Oil explorer raises £500,000 to fund Ja push

United Oil & Gas Plc has raised £500,000 (J$105 million) from two unnamed institutional shareholders to shore up its working capital as the London Stock Exchange (LSE)-listed oil explorer advances efforts to secure a partner for its Walton-Morant licence offshore Jamaica.

“This placing, by two existing long-term institutional shareholders who know this company and its assets well, strengthens our working capital at a point when the technical work is complete and the farm-out process is active and progressing,” said Brian Larkin, CEO of United, in a market filing on Friday.

The company placed 250 million new ordinary shares at 0.20 pence each, a modest discount to the 0.23 pence closing mid-market price on July 2, the last trading day before the announcement. The placing was arranged by Tennyson Securities, with each investor receiving one warrant for every three shares subscribed, exercisable at 0.28 pence for six months.

The Walton-Morant licence covers a 22,400 square kilometre offshore block south of Jamaica, in which United holds a 100 per cent working interest. An independent audit by Gaffney Cline & Associates estimated 11 high-graded prospects with over 2.4 billion barrels of substances that resemble oil. It’s led by the Colibri prospect at 406 million barrels. The licence runs to January 2028.

United has completed technical work on the Jamaican acreage and is actively seeking a farm-out partner to fund drilling – a deal structure under which an incoming party earns a stake in the licence by covering exploration costs. The company last week said it expects to secure a partner by October.

“Securing additional working capital under current more favourable market conditions is in our view the prudent course, both for the Company and for shareholders,” Larkin said. “We remain focused on progressing the farm-out and will update the market as and when appropriate.”

The new shares are expected to begin trading on LSE exchange on or around July 9, lifting United’s issued share capital to roughly 4.64 billion ordinary shares.

For its December 2025 year end, the company posted a US$1.3-million loss from operations, compared with a loss of US$2.4 million a year earlier.

The company currently has “no revenue and is operating at an annual loss”, and reported a net current liability position as at December, its financial statements said.

“Its only funding options are through warrant exercises, a Jamaican farmout deal covering back and future work program costs, or equity financing,” the financial report added.

business@gleanerjm.com