CPR - UK License P2478 (Dunrobin)

RNS Number : 0755Q

Upland Resources Limited

16 February 2023

 

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.

16 February 2023

UPLAND RESOURCES LIMITED

("Upland" or the "Company")

Competent Person's Report on UK License P2478 ("Dunrobin")

Upland Resources Limited (LSE: UPL) is pleased to announce that a copy of a Competent Person's Report ("CPR") prepared by the RPS Group ("RPS") on UKCS License P2478 for Licence Administrator Reabold Resources Plc, on behalf of the Joint Venture Partners ("JV Partners"), in which Upland has a 32% non-operated working interest, can be accessed by link http://www.rns-pdf.londonstockexchange.com/rns/0755Q_1-2023-2-15.pdf  and will be published shortly on the Company's website at: www.uplandres.com

Bolhassan Di, Upland Chairman and CEO commented:

"The independent evaluation of the Dunrobin prospect conducted by RPS group on behalf of the JV Partners has helped validate the material resource potential of the licence and is an essential step in the farmout campaign which is already in-process and which is thus far attracting interest from other industry parties.

The Dunrobin West prospect, proposed as the location of the first exploration well on the licence, would also target 119mmboe aggregate gross unrisked Pmean prospective resources[1] (Upland having a 32% non-operated interest); success at Dunrobin would also significantly derisk the analogous Dunrobin Central, Dunrobin East and Golespie prospects all also hosted within the P2478 licence.

We would like to extend our thanks to our JV Partners, Reabold as Licence Administrator and Baron as lead on the accelerated Phase A work programme and we look forward to continuing the farm-out campaign with them."

CPR details for UK License P2478 ("Dunrobin")

The CPR has been prepared in accordance with the June 2018 Petroleum Resources Management System ("SPE PRMS") as the standard for reporting. A summary of the gross and net prospective resources is given in the table below.

Key Points

· 201 mmboe [2] aggregate gross unrisked [3] Pmean Prospective Resources on licence P2478

· The Dunrobin West prospect ("Dunrobin West"), agreed by the JV to be the proposed location of the first exploration well on the licence, would target 119mmboe gross unrisked Pmean prospective resources aggregated across the Jurassic and Triassic stacked targets [4]

· 34% Geological Probability of Success (Pg) on Dunrobin West Jurassic primary target

· Additional secondary Triassic target, which along with the Jurassic can be tested by a single vertical borehole, included in formal resource assessment for the first time with a Pg of 12%

· Dry hole drilling costs to a total depth of 800 metres estimated to be £8.6m gross

· Dunrobin West geologically analogous to the Beatrice fields which produced c.170mmboe

· Success at Dunrobin West would significantly de-risk Dunrobin Central & East and Golspie analogous prospects

· CPR aggregate net unrisked Pmean prospective resources on licence P2478 of 64.3mmboe for Upland

Prospective Resources

The table below summarises RPS's independent assessment of Gross Prospective Resources, from which are derived the Net Prospective Resources attributable to Upland's 32% effective interest, wholly within the P2478 licence areas. Totals are by arithmetic summation.

Prospective Resources	Gross Attributable to Licence				Net Attributable to Upland Resources				Risk Factor	Licence Administrator
	Low Estimate	Best Estimate	High Estimate	Mean Estimate	Low Estimate	Best Estimate	High Estimate	Mean Estimate
	(1U)	(2U)	(3U)		(1U)	(2U)	(3U)
Oil (mmbbl)
Dunrobin West Jurassic	7	42	168	71	2.2	13.4	53.8	22.7	34%	Reabold Resources North Sea
Dunrobin West Triassic	7	34	98	45	2.2	10.9	31.4	14.4	12%	"
Dunrobin C&E Jurassic	1	8	67	22	0.3	2.6	21.4	7.0	31%	"
Dunrobin C&E Triassic	1	9	56	22	0.3	2.9	17.9	7.0	14%	"
Golspie Jurassic	4	12	27	14	1.3	3.8	8.6	4.5	27%	"
Golspie Triassic	7	20	43	23	2.2	6.4	13.8	7.4	12%	"
Total Oil (mmbbl)	27	125	459	197	8.6	40.0	146.9	63.0
Associated & Non-associated Gas (bcf)
Dunrobin West Jurassic	2	7	22	10	0.6	2.2	7.0	3.2	34%	Reabold Resources North Sea
Dunrobin West Triassic	1	4	11	5	0.3	1.3	3.5	1.6	12%	"
Dunrobin C&E Jurassic	0.1	1	7	2	0.0	0.3	2.2	0.6	31%	"
Dunrobin C&E Triassic	0.1	1	6	2	0.0	0.3	1.9	0.6	14%	"
Golspie Jurassic	0.4	1	3	2	0.1	0.3	1.0	0.6	27%	"
Golspie Triassic	0.8	2	5	3	0.3	0.6	1.6	1.0	12%	"
Total Gas (bcf)	4.4	16	54	24	1.4	5.1	17.3	7.7
Oil equivalent (mmboe)
Dunrobin West Jurassic	7	43	172	73	2.3	13.8	54.9	23.3	34%	Reabold Resources North Sea
Dunrobin West Triassic	7	35	100	46	2.3	11.1	31.9	14.7	12%	"
Dunrobin C&E Jurassic	1	8	68	22	0.3	2.6	21.8	7.1	31%	"
Dunrobin C&E Triassic	1	9	57	22	0.3	2.9	18.2	7.1	14%	"
Golspie Jurassic	4	12	28	14	1.3	3.9	8.8	4.6	27%	"
Golspie Triassic	7	20	44	24	2.3	6.5	14.0	7.5	12%	"
Total Oil equivalent (mmboe)	28	128	468	201	8.9	40.9	149.8	64.3

Notes:  

· ^[1] The unrisked aggregation performed by the Company assumes that all prospects at all levels are successful.

· ² The CPR reports oil and gas Prospective Resources. The oil equivalent value of the gas resources has been estimated by the Company using a factor of 1 barrel of oil to 5.8 thousand cubic feet of gas.

· ³ The unrisked aggregation performed by the Company assumes that all prospects at all levels are successful.

· ⁴ The unrisked aggregation of Dunrobin West was performed by the Company. The volumes were presented for each reservoir in the CPR and, at the Company request, were not aggregated probabilistically.

· Company has aggregated P90, P50, P10 and Mean values arithmetically. This is not statistically correct, values may not sum exactly due to rounding factors.

· "Gross Attributable" are 100% of the resources attributable to the licence whilst "Net Attributable" are those attributable to Upland's effective interest in the licence (32%) before economic limit test.

· Includes a mix of associated gas and non-associated gas from Dunrobin West Gas Cap, all others are associated gas only.

· Mean is defined as the arithmetic average of successful outcomes.

** ENDS **

For further information, please contact:

Upland Resources Limited Bolhassan Di, Chairman and CEO	Tel: [phone] [e-mail] [e-mail] www.uplandres.com
Optiva Securities - Broker Christian Dennis (Corporate Broker)	Tel:  [phone] [e-mail] www.optivasecurities.com
Flowcomms - IR Contact Sasha Sethi	Tel: [phone] [e-mail]

Glossary

bcf	Billion standard cubic feet of gas.
Best Estimate or 2U	Denotes the mid estimate qualifying as Prospective Resources. Reflects a volume estimate that there is a 50% probability that the quantities actually recovered will equal or exceed the estimate.
Risk factor or GPoS	[The estimated geological probability of success that exploration activities will confirm the existence of a significant accumulation of potentially recoverable petroleum.
High Estimate or 3U	Denotes the high estimate qualifying as Prospective Resources. Reflects a volume estimate that there is a 10% probability that the quantities actually recovered will equal or exceed the estimate.
Low Estimate or 1U	Denotes the low estimate qualifying as Prospective Resources. Reflects a volume estimate that there is a 90% probability that the quantities actually recovered will equal or exceed the estimate.
Mean or Pmean	Reflects a mid-case volume estimate of resource derived using probabilistic methodology. This is the mean of the probability distribution for the resource estimates and may be skewed by resource numbers with relatively low probabilities.
mmbbl	Million barrels of oil.
mmboe	Million barrels of oil equivalent.  Volume derived by dividing the estimate of the volume of natural gas in billion cubic feet by 5.8 in order to convert it to an equivalent in million barrels of oil and, where relevant, adding this to an estimate of the volume of oil in millions of barrels.
Prospective Resources	Quantities of petroleum that are estimated to exist originally in naturally occurring reservoirs, as of a given date.  Crude oil in-place, natural gas in-place, and natural bitumen in-place are defined in the same manner.
SPE PRMS	The Society of Petroleum Engineers' ("SPE") Petroleum Resources Management System ("PRMS"): a system developed for consistent and reliable definition, classification, and estimation of hydrocarbon resources prepared by the Oil and Gas Reserves Committee of SPE and approved by the SPE Board in June 2018 following input from six sponsoring societies: the World Petroleum Council, the American Association of Petroleum Geologists, the Society of Petroleum Evaluation Engineers, the Society of Exploration Geophysicists, the European Association of Geoscientists and Engineers, and the Society of Petrophysicists and Well Log Analysts. Quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The total quantity of petroleum that is estimated to exist originally in naturally occurring reservoirs, as of a given date.  Crude oil in-place, natural gas in-place, and natural bitumen in-place are defined in the same manner.

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