United Oil & Gas PLC (AIM: UOG) witnessed a sharp decline in its share price during Thursday morning’s trading session.
This downturn was prompted by the announcement that the previously identified “preferred potential partner” in the Jamaican farm-out venture has chosen to exit the process.
In a statement, the AIM-listed exploration company revealed its intention to shift its focus towards recent expressions of interest from alternative parties that are keen to participate in what it deems a “high-impact exploration opportunity.” The company expressed confidence in the resurgence of global interest in exploration ventures, driven by the growing future demand for oil and gas, which is expected to bolster its farm-out initiatives.
CEO Brian Larkin emphasized the company’s dedication to realizing value from this potentially transformative exploration opportunity despite the setback. Larkin stated, “Although the potential partner that we had been in discussions with for a number of months has taken the decision to withdraw from the process at this time, we remain committed to delivering value from this potentially high-impact exploration opportunity.”
The company’s immediate efforts are now centered on engaging positively with other interested parties and securing a suitable partner to advance the project. Simultaneously, United is actively negotiating an extension to the current license period for the Walton Morant asset with Jamaican authorities. The current license is set to expire at the end of January 2024, with the aim of establishing a work program that includes technical steps to reduce risk before proceeding with exploration well drilling.
United also disclosed the appointment of Simon Brett as interim Chief Financial Officer, who previously held the position of CFO at Barryroe Offshore Energy.
On the London Stock Exchange, United’s shares registered a notable decline of 22.94%, trading at 0.75p each at the time of publishing.
