REG - Upland Resources Ltd - Block Participation Aceh, Indonesia

Upland ResourcesAnnouncement

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RNS Number : 4429U  Upland Resources Limited  26 February 2026

Upland Resources Limited

("Upland" or the "Company")

Strategic Memorandum of Understanding Signed with PEMA, Aceh Provincial
Government-Owned Energy and Mineral Investment Authority

   Participation in Block MY1 and Block MY2- Feasibility and Development
Plan

Upland Resources Limited (LSE: UPL), the upstream oil and gas and natural
resources development company, is pleased to announce that it has entered into
a Memorandum of Understanding ("MoU") with PT Pembangunan Aceh ("PEMA"), the
Aceh provincial government-owned energy and mineral investment authority.

 

 

Formal exchange of signed documents between Upland and PEMA representatives in
Aceh.

 

The MoU establishes a structured collaboration framework for the preparation
of a joint feasibility study covering technical, financial, legal and risk
evaluation related to the potential development of two Blocks in Aceh Province
(together, the "area"). Preliminary internal assumptions identify the
potential for a structured production ramp-up targeting approximately 20,000
boe/d (~120 MMscf/d) over a 5-year period. The MoU covers the Tamiang Sub
Basin of East Aceh, with stated yet to find resources of 1.4 billion barrels
of oil equivalent, in exploration potential.

 

The feasibility and development plan comprises:

·      Block MY1, an onshore licence area within a proven producing
petroleum basin containing existing developed fields and an identified
discovered accumulation, which tested at approximately 25 MMscf/d with
publicly stated recoverable resource estimates of 100-400 Bcf, yet to be
developed; and

·      Block MY2, an onshore licence area within the same petroleum
system, identified for technical evaluation, potential development and
high-impact exploration across deeper structural and stratigraphic targets.

 

East Aceh Basin - Integrated Rejuvenation and High-Impact Exploration Strategy

 

Under the MoU framework, the parties will undertake a structured joint
feasibility study designed to evaluate:

·      Production optimisation and recovery enhancement across existing
developed fields within Block MY1;

·      Subsurface re-evaluation and potential reserve enhancement across
known accumulations;

·      Targeted workover and infill drilling opportunities;

·      Appraisal of the identified discoveries within Block MY1;

·      High-impact exploration and appraisal potential across both
Block's MY1 and MY2; and

·      Phased development concepts integrating redevelopment with
scalable exploration opportunities.

Block MY1 contains established production infrastructure and identified
discovered accumulations that remain subject to further technical evaluation
and potential appraisal. The feasibility programme will assess opportunities
to enhance production performance, refine resource definition and evaluate
appraisal drilling requirements, subject to regulatory approval.

Block MY2 provides exposure to additional exploration potential within the
same petroleum system. The integrated approach combines near-term production
optimisation with disciplined evaluation of higher-impact exploration
opportunities capable of materially expanding the resource base.

Provincial Alignment and Strategic Positioning

PEMA is the principal energy investment arm of the Aceh Provincial Government
and plays a central role in regional upstream participation and development
initiatives.

Establishing this formal collaboration framework with PEMA provides a
constructive platform for long-term engagement within Aceh's devolved upstream
governance structure, aligning Upland with provincial strategic objectives
while maintaining adherence to national regulatory processes.

Regional Resource Context and Geological Analogues

Aceh forms part of the prolific North Sumatra petroleum system, one of
Southeast Asia's historically productive hydrocarbon provinces. Recent
basin-wide assessments of the North Sumatra Basin indicate:

·      Approximately 244 million barrels of estimated undiscovered
recoverable oil resources (P50 basis);

·      Approximately 34 trillion cubic feet (Tcf) of estimated
undiscovered recoverable gas resources (P50 basis);

·      Equivalent to approximately 5.9 billion barrels of oil equivalent
(Bboe) on a recoverable basis; and

·      An estimated 7.3 Bboe of remaining gross basin potential.

International Oil & Gas Presence in Aceh - Historical and Current

 

 Operator / Company          Discovery / Project                             Approx. Size / Notes
 PT Pertamina &              Arun Gas Field                                  ~16 Tcf original gas in place (supergiant historic field)

 ExxonMobil
 Mubadala Energy &           Layaran‑1 & Tangkulo‑1 (South Andaman)          >11 Tcf combined gas in place (deepwater discoveries)

 Harbour Energy
 Conrad Asia Energy          ONWA / OSWA Discovered Gas Accumulations        ~214 Bcf 2C contingent resources (gross)
 Medco E&P Malaka &          Block A Developed Gas Fields Cluster            >450 Bcf developed gas volumes across licence area

 Partners
 Conrad Asia Energy          Singkil‑1 / Meulaboh Discoveries                Flow-tested shallow discoveries

Block MY1 and Block MY2 are located within this established petroleum system
and are situated in proximity to several significant oil and gas discoveries
and producing fields. These surrounding discoveries demonstrate the presence
of effective source rocks, reservoir development and hydrocarbon migration
across the wider basin. Established regional pipeline infrastructure and
domestic gas demand centres further reinforce the multiple monetisation routes
available.

Medium-Term Production Ambition and Funding Capacity

Subject to feasibility outcomes, regulatory approval and definitive
agreements, the parties intend to pursue a phased development strategy. Based
on preliminary internal planning assumptions, this would include a structured
production ramp-up targeting approximately 20,000 boe/d (~120 MMscf/d) by Year
5, integrating production optimisation within Block MY1 with disciplined
evaluation of identified exploration opportunities across both Blocks.

Upland's broader Southeast Asia growth strategy is supported by a US$100
million funding commitment from its strategic partner, Lost Soldier Oil &
Gas, under a Letter of Commitment dated 23 January 2026, intended to support
qualifying upstream projects across the region, subject to agreed project
criteria and definitive documentation.

The Company believes that the combination of defined asset focus, basin-scale
technical context, provincial alignment and committed funding capacity
provides a credible pathway toward scalable upstream development in Aceh.

US$100m Strategic Funding Commitment - Upland
(https://upland.energy/us100m-strategic-funding-commitment/)

 

Next Steps and Near-Term Work Programme

Following execution of the MoU, the parties will commence a structured
feasibility work programme. The programme will seek to clarify subsurface
resource potential across both areas through compilation and validation of
available data, reprocessing and reinterpretation of seismic and well
information, and integrated geological and reservoir evaluation.

 

Within Block MY1, work will include assessment of production optimisation
opportunities across existing developed fields and technical review of
identified discoveries to define appraisal requirements and potential
development concepts.

 

In parallel, exploration targets across both Block MY1 and Block MY2 will be
identified, ranked and prioritised based on geological risk, resource
potential and commercial viability, with a view to defining future drilling
candidates.

 

The work programme will also evaluate appropriate participation and commercial
structures between Upland, PEMA and relevant governmental stakeholders within
the applicable regulatory framework.

Management Commentary

Bolhassan Di, Chairman and CEO of Upland Resources Limited, commented:

"This MOU with PEMA, entered into with the strong support of the Aceh
Provincial Government, represents a unique and strategically significant
opportunity for Upland. It provides us with unrivalled access to one of the
most prolific hydrocarbon basins in the world, allowing Upland to selectively
identify and secure the highest-potential acreage. This positions us to focus
on material, high-impact opportunities with the greatest potential for
scalable production."

"By combining Upland's technical expertise with PEMA's local mandate and
insight, and supported by the financial backing of our strategic partner Lost
Soldier Oil & Gas, we are exceptionally well placed to drive the next
phase of energy development in Aceh in a disciplined, responsible, and
results-focused manner."

Marc Bruner, Executive Chairman of Lost Soldier Oil & Gas, commented:

 

"Lost Soldier has significant experience in the appraisal and development of
unconventional resources and stacked gas horizons across multiple basins. The
geological characteristics and multi-layered play systems present in Aceh make
this an exceptionally attractive opportunity for us."

 

"We believe the collaboration between Upland and PEMA, supported by the Aceh
Provincial Government, provides a strong foundation to systematically unlock
large-scale resource potential, and we look forward to working closely with
Upland as these opportunities are advanced toward material production."

 

 

Prof Andrew Hurst, Technical Director, NED, Upland Resources Limited,
commented:

 

"Aceh Province's Seven Sub-Basins represent one of Indonesia's most promising
hydrocarbon provinces, with over 8.6 BBOE of discovered in-place resources.
Despite proven productivity, large portions of the basin remain underexplored,
offering substantial upside potential. Current estimates indicate more than 9
BBOE of yet-to-find (YTF) hydrocarbon resources, highlighting significant
opportunities for future exploration and investment."

 

 

 For further information, please contact:

 Upland Resources Limited                                                                                                                                                                                                       Tel: +60 198 861919
 Bolhassan Di, Chairman and CEO                                                                                                                                                                                                 bolhassan@uplandbigoil.com.my (mailto:bolhassan@uplandbigoil.com.my)

 Gerry Murray, COO                                                                                                                                                                                                              gerry.murray@upland.energy (mailto:gerry.murray@upland.energy)

 Josh Galloway, Head of                                                                                                                                                                                                         josh.galloway@upland.energy (mailto:Josh.galloway@upland.energy)
 Drilling

                                                                                                                                                                                                                                www.upland.energy (http://www.upland.energy)
 OAK Securities - Broker                                                                                                                                                                                                        Tel: +44 (0)20 3973 3678
 Jerry Keen                                                                                                                                                                                                                     jerry.keen@oak-securities.com (mailto:jerry.keen@oak-securities.com)

 Henry Clarke                                                                                                                                                                                                                   henry.clarke@oak-securities.com (mailto:henry.clarke@oak-securities.com)

                                                                                                                                                                                                                                www.oak-securities.com (http://www.oak-securities.com)

Inside Information (UK MAR)

This announcement contains inside information for the purposes of Article 7
of the UK Market Abuse Regulation (EU) No. 596/2014, which forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
This information is disclosed in accordance with the Company's obligations
under Article 17 of UK MAR.

FCA and Prospectus Disclaimer

This announcement does not constitute, and should not be construed as, a
prospectus, admission document or offering memorandum, nor an offer to sell or
the solicitation of an offer to buy any securities in the Company. No
securities of the Company are being offered pursuant to this announcement.
This announcement has not been reviewed or approved by the Financial Conduct
Authority or any other regulatory authority.

Forward-Looking Statements

This announcement includes forward-looking statements, including statements
relating to prospective resources, exploration and appraisal programmes,
drilling plans, funding availability, farm-in arrangements, regulatory
outcomes and future operations. Forward-looking statements are based on
current expectations, assumptions and estimates and involve risks and
uncertainties that could cause actual results or developments to differ
materially from those expressed or implied.

Forward-looking statements are not guarantees of future performance. Factors
that could cause actual outcomes to differ materially include, but are not
limited to, licence awards, regulatory approvals, subsurface risk, commodity
price volatility, operational risks, availability of capital, counterparty
performance and changes in fiscal or governmental regimes. The Company
undertakes no obligation to update any forward-looking statements except as
required by applicable law or regulation.

END

 

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