Good Morning Team.
A month ago, I enjoyed a decent chat with UOG CEO Brian Larkin - which was clearly well received by the market. The stock popped from 0.10 to 0.25p by mid-June, though has since corrected back to 0.17p.
For long-term holders, this movement unlikely to have caused much excitement - many are waiting for the exploration to be financed - where the real re-rate may set in.
But the interview was picked up by Jamaican national media, and that can only be a good thing.
I thought it might be a decent idea at this juncture to explain, in my own words, what the prize is, and just how far the company has come to securing it.
Jamaican Frontier
Here’s the key details to know.
United has made significant progress over the past year that positions it for something transformative.
At a market cap of around £3.3 million, the company is now one of the few AIM-listed oil explorers with control of a large-scale, highly prospective frontier basin - one that is now beginning to attract serious industry interest.
Inarguably, the centre-piece of the portfolio is the Walton-Morant licence, a vast 22,400 km² offshore block covering two underexplored basins on Jamaica’s southern margin.
The asset is not only massive — larger than the entire UK Continental Shelf — but also technically robust, underpinned by modern 2D and 3D seismic, with strong geological analogues and political support from the Jamaican government.
Crucially, the licence was recently extended ahead of schedule to January 2028, removing a major timeline constraint (and let’s face it, market risk), providing UOG with a clear multi-year runway to secure a farm-out, advance pre-drill technical work, and execute a phased work programme.
The timing could not be better.
Brian has told us that the data room is currently the most active it has ever been, with a record number of new and returning industry players under NDA.
These range from regional E&P companies to mid-cap independents and even several household-name majors. Importantly, interest is not limited to the Colibri prospect (the focus of previous farm-out attempts) but spans the entire licence, reflecting a shift in how the industry views the opportunity.
It’s possible that this asset could now be in the line of sight of oil players and super majors moving east - and we simply had to wait for out turn in the spotlight.
Namibia paid off for the majors - it’s one big party. And the Middle East is not exactly the most stable of places to be right now.
For context, the company has deliberately repositioned Walton-Morant as a multi-lead, multi-basin portfolio rather than a single-prospect play, and this broader narrative is clearly resonating.
The geological potential is substantial.
An independent Competent Person’s Report (CPR) from Gaffney-Cline has already certified 2.4 billion barrels, while United’s internal estimates point to over 7 billion barrels.
The Colibri prospect alone accounts for an estimated 406 million barrels, and sits within a cluster of nearby pearl targets like Oriole and Streamertail, all covered by high-quality 3D seismic.
Further east, the Morant Basin holds even larger but more frontier-scale potential, with leads such as Thunderball (603 MMbbl) and Moonraker offering long-term upside.
The clustering of prospects is key - these are not isolated structures, but interrelated targets with potential to support a sequenced exploration and development programme.
From a commercial standpoint, what makes Walton-Morant especially compelling for potential partners is its shallow-water setting and conventional play type.
This is not deepwater or ultra-deepwater drilling. The water depths are manageable, meaning that the infrastructure requirements are modest (all being relative), and exploration wells can be drilled at lower cost than in many frontier basins.
In a world where exploration budgets are being scrutinised due to runaway inflation, these features make the project more attractive to capital-constrained E&Ps looking for material but technically manageable risk opportunities.
But to further de-risk the basin, United recently submitted an permit application for a piston core survey, which will collect seabed samples and measure geochemical and heat flow parameters.
This data will feed into refined basin models, helping validate source rock presence and maturity — two key components for prospect de-risking. While this is an important technical step, United stresses that it is not a gating item for partner engagement.
Discussions are already progressing, and potential partners are evaluating the full licence — including entry options ranging from early-stage data participation to full-scale commitments.
However, risk sharing the piston core survey itself may be a logical step forward.
In terms of funding and sentiment, United has quietly strengthened its financial base. A recent £140,000 capital raise at 0.14p — with no discount to market — was completed with an existing institutional backer.
More significantly, warrants priced at 0.15p have also been exercised, providing low-dilution capital inflow at a premium to the then current share price. This early conversion is seen as a tangible vote of confidence by those closest to the story and offers flexible funding as the company progresses its farm-out campaign.
Near-term Potential
Unlike many junior explorers that struggle to translate geological promise into commercial action, United appears operationally prepared.
With the licence extension in place, technical studies advancing, and commercial discussions ongoing, the company is now in a position to move quickly should a farm-out partner be announced.
The structure of a potential deal does remain flexible.
United is open to various models, including upfront cash payments, partial carries on exploration wells, and staged farm-in options linked to defined work commitments.
Importantly, the company has made it clear that any deal must reflect the scale and strategic value of the asset — particularly given its unique position as Jamaica’s leading offshore oil opportunity.
While the share price remains volatile — as is typical with AIM-listed juniors — the fundamentals suggest reasonable underlying momentum. United has cleared up the legacy issues and realigned its narrative around the full potential of its Jamaican asset.
In a market increasingly interested in underexplored, high-reward frontier plays, the Walton-Morant licence is once again standing out — not as a long-shot punt, but one that holds real strategic value.
Recent Update
Last week, the company announced an updated technical presentation: ‘Evidence for a Petroleum System - Jamaica Licence,’
I wonder who that’s really for?
The presentation is basically a piece of theatre designed to showcase Walton-Morant’s technical dataset that underpins the farm-out process currently underway - from a geo-scientifically led perspective. This includes insights into:
The extensive technical de-risking undertaken by the Company across the block
Evidence of a working petroleum system based on historical wells and regional analogues
Key features of the Colibri prospect and the multiple surrounding leads & prospects
The value-adding role of forward-looking technical work, including potential piston core surveying
Brian enthuses:
‘We are pleased to share this updated technical summary, which reinforces the Walton-Morant licence's status as one of the most attractive frontier exploration opportunities in the region. With several parties under NDA, momentum behind the farm-out process remains strong.’
The bottom line
With a sub-£4 million market cap, United offers asymmetric risk-reward potential.
The coming months — especially as data room discussions intensify and technical milestones are delivered — could be decisive. If United secures a credible partner on attractive terms, it would not only vindicate its long-term strategy but also mark a major re-rating catalyst for the stock.
Remember, Brian thinks a drilling programme would cost circa $50 million. This is a lot of money to a minnow, but chicken feed to a major looking to exploit a new potential frontier.
Any deal would be game-changing - both from a corporate development perspective, and on the financial side.
United Oil & Gas has done the hard yards.
It’s crunch time.
Good call on United - I've just seen the share price rise by 30+% today.