Both companies are currently negotiating the final production sharing contract (PSC) terms with the Petroleum Corporation of Jamaica, with a final contract expected early next month.

GOP said the Walton Basin blocks on the eastern flank of the oil and gas-bearing Nicaraguan Rise had a proven hydrocarbon-producing history.

“The area is of particular interest because the basin contains good quality source rocks and trapping mechanisms consisting of both structural plays and reef plays,” the company said.

“Ten of the 11 wells that have been drilled previously had oil shows and together with the presence of known natural oil seeps this proves there is a working hydrocarbon generating system.”

Water depths in the Walton Basin range from 100 to 1000 metres. Preliminary mapping of the 36 known leads indicates a total 3,230 million barrel potential of in-place oil, GOP said.

Poor seismic data meant exploration had not taken place in the basin since the 1980s, according to GOP. But reprocessing of some of this data had generated new undrilled play concepts in the deeper part of the basin and in the extensive reef systems, the company said.

Finder is an Australian independent oil company with expertise in the reprocessing of seismic data and in the application of long offset seismic methods, while GOP has expertise in the design and application of airborne magnetic and gravity surveys.

“The partners believe that the combination of these skills will be key to successful exploration in the deep, intra-reef and sub-reef sections of the Walton Basin,” said GOP.