WTI (Nov) $62.55 +82c, Brent (Dec) $66.25 +80c, Diff -$3.70 -2c.
USNG (Nov) $3.33 -17c, UKNG (Nov) 82.15p, -4.15p, TTF (Nov) €32.135 -0.8.
Oil price
Oil is subdued today, with the Middle East looking likely to see a peace accord over the next few days. The EIA stats showed a bigger than forecast build in crude of 3.715m barrels but products drew by more than expected across both gasoline and distillates.
Challenger Energy Group/Sintana Energy
The board of directors of each of Sintana and Challenger are pleased to announce that they have reached agreement on the terms of a recommended all share offer pursuant to which Sintana will acquire the entire issued and to be issued ordinary share capital of Challenger (the “Acquisition”). The Acquisition is intended to be effected by means of a scheme of arrangement under Part IV (sections 152 to 154) of the Isle of Man Companies Act 1931.
· Under the terms of the Acquisition, Challenger Shareholders shall be entitled to receive:
for each Challenger Share: 0.4705 New Sintana Shares
· Under the terms of the Acquisition, Challenger Shareholders will, in aggregate, receive approximately 126,732,056 New Sintana Shares. Immediately following completion of the Acquisition, it is expected that Challenger Shareholders will own approximately 25 per cent. of the issued share capital of the Combined Group (based on the existing issued common share capital of Sintana and the fully diluted ordinary share capital of Challenger as at 8 October 2025 (being the latest practicable date prior to the date of this announcement (the “Latest Practicable Date”)).
· Based upon the Closing Price of C$0.66 for each Sintana Share and the £/C$ exchange rate of 1.87 as at the Latest Practicable Date, the Acquisition represents an implied value of 16.61 pence per Challenger Share (approximately C$0.31 per Challenger Share), valuing the entire issued and to be issued share capital of Challenger at approximately £45 million (approximately C$84 million) on a fully diluted basis.
· The terms of the Acquisition represent a premium of approximately:
o 44 per cent. to the Closing Price of 11.50 pence per each Challenger Share on the Latest Practicable Date;
o 97 per cent. to the volume weighted average price of 8.41 pence per each Challenger Share for the three-month period ended on the Latest Practicable Date; and
o 96 per cent. to the volume weighted average price of 8.48 pence per each Challenger Share for the six-month period ended on the Latest Practicable Date.
· The board of directors of each of Sintana and Challenger are also pleased to note that, in total, Challenger Shareholders (including those Independent Challenger Directors who hold Challenger Shares) representing 34.20 per cent. of Challenger’s issued ordinary share capital as at the Latest Practicable Date are supportive of the Acquisition and have each entered into irrevocable undertakings to vote in favour of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting.
· Sintana intends to seek for the Sintana Shares (including the New Sintana Shares) to be admitted to trading on AIM as close as practicable to the Scheme becoming Effective, in addition to continuing to trade on the TSXV in Canada and the OTCQX in the United States. Consequently, it is intended that Challenger Shareholders will be able to hold New Sintana Shares which will be quoted on, and trade them via, AIM.
Strategic rationale for the Acquisition
Sintana is a TSXV-quoted oil and gas exploration company with a primary portfolio of assets in Namibia, including a 4.9% indirect interest in the Mopane discoveries (PEL 83), which were announced in 2024 by the operator, Galp, as well as indirect interests in four other Namibian offshore blocks and one Namibian onshore block. Sintana has also entered into a heads of terms which provides for the acquisition of a 5% indirect interest in KON-16 in Angola’s Kwanza Basin and Sintana has a legacy holding in an exploration licence in Colombia. Sintana is also quoted on the OTCQX exchange in the USA.
Challenger is an AIM-quoted oil and gas exploration company focused on offshore Uruguay, holding interests in two blocks: AREA OFF-1 (40% working interest, Chevron holds a 60% working interest and is the operator) and AREA OFF-3 (100% working interest and operator). Challenger is the only “junior” with a significant offshore position in Uruguay and the broader region, and also holds legacy assets in The Bahamas. Challenger is also quoted on of OTCQB exchange in the USA.
The Boards of Sintana and Challenger believe that a combination of the two companies will create an Atlantic-margin focussed oil and gas exploration “champion”, which will benefit from:
· a diversified portfolio of high-impact assets in multiple jurisdictions and basins;
· complementary technical, operational, financial and risk management strategies; and
· increased scale which will enhance opportunities to deploy combined expertise in oil and gas projects, attract increased investor interest, and generate returns to shareholders.
Recommendation
· The Independent Challenger Directors, who have been so advised by Gneiss as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the Independent Challenger Directors, Gneiss has taken into account the commercial assessments of the Independent Challenger Directors. Gneiss is providing independent financial advice to the Independent Challenger Directors for the purposes of Rule 3 of the Code.
· As required by, and solely for the purposes of, Rule 16.1 of the Code, Gneiss has (in its capacity as independent adviser to Challenger for the purposes of Rule 3 of the Code) advised the Independent Challenger Directors that the terms of the Loan Agreement are on market terms and are fair and reasonable as far as the independent Challenger Shareholders are concerned.
· Accordingly, the Independent Challenger Directors intend to recommend unanimously that Challenger Shareholders vote in favour of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting as the Independent Challenger Directors have irrevocably undertaken to do in respect of their own beneficial holdings of 18,077,719 Challenger Shares representing, in aggregate, approximately 7.25 per cent. of the ordinary share capital of Challenger in issue on the Latest Practicable Date.
Irrevocable undertakings
· As noted above, Sintana has received irrevocable undertakings from each of the Independent Challenger Directors who hold Challenger Shares to vote in favour of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting, in respect of a total of 18,077,719 Challenger Shares, representing approximately 7.25 per cent. of the existing issued ordinary share capital of Challenger on the Latest Practicable Date.
· In addition, Sintana has received irrevocable undertakings to vote in favour of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting from Challenger Shareholders in respect of a total of 67,189,951 Challenger Shares representing, in aggregate, approximately 26.95 per cent. of Challenger’s existing issued ordinary share capital on the Latest Practicable Date.
· Sintana has therefore received irrevocable undertakings in respect of a total of 85,267,670 Challenger Shares representing, in aggregate, approximately 34.20 per cent. of Challenger’s ordinary share capital in issue on the Latest Practicable Date.
Sintana AIM admission
· As part of the Acquisition, Sintana intends to seek admission of the Sintana Shares (including the New Sintana Shares) to trading on AIM in Q4 2025 (the “Dual Listing”). Sintana will now commence the process of obtaining such admission, including the publication of an admission document. Obtaining the Dual Listing is not a condition to the Scheme.
Timetable and Conditions
· It is intended that the Acquisition will be implemented by way of a scheme of arrangement between Challenger and Challenger Shareholders under Part IV (sections 152 to 154) of the Companies Act although Sintana reserves the right to implement the Acquisition by way of a Takeover Offer, subject to obtaining the Panel’s consent, the terms of the Cooperation Agreement and compliance with the Code.
· The Acquisition is conditional upon, amongst other things, the approval of the requisite majority of Challenger Shareholders at the Court Meeting and at the General Meeting. In order to become Effective, the Scheme must be approved by a majority in number of the Scheme Shareholders present and voting at the Court Meeting, either in person or by proxy, representing at least 75 per cent. in value of the Scheme Shares held by those Scheme Shareholders present and voting. In addition, a special resolution implementing the Scheme must be passed by Challenger Shareholders representing at least 75 per cent. of votes cast at the General Meeting. Following the Court Meeting, the Scheme must also be sanctioned by the Court. Following this, an office copy of the Court Order must be delivered to the Companies Registry for registration, and upon the registration of the office copy of the Court Order, the Scheme will become Effective.
· The Acquisition is also subject to the Conditions and terms set out in Appendix I to this announcement, including, amongst other things:
o the receipt of conditional approval of the Acquisition by the TSXV;
o the receipt of conditional approval of Admission by the TSXV, if applicable;
o ANCAP having provided its written consent to the Acquisition under the terms of the ANCAP Licences, in a form and subject to conditions (if any) that are reasonably satisfactory to ANCAP; and
o an exempt transaction notice having been made and accepted (or otherwise not objected to) by Chevron under the terms of the Chevron JOA.
· Given the material importance of Challenger’s assets in the context of the Acquisition, and the ANCAP Consent in that regard, Challenger Shareholders should be aware that, if the ANCAP Condition is not satisfied, it would be Sintana’s intention to seek the Panel’s consent to invoke the ANCAP Condition to cause the Acquisition to lapse.
· Subject to the satisfaction or (where applicable) waiver of the Conditions, the Acquisition is expected to become Effective before the end of Q4 2025.
· The Scheme Document, containing further information about the Acquisition and the Scheme and notices of the Court Meeting and the General Meeting, will be distributed to Challenger Shareholders (along with the Forms of Proxy for use in connection with the Court Meeting and the General Meeting) as soon as reasonably practicable and within 28 days of this announcement. The Scheme Document will also be made available by Challenger on its website at https://www.cegplc.com/documents-disclaimer/.
Commenting on the Acquisition, Iain McKendrick, Chairman of Challenger, said:
This recommended merger fulfils all the strategic intentions of Challenger, creating an entity with a diversified and very high-graded portfolio, and which will be a springboard to further excellent returns for both sets of shareholders.
Commenting on the Acquisition, Robert Bose, Chief Executive Officer and Director of Sintana, said:
The combination of Sintana and Challenger delivers on our long-term strategy to create and execute on a portfolio of exposures to high-impact exploration opportunities. Expanding our aperture to capture the promise of the Atlantic margin from Namibia and Angola to Uruguay with a diversified portfolio of development and exploration assets creates a market leader positioned to deliver significant success.
Whilst on first look CEG shareholders may think that, despite the 44% premium to the share price, this bid undervalues their company but I disagree. Readers know that I have followed both Robert Bose and Sintana in recent years despite the shares not being quoted in London.
I have been following the company because of its exciting portfolio of interests which range from the fabulous Mopane discovery with Galp and various other Namibian blocks and of course its Angolan exposure which readers know I am sweet on.
Challenger shareholders now get their share of that, when added to their own Uruguayan portfolio which is high quality and already franked by Chevron’s arrival, and gives a potentially exciting combination.
With the new company containing all of the best of both management teams and a plethora of world class assets I am very confident that the future for all shareholders is not just exciting but full of amazing potential to grow substantially.
Despite these interviews being a bit old they both give a very good idea of where new Sintana is going, both CEO’s are exceptional and they have all the skill and energy to provide to the new venture. I strongly recommend watching them if you have time.
Core Finance CEO Interview: Robert Bose of Sintana Energy
Core Finance CEO Interview: Eytan Uliel of Challenger Energy Group
This summary should be read in conjunction with the full text of this announcement. The Acquisition shall be subject to the Conditions and further terms set out in Appendix I to this announcement and to the full terms and conditions which shall be set out in the Scheme Document. Appendix II to this announcement contains the sources of information and bases of calculations of certain information contained in this announcement, Appendix III contains a summary of the irrevocable undertakings received in relation to this Acquisition and Appendix IV contains definitions of certain expressions used in this summary and in this announcement.
This announcement contains inside information as defined in the Market Abuse Regulation. Upon the publication of this announcement via a Regulatory Information Service, such inside information will be considered to be in the public domain. The person responsible for making this announcement on behalf of Challenger is Eytan Uliel, Chief Executive Officer and the person responsible for making this announcement on behalf of Sintana is Robert Bose, Chief Executive Officer.
Investor presentation
An investor presentation covering the Acquisition will be made available on each of Challenger’s and Sintana’s websites later today.
Zephyr Energy
Zephyr has announced the approval of the initial investments under its US$100m strategic partnership with a U.S.-based capital provider (the “Investor”) to fund growth in the Company’s non-operated asset portfolio.
The key details of the agreement under the strategic partnership (the “Agreement”) were announced by the Company on 13 May 2025, and under the terms of the Agreement, Zephyr will acquire assets and the Investor will make available up to US$100 million to fund 100% of the capital expenditure (“CAPEX”) related to the drilling, completing and equipping of those assets.
As announced on 26 August 2025, the Company recently completed the US$7.3 million acquisition of working-interests in core U.S. Rocky Mountain basins (the “Acquisition”). In addition to the purchase of existing producing assets, the Acquisition also included undeveloped acreage on which Zephyr expects significant future drilling activity.
The initial, non-operated working interests contributed under the Agreement are made up of 13 newly drilled wells (the “initial wells”) located in the U.S. Rocky Mountains. The Investor will fund 100% of the CAPEX in the initial wells. Total CAPEX, net to the Investor, is expected to be approximately US$2.5 million, with no further financial commitment from Zephyr.
Once the Investor has achieved its threshold return on the initial wells, the Company expects that the interests will deliver future life of well undiscounted cashflows, net to Zephyr, of circa US$1.8 million. The Company has used its 100% owned acquisition vehicle, Zephyr Hawk LLC, to complete this transaction.
The strategic partnership with the Investor was formed to enable Zephyr to capitalise on a robust pipeline of non-operated investment opportunities across the Rocky Mountains, and the Company expects this to be the first of many such investments. The combination of Zephyr’s deep regional expertise with the Investor’s financial strength was designed to accelerate the Company’s non‑operated growth, enhance consolidated cash flow, and drive attractive returns for all stakeholders.
Colin Harrington, Zephyr’s Chief Executive, said:
“We are delighted to announce the approval of the initial investments under the Agreement, and we believe that these will be the first of many, with additional similar investments already in our existing asset base.
“Our goal is to drive additional, non-dilutive cash flow growth across our non-operated portfolio, and we look forward to securing further accretive opportunities in due course.”
It is good to see that the funding approval has been given for the initial investments under the Agreement announced some time ago. They will get their initial capex costs back as part of the deal and will receive cash flow up to a certain limit.
The deal to me exemplifies the way that Zephyr management are building the business, using outside funding to ‘drive additional, non-dilutive cash flow growth’ and I expect plenty more as opportunities arise. Zephyr is set fair and justifies its place in the Bucket List and of course its 20pTP.
Savannah Energy
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, announces several planned Board changes, in line with the Company’s succession planning regime.
Sir Stephen O’Brien and David Clarkson have retired from the Board. Savannah extends its sincere thanks to both for their dedication and service as Directors over the past eight years. During their tenure they have been instrumental in supporting the Company’s governance framework and Board processes.
Savannah is also pleased to announce the intended appointments of Uyi Akpata and Kehinde Olamide Ogunwumiju as Independent Non-Executive Directors. Uyi and Kehinde bring significant experience in audit, finance and legal affairs, further strengthening the Board’s capabilities in these key areas. Upon joining the Board, Mr Akpata is expected to serve as Chair of the Audit Committee.1
Joseph Pagop Noupoué, Chairman of Savannah, commented:
“The changes announced this morning form part of Savannah’s ongoing and dynamic Board succession planning process, which is designed to evolve in step with the Company’s strategic direction, operational priorities, and growth trajectory.
On behalf of the Board, I would like to wish Sir Stephen and David every success in the future. As part of our structured approach to Board renewal, their agreed retirement reflects the natural progression of our governance planning. That said, both have been highly valued colleagues whose insight, integrity, and presence around the Board table will be genuinely missed. We are delighted that both have agreed to take on ongoing consultancy roles, ensuring the Company can continue to benefit from their extensive experience and deep understanding of our business. We wish them every success in the future and thank them wholeheartedly for their service.
I am also delighted to welcome Uye and Kehinde as incoming Directors. Both are internationally respected professionals in their respective fields – finance and legal – and have proven track records supporting dynamic, high growth organisations. I believe their expertise will be instrumental as Savannah continues its growth trajectory across Africa.”
Sir Stephen O’Brien, Retiring Vice Chair and Non-Executive Director, Savannah, commented:
“Having been involved with the Company since its very inception 11 years ago, and after eight stimulating years as Vice-Chairman of Savannah, I am stepping down with pride in what has been built together as a team. Over this time, Savannah has transformed into a leading African energy company, advancing projects across the continent in both hydrocarbons and renewables. I am pleased to have had the opportunity to contribute to our journey. I wish everyone at Savannah every success and look forward to maintaining my support for the company in a new political advisory role.”
David Clarkson, Retiring Non-Executive Director, Savannah, commented:
“Since joining the Board in 2017, I have enjoyed a wonderful journey with Andrew and my Board colleagues as Savannah grew in stature delivering Projects That Matter. I wish the Company every success as it continues to build sustainable businesses across its portfolio of opportunities. I look forward to supporting the Company as Technical Advisor to the Board.”
New Director Biographies
Uyi Akpata
A Chartered accountant by background, with an over 40-year career, Uyi Akpata held multiple senior leadership roles at PwC, the leading international audit and professional services firm, prior to his retirement on 30 June 2024. His key roles include Senior Partner for Nigeria and Regional Senior Partner for West Africa, Head of Oil and Gas for Africa and a member of both the firm’s Global Oil & Gas Leadership team and Africa Leadership team. With his assurance services background, Uyi led audit work for the energy supermajors active in Nigeria, the Nigerian National Petroleum Corporation and a host of high growth emerging energy companies. He has also supervised teams auditing companies outside of the energy sector, in areas such as financial services, consumer goods and agriculture. More recently, in October 2024, Uyi founded Rusa Advisory, where he specialises in providing governance and risk management advisory services, partnering with business leaders to drive sustainable growth, efficiency and profitability.
Uyi is currently Chairman of the Board of emPLE Life Insurance, Chairman of the Advisory Board of Unified Payments Limited, Chairman of the Board of Trustees of the Unity Schools Old Students Association and President of the Nigerian Cricket Federation. He also served as Chairman of the Professional Services Group of the Nigeria British Chamber of Commerce. Uyi holds a Bachelor of Science degree (BSc) in Accounting from the University of Lagos. He is a qualified Chartered Accountant of the Institute of Chartered Accountants of Nigeria and is currently a Fellow of the Institute. In recognition of his contributions to the business environment in Nigeria, Uyi was awarded an Honorary Doctorate Degree in Management Science by Wellspring University in 2018. He is a member of the Board of Trustees of Miva Open University, where he also serves as Professor of Practice in Financial Accounting.
Kehinde Olamide Ogunwumiju O.F.R., S.A.N., FCIArb. (U.K.)
Kehinde is the Managing Partner at Afe Babalola & Co, a leading African law firm. Since his appointment in 2017, and continuing to date, he has remained one of the youngest Senior Advocates of Nigeria (“SAN”), the Nigerian equivalent of a King’s Counsel, ever appointed. His practice has seen him successfully represent the Nigerian National Petroleum Corporation in over 100 disputes and the Federal Republic of Nigeria in multiple international disputes, including against a near US$5 billion claim at the International Centre for the Settlement of Investment Disputes (“ICSID”) in Washington DC. He has worked on many Nigerian and international arbitrations.
Kehinde received the prestigious Officer of the Order of the Federal Republic (“OFR”) as part of the National Honours List from the President of the Federal Republic of Nigeria in 2023. He is a Fellow of the Chartered Institute of Arbitrators (CIArb) UK, a member of the Nigerian Bar Association, the Chartered Insurance Institute of Nigeria (“CIIN”), the International Bar Association and the Abuja Chamber of Commerce, Industry, Mines & Agriculture, and is an associate of the Institute of Chartered Secretaries and Administrators of Nigeria (“ICSAN”), the professional body for corporate governance practitioners in Nigeria.
Kehinde began his legal education at the University of Ibadan, where he earned his LL.B with Honours. He continued his studies at the Nigerian Law School, obtaining his B.L. in 2005, and then pursued an LL.M. in International Commercial Law at the University of Northumbria at Newcastle-Upon-Tyne, England, in 2007.
Financial Reporting Update
The Company now expects to publish its 2024 Annual Report and Accounts and its Half Year Results for the six months ended 30 June 2025 during the week commencing 13 October 2025, together with a comprehensive trading update for the nine months ended 30 September 2025. As a result of the delayed publications, and pursuant to the requirements of AIM Rules 18 and 19, trading in the Company’s shares will remain suspended until both sets of accounts and the trading update are published.
Not much to add here, the board’s succession planning is revealed and notice of results next week.
Petro Matad
Petro Matad has provided the following operational update.
Key updates
· Gazelle-1 well test exceeds expectations.
· Heron-2 completion run and pumping has commenced.
· Heron-1 electrification installation completed.
Gazelle-1 Well Testing Operations
After the short move from the nearby Heron-2 location, the service rig was installed at Gazelle-1 in early October and testing operations began with the perforation of an 8 metre zone across pay zones identified on logs in the Tsagaantsav Formation between 2057 and 2065 metres measured depth (MD). On opening the well, gas and oil flowed to surface without the need for artificial lift. The first flow period of the test was conducted on a 1/8 inch choke and the well flowed at a stabilised rate of 160 barrels of oil per day (bopd). The second flow period on a 3/16 inch choke flowed at 300 bopd and on a 1/4 inch choke a rate of c. 460 bopd was achieved. No formation water was observed throughout the flow periods. Oil gravity has been measured on site at 43º API which is similar to Heron-1 crude. The well has now been shut-in to gather pressure build-up data.
The performance of Gazelle-1 on test has exceeded expectations and so the well will now be completed for production. The rig will remain on site to run the completion string after which the surface production facilities will be installed. Neighbouring operator PetroChina has made available equipment from its inventory to allow us to expedite the well completion and production start up and we are targeting the start of production from Gazelle-1 before the end of October. The oil sales agreement with Block XIX has provisions within it for additional wells to be brought onstream and the incorporation of Gazelle-1 production is already under discussion.
The need to retain the rig at Gazelle-1 to make the well ready for production as a matter of priority means that there will be insufficient time ahead of the winter shut down in November to carry out the planned test of the Gobi Bear-1 well. Plans are being made to conduct this operation next April at the start of the 2026 operating window.
Heron-2 Completion
The installation of the beam pump and temporary offloading facilities at Heron-2 has been completed and pumping commenced on 6 October. As expected, the beam pump is proving much more efficient at recovering the remaining frack and acid wash fluids than DQE’s swabbing operation and so we expect to complete the well clean out and to determine the flowing formation fluid and the rate capability of the well quicker and more cost effectively.
Heron-1 Electrification Project
The connection of the Heron-1 production facility to the national electricity grid has been completed. The 10kV transmission line and the current supply load from the recently upgraded provincial power plant can provide sufficient power for Heron-1 and several additional wells in Block XX. Planning and permitting have started to facilitate the connection of both Heron-2 and Gazelle-1 to the grid should it be deemed advantageous. Final commissioning and certification of the transmission line and substation for Heron-1 are ongoing with the aim to energise the line by mid-October. Provision of electricity to the Heron-1 wellsite and cessation of using diesel generators for power not only reduce operating costs by an estimated 15% but will also significantly reduce emissions and simplify our production operations.
Mike Buck, CEO of Petro Matad, said:
“We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are now prioritising getting the well onstream as it shows the potential to significantly increase our daily production and revenue.
We are also glad to see the start of an efficient down hole clean up at Heron-2 which should give us the definitive results on flowing fluid and well rate that we seek.
We are disappointed that we will not be able to test Gobi Bear-1 during this operational season but there is minimal additional cost to remobilise for this activity in 2026 and right now, given the enthusiasm with which Gazelle-1 has tested, the production addition must be our first priority.
The Company is very grateful to its field staff who are once again executing a very busy programme with dedication and diligence.”
Further operational updates will be provided in due course.
I too am delighted that Mike Buck has been able to declare such a success from Gazelle-1 which have clearly exceeded pre-drill expectations. Quite right to concentrate on getting it onstream even though it pushes Gobi Bear into next year.
Other good news appears to be coming from Heron-2 where the down hole clean up has started and which will hopefully increase the well rate before long. Good news all round this time, almost and I am pleased for Mikle following his dedication over the last year or so.
United Oil & Gas
United Oil & Gas has announced that it has signed a non-binding Memorandum of Understanding (“MOU”) with TDI Brooks International, a global leading provider of geotechnical and geochemical survey services with over 29 years’ experience, to secure a specialist survey vessel for the planned piston coring and surface geochemical programme on the Walton Morant Licence, offshore Jamaica.
Highlights:
· MOU signed with TDI Brooks International to secure vessel for Q4 2025 piston coring and surface geochemical survey
· Programme to collect 40-60 seabed cores across the Walton and Morant Basins, alongside bathymetric, multibeam and heat-flow surveys
· Field operations expected to last two to three weeks, with mobilisation planned for Q4 2025
· Execution during this window enables material cost savings, as the TDI Brooks vessel will transit via Jamaica en route from Trinidad
· Critical de-risking step supporting ongoing farm-out discussions and shareholder value creation
Survey Scope and Schedule
The piston coring and surface geochemical campaign, to be undertaken by TDI Brooks International, forms a key part of United’s forward work programme under its extended licence to January 2028. The survey will involve the collection of 40-60 seabed core samples across the Walton and Morant Basins, accompanied by bathymetric, multibeam echo-sounding and heat-flow surveys.
The data will be analysed for geochemical and thermal signatures to confirm the presence of thermogenic hydrocarbons, assess source rock maturity, and refine basin modelling materially enhancing the definition of key prospects, including Colibri and Oriole.
Following formal contract execution, which is expected to take place shortly, TDI Brooks will mobilise the vessel later this quarter. Field operations are expected to last for two to three weeks, with completion anticipated within a short operational window and initial analytical results expected in late Q4 2025 to early Q1 2026.
Timing and Strategic Rationale
The decision to secure a vessel now reflects both operational importance, market dynamics and shareholder value creation. There is currently strong regional demand and limited vessel availability as survey assets mobilise toward other Caribbean work programmes. United’s agreement with TDI Brooks ensures access to a suitable vessel that is transiting via Jamaica en route from Trinidad, enabling the Company to complete the programme efficiently within this specific window and realise significant mobilisation and demobilisation cost savings.
Delaying the survey beyond this slot would risk higher costs, loss of vessel availability, and schedule slippage into 2026. Acting decisively allows United to execute the programme efficiently, and under favourable logistical conditions and within its 31 March 2026 Beach licence renewal date.
In addition, a successful survey will increase the exploration chance of success across the acreage and thereby increase project value for shareholders. As outlined in the recently published Risking Report on our website, a success case would substantially enhance the chance of exploration success across the Walton Morant basins, with Colibri improving from 19% to 32% and Oriole from 13% to 21%.
This uplift would represent 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 farm out discussions.
Further updates will be provided in due course as we move towards final vessel selection and execution of the binding agreement for the vessel.
Brian Larkin, Chief Executive Officer of United Oil & Gas, commented:
“Securing the vessel agreement with TDI Brooks is a decisive move that takes United from preparation into execution.
The piston coring and geochemical survey will deliver vital new data to confirm the presence of hydrocarbons and materially de-risk the Walton Morant Basin. With a short operational window and high regional demand for vessels, it was essential we moved now to secure capacity.
This programme represents a pivotal value catalyst for United, and we strongly anticipate it to strengthen our technical position, accelerate farm-out discussions, and demonstrate our commitment to driving tangible shareholder value through disciplined, timely execution.”
It’s an MoU nothing more nothing less and whilst I love the enthusiasm that UOG are bringing to the Walton Morant process the market really want some meat, but the drip feed is at least keeps the market in touch.
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