United Oil & Gas, the oil and gas company with a high impact exploration licence in Jamaica and development asset in the UK, has announced a conditional placing and a conditional subscription to raise approx. £2.33 million (before expenses) through the proposed issue of a total of 1,552,532,979 of new ordinary shares of £0.00001 each, subject to shareholder approval at a general meeting to be convened, in the capital of the Company. The Fundraising comprises a conditional placing of 1,481,866,313 new Ordinary Shares at a price of £0.0015 per Ordinary Share by Tennyson and Shard, acting as joint brokers who conditionally raised gross proceeds of approx. £2.22 million. The additional approx. £0.1 million has been raised through direct subscriptions of 70,666,666 new Ordinary Shares at the Issue Price with the Company. The Fundraising was significantly oversubscribed. As part of the Fundraising, participants will be issued one warrant to subscribe for one new Ordinary Share for every one Fundraising Share subscribed. Each Fundraising Warrant will be exercisable at £0.00225, valid for 12 months from date of issue.
Rationale for the Fundraising
Over the past few months, United has made significant progress in advancing the Walton Morant work programme. With the licence has now extended until 31 January 2028, and both the Environmental Permit and Beach Licence secured, the Company has a clear regulatory pathway to commence the next phase of technical work including sub-surface geochemical exploration and piston coring.
Following this progress, United commissioned an independent Risking Review study to assess the potential impact of including a Surface Geochemical Exploration piston core survey in the work programme.
The findings were highly encouraging, and the review concluded that a successful piston coring programme could:
- Increase the Geological Chance of Success (GCoS) at the Colibri prospect from 19% to 32%,
- Increase the GCoS at the Oriole prospect from 13% to 21%, and
- Deliver similar uplifts across other prospects within the Walton Morant licence where thermogenic hydrocarbons are detected.
This uplift represents a step change in predrill confidence, providing both a material value trigger for shareholders and a strong platform for ongoing farmout discussions. By executing the piston core programme directly, United can accelerate technical validation ahead of any potential farmin partnership.
Use of Proceeds
The net proceeds of the Fundraising are expected to provide the Company with cash resources through 2026 and will be used to advance the Piston Coring at the Walton Morant Licence, offshore Jamaica, including:
- Securing and mobilising a suitable vessel for the piston coring and surface geochemical survey;
- Funding associated technical, analytical, and operational costs related to the survey
- General and Administrative expenses
The piston coring programme represents a critical step in United's strategy to de-risk the Walton Morant Licence and enhances its attractiveness to potential farm-in partners. Successful execution of this survey will provide direct geochemical evidence of hydrocarbon generation and migration, materially strengthening the licence's technical and commercial position.
United Chief Executive Officer, Brian Larkin commented:
'This fundraising is pivotal moment for United and funds the company through 2026. The piston core survey has the potential to materially de-risk the Walton Morant Basin, and we are determined to deliver it.
The recently published Risking Review Study by Iapetus Geoscience Limited has demonstrated the potential for a significant project value uplift in a success case. We have a short operational window in the coming months to secure a suitable vessel and complete the work. Acting now gives us control over timing, momentum, and the opportunity to capture that value as we progress our farm-out campaign.
The independent Risking Review demonstrated that a successful survey could increase the Geological Chance of Success at Colibri to 32%, a level rarely seen in frontier exploration. That kind of validation not only strengthens our technical case but positions us far better for ongoing farm-out discussions.
This is about driving tangible value for shareholders and ensuring United remains in the strongest possible position to move Walton Morant forward.'
Source: United Oil & Gas
