“This is a standout outcome, as it is not uncommon for volumes to be downgraded when structures, that have previously been identified on 2D seismic, are mapped on a 3D dataset,” United said of a new review of the Walton-Morant licence by consultant ERC Equipoise which has upgraded the view of the exploration partnership with Tullow Oil.
"The high-grade undrilled Colibri prospect has not only passed robust and comprehensive technical scrutiny by an independent third party, but ERCE has seen fit to upgrade the gross mean unrisked prospective resources to 229 MMstb and to increase the likelihood of success,” said United chief executive Brian Larkin.
“This is a standout outcome, as it is not uncommon for volumes to be downgraded when structures, that have previously been identified on 2D seismic, are mapped on a 3D dataset.”
“The next step for Colibri would be making the decision to drill what could be a transformational well for United and, with this in mind, we are working closely with Tullow on a forward plan for the licence.”
Larkin highlighted that there has already been considerable industry interest in the Walton Morant licence and the new upgrade, along with ongoing seismic exploration work, is expected to give additional impetus to the joint farm down process.
United is confident that the farm-out process will allow it to participate in the Jamaica opportunity with low-cost exposure.
He added: “Gross Unrisked Mean Prospective Resources of 229 MMstb are eye-catching, particularly for a company of our size. While not included in this CPR, we have identified a number of other structures which we believe would be significantly de-risked were a well targeting Colibri to be successful.
“We have already seen considerable industry interest in the Walton Morant Licence. This CPR and the ongoing seismic interpretation will provide additional impetus to the joint farm down process which we are confident will allow United to participate in this licence at a low-cost exposure, while continuing to offer considerable potential upside for shareholders.”
In its operational report earlier this month Tullow said the interpretation of the 2,200 sq km 3D seismic survey recorded in 2018 continued “as Tullow matures prospects that can compete for capital for drilling in 2020.”