United Oil secures £500,000 from institutional backers for Jamaican offshore licence

United Oil & Gas Plc has pulled in £500,000 (about J$105 million) from two undisclosed institutional shareholders, giving the London Stock Exchange-listed explorer additional cash as it works to line up a partner for its Walton-Morant licence offshore Jamaica.

Brian Larkin, chief executive of United, told the market in a Friday filing that the placement came from two established long-term institutional holders with a strong grasp of the firm and its assets. "This placing, by two existing long-term institutional shareholders who know this company and its assets well, strengthens our working capital at a point when the technical work is complete and the farm-out process is active and progressing," he said.

The raise involved 250 million new ordinary shares issued at 0.20 pence each, a small markdown from the 0.23 pence mid-market close on July 2, the last trading session before the news broke. Tennyson Securities managed the placement. Subscribers received one warrant for every three shares bought, each exercisable at 0.28 pence over six months.

The Walton-Morant licence spans a 22,400 square kilometre offshore area south of Jamaica, where United holds a 100 per cent working interest. A separate review by Gaffney Cline & Associates flagged 11 high-graded prospects holding more than 2.4 billion barrels of oil-like substances, with the Colibri prospect topping the list at an estimated 406 million barrels. The permit remains in force until January 2028.

United has wrapped up technical work on the Jamaican acreage and is now actively courting a farm-out partner to bankroll drilling. Under that arrangement, an incoming operator earns a stake in the licence by covering exploration costs. The company said last week that it hopes to close a partnership deal by October.

Larkin said topping up working capital amid presently stronger market conditions was the right move for the business and its shareholders. "Securing additional working capital under current more favourable market conditions is in our view the prudent course, both for the Company and for shareholders," he said. "We remain focused on progressing the farm-out and will update the market as and when appropriate."

The fresh shares are due to start trading on the LSE on or around July 9, taking United's issued ordinary share capital to roughly 4.64 billion.

At its December 2025 year end, the company reported a US$1.3-million operating loss, down from US$2.4 million in the prior year. Its financial statements show it earns no revenue, continues to run at an annual loss, and carried a net current liability position as at December.

The report also noted that its funding routes are limited to warrant exercises, a Jamaican farm-out deal covering past and future work programme costs, or further equity financing.