Walton Morant (Jamaica) - Frontier Exploration offering potential 7 Billion Barrel opportunity 

The Walton Morant license in Jamaica sports some mouth-watering 7 Billion Barrels mean/mid case of un-risked prospective resources with 21 prospects/leads of over 100 MMBO.  United has shot over 2,250km2 of 3D seismic data.  Several of the potential resources exceed 500 million barrels each!

A single 400 MMBO prospect development would demonstrate NPV10 after tax of $4.6B & IRR of 45% (source:United)

It's perhaps no wonder then, that United are putting 100% focus on the licence with an aim to secure a farm-out partner as soon as possible.

Permitting

The company has been working hard over the last year to secure key permits allowing the project to move forward including:

Environmental Permit Secured – Walton-Morant (Jamaica)

In July this year, United received a 5-year Environmental Permit from Jamaica’s NEPA for offshore survey operations—including bathymetric and geotechnical work. The permit, ensures operational longevity and the retention of exploration rights. 

A strong regulatory foundation now exists for executing planned surveys, paving the way for future exploration and the all important farm-out discussions.

Beach Licence

The Beach Licence is the final permit required for operations to commence and the award of the licence was announced this month. 

The Beach Licence is a continuous licence and renews annually on the 1st April and authorises United to conduct a piston core survey in the foreshore and seabed areas and to collect seabed samples for geochemical analysis, an essential step in assessing hydrocarbon potential

Technical Planning & De-risking

United has additionally completed critical technical preparation activities under its 100% owned Walton-Morant licence, including:

• Detailed survey design for piston coring and seabed mapping.
• Integrated interpretation of 3D and 2D seismic data.
• Strong ongoing stakeholder engagement to secure community and regulatory support.

With key licences and permits in place and completion of detailed technical work, United can now press on with launching its offshore surveys and technical studies including piston-coring and multibeam echosounder bathymetry—all key to further strengthening the company's understanding of its highly prospective license.

Farm-Out Discussions

The company has stated that it is in farm-out discussions for the licence with an active, secure virtual data room, open.  Engagement from prospective partners remains active and the aim of securing a partner will be to share or possibly free-carry drilling costs whilst also validating Walton Morant's potential.  Clearly securing a partner would be a substantial re-rating catalyst for the company.

Bottom Line 

The Walton Morant licence contains multiple drill-ready prospects with independently assessed billion-barrel scale potential.  United have secured key permits and licences that 1) allow the company to further progress and de-risk the licence, gather a greater understanding of the Geology and make a more informed decision around primary drill targets and 2) provide prospective partners in the data room with greater confidence in the licence as United look to close-out a project partner.

There are clear short and near-term catalysts that could materially re-rate the company from its current £4M Market Cap.  Any significant news on the farm-out front should be a major catalyst.  As the world realises it still needs Oil & Gas and will do so for decades, speculative investors in United could well reap significant rewards on a positive outcome.