According to a recent contingent resources audit conducted by Gaffney, Cline and Associates, the Maria discovery in the North Sea has been found to hold up to 17.7 million barrels of oil and gas.
United Oil and Gas (LON: UOG) owns a 100% stake in the license of the Maria discovery which has possible reserves of 17.7 million barrels of oil and gas (mmboe), however, the research does indicate a best estimate of 10.2 mmboe.
This is an evaluation of contingent resources which are quantities of petroleum that are potentially recoverable, however, at present they are not currently considered to be commercially recoverable.
United had previously reported an estimation of 6 mmboe as a mid-case of recoverable resources at the Maria Discovery.
The latest research indicates that United’s initial estimation fell around 4 mmboe short of the mark.
© Supplied by Gaffney, Cline & AssUnited chief executive, Brian Larkin, said: “The independent audit further validates the work produced by our inhouse technical team, providing an independent mid-case estimate of 10.2 mmboe contingent resources at the Maria discovery.
“The report highlights the value of our 100% interest in this late stage appraisal and development asset that has the potential to deliver significant near term value to our shareholders.
“We are making good progress on potential options to maximise shareholder value from this licence and will provide further updates in due course.”
United had previously been involved in plans to sell Maria to Quattro Energy in a £3.2 million deal but it was eventually called off in March after a series of delays and issues with Quattro’s fundraising process.
© Supplied by Gaffney, Cline & AssLast year United indicated that it is looking to sell the development, stating that previous reports would “support the company in commercial discussions with interested parties”.
The P2519 license which Maria is under spans over 139 square miles in the UK North Sea and is located in the outer Moray Firth.
Previous reports stated that stockbrokers had placed a £33.5 million valuation on the oil discovery in the Central North Sea with estimates at the time saying that the discovery would hold 6 million barrels of recoverable oil, which is in line with the latest report’s best estimate.
The licence for the Maria North sea discovery is due to expire this year however, Optiva Securities had previously expected that Unite will move on to the next phase of development, by committing to a well, by that point in order to secure a two-year renewal.
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