Upland Resources (LSE:UPL), the oil and gas company, opened trading around 1.5% higher on Friday after finding out gas was present in two blocks neighbouring its SK334 asset, a company update revealed.
Working in collaboration with the Petroleum Authority of Brunei Darussalam, Upland said “high pressure” gas reached the surface at these nearby reservoirs, with further formations still to be tested.
Bolhassan Di, Upland's chairman and chief executive officer, said: "We view this development as a material upgrade to Block SK334, correlating key characteristics and understanding of the adjacent block prospectivity, further strengthening our position.”
Viewing this as a significant de-risk to future exploration, Upland is actively assessing all available data from these wells, helping to limit technical risk in Block SK334.
"The presence of previously unrecognised reservoirs and proof of gas migration and trapping in the adjacent Brunei block are key positive indicators of broader hydrocarbon prospectivity in the area," professor Andrew Hurst, Upland’s technical director, added.
Shares in Upland Resources (LSE:UPL) are trading at around 2.80p and are up more than 288% in the year-to-date.