(Alliance News) - Upland Resources Ltd on Monday said it formally signed permit documents for an exclusive Saouaf hydrocarbon exploration and appraisal licence, onshore northern Tunisia, on Friday.
Upland Resources shares were trading 13% higher on Monday afternoon at 2.00 pence each in London.
The oil and gas company said the documents were signed by Upland Saouaf Ltd, a wholly-owned subsidiary of Upland Resources, the Tunisian Minister of Industry and Small & Middle Enterprises, and the Tunisian state oil company Entreprise Tunisienne d'Activites Petrolieres.
The gas-prospective Saouaf licence, which covers 4,004 square kilometres, is operated by Upland Saouaf and is held 50/50 in the joint names of Upland Saouaf and Entreprise Tunisienne.
Upland Resources said the signature of the permit documents allows it to actively market participation in the Saouaf licence to potential farminees.
The Saouaf licence is for an initial term of two years and may be converted and thereby extended in term at Upland Saouaf's option. The commitments for the first phase include drilling one new well. Upland Resources said it has organised for a USD1 million bank guarantee to be lodged in favour of the Tunisian government against these first phase work commitments.
"The board of Upland is pleased to announce the signature of the Saoauf licence. This enables us to move forward with our plans in the Saouaf licence area whilst we continue to pursue other ventures in Tunisia, Sarawak and the North Sea," said Upland Resources Chief Executive Steve Staley.