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28^th April 2023

UPLAND RESOURCES LIMITED

("Upland" or the "Company")

Evaluation of Historical Block SK334 Data Confirms Significant Prospectivity

Upland Resources Limited (LSE: UPL) is pleased to announce that analysis of historical data relating to Block SK334 has validated the prospectivity of the Block through the confirmation of three closed structures where hydrocarbon reservoirs could be present at several stratigraphic levels.

The results of this study are aligned but separate to the final results of the Joint-Technical Study ("JTS") presently being carried out by the Upland Big Oil joint venture where positive progress is being made and where detailed volumetric analysis (integrating ongoing JTS workstreams) to estimate oil and gas in place is underway. All prospects identified, are projected to contain commercial reserve volumes (subject to ongoing verification).

Highlights

·    Three main structural positive trends identified and mapped, and explorative potential assessed together with a first estimate of risk, internally classified as medium-low.

·    Hydrocarbon bearing reservoirs potential at several stratigraphic levels.

·    Additionally, presence of source rock and seal considered to further mitigate risk considerably.

·    Analysis of pre-existing data shows three closed promising structures (A, B, C), that were mapped at multiple horizons and assessed in terms of volumes:

1.    Structure A (depth 1100-1500m)

2.    Structure B (depth 1000-1500m)

3.    Structure C (depth 1900-2400m)

**Please note that 4 images relating to the three structural interpretations have been inserted into this announcement; should these images not be available on third-party systems then they can be found on the corresponding announcement on the Company website.

Following technical evaluations based on a multi-disciplinary analysis and interpretation of pre-existing data including the 2016 2D seismic acquisition and incorporating Upland's initial technical evaluation from 2018 VDR + WDR in addition to tentative calibrations using analogue fields and wells in nearby Brunei from the Jerudong, Belait and Lempuyang fields and Sarawak Block SK433, this RNS notes the following:

Reservoir Analysis 

From a reservoir standpoint, preserved reservoir intervals could be present at several stratigraphic levels, especially at more deeply buried levels within the identified structures. The Belait Formation is known to be reservoir prone (showing good porosity and permeability sandstones intervals). Good to excellent quality reservoir rock is always present within the sandstone levels of the Belait Formation.

Prospectivity 

In terms of exploration concept, it appears that the SK334 area, from an exploration point of view, shows similar targets and geological reservoir/trap/seal combinations as nearby Brunei, especially on the Jerudong anticline in northern Brunei. In this respect, the potential oil and gas play warranting investigation in Block SK334 could be associated with stratigraphic traps caused by regional and local facies variation within the deltaic sequences on the eastern flank of the structures.

Moreover, deeper complex trap geometries could be associated with structural features such as Structure C. The three main structural trends identified in the seismic interpretation work and confirmed through the correlation with surface geology and regional analogues as shown in Figure 1 below: 

Fig. 1 - SK334 2D + Brunei Block 2D & 3D seismic Seeps, Field and wells with label:

Thanks to the correlation with surface geology and based on thickness/velocity considerations, a set of depth maps was produced, and it was possible to estimate the structural spill point of individual structures.

Based on these depth-structural maps, it was possible to run a preliminary 3D volumetric calculation, by building simplified 3D geocellular models of each structure in the Petrel software made available during our initial Workstation Data Room.

Fig. 2 - Structure A 3D model build to estimate volumetrics. OWC at structural spill-point (displayed as a blue plane).

Fig. 3 - Structure B 3D model build to estimate volumetrics. OWC at structural spill-point (displayed as a blue plane).

Fig. 4 - Structure C 3D model build to estimate volumetrics. OWC at structural spill-point (displayed as a blue plane).

Three main positive structural trends are identified and mapped, and their explorative potential was assessed together with a preliminary estimate of their risk, which was internally categorised as medium-low. Petroleum reservoirs could be present at several stratigraphic levels, especially for the more deeply buried structures, while source rock and seal presence are considered very low risk. In conclusion, the new seismic data shows three promising 4-way dip closures (A, B, C), that were mapped at multiple horizons and assessed in terms of volumes:

Structure A (depth 1100-1500 m)
Structure B (depth 1000-1500 m)
Structure C (depth 1900-2400 m)

Detailed volumetric analysis is currently underway, integrating ongoing workstreams. We look forward to updating the market in due course.

Bolhassan Di, Upland Chairman and CEO commented:

"Correlating data and analysis from the 2018 study has provided important insight to the prospectivity of Block SK334. Our data and comparisons with analogue data indicate that mature source rocks and active hydrocarbon migration occur, and that recognised seals and traps are present and analogous to existing and adjacent onshore and offshore fields and discoveries.

Whilst some other higher risk prospectivity exists in the north-east of Block SK334, early work has identified three main structures of particular interest where petroleum reservoirs could be present and which have been part of the present Joint Technical Study efforts to understand and derisk leads within Block SK334 ahead of a future exploration drilling programme, the first of its kind within this hugely prospective licence adjacent to the prolific hydrocarbon basins of Brunei.

We look forward to updating further upon the Joint Technical Study and additional progress in Sarawak."

**ENDS**

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