UNITED Oil & Gas has completed the first stage of its offshore Surface Geochemical Exploration Programme on the Walton-Morant Licence in Jamaica, marking a key technical milestone in efforts to de-risk what the company describes as a high-impact exploration asset.

In a market update on Monday, United said Stage 1 — comprising a multi-beam, echosounder seabed survey — successfully acquired high-quality bathymetry data, or detailed seabed mapping, across approximately 1,189 kilometres of priority offshore areas.

The data will now be used to determine optimal locations for Stage 2 seabed heat-flow measurements and Stage 3 targeted piston core sampling, which involves extracting sediment samples from the seabed for laboratory analysis.

Chief executive Brian Larkin said completion of the first phase provides “a robust foundation” for the next stages of offshore work.

“The quality of the bathymetry data acquired enables informed selection of heat-flow and piston core locations,” Larkin said. “As we move into Stage 2 and Stage 3, this work is designed to further de-risk the licence.”

United has previously cited an estimated resource potential of more than seven billion barrels within the licence area. The SGE campaign is a critical technical step in validating that potential and advancing commercial discussions.

An independent assessment referenced by the company has suggested that successful completion of the programme could improve the project’s geological chance of success from roughly one in five to one in three — a material reduction in exploration risk, though not a change to headline resource estimates.

The company has said the data will feed directly into its ongoing technical evaluation and farm-out discussions. The offshore campaign has received public support from Daryl Vaz, Minister of science, energy and transport, who visited the survey vessel prior to departure earlier this month.

United has described regulatory coordination and local stakeholder engagement as smooth, noting that mobilisation required months of permitting and logistical preparation. Stage 2 will focus on seabed heat-flow measurements, followed by Stage 3 targeted piston core sampling. United said a further update will be provided upon completion of offshore operations.

— Dashan Hendricks

@Slipfeeler

Why unnoo won't learn to post links to articles

@Slipfeeler

Slippy ....

I copy Dashan Hendricks at the Observer Newspaper, but he fails to respond.

Key Risks / Considerations

While completion of Stage 1 provides a useful technical foundation for subsequent offshore work, investors should note that bathymetric mapping primarily supports seabed characterization and survey planning rather than confirming hydrocarbon presence or commerciality. The key value inflection points remain ahead, with Stage 2 heat-flow measurements and Stage 3 targeted piston core sampling expected to provide more direct evidence relevant to a working petroleum system and prospectivity across the offshore Jamaica licence area.

As a frontier offshore setting, the programme also carries execution, timeline, and funding sensitivities. Outcomes from heat-flow and geochemical work may be mixed or inconclusive, and even positive results may not immediately translate into commercial agreements without a clear pathway to drill-ready prospects and partner appetite.

Specific considerations include:

Technical uncertainty remains material: Stage 1 de-risks seabed conditions, but does not address core subsurface risks (source, maturity, migration, reservoir, trap and seal) that ultimately determine commercial potential.

Stage 2 heat-flow results could be value-sensitive: Unfavourable thermal regime findings could reduce perceived chance of success, even if volumetric potential remains large.

Stage 3 piston cores may not be definitive: Shallow, targeted sampling can be non-representative of deeper source intervals and may yield ambiguous geochemical signals.

Resource potential figures may be interpreted as conceptual: The previously cited “>7 billion barrels” estimate may be viewed as unrisked prospective potential; investors will look for risked ranges, methodology, and third-party validation over time.

Frontier basin discount: Limited drilling and analog data in offshore Jamaica can increase uncertainty and raise the threshold for partner participation and funding.

Timing and permitting sensitivity: Offshore activities may face regulatory review requirements and stakeholder considerations (environmental and marine user groups), potentially impacting schedules.

Weather and operational windows: Caribbean seasonality (including hurricane risk) can disrupt offshore mobilisation and acquisition, with flow-on cost and timing impacts.

Cost escalation and funding/dilution risk: Later-stage offshore work is more complex and capital intensive; absent a carry or farm-in, investors may focus on funding sources and potential dilution.

Commercialisation path still depends on the next steps: Even strong SGE outcomes may not be sufficient to secure a farm-out or commercial agreement without integrated interpretation and drillable prospects.

ESG and reputational considerations: Offshore exploration near a tourism-linked jurisdiction can attract heightened scrutiny, influencing partner appetite and permitting complexity.

Sarge

cc...Dashan Hendricks,

Observer Newspaper.