3 months ago
14
United Oil & Gas Plc has raised £140,000 in fresh capital to support its ongoing farm-out process for the Walton-Morant oil exploration licence offshore Jamaica.
The funding, obtained through the placement of 100 million new shares, will help strengthen the company’s working capital as it engages with potential partners to drill offshore Jamaica.
“This investment enhances our near-term funding position and supports the momentum building around our Jamaican farm-out process,” said CEO Brian Larkin in a release.
The Walton-Morant licence has attracted multiple parties conducting due diligence under non-disclosure agreements, he noted. The company indicated that the new funding will ensure that United Oil & Gas maintains financial flexibility to navigate negotiations while advancing its exploration initiatives.
It received the funding “support from an existing shareholder”, whose identity was not disclosed.
This £140,000 placement follows an earlier US$1 million capital raise also earmarked for Jamaican exploration efforts and general working capital. With additional funding now secured, United Oil is well-positioned to continue derisking the Walton-Morant zone of exploration a 22,400 square kilometre area, all along the southern coast of Jamaica. United Oil & Gas holds the exclusive rights for oil and gas exploration in that area until January 2028.
The newly issued shares will be admitted to trading on the UK AIM market by May 12, 2025.
“Proceeds from the placing will be used to strengthen the company’s working capital position and support the ongoing farm-out process at its Walton-Morant licence,” he added.
The company seeks to collect samples from the seafloor this year to add to the 2D and 3D mapping, which showed that substances resembling oil are underground in commercial quantities.
A Jamaica government technocrat who opted for anonymity as he was not authorised to speak on the matter, indicated that although substances resemble oil in actuality “it could be sludge – mud, water and traces of oil”.
United Oil is seeking a drilling partner to help to offset the majority of the US$30 million drilling cost.
English (US) ·