Upland Resources announces farm-in agreement with Corallian Energy in the UK

11/30/2017

LONDON -- Upland Resources Limited, the oil and gas company actively building a portfolio of attractive upstream assets, is pleased to announce that its wholly-owned subsidiary, Upland Resources (UK Onshore) Limited (Upland UK), has signed a farm-in agreement with Corallian Energy Limited (Corallian) for a 40% working interest in UK Seaward Production Licence P2235 (UKCS Block 11/24b) containing the Wick Prospect.

Highlights

  • The large Wick Prospect lies in the Inner Moray Firth, only 2 km from land and in shallow water.
  • Offers Upland a relatively low risk, low cost, potentially transformative near term drilling opportunity using a jackup rig in late 2018. Corallian has already begun environmental permitting for the well.
  • Upland has carried out an extensive assessment of the technical risks, undertaken a full interpretation of the existing well and seismic data, and remapped the area.
  • The Company estimates the Wick Prospect could hold in-place P50 resources of around 250 MMbbl.
  • Upland continues to interpret the data and believes additional, attractive prospects are likely to be found in the permit area.
  • The Licence area benefits from an extensive 3D dataset, lies close to the large Beatrice field, updip from the Lybster discovery and in the same working petroleum system.

Upland UK is likely to hold the largest interest in the P2235 Licence and be the only co-venturer that is part of a listed entity. The Company will pay 53.33% of the first £4.2 million of costs related to the environmental survey and the first Wick well; costs above that cap will be funded pro rata to interests in the Licence. The Wick well is currently estimated to have a total dry-hole cost of about £4.2 million.

Completion of the P2235 Farm-in Agreement is conditional on, inter alia, the approval by the UK Oil & Gas Authority of Upland UK as a farminee to the Licence, availability of funding to Upland UK sufficient to satisfy its obligations under the P2235 Farm-in Agreement and the Licence continuing in full force and effect.

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