Jamaica Oil Study Maps 2 Wells, No Partner

JAMAICA · ENERGY

A rig study for United Oil & Gas found options to drill off Jamaica. No partner has yet signed to pay for a well.

United Oil & Gas said on Tuesday, 20 October, that a rig study for its Jamaica offshore oil licence is complete. The London-listed explorer still has no partner to pay for a well.

The study by NRG Well Management, a UK well engineering firm, found a double-digit pool of suitable rigs. It is not a commitment to drill, the company stresses.

What the Rig Study Found on Jamaica Offshore Oil

In its 20 October stock exchange filing, United said NRG assessed rigs for capability, timing and regional positioning. It picked out a double-digit pool of candidates from established international drilling contractors.

The study also outlined long-lead equipment, meaning items that must be ordered well ahead of drilling. United says suppliers were approached directly about availability, sourcing options and delivery times.

The logistics plan is based in Jamaica, using local ports and services with specialist help from regional hubs. Local capabilities named include cargo handling, storage, heavy lifting, marine fuel, customs and freight forwarding.

The Two Targets Named in the Filing

Colibri sits in the Walton Basin, in about 750 metres (2,460 feet) of water. It is put at 406 million barrels of mean prospective resources.

Thunderball is in the Morant Basin, in about 1,900 metres (6,200 feet) of water. It is put at 603 million barrels and would be a follow-on well.

Together that is 1,009 million barrels, which the company says could be targeted in one exploration campaign. These are gross unrisked estimates from a 2020 report by consultants GaffneyCline.

Prospective resources are oil that might be found, not oil that has been proven. The company’s wider figure of over 7.2 billion barrels is its own sum across 40 leads and prospects.

Why the Farm-Out Decides What Happens Next

In a farm-out, an incoming company pays for drilling in return for a share of the licence. United holds 100% of the Walton-Morant licence, which covers 22,400 square kilometres south of the island.

That is roughly twice the land area of Jamaica itself, which is about 11,000 square kilometres. The Jamaica Gleaner reports the licence now runs to January 2028, after a two-year extension granted earlier this year.

Chief Executive Brian Larkin said the study gives prospective partners practical information on how a campaign would be carried out. He said the company’s immediate focus remains on concluding the farm-out.

The Gleaner reported in July that United expected a partner by October, but the 20 October filing announced no deal. The half-year report of Monday, 28 September, said United was engaging with several parties.

A Small Company With a Large Licence

United reported a net loss of US$800,864 for the first half and cash of just over US$1.1 million. On Friday, 3 July, it placed 250 million shares at 0.20 pence, raising £500,000 (about US$670,000).

The half-year report flags a material uncertainty about the company’s ability to continue as a going concern. It cites the lack of revenue and the reliance on future funding.

What Jamaica’s Government Has Said

Energy Minister Daryl Vaz said on Wednesday, 21 October, that the news gives him more reasons for cautious optimism, Nationwide Radio reported. He added that much still needs analysis and logistical organisation.

Nationwide also reported that Vaz said United has yet to seek a permit for drilling. The company’s own filing says any well would need approval from the Government of Jamaica.

On Wednesday, 15 April, Vaz said drilling would not begin before late 2027 or early 2028, even if funding is secured. He said it would also need environmental and social impact assessments, stakeholder consultations and Cabinet approval.

He put one well at US$60 million to US$80 million and said at least 14 would likely be needed. One well at those prices is more than 50 times United’s cash of about US$1.1 million.

For context, see Jamaica Explained 2026 and who runs Jamaica’s economy. Compare the Guyana oil earnings story and the Caribbean hub.

What It Means for US Readers

The story is a test of whether outside money will back a new Caribbean oil frontier. The chief executive links interest in such assets to disruption of the Strait of Hormuz, which he says keeps energy markets tight.

A partner would take a share of the licence in return for paying for drilling, but none has been named. The filing does not say who is in talks or on what terms.

Travellers to Jamaica are not affected by a planning study, which concerns exploration offshore. The Gleaner reported in September that nothing has been drilled in the licence.

What Is Not Known

The identity of any partner, the terms of a deal and the date of a signing are not known. The company has said only that it is engaging with several parties.

The cost of a first well is disputed. Vaz said US$60 million to US$80 million in April, while the Gleaner cites a company estimate near US$30 million.

Whether any oil is present is not known, because no well has been drilled. A seabed survey found traces of hydrocarbons, Vaz said, but he called the results positive only scientifically.

The drilling date is unknown, because it depends on a deal, Jamaican approvals and rig availability. One local report gave Colibri as 460 million barrels; the filing says 406 million, which this article uses.

What Comes Next

The next milestone is a signed farm-out agreement, which the company has not dated. After that, Jamaica’s government would have to approve any drilling.

The licence expires in January 2028, which puts pressure on the timetable. The study does not mean a well will be drilled, and it does not prove any oil.

Frequently Asked Questions

What did United Oil & Gas announce on 20 October?

It said a drilling rig and long-lead equipment study by NRG Well Management is complete. The study found a double-digit pool of suitable rigs and a Jamaica-based logistics plan.

Is oil being drilled off Jamaica?

No well is being drilled, because the company says the study is not a commitment to drill. Nothing has been drilled in the licence.

How much oil is there?

The company estimates 1,009 million barrels of unrisked mean prospective resources at Colibri and Thunderball combined. Those are estimates of what might be found, not proven oil.

What is a farm-out?

A farm-out is a deal in which an incoming company pays for drilling in return for a share of the licence. United has not announced one.

When could drilling start?

Energy Minister Daryl Vaz said in April that drilling would not begin before late 2027 or early 2028, even with funding. It would also need Cabinet approval and impact assessments.

Sources: United Oil & Gas RNS, Positive Drill Rig Study Results, 20 October 2026; United Oil & Gas RNS, Half-year Financial Report, 28 September 2026; United Oil & Gas RNS, Capital Raise, 3 July 2026; United Oil & Gas RNS, Commissioning of Drilling Study, 10 September 2026; Nationwide Radio, 21 October 2026; Jamaica Gleaner, 21 October 2026; Jamaica Gleaner, 11 September 2026; Jamaica Gleaner, 5 July 2026; Jamaica Gleaner, 16 April 2026 (all accessed 22 October 2026). Sterling converted at about 0.747 pounds per US dollar (open.er-api.com, 22 October 2026).