Upland Resources Limited (LSE: UPL), the oil and gas company actively building a portfolio of attractive upstream assets, announces an update on the proposed drilling of the Wick well, in UK Seaward Production Licence P2235 (UKCS Block 11/24b) (the “P2235 Licence”).
Wick well (40% working interest)
An Authority for Expenditure (“AFE”) with a total estimated cost of £5.7 million on a dry hole basis (£2.8 million net to Upland Resources (UK Onshore) Limited (“Upland UK”)) has been signed by all the licensees of the P2235 Licence for the drilling of the Wick well. This includes additional rig days to allow time for necessary operations. Upland UK will fund 53.33% of the costs related to the Wick well, capped on a pro-rata basis at a gross cost of £4.2 million, with the incremental costs above this cap funded by Upland UK at 40%. Drilling of the Wick well is scheduled to commence in September 2018, subject to regulatory approvals.
Steve Staley, Upland Resources Limited CEO, said:
“We are very pleased to announce that Upland UK, alongside our partners in the Wick well, have signed the AFE for the well as we move toward commencing drilling in September 2018. This is a very important step as we look forward to realising the potential of this high impact exploration well. We will update our shareholders on progress in due course.”