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23rd May 2018
UPLAND RESOURCES LIMITED
("Upland" or the "Company")
Revised cost estimate for Wick well
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
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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.
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