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(Alliance News) - Upland Resources Ltd shares surged on Friday following its subsidiary signing a joint study agreement to carry out work on Block SK334 in Malaysia.
Shares in the London-based oil and gas company were up 20% to 0.30 pence each in London on Friday morning.
Upland's wholly owned subsidiary Upland Resources (Sarawak) Sdn Bhd, Big Oil Ventures Sdn Bhd and Petroleum Sarawak Berhad have signed a joint study agreement to carry out a technical study on Block SK334. Petroleum Sarawak Berhad is a state-owned oil and gas exploration firm established and owned by the Sarawak government. Sarawak is a state of Malaysia.
The study, which will begin immediately, will be carried out by Upland Resources (Sarawak) and Big Oil Ventures.
Block SK334 is around 6,685 square kilometres and is located in the northern region of Onshore Sarawak, Malaysia. Sedimentary basins in Sarawak are proven prolific hydrocarbons bearing basins, Upland added.
The company explained that the main objectives of the agreement are to de-risk the petroleum system elements and to upgrade the understanding on the prospectivity in Block SK334.
It added that Upland will establish an operations office in Sarawak to begin preparatory work for the study.
The company expects the study to be completed by the end of 2023.
Upland Chair Bolhassan Di said: "Upland Resources (Sarawak) Sdn Bhd is very encouraged about the potential of significant hydrocarbon present in the study area (Block SK334).
"Upland is looking forward to starting the joint technical study immediately, and is optimistic about the results to be obtained, considering that the Block SK334 is located next to a prolific petroleum basin which has witnessed oil production since 1929," Di added.
By Sophie Rose; sophierose@alliancenews.com
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