Upland Resources Limited (LSE: UPL) is pleased to note the announcement made on the 25th December 2018 by Corallian Energy Limited, as Exploration Operator for Licence P2235, that drilling of the Wick exploration well (11/24b-4) commenced at 00:45 hrs on 25th December 2018. The Ensco-72 drilling rig will be on location for approximately 3 weeks.
Upland’s CEO Dr Steve Staley said:
“This is Upland’s first participation in a well. We are very pleased to be involved in it, coming as it does only 7 months after completing the farm in deal, and with a very good risk:reward balance. Whilst we do not lose sight of the fact that this is an exploration well, with all the geological uncertainties that entails, we believe the Wick prospect is a worthy target that, with drilling success, should produce an economically robust project in a wide range of oil prices and development scenarios.”
Background to Upland’s interest in the Wick prospect
In November 2017, the Company’s wholly-owned subsidiary, Upland Resources (UK Onshore) Limited (“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 farm in agreement between Corallian Energy and Upland UK was then completed on 24th May 2018.
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 targets reservoir sequences within the Wick structure.