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(Alliance News) - Upland Resources Ltd on Friday said it has made "significant progress" towards assessing an onshore rig capable of developing block SK334 in Sarawak, Malaysia with its joint venture partner.
Alongside Big Oil Ventures Sdn Bhd, together known as Upland Big Oil, London-based Upland Resources said the block SK334 assessment was progressing, with the technical team conducting rig evaluations against specific requirements and well design specifications.
Bolhassan Di, chair & chief executive of the oil and gas company with assets in Malaysia, Tunisia and the UK North Sea, led an assessment in Australia over the past week to evaluate the suitability of a new generation onshore rig, currently available for commission, which the joint venture technical team are reviewing.
"Upon completion [Upland Big Oil] will engage on commercial terms with the qualifying rig company to finalise this essential aspect of our development strategy," Upland Resources said.
Preliminary estimates at block SK334 indicate "significant" hydrocarbon resources, comparable comparable to those found in the neighbouring billion-barrel Seria field, Upland Resources said, which are "on a scale akin to Europe's largest offshore oil and gas reservoirs".
The company said the work programme at block SK334 also included completed seismic reprocessing and reconditioning.
Upland Resources said its focus now turns commercial arrangements and formalising partnerships towards a drilling campaign on block SK334. It added it does not envisage raising capital to fund wells, as the company is "well financed to meet its operational commitments into 2024".
Chair & CEO Di said: "We are very satisfied at the effective pace of progress being made by all the team at UBO and we continue to work relentlessly to maximize the potential of this global scale asset in the most time efficient manner. We look forward to updating the market on further progress throughout the month of August."
On Monday, Upland Resources shares rose after it said it had begun the formal process of assessing and contracting the onshore rig.
Shares in Upland Resources were up 19% to 0.86 pence each in London on Friday late morning. Across the week, they have risen 40%.
By Greg Rosenvinge, Alliance News reporter
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