Tullow gets more time for drill or drop decision on licence offshore Jamaica
Oil and gas company Tullow Oil has amended the production sharing agreement on the Walton Morant licence, located offshore Jamaica, to extend the initial exploration period during which a drill or drop decision is required for a further six months.
The Walton Morant license is operated by Tullow’s subsidiary, Tullow Jamaica, and United Oil & Gas (UOG) is its partner with a 20% interest.
UOG said on the 14th January that the initial exploration period was due to expire on the 31st January 2020, at which point a commitment to drill an exploration well would have been required to move into the next phase of the licence.
However, with the extension to the initial exploration period, the joint venture now has until the 31st July 2020, before the drill-or-drop decision is required, UOG said.
UOG also said that a joint venture farm-down effort being led by Tullow was 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 licence data, and the extension was granted to provide sufficient time for these to be completed. The extension does not require any additional work programme commitments, UOG noted.
Brian Larkin , CEO at United Oil and Gas, said: “We are very pleased with the extension that has been granted. We have seen additional interest in the licence 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.”
It is worth reminding that Polarcus completed a seismic survey over the Walton Morant licence back in May 2018, using the Polarcus Adira vessel.
In August of the same year, Tullow delivered the fast track version of the 3D seismic dataset from what was Jamaica’s first 3D seismic survey.
Source: Offshore Energy Today