United Oil & Gas raises £500,000 to advance Jamaica farm-out strategy (UOG)

United Oil & Gas (UOG) has secured £500,000 in new funding through a share placing to bolster its working capital and support its strategic goals. The proceeds are primarily intended to advance the farm-out process for the Walton-Morant exploration licence, a high-impact offshore asset in Jamaica. This move is significant for the Oil & Gas sector as it highlights the ongoing efforts of junior explorers to secure institutional backing for frontier exploration projects despite challenging financial conditions.

United Oil & Gas completed the placement of 250 million new ordinary shares at 0.20p each, a price that reflects a modest discount to the company's recent market valuation. The fundraising saw participation from two long-standing institutional investors, which management suggests demonstrates continued support for the company’s exploration-led growth strategy. Following the admission of these shares to the AIM market, expected around July 9, 2026, the company’s total issued share capital will reach approximately 4.64 billion shares.

The capital injection is specifically targeted at the Walton-Morant exploration licence offshore Jamaica, where the company is currently seeking a partner through a farm-out process. By securing additional working capital, United Oil & Gas aims to maintain its momentum in finding an established industry participant to share the risks and rewards of this high-impact project. The transaction also includes warrants for the participating investors, which are exercisable at 0.28p for a period of six months, potentially providing further funding in the near future.

However, the fundraising occurs against a backdrop of financial strain for the London-listed firm, which reported no revenue and ongoing losses during 2025. The company has faced renewed cash outflows, and its stock performance has been hindered by bearish technical indicators and a lack of dividend support. Beyond its Jamaican interests, United Oil & Gas maintains a portfolio that includes a producing asset in the UK, with management focused on portfolio optimization and selective acquisitions to stabilize its financial outlook.