Tullow Oil has been given more time to decide on whether to drill a well at an offshore block in Jamaica’s Walton Morant Basin. The company is also in talks to farm-out some of its share in the block.
The news of the extension was shared on Tuesday morning by United Oil & Gas, Tullow’s partner, which owns a 20% stake in the license.
According to UOG, the extension of the Initial Exploration Period during which a drill or drop decision is required for a further six months.
The Initial Exploration Period was due to expire on January 31, 2020, at which point a commitment to drill an exploration well would have been required to move into the next phase of the license.
With the extension to the Initial Exploration Period, the Joint Venture now has until July 31, 2020, before the drill-or-drop decision is required.
Also, UOG said that a Joint Venture farm-down effort being led by Tullow was is in progress, with the aim of bringing in an additional partner(s) for exploration drilling in 2021 on the Colibri prospect.
A number of interested parties are continuing their evaluations of the license data, and the extension was granted to provide sufficient time for these to be completed, UOG said, adding that the extension does not require any additional work program commitments.
Tullow is the operator of the license with an 80% stake.
Brian Larkin CEO, United Oil and Gas PLC: "We are very pleased with the extension that has been granted. We have seen additional interest in the license towards the end of 2019, and this extension will allow those parties to fully evaluate this excellent opportunity."
"We continue to be excited by the exploration potential in this super wild-cat area - not just in the Colibri prospect, but also in the follow-on opportunities that extend across the licensed acreage."
Tullow acquired the rights in the Jamaica acreage back in 2014. The company has so far carried out one 2D seismic survey, and two 3-D seismic campaigns.
United Oil & Gas last year said that that the CPR report, commissioned following the acquisition of new 2018 3D seismic data, had increased in Gross Unrisked Mean Oil Prospective Resources estimate for the Colibri prospect to 229 MMstb recoverable from 219 MMstb. It also provided and an increase in the geological chance of success from 16% to 20%.