United Oil & Gas share price rises on UK licence news
Shares in London-listed United Oil & Gas were up over 3pc in afternoon trading yesterday after the company was awarded two "highly prospective" blocks in the UK North Sea.
Included in the blocks is an oil discovery, which the group says could contain up to 16m barrels of recoverable oil.
The Irish oil and gas explorer has provisionally been awarded a 95pc interest in the pair of blocks, which cover an area of around 13.6 sq km.
The company said they contain multiple targets.
One of the blocks contains the "Palaeocene Crown" discovery, and United's internal estimates suggest a range in recoverable volumes for Crown of 4-16m barrels of oil.
"The award of the blocks is part of the strategy of utilising our technical expertise to develop what we believe to be highly prospective opportunities," Brian Larkin, CEO of United Oil & Gas, said. "Crown is the latest addition to our growing portfolio of high grade targets in the UK, Italy, and offshore Jamaica that are at various stages of development and monetisation. We continue to evaluate further acquisition opportunities."
The blocks, which have been applied for in conjunction with private oil and gas exploration company Swift Exploration, are close to the substantial Piper, MacCulloch and Dumbarton/Donan oil fields. They have been awarded on the basis of a work programme involving the reprocessing of seismic date to reduce the uncertainty on the estimated oil volumes, and to optimise the location of any future development well.
The licence applications are part of the company's strategy to identify and acquire exploration plays that offer investors near-term value trigger opportunities and "significant" value upside.