Upland Resources Limited (LON:UPL) has received a number of unsolicited approaches from oil and gas companies interested in taking a stake in its Tunisia onshore acreage.
The company said it viewed this “early interest as a further validation of the potential of its new asset”.
Positive meetings over Sarawak
Upland’s Saouaf Permit covers 4,000-square kilometres and is independently estimated to be host to a gas resource of two-trillion cubic feet.
This includes the Dekrila gas discovery, alone estimated to host a 227bn cubic feet (BCF) of recoverable resource and the Bou Dabbous Flower structure with an estimated 813 BCF "recoverable". There is also “considerable” oil potential, Upland believes.
In an extensive round-up, the exploration and development firm said it has had “positive meetings” with Petronas, Petroleum Sarawak and its partner Brooke Dockyard and Engineering Works concerning its position in Sarawak, the Malaysian state on Borneo.
“These have progressed matters further on a number of fronts in Sarawak and more broadly in Malaysia where additional opportunities have been identified,” investors were told.
Here in the UK, Upland has applied for a North Sea licence in the latest round that is “highly prospective” but comes with a low work commitment.
The results of this application are expected in the current quarter. The company expects to hold a 40% stake, “ground-floor” interest in any licence awarded, it said.
Chief executive Steve Staley said: "Our shareholders will know that we have not been vociferous in the media over the past weeks - but we have been busy making good progress on all fronts and I am pleased to be able to provide this update now.
“We are encouraged by industry recognition of the potential of the Saouaf Licence and that ETAP are happy to help us find mutually beneficial investments.
“Good progress continues to be made in Sarawak and we have used the knowledge we have gained in our work on the UK's Inner Moray Firth to guide us to what we believe is attractive North Sea acreage."