2 weeks ago
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United Oil & Gas Plc raised £800,000 (US$1 million) in an additional share offer that was oversubscribed, according to filings by the company, which is listed on the London Stock Exchange.
The funds were raised on July 3 and will provide financing for its oil exploration activities in Jamaica.
“We are very pleased with the strong demand for this fundraising, which was significantly oversubscribed – a clear vote of confidence in our strategy, asset base, and progress in Jamaica,” said United Oil CEO Brian Larkin.
The company based in the United Kingdom also raised £800,000 in December to support the Jamaica exploration activities.
The company plans to conduct ocean floor tests offshore in the coming months, to collect oil from the seafloor, which would further support its previously conducted 2D and 3D digital mappings of the licence zone.
The funds were raised from the issuance of 444 million new ordinary shares priced at £0.0018 each, with placing agent Global Investment Strategy UK Limited responsible for securing £654,852, and £145,148 subscribed directly with the company, United stated.
As part of the arrangement, investors will receive one warrant for every two new shares, exercisable at £0.0028 and valid until June 30, 2026.
United Oil is currently seeking a partner to co-invest in the drilling of a test well that’s projected to cost a cost about US$30 to US$40 million, and the results of the ocean floor tests, it is hoped, will act as enticement.
The cost of drilling the test well is exponentially greater than the capital United Oil holds. Its capital was estimated at US$6 million in June, down from US$6.8 million a year earlier. Its cash holdings amounted to US$775,000 in June.
The company now has until January 2028 to drill or drop the licence, after the latest extension by the Government of Jamaica.
“The Jamaica farm-out process continues to gain traction. We are encouraged by the quality of the parties and the growing level of engagement. Our focus remains on securing the right partner to move the Walton-Morant Licence forward in a way that creates long-term value,” said Larkin.
The Walton-Morant exploration block runs along the southern coast of Jamaica.
The block holds “multi-billion-barrel potential”, with geological characteristics akin to energy-rich zones in Guyana and Trinidad, Larkin indicated.
English (US) ·