United Oil & Gas Ready to Start North Sea Farm-out Efforts

United Oil & Gas Plc (LON:UOG) told investors that talks with potential partners can now start, as its new North Sea asset awards have now been confirmed.

“Confirmation of the award enables us to pursue farm-out discussions with potential partners with whom we can work to take these licences forward,” said Brian Larkin, United chief executive.

“Blocks 15/18d and 15/19b are the latest additions to our portfolio of late-stage appraisal/development projects in Europe and high-impact exploration plays in Latin America, Africa and the Caribbean.

“All our licences have defined paths to near-term value driving activity such as drilling and production, offering multiple re-rating opportunities.”

United highlighted significant growing interest in the North Sea “an attractive low-cost hydrocarbon jurisdiction” as it launches its farm-out efforts.

“A number of factors including the existing multi-million barrel oil discovery, multiple leads and targets, an excellent location close to substantial oil fields, and the attractive cost profile of exploration and production in the North Sea all culminate to position these licences as compelling investment opportunities,” Larkin said.

Looking across the company’s portfolio, the United boss added: “With drilling operations at the UK near shore Colter discovery, which lies in the same play as the prolific Wytch Farm field, due to commence in Q4 2018, investors will not have to wait long for the next potential value trigger event.

“Together with results of processing work to de-risk the Colibri target on the Tullow Oil-operated Walton-Morant licence offshore Jamaica, which has been estimated to hold gross mean-case prospective resources of over 200mmbbls, and the ongoing permitting process to bring our onshore Italy gas discovery into production, the next few months promise to be an exciting period for United.”

Source: www.proactiveinvestors.co.uk/