Corporate Update

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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 provide an update on its current activities.

 

Tunisia

 

Upland’s wholly-owned subsidiary Upland (Saouaf) Limited (“Upland Saouaf”) is the Operator of the highly prospective 4,004 km2 Saouaf Permit area (the “Saouaf Licence”), onshore Tunisia, following recent approval from the Hydrocarbon Consultative Committee (the “HCC“) of the Government of Tunisia.

 

The Company is pleased to report that it has received several unsolicited approaches for farm-ins to the Saouaf Licence and is progressing these with interested oil companies. Upland sees this early interest as a further validation of the potential of its new asset.

 

As previously announced, the Saouaf Licence is estimated by the independent Competent Person, Blackwatch Petroleum Services Limited, to hold recoverable Pmean resources of approximately 2 TCF of gas across thirteen prospects and leads. This includes the existing Dekrila gas discovery, alone estimated to host a 227 BCF recoverable resource and the Bou Dabbous Flower structure with an estimated 813 BCF recoverable. A detailed breakdown of leads and prospects is included below. As is required under the terms of the Saouaf Licence, a US$1 million bank guarantee has been put in place. This will be released as the work commitments under the Saouaf Licence are fulfilled.

 

Saouaf Licence: Recoverable resource estimates for gas leads and prospects inventory (excludes SNJ oil prospect)

 

BCF

BCF

BCF

Prospect/Lead

Zone/Reservoir

P90

Mean

P10

Dekrila Gas Discovery

Test Zone 8

9.1

48.5

92.6

Test Zone 7

17.3

74.4

135.8

Test Zone 5 & 6

14.3

58.9

109.8

Aptian Serdj

11.8

45.3

84.5

Bou Dabbous Flower

Late Cretaceous

83.4

311.2

562.0

Aptian Serdj

135.8

501.6

908.4

Bou Dabbous Hanging Wall

Senonian

3.8

52.1

112.8

Aptian Serdj

6.0

84.6

185.3

Bou Dabbous West

Senonian

9.0

50.8

102.8

Aptian Serdj

8.9

58.9

121.1

Enfida SW Lead

Senonian

48.7

136.1

241.0

Aptian Serdj

9.0

44.5

87.8

Enfida West Lead

Senonian

3.0

56.8

126.1

Aptian Serdj

9.7

69.2

143.3

EF Aptian Rollover

Aptian Serdj

7.0

51.3

107.8

FK12-08 Central

Senonian

9.2

49.2

99.0

FK12-08 Lead

Aptian Serdj

4.8

87.6

204.6

KN28 North

Senonian

5.8

26.8

52.1

Aptian Serdj

9.5

37.6

71.4

KN28 South

Senonian

8.4

47.6

96.0

Aptian Serdj

10.1

44.9

86.2

Siliana Graben Lead

Senonian

5.6

23.2

45.1

Total

430.2

1,961.1

3,775.5

The area also has considerable oil potential in addition to the above. This includes the SNJ prospect with estimated Pmean recoverable resources of 42 MMbbl and where the SNJ-1 well had good oil shows and remains largely untested.

 

In addition, Entreprise Tunisienne d’Activités Pétrolières (ETAP), the Tunisian national oil company and our partner in the Saouaf Licence, has asked Upland to look at farming-in to specific, producing Tunisian oil fields where our expertise and access to funds will be of mutual benefit. A number of additional producing fields in Tunisia and elsewhere are also being assessed as candidates for a potential farm-in which would provide Upland with an ongoing revenue stream. These fields are mainly oil producers, at various stages of field life and most of which could provide Upland with net production rates in excess of 100 bbl/day.

 

Sarawak

 

Over the past weeks, Upland has had positive meetings with Petroliam Nasional Berhad (Petronas), Petroleum Sarawak Berhad and our partner, Brooke Dockyard and Engineering Works Corporation. These have progressed matters further on a number of fronts in Sarawak and more broadly in Malaysia where additional opportunities have been identified.

 

UK

 

Upland’s wholly-owned subsidiary, Upland Resources (UK Onshore) Limited (“Upland Onshore”), lodged a bid in the UK 31st Offshore Licensing Round, which closed on 7 November 2018. This was with partners for a tranche of highly prospective acreage in the North Sea and which comes with a low work commitment. The results of this application are expected in this quarter. The Company will update the market as results become available. Upland Onshore would hold a 40% stake, ‘ground-floor’ interest in any licence awarded.

 

  Steve Staley, CEO of Upland Resources Limited, said:

 

“Our shareholders will know that we have not been vociferous in the media over the past weeks – but we have been busy making good progress on all fronts and I am pleased to be able to provide this update now. We are encouraged by industry recognition of the potential of the Saouaf Licence and that ETAP are happy to help us find mutually beneficial investments. Good progress continues to be made in Sarawak and we have used the knowledge we have gained in our work on the UK’s Inner Moray Firth to guide us to what we believe is attractive North Sea acreage.”

Upland Resources Limitedwww.uplandres.com
Steve Staley, CEOTel: 07704 974784
s.staley@uplandres.com
Optiva Securities Limited
Jeremy King (Corporate Finance)Tel: 020 3137 1904
jeremy.king@optivasecurities.com
Christian Dennis (Corporate Broker)Tel: 020 3137 1903
christian.dennis@optivasecurities.com
FTI Consulting
Ben Brewerton/Molly StewartTel: +44 (0) 20 3727 1708
molly.stewart@fticonsulting.com
Flowcomms Ltd
Sasha SethiTel: +44 (0)7891 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.