On 24 December 2018, Upland announced that it had been formally awarded the highly prospective Saouaf licence located in northern Tunisia. Saouaf is strategically situated in a region of highly developed gas production infrastructure and is estimated to contain up to 2 TCF of gas across a dozen exciting potential drilling targets. Within this portfolio, the existing Dekrila discovery is a primary target for further appraisal work and is estimated to contain over 227 BCF of recoverable gas resources.
Location of the Saouaf Licence in Northern Tunisia
The large and highly prospective Saouaf licence covers an area of over 4,000 km2. In a recent CPR published by Blackwatch Petroleum Services, the independent consultant has ascribed nearly 2 TCF of gas across 12 separate structures to Saouaf. These leads and prospects are concentrated in the Cretaceous Aptian Serj and Senonian intervals and the largest prospect, Bou Dabbous Flower, is estimated to contain over 800 BCF of gas alone.
Saouaf Licence: Leads and Prospects
Of particular interest to Upland is likely to be the Dekrila discovery made in 1955 prior to the existence of a local gas market and an effective distribution infrastructure in Tunisia. Dekrila is located in close proximity to the large diameter Transmed pipeline, one of several that traverse Saouaf, and is estimated to contain over 227 BCF of gas.
Saouaf Licence: Lead and Prospect Inventory
Under the terms of the agreement with the Tunisian government, Upland has agreed to conduct exploration work over an initial two-year licence period, which will include acquiring 300 km of new 2D seismic and reprocessing existing seismic data on the licence.
Work on the licence will be conducted as a 50:50 joint venture with Tunisian state oil company, ETAP, whereby Upland will meet all exploration and appraisal expenses and in the event of a discovery, ETAP reserves the right to take a participating interest up to 50%. At this stage, ETAP agrees to pay its corresponding share of past costs and also fund its share of future expenditure