Upland Resources Limited North Sea Farm-in Agreement (9172X)
November 30 2017 - 2:01AM
UK Regulatory
TIDMUPL
RNS Number : 9172X
Upland Resources Limited
30 November 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
This announcement is not an offer for sale, or a solicitation of
an offer to acquire, securities in any jurisdiction, including in
or into the United States, Canada, Australia, or Japan. Neither
this announcement nor any part of it shall form the basis of or be
relied on in connection with or act as an inducement to enter into
any contract or commitment whatsoever.
30 November 2017
UPLAND RESOURCES LIMITED
("Upland" or the "Company")
North Sea Farm-in Agreement
Upland Resources Limited (LSE: UPL), the oil and gas company
actively building a portfolio of attractive upstream assets, is
pleased to announce that its wholly-owned subsidiary, Upland
Resources (UK Onshore) Limited ("Upland UK"), has signed a farm-in
agreement with Corallian Energy Limited ("Corallian") for a 40%
working interest in UK Seaward Production Licence P2235 (UKCS Block
11/24b) (the "P2235 Farm-in Agreement") containing the Wick
Prospect.
Highlights
-- The large Wick Prospect lies in the Inner Moray Firth, only
2km from land and in shallow water.
-- Offers Upland a relatively low risk, low cost, potentially
transformative near term drilling opportunity using a jack-up rig
in late 2018. Corallian has already begun environmental permitting
for the well.
-- Upland has carried out an extensive assessment of the
technical risks, undertaken a full interpretation of the existing
well and seismic data, and remapped the area.
-- The Company estimates the Wick Prospect could hold in-place
P50 resources of around 250 MMbbl.
-- Upland continues to interpret the data and believes
additional, attractive prospects are likely to be found in the
permit area.
-- The Licence area benefits from an extensive 3D dataset, lies
close to the large Beatrice Field, updip from the Lybster Discovery
and in the same working petroleum system.
Upland UK is likely to hold the largest interest in the P2235
Licence and be the only co-venturer that is part of a listed
entity. The Company will pay 53.33% of the first GBP4.2 million of
costs related to the environmental survey and the first Wick well;
costs above that cap will be funded pro rata to interests in the
Licence. The Wick well is currently estimated to have a total
dry-hole cost of about GBP4.2 million.
Completion of the P2235 Farm-in Agreement is conditional on,
inter alia, the approval by the UK Oil & Gas Authority of
Upland UK as a farminee to the Licence, availability of funding to
Upland UK sufficient to satisfy its obligations under the P2235
Farm-in Agreement and the Licence continuing in full force and
effect.
Steve Staley, CEO of Upland Resources Limited, said:
"I am delighted to announce this deal, which will (subject to
completion) move the Company into the second phase of our strategy.
The Wick Prospect and other potential targets within P2235 could
host large volumes of hydrocarbons which, with near term drilling,
gives Upland a clear pathway to potentially transformative value
growth.
"We have taken our time in assessing this opportunity, in
particular to gain a good understanding of the key fault risk in
the Wick Prospect, before making an investment decision. This,
alongside the continued cost pressures within the rig market,
therefore presents us with a very exciting opportunity.
I look forward to updating shareholders as to our progress
towards exploratory drilling on Wick in due course."
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse
For further information, please contact:
Upland Resources Limited www.uplandres.com
Steve Staley, CEO Tel: +44 (0)7891 677 441
s.staley@uplandres.com
Optiva Securities
Limited
Jeremy King (Corporate Tel: +44 (0)20 3137 1904
Finance) jeremy.king@optivasecurities.com
Christian Dennis (Corporate Tel: +44 (0)20 3411 1882
Broker) christian.dennis@optivasecurities.com
FTI Consulting
Edward Westropp Tel: +44 (0)203 727 1521
edward.westropp@fticonsulting.com
Flowcomms Ltd
Sasha Sethi Tel: 07891 677441
sasha@flowcomms.com
Notes
Upland is an upstream oil & gas company whose highly
experienced management team has a track record of creating major
value for shareholders in junior oil & gas companies, including
Cove Energy plc. The Company has extensive technical and commercial
skills and contacts, management having held senior roles in
Petronas, Conoco, Shell etc. Upland is taking advantage of the low
oil price to acquire quality upstream assets on attractive
terms.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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