Upland Resources Ltd (LON:UPL) shares strengthened on Monday after the oil and gas junior told investors that, following meetings, it believes the recent Malaysia election results will have little impact on its interests in the state of Sarawak.
“Plans for greater independence for Sarawak in upstream oil & gas were confirmed to be unchanged after the national election, the result having had little impact on this process,” the company said in a statement.
“This push for more independence in this industry is clearly popular with the people of Sarawak and enjoys broad cross-party support.”
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Upland noted that Petroleum Sarawak Berhad (otherwise referred to as Petros) is now moving quickly to take on active roles as the effective Sarawakian state oil company, and, it is expected that companies will need to apply to Petros for licences.
Sarawakian companies and those partnered with Sarawakian companies are expected to be given preference in the award of permits, it added.
Steve Staley, Upland chief executive, said: "During our visit to Kuching, we were pleased to see how the future is now unfolding in Sarawak.
“The recent national election result does not appear to have affected Sarawak's ambitions for their oil & gas industry and Petros is clearly moving forward with its plans at a faster pace than we expected.
“Upland remains in a very good position and I look forward to updating the market further as the situation progresses."
Last month, Upland signed a Memorandum Of Understanding, with a Sarawak government backed group based in the city of Kuching, to jointly explore for and develop hydrocarbon assets within the State of Sarawak.
In London, Upland shares gained 0.39p or 11.47% changing hands at 3.79p each.