REG - Upland Resources Ltd - Historical Block SK334 Data Confirms Prospectivity

Upland ResourcesAnnouncement

28/04/2023 07:00

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RNS Number : 7531X  Upland Resources Limited  28 April 2023

 

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This announcement is not an offer for sale, or a solicitation of an offer to
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inducement to enter into any contract or commitment whatsoever.

 

28(th) April 2023

 

 

UPLAND RESOURCES LIMITED

("Upland" or the "Company")

 

Evaluation of Historical Block SK334 Data Confirms Significant Prospectivity

Upland Resources Limited (LSE: UPL) is pleased to announce that analysis of
historical data relating to Block SK334 has validated the prospectivity of the
Block through the confirmation of three closed structures where hydrocarbon
reservoirs could be present at several stratigraphic levels.

The results of this study are aligned but separate to the final results of the
Joint-Technical Study ("JTS") presently being carried out by the Upland Big
Oil joint venture where positive progress is being made and where detailed
volumetric analysis (integrating ongoing JTS workstreams) to estimate oil and
gas in place is underway. All prospects identified, are projected to contain
commercial reserve volumes (subject to ongoing verification).

Highlights

·    Three main structural positive trends identified and mapped, and
explorative potential assessed together with a first estimate of risk,
internally classified as medium-low.

·    Hydrocarbon bearing reservoirs potential at several stratigraphic
levels.

·    Additionally, presence of source rock and seal considered to further
mitigate risk considerably.

·    Analysis of pre-existing data shows three closed promising structures
(A, B, C), that were mapped at multiple horizons and assessed in terms of
volumes:

1.    Structure A (depth 1100-1500m)

2.    Structure B (depth 1000-1500m)

3.    Structure C (depth 1900-2400m)

**Please note that 4 images relating to the three structural interpretations
have been inserted into this announcement; should these images not be
available on third-party systems then they can be found on the corresponding
announcement on the Company website.

Following technical evaluations based on a multi-disciplinary analysis and
interpretation of pre-existing data including the 2016 2D seismic acquisition
and incorporating Upland's initial technical evaluation from 2018 VDR + WDR in
addition to tentative calibrations using analogue fields and wells in nearby
Brunei from the Jerudong, Belait and Lempuyang fields and Sarawak Block SK433,
this RNS notes the following:

Reservoir Analysis

 

From a reservoir standpoint, preserved reservoir intervals could be present at
several stratigraphic levels, especially at more deeply buried levels within
the identified structures. The Belait Formation is known to be reservoir prone
(showing good porosity and permeability sandstones intervals). Good to
excellent quality reservoir rock is always present within the sandstone levels
of the Belait Formation.

 

Prospectivity

In terms of exploration concept, it appears that the SK334 area, from an
exploration point of view, shows similar targets and geological
reservoir/trap/seal combinations as nearby Brunei, especially on the Jerudong
anticline in northern Brunei. In this respect, the potential oil and gas play
warranting investigation in Block SK334 could be associated with stratigraphic
traps caused by regional and local facies variation within the deltaic
sequences on the eastern flank of the structures.

Moreover, deeper complex trap geometries could be associated with structural
features such as Structure C. The three main structural trends identified in
the seismic interpretation work and confirmed through the correlation with
surface geology and regional analogues as shown in Figure 1 below:

 

Fig. 1 - SK334 2D + Brunei Block 2D & 3D seismic Seeps, Field and wells
with label:

 

 

 

Thanks to the correlation with surface geology and based on thickness/velocity
considerations, a set of depth maps was produced, and it was possible to
estimate the structural spill point of individual structures.

 

Based on these depth-structural maps, it was possible to run a preliminary 3D
volumetric calculation, by building simplified 3D geocellular models of each
structure in the Petrel software made available during our initial Workstation
Data Room.

 

Fig. 2 - Structure A 3D model build to estimate volumetrics. OWC at structural
spill-point (displayed as a blue plane).

 

 

Fig. 3 - Structure B 3D model build to estimate volumetrics. OWC at structural
spill-point (displayed as a blue plane).

 

 

 

Fig. 4 - Structure C 3D model build to estimate volumetrics. OWC at structural
spill-point (displayed as a blue plane).

 

 

 

 

Three main positive structural trends are identified and mapped, and their
explorative potential was assessed together with a preliminary estimate of
their risk, which was internally categorised as medium-low. Petroleum
reservoirs could be present at several stratigraphic levels, especially for
the more deeply buried structures, while source rock and seal presence are
considered very low risk. In conclusion, the new seismic data shows three
promising 4-way dip closures (A, B, C), that were mapped at multiple horizons
and assessed in terms of volumes:

Structure A (depth 1100-1500 m)

Structure B (depth 1000-1500 m)

Structure C (depth 1900-2400 m)

 

Detailed volumetric analysis is currently underway, integrating ongoing
workstreams. We look forward to updating the market in due course.

 

Bolhassan Di, Upland Chairman and CEO commented:

"Correlating data and analysis from the 2018 study has provided important
insight to the prospectivity of Block SK334. Our data and comparisons with
analogue data indicate that mature source rocks and active hydrocarbon
migration occur, and that recognised seals and traps are present and analogous
to existing and adjacent onshore and offshore fields and discoveries.

Whilst some other higher risk prospectivity exists in the north-east of Block
SK334, early work has identified three main structures of particular interest
where petroleum reservoirs could be present and which have been part of the
present Joint Technical Study efforts to understand and derisk leads within
Block SK334 ahead of a future exploration drilling programme, the first of its
kind within this hugely prospective licence adjacent to the prolific
hydrocarbon basins of Brunei.

 

We look forward to updating further upon the Joint Technical Study and
additional progress in Sarawak."

 

**ENDS**

 

For further information, please contact:

 

 Upland Resources Limited         Tel: +60 198 861 919

 Bolhassan Di, Chairman and CEO   bolhassan@uplandres.com (mailto:bolhassan@uplandres.com)

 Gerry Murray, COO                bolhassan@uplandbigoil.com.my (mailto:bolhassan@uplandbigoil.com.my)

                                  gerry.murray@uplandres.com

                                  www.uplandres.com (http://www.uplandres.com/)

 Optiva Securities - Broker       Tel:  +44 (0)20 3137 1903

                                christian.dennis@optivasecurities.com
 Christian Dennis                 (mailto:christian.dennis@optivasecurities.com)
 (Corporate Broker)

                                  www.optivasecurities.com (http://www.optivasecurities.com/)

 IR Contact                       Tel: +44 (0)7891 677441

 Sasha Sethi                      sasha@flowcomms.com (mailto:sasha@flowcomms.com)

 

 

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