TIDMUPL
RNS Number : 0452N
Upland Resources Limited
20 September 2019
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.
20 September 2019
UPLAND RESOURCES LIMITED
("Upland" or the "Company")
Award of UK 31(st) Offshore Licensing Round Acreage
Upland Resources Limited (LSE: UPL), the oil and gas company
actively building a portfolio of attractive upstream assets, is
pleased to announce that, with partners, its wholly-owned
subsidiary Upland Resources (UK Onshore) Limited ("Upland UK") has
been awarded exclusive permits over seven blocks and part blocks in
the Inner Moray Firth ("IMF"), part of the UK Continental
Shelf.
Highlights
-- Highly prospective acreage with multiple prospects.
-- Upland UK to hold a 40% working interest in each of seven blocks.
-- The IMF area attracted many bids, including successful ones from Chevron and Equinor.
Upland UK and its partners have been formally awarded by the UK
Oil & Gas Authority ("OGA") the licences as a result of the
competitive UK 31(st) Offshore Licensing Round. These Innovate
licences are held Upland UK (40%), Corallian Energy Limited
("Corallian", 45%) and Baron Oil (15%).
The blocks awarded are Blocks 12/27c, 17/5, 18/1 and 18/2, as
Licence P2478, in the southern part of the Inner Moray Firth Basin
and Blocks 11/23, 11/24c and 11/25b, as Licence P2470, in the
northern part of the Inner Moray Firth.
IMF South - Licence P2478
Within the IMF South area, Block 12/27 (split) contains a
substantial prospect located up-dip of a gas column intersected by
well 12/27-1 (drilled by Burmah in 1982 and 1983) in Middle
Jurassic Beatrice Formation sandstones. The well flowed 9.5 MMscfg
per day on a 40/64" choke from a 14m interval at 1,109m MD. The
tested gas was almost pure methane (98.6%) but the reservoir was
also oil stained. Corallian interprets the structure drilled by
12/27-1 to have been oil charged to structural spill and to have
spilled up-dip to a series of tilted fault block closures on the
Central Ridge culminating in a gas cap which has a DHI (direct
hydrocarbon indicator) amplitude anomaly.
This Dunrobin Prospect covers 33.6 square kilometres and has a
P(mean) prospective recoverable resource of 187 MMboe. The smaller
Golspie Prospect, a separate fault block also up-dip of 12/27-1,
covers 4.2 square kilometres and has a P(mean) prospective
recoverable resource potential of 21.5 MMboe. The primary reservoir
intervals for both prospects are sandstones of the Beatrice
Formation and Dunrobin Bay Group as intersected in well 12/27-1
where reservoir quality is good to excellent. Corallian estimates
the geological chance of success for the Dunrobin prospect to be
34%, and the Golspie prospect to be 43%, with the main risks being
cross-fault seal and oil preservation at shallow depth.
Within Phase A of the Innovate licence the joint venture must
complete 3D seismic reprocessing and make a decision to drill or
drop the licence within 4 years.
IMF North - Licence P2470
In IMF North, the blocks form contiguous acreage located
nearshore to the NE Scottish coast, 135 km NW of Aberdeen, in an
average 30 metres water depth.
Block 11/24c contains the Knockinnon Beatrice age oil discovery,
which is located approximately 8 km off the Scottish coast, and 7
km south of the Lybster Field. It was discovered by well 11/24a-2
and its sidetrack 11/24a-2z, drilled in 2000 by Talisman and is
estimated to contain 8 MMbbl P(mean) recoverable oil. The nearby
Forse Channel amplitude anomaly is estimated to contain an
additional 4 MMbbls oil recoverable from Upper Jurassic "Buzzard"
aged sandstones. The prospect is considered to be low risk for
finding hydrocarbons as it is defined by a DHI on the seismic
volume.
Underlying the Knockinnon discovery is a mapped sub-thrust
footwall anticline (the Alpha prospect). The block also contains
the Whaligoe (extending to Block 11/25b (split)), Camster and
Camster south prospects, which are downthrown against the Great
Glen fault system. Block 11/23 contains the Dunbeath prospect, a
Beatrice level three-way upthrown fault bounded trap.
Within Phase A of the Innovate licence, 3D reprocessing is
required followed by a drill or drop decision within 4 years.
Steve Staley, CEO of Upland Resources Limited, said:
"Following on from our announcement in June of the offer of this
award, I am pleased to be able to record that our bidding group has
accepted the OGA's offer and has now been issued with the licences.
We already see substantial prospectivity in the acreage which 3D
reprocessing work should further derisk and allow us to select a
top-ranked drilling candidate.
We look forward to updating the market on this and our Tunisian
and Sarawakian projects in due course."
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse.
Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
For further information, please contact:
Upland Resources Limited www.uplandres.com
Steve Staley, CEO Tel: +44 (0)7891 677 441
s.staley@uplandres.com
Optiva Securities Limited
Jeremy King (Corporate Finance) Tel: +44 (0)20 3137 1904
jeremy.king@optivasecurities.com
Christian Dennis (Corporate Tel: +44 (0)20 3411 1882
Broker) christian.dennis@optivasecurities.com
FTI Consulting
Ben Brewerton Tel: +44 (0)203 727 1521
ben.brewerton@fticonsulting.com
Flowcomms Ltd
Sasha Sethi Tel: 07891 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 Conoco,
Shell etc.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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