United Oil & Gas PLC (LON:UOG) has received a healthy price target upgrade from Cenkos following the independent person’s report on the Walton Morant prospect offshore Jamaica.

Gaffney, Cline & Associates’ (GCA) report indicated resources of over 2.4bn barrels across eleven prospects and leads within the licence.

Resources at the primary target, Colibri, increased by 77% to a mean average 406mln barrels, with substantial follow-on potential elsewhere, Cenkos pointed out in a note to clients.

A drill-or-drop decision is required by January 31, 2022, and the new report will form part of the data-room that United Oil & Gas is holding to attract farm-in partners in 2021.

Based on a risked valuation of Walton Morant, Cenkos raised its share price target for United Oil & Gas overall to 21.2p from 18.1p and added that unrisked, the value of its assets is 108p.

Optiva also raised its price target for United Oil & Gas to 25.1p from 20.5p and noted that the current share price is more than covered by its valuation of the company’s 22% interest in the Abu Sennan producing asset in Egypt, which is currently performing strongly.

United Oil & Gas shares dipped 7% to 2.8p.

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