Oil Exploration Gains Steam Off Jamaica
United Oil & Gas announced the successful completion of an offshore survey in Jamaica, recovering 42 seabed cores. The positive results could open up opportunities for the company to bring in partners for high-impact drilling, signaling growing investment interest in the country's energy sector.
The exploration license, known as Walton-Morant, covers a vast 22,400 square kilometer area south of Jamaica. United Oil & Gas holds a 100% interest and estimates the block could hold over 7 billion barrels of unrisked prospective resources. This is not Jamaica's first attempt at oil discovery. Sporadic exploration between 1955 and 1982 resulted in 11 wells being drilled—nine onshore and two offshore—but none proved commercially viable, though they did show signs of hydrocarbons. The country's last exploratory well was drilled over 40 years ago. Since 2014, successive operators have invested an estimated US$40 million in the Walton-Morant area. This modern exploration benefits from new technology, including 2,250 square kilometers of 3D seismic data that helps create detailed subsurface imaging to identify and reduce drilling risks. The recently recovered seabed cores are a crucial, lower-cost step to de-risk the project before committing to expensive drilling. The geochemical analysis of these samples aims to confirm a working petroleum system by directly detecting thermogenic hydrocarbons that have seeped up from a source rock deep below. Success in this sampling phase could significantly improve the odds for the primary target, a prospect named "Colibri," which is estimated to hold around 406 million barrels. Independent analysis suggests positive core results could increase Colibri's geological chance of success from 19% to approximately 32%. With the exploration license extended to January 2028, United Oil & Gas is now focused on using the positive survey data to attract a farm-in partner. This partnership would share the financial burden of drilling, which is the ultimate test of the block's potential. A commercial oil discovery would be transformative for Jamaica's economy, which is heavily reliant on foreign energy. The country depends on imported fossil fuels for about 90% of its energy needs, with the import bill reaching US$2.7 billion in a previous year of high global prices.
