Revised cost estimate for Wick well

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
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, has received revised cost estimates for the Wick well from the operator, Corallian Energy Limited (“Corallian”). 

The revised estimate for the Wick well, on a dry hole basis, has increased from £4.2 million to £5.2 million as a result of the increased cost of fuel for the rig and tugs, and the requirement for a more comprehensive seabed survey.

Steve Staley, CEO of Upland Resources Limited, said:

 

“Though increases in cost estimates are seldom welcome, this increase arises mainly from the diligence being shown by our operator, Corallian, in carrying out a full and proper well site survey and because of increasing fuel prices. The latter is an inevitable consequence of the rising oil price.”

“A well cost of £5.2 million represents a very effective use of funds given the potential of the Wick prospect” 

Background to Upland’s interest in the Wick prospect

In November 2017, Upland UK entered into a conditional agreement with Corallian Energy to farm in to a 40% interest in Licence P2235, containing the Wick prospect.

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 targets within the Wick structure, is scheduled to commence drilling in the third quarter of 2018.

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
Edward WestroppTel: +44 (0)2037271521
edward.westropp@fticonsulting.com
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.