Publication of 2nd Supplementary Prospectus (including a Competent Person’s Report) in respect of Award of Saouaf Licence

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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) announces the publication of a 2nd supplementary prospectus approved by the United Kingdom Listing Authority relating to the award of the Saouaf Licence, onshore Tunisia as announced by the Company on 24 December 2018 (the “2nd Supplementary Prospectus”).  The Supplementary Prospectus contains further information relating to the award of the Saouaf Licence, the Saouaf Licence itself and also an independent Competent Person’s Report (“CPR”) in respect of the area of the Saouaf Licence (the “Saouaf Licence Area”) prepared by Blackwatch Petroleum Services Limited (“Blackwatch”).

Highlights of the CPR:

  • The CPR provides an independent technical hydrocarbon resource assessment of the Saouaf Licence Area.
  • Effective petroleum systems are proven in the Saouaf Licence Area.
  • Blackwatch has identified thirteen structures with already-drilled or potential hydrocarbon accumulations.
  • Blackwatch estimates that these could hold 1.961 TCF of mean, unrisked, recoverable gas resource plus 42 MMbbl of mean, unrisked, recoverable oil resource. These are considerably greater volumes than Upland’s initial estimates and total approximately 380 MMboe (million barrels of oil equivalent) recoverable resource.
  • Of the estimated recoverable gas resource, some 227 BCF is contained in the Dekrila (or DK) structure. The Dekrila-1 well was drilled in 1955, discovered gas and flowed it to surface.
  • The 42 MMbbl oil resource lies in the SNJ Prospect. Oil from the Bahloul Formation was seen on the shakers during drilling of the SNJ-1 well, which has helped to de-risk this prospect. Several candidate horizons remain untested.
  • The undrilled ‘Bou Dabbous Flower’ structure alone is estimated to contain 813 BCF of recoverable gas.
  • Bou Dabbous also has the potential to host an oil play, as surface oil seeps exist there. No volumes have been included for this oil play in the CPR.
  • Blackwatch recognises the potential of the Saouaf Licence Area and how further work and more data would de-risk the Saouaf Licence Area:
    • “We conclude that the Saouaf concession is an attractive area for further exploration.”
    • “Further data acquisition and geological study would enable considerable de-risking prior to further exploration drilling.”

2nd Supplementary Prospectus

The 2nd Supplementary Prospectus is supplemental to, and should be read in conjunction with, the original Prospectus of the Company dated 18 June 2018 and the Supplementary Prospectus of the Company dated 6 November 2018.

A copy of the 2nd Supplementary Prospectus is available on the Company’s website at http://www.uplandres.com and hard copies will also be available at the offices of the Company’s financial adviser and broker, Optiva Securities Limited, 49 Berkeley Square, London W1J 5AZ.

The Supplementary Prospectus has also been submitted to the National Storage Mechanism and will be available shortly at http://www.morningstar.co.uk/uk/NSM.

 

Upland’s CEO, Dr Steve Staley, said:

“We are very pleased that the CPR has fully validated Upland’s view of the hydrocarbon potential of the Saouaf Licence Area. Blackwatch has identified hydrocarbon potential that is substantial, including a number of structures that could be viable as stand-alone developments. Tunisia offers very attractive wholesale gas prices, a market that needs more gas and, in the Saouaf Licence Area, good access to nearby existing gas infrastructure. Early stage technical work is already underway; we look forward to updating the market on progress in due course.”

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

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.