United Oil & Gas is grappling with serious cash flow issues as it seeks a partner to advance its oil exploration efforts in Jamaican waters.
According to the company’s 2024 financial report, auditors flagged an acute liquidity risk, highlighting a steep decline in cash reserves—from US$2 million to just US$800,000 over the year. Despite generating no revenue in 2024, the company’s administrative expenses surged to US$1.9 million.
The London-based oil and gas company must raise at least US$1.3 million by November to clear overdue exploration bills and fund upcoming technical work. Without a financial lifeline or new partnership, its ability to continue operating may be in jeopardy.
Still, CEO Brian Larkin remains cautiously optimistic. He acknowledged the liquidity concerns outlined in the accounts but insisted that the company continues to pursue “low-cost, high-impact opportunities.”
The update comes on the heels of a critical regulatory milestone for United’s offshore plans in Jamaica. The National Environmental and Planning Agency (NEPA) has granted both an environmental permit and a beach licence, clearing the way for the company’s upcoming technical programme within the Walton-Morant licence area.
The approved activities include a piston core survey to collect 40–60 sediment samples from the seafloor. These samples will undergo geochemical analysis to assess the area’s hydrocarbon potential and reservoir quality.
United Oil & Gas says it is awaiting formal documentation of the NEPA approvals and plans to review the permits in detail once received.
The Walton-Morant licence has long been considered one of Jamaica’s most promising offshore exploration areas. However, United’s financial difficulties may hinder its ability to fully capitalise on the opportunity unless it secures a joint venture partner or fresh capital injection in the coming months.
