evaluation done by Gaffney, Cline & Associates (commonly called Gaffneycline) , the second to be undertaken, revealed that Jamaica has what the consulting company deems as “unrisked mean prospective resources of over 2.4 billion barrels of oil.”
Mean prospective of resources refers to the volumes estimated to be recoverable from the prospect in the event that a discovery is made and subsequently developed considering the risks involved.
The volumes reported here are “unrisked” in the sense that no adjustment has been made for the risk that no discovery will be made or that any discovery would not be developed.
The study showed that this potential is spread across 11 prospects and leads, which have been licensed to United Oil & Gas Plc for prospecting.
The identification of prospective resources associated with a prospect is not indicative of any certainty that the prospect will be drilled, or will be drilled in a timely manner.
The evaluation, commissioned by United Oil & Gas Plc, covers the Walton Morant licence, which is wholly held by United Oil & Gas Plc to prospect offshore in Jamaica’s territorial waters.
United Oil & Gas Plc in August this year took over the running of Jamaica’s Walton Morant oil field from fellow explorer, Tullow Oil.
At that time, the Jamaican Government had given its permission for United Oil & Gas Plcs to take forward the reserve on a 100 per cent basis. The deal gives United Oil & Gas Plc 18 months to explore the prospect further with a “drill or drop” decision expected in January 2022.
NEW EVALUATION HIGHLIGHTS THE POTENTIAL OF WALTON MORANT LICENCE
United Oil & Gas Plc reports that this independent evaluation by Gaffneycline “deepens understanding of the worldclass potential of Walton Morant licence”. The Walton Morant licence extends for over 32,000km² and with numerous plays and prospects already identified across three separate basins, including the Colibri Prospect, which although offshore Jamaica is a true frontier basin, where there is compelling evidence that a working petroleum system is present.
The study showed that the prospect area might contain as much as 406 million barrels Mbbls of gross unrisked mean prospective resource estimate for the Colibri Prospect, which is the prime exploration target on the licence.
Gaffneycline indicated that an uplift of 77 per cent compared to previous independent report, which gave a value of 229 Mmbbls that was estimated at the end of 2019.
The fact that the billion-barrel potential has been recognised in the Morant Basin, away from the existing 3D seismic data, suggests there is significant follow-on potential should there be a basin-opening success at Colibri. The first independent review of Morant Basin indicated major potential including Thunderball lead with mean unrisked recoverable prospective resources of 603 Mmbbls.
UNITED OIL & GAS WELCOMES EVALUATION RESULTS
In announcing the results of the independent evaluation, United Oil & Gas Chief Operating Officer (COO) Jonathan Leather commented: “United has long held the view that the Walton Morant Basin is a highly prospective and exciting basin, with billion-barrel potential. This is the second independent report on the licence and the first to explore prospects across the full basin.”
He emphasised that, “the results are exceptionally positive and support our strong conviction that this is a transformational asset,” noting that the 77 per cent uplift in the unrisked mean prospective resource estimate for Colibri, which is its main target in the Walton Basin, is an excellent result. Leather said United Oil & Gas is “excited about seeing the multi-billion-barrel potential of the licence as a whole. A successful outcome for Colibri now opens up even greater possibility in this region.”
Leather, who has over 20 years of relevant experience in the oil and gas industry, pointed out that the company has been making good progress on its committed work programme with the Government of Jamaica. He explained that this latest evaluation results is another step towards reaching the company’s ultimate goal of being in position to drill the first exploration well offshore Jamaica for over 40 years.
“We are actively seeking partners to join us in making this happen —and unlocking the potential that is clearly present in Jamaica. This latest verification of potential will greatly help in that goal,” Leather stated.
WALTON MORANT LICENCE
United are the 100 per cent equity holder and operator of the Walton Morant licence offshore Jamaica. The licence covers 22,400km². Eleven wells have been drilled to date (nine onshore, two offshore), and all bar one contained hydrocarbon shows.
United Oil & Gas was granted a 100 per cent stake in the licence in 2020 by the Jamaican Government. As part of this agreement, the company was mandated to carry out a low cost, geotechnical work programme, building on the US$30 million plus that has been invested to date.
United have made significant progress on the work programme items, including a re-interpretation of the Morant Basin.