United Oil & Gas loss widens to US$800,000 but explorer pitches Jamaica as alternative to Middle East risk

United Oil & Gas Plc, the London-listed explorer seeking a partner for its offshore Jamaican acreage, reported that first-half losses more than doubled as it advanced exploration work on its offshore licence.

The company posted a net loss of US$800,864 for the six months ended June 30, compared with a loss of US$338,539 a year earlier. The company, however, argued that geopolitical tensions in the Middle East are increasing the attractiveness of frontier opportunities in Jamaica.

“Following the outbreak of conflict earlier in the year, the first half of 2026 has been shaped by continued and severe disruption to the Strait of Hormuz,” Chief Executive Officer Brian Larkin said in the report.

“Against this backdrop, companies are increasingly looking beyond the Gulf region for resource opportunities, with a growing focus on stable jurisdictions offering clear regulatory frameworks and direct access to major markets, of which Jamaica is a compelling example.”

The comments come as United attempts to secure a farm-out agreement for its Walton-Morant licence, a 22,400-square-kilometre offshore block that spans much of Jamaica’s southern maritime area.

The company says the licence contains an estimated 7 billion barrels of prospective resources on an unrisked basis.

During the reporting period, United completed a seabed geochemical exploration programme, including piston coring, aimed at improving geological understanding of the licence and supporting discussions with potential industry partners. The company said the survey was conducted between January and February and produced results that are helping to advance its subsurface evaluation and farm-out process.

Unlike producing oil companies, United currently generates no revenue from Jamaica and remains dependent on new financing and strategic partnerships to advance exploration.

The company also strengthened its balance sheet through a share issue and warrant exercises that raised additional capital, although the move diluted existing shareholders.

In September, the company appointed Donal Meehan as chief operating officer, a move management said would strengthen operational capabilities as it seeks to conclude the Jamaican farm-out process.

The Walton-Morant licence remains one of the largest frontier exploration blocks in the Caribbean and a potentially transformative prospect for both United and Jamaica. The company has spent the past two years seeking a farm-in partner to help fund the costly next phase of exploration, including a potential offshore well that could cost more than US$30 million.

While successive technical studies have continued to support the basin’s prospectivity, no commercial discovery has yet been made, leaving the project’s future dependent on United’s ability to attract a major industry partner willing to assume a share of the exploration risk.

When United acquired operatorship of the licence from Tullow Oil in 2020, it inherited an exploration project that has since undergone multiple work programmes and licence extensions. In January 2024, the company announced that the Jamaican Government had extended the licence to January 31, 2026. The licence was subsequently granted a further two-year extension, pushing its expiry date to January 2028 and giving United additional time to secure a drilling partner and advance exploration activities.

business@gleanerjm.com