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(Alliance News) - United Oil & Gas PLC on Tuesday said it has extended a production sharing agreement with a Tullow Oil PLC subsidiary for the Walton Morant offshore asset in Jamaica.
United, which has a 20% interest in Walton, said the initial exploration period agreement with Tullow Jamaica, which was due to expire on January 31, has been extended to July 31.
The joint-venture, which Tullow has an 80% stake in, now must decide by July 31 whether it would "drill or drop" the asset.
United Oil Chief Executive Brian Larkin 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."
At the Colibri prospect, located in the Walton Morant licence, United Oil said the joint-venture is hoping to bring in an additional partner for exploration drilling in 2021.
The company added: "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."
United Oil shares were 2.3% lower at 3.49 pence each in London on Tuesday afternoon. Tullow was trading 5.8% lower at 58.71p apiece.
By Eric Cunha; ericcunha@alliancenews.com
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