Wick – Offshore UK – Seaward Production Licence P2235 (UKCS Block 11/24b)

 

In November 2017, the Company’s wholly-owned subsidiary, Upland Resources (UK Onshore) Limited entered into a conditional agreement with Corallian Energy to farm in to a 40% interest in Licence P2235, containing the Wick prospect. This farm-in was formally approved by the UK Oil and Gas Authority in May 2018 and the conditional agreement with Corallian Energy to farm in to Licence P2235 has been satisfied by Upland formally confirming that it has sufficient funds to satisfy all of its obligations under the farm-in agreement.

 

The Company estimates that the Wick structure, which lies principally in the licensed area of Licence P2235, could hold in-place P50 resources of around 250 MMbbl. The Wick well, with Jurassic and Triassic age targets within the Wick structure, is scheduled to commence drilling in Q3 of 2018.

 

Source: Corallian Energy

The large Wick Prospect lies in the Inner Moray Firth, only a few from land and in shallow water and offers Upland a relatively low risk, low cost, potentially transformative near term drilling opportunity which will be assessed using a jack-up rig.

Upland has carried out an extensive assessment of the technical risks, undertaken a full interpretation of the available well and seismic data, and remapped the area. The Licence area benefits from an extensive 3D dataset, lies close to the large Beatrice Field (where output during its period of peak production reached approximately 54,000 bopd in the mid-1980s), updip from the Lybster Discovery and in the same working petroleum system. Upland believes additional, attractive prospects are likely to be found in the permit area. An environmental survey for the licence was successfully completed in February 2018.

High relief Wick structure map

Source: Corallian Energy

Under the farm in deal Upland will pay 53.33% of the first £4.2 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 operator of licence P2335, Corallian Energy, recently entered into a letter of intent for the provision of a jack up rig to drill the Wick exploration well with offshore drilling service provider, Ensco UK Ltd.