UK Offshore Licence Update – P2478

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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, announces that, with partners, its wholly-owned subsidiary Upland Resources (UK Onshore) Limited (“Upland UK”) has signed a Work Sharing and Confidentiality Agreement with a large International E&P Company (“Interested Party”) for licence P2478 in the Inner Moray Firth. Under the terms of the agreement the Joint Venture Partners (Corallian Energy Limited, Baron Oil Plc and Upland UK) have agreed to cease marketing a joint farmout to industry until 30 September 2020 during which period the Interested Party will complete its own regional technical work and share its data and interpretations over the area with the P2478 Joint Venture Partners (“Exclusivity Period”).

The operator Corallian Energy Limited will continue to provide data to the Interested Party under the confidentiality arrangements. By mutual agreement the Joint Venture Partners may extend the Exclusivity Period with the Interested Party until 31 December 2020 should such Party wish to negotiate farmin terms to earn an interest in the licence.

During the Exclusivity Period Upland UK will incur no further expenditure in respect of P2478.

The P2478 licence contains the Dunrobin prospect. The prospect consists of three large shallow Jurassic rotated fault blocks that are mapped mostly on 3D seismic data within a single culmination with Direct Hydrocarbon Indicators. Reservoir targets are the Jurassic Beatrice and Dunrobin sandstones, overlain by a thick Kimmeridge Clay to seabed. The prospect is approximately 30km offshore with a water depth of approximately 75m.

The Dunrobin structure covers an area of approximately 40km2  and the prospect has non SPE-PRMS compliant Pmean prospective resources of 174 mmboe, with potential for 396 mmboe (P10) as assessed by Corallian.

Chris Pitman, CEO of Upland Resources Limited, said:

“A farm-down to a significant industry partner that can bring regional expertise and work programme funding to de-risk and evaluate the P2478 licence is entirely consistent with our strategy.  This exclusive option agreement represents the first step in this process.”

Upland Resources Limitedwww.uplandres.com
Christopher Pitman, CEOTel: +44 (0) 7891 677441
chris.pitman@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.