Completion of UK Licence P2478 Farm Out Agreement

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.

Upland Resources Limited (LSE: UPL), the oil and gas company actively building a portfolio of attractive upstream assets, is pleased to announce the completion of its reduction in its interest in United Kingdom Offshore Licence P2478 (the “Licence”) in the Inner Moray Firth, United Kingdom by 8% from 40% to 32%.

Further to the Company’s announcement of 18 August 2021 the holders of the Licence (Licence Holders) being Upland, Corallian Energy Limited and Baron Oil plc (“Baron”) have completed the reassignment of Upland’s 8% interests in the Licence to Baron (Assignment). This follows the required formal consent given by the United Kingdom Oil & Gas Authority.

Following the completion and with Corallian’s interest also now reduced the interests in the Licence now are as follows.

P2478 Working Interests

 Current Working InterestsProposed Working Interests
Upland Resources40%32%
Corallian Energy Limited*45%36%
Baron Oil PLC15%32%

* Operator

Under the terms of the above agreement, Baron has agreed to pay 100% of the costs of the remaining Phase A work commitments under the Licence up to a cap of £160,000.  Work on the Phase A technical work commitments is ongoing with the key component, 3D seismic reprocessing, expected to be delivered during the first half of 2022. This will provide the partners sufficient time to mature the Dunrobin Prospect and to engage with potential drilling partners in due course.

The Licence, was awarded to the JV in September 2019 as part of the UK 31st Offshore Licensing Round and in Q1 2021, the Licence Holders received the results of technical studies from a large European E&P company under a work sharing agreement. These studies enhanced the Licence Holders’ understanding of the petroleum geology and corroborated their view of Dunrobin as a potentially attractive and substantial target.

As previously announced, Upland believes Dunrobin to be one of the few remaining sizeable undrilled UK North Sea targets with estimated gross mean prospective resources of the order of 100 MMbbl (a non-SPE PRMS compliant estimate). To demonstrate the true potential of this prospect, the Beatrice field c.20km north of Dunrobin produced over 140 MMbbl from the same petroleum system.

Bolhassan Di, Chief Executive of Upland, commented:

“We are pleased to have completed this agreement that will allow seismic reprocessing work to continue apace and I would like to thank Baron for their cooperation in closing this agreement. Upland remains a substantial partner in this highly prospective field.”

This announcement contains inside information within the meaning of Article 7(1) of (i) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014, as amended (the “EU Market Abuse Regulation”) and (ii) the EU Market Abuse Regulation as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

For further information, please contact:

Upland Resources
Bolhassan Di, Interim, CEOTel: +44 (0) 7891 677441
Optiva Securities Limited
Jeremy King (Corporate Finance)Tel: 020 3137 1904
Christian Dennis (Corporate Broker)Tel: 020 3137 1903
FTI Consulting
Ben Brewerton/Christopher
Tel: +44 (0) 20 3727 1708
Flowcomms Ltd
Sasha SethiTel: +44 (0)7891 677441