Upland Resource Regulatory News (UPL)

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Upland Resources Limited

(LSE: UPL)1 October 2025

Asset acquisition agreement signed with Vanguard Drilling Limited

Acquisition of Proprietary Drilling IP, Systems and integration of Senior Personnel

Upland Resources Limited ("Upland" or the "Company") is pleased to announce that it has signed an Asset Acquisition Agreement with Vanguard Drilling Limited ("Vanguard") regarding the proposed acquisition of Vanguard's proprietary intellectual property, advanced drilling management systems, and the integration of select senior personnel into Upland's operational structure.

This agreement represents a significant development in Upland's evolution into a fully integrated, technically capable operator in Southeast Asia. Vanguard's Chief Executive Officer, Mr. Josh Galloway, will join Upland as Head of Drilling Services, leading the creation of Upland Drilling Services Sarawak (UDSS) under the umbrella of Upland Big Oil (UBO).

Transaction Highlights

· Acquisition of the Vanguard Business Management System (VBMS):A comprehensive drilling safety and management platform incorporating operating procedures, drilling manuals, risk frameworks, and competency development modules.

· Acquisition of Vanguard's Mission Control Project Management Software:A Salesforce-based AI project management suite delivering real-time oversight of costs, schedules, logistics, and risk mitigation.

· Integration of Key Vanguard Personnel (when required):Select senior drilling specialists, engineers, and project leaders from Vanguard will be seconded into Upland's flagship projects, as required, ensuring operational excellence and continuity of expertise without unnecessary overheads.

· Appointment of Josh Galloway:The Vanguard Chief Executive Officer to lead Upland's global drilling services function and spearhead operational delivery in Southeast Asia.

· Aligned Consideration Structure:Structured as performance-based milestone payments, directly aligning Vanguard's long-term value creation with Upland shareholders and stakeholders.

· Formation of UDSS: Establishment of Upland Drilling Services Sarawak (UDSS) as Upland's regional operational hub, structured to provide scalable drilling and related technical services across Upland's prospective PSC portfolio. UDSS will also serve as a strategic platform enabling Upland to secure project and license equity in return for services rendered.

Upland Drilling Services Sarawak (UDSS)

Operating under Upland Big Oil, UDSS will form the cornerstone of Upland's operational capability in Southeast Asia, with the following mandate:

· Operational Backbone: Delivering end-to-end drilling and workover campaigns on time, on budget, and with best-in-class operational performance and safety.

· Digital Integration: Deploying VBMS and Mission Control across Upland projects to enhance cost control, logistics optimisation, and drilling efficiency.

· Strategic Personnel Placement: Vanguard's senior drilling and operations specialists will be embedded in select Upland projects in Sarawak, Brunei, and Indonesia, ensuring continuity of expertise and knowledge transfer.

· Local Content & Training: Rolling out Vanguard's competency frameworks to accelerate local workforce development and fulfil national participation commitments.

· Scalability: Positioning Upland not only as an upstream operator, but also as a potential regional leader in drilling services and technology provision. This scalability provides a mechanism for Upland to secure project and licence equity in return for services, while strengthening its profile as a value-adding partner to host governments and joint venture participants.

Strategic Rationale

This agreement materially enhances Upland's technical depth and execution capability ahead of anticipated licensing and PSC awards:

· Immediate Operator Readiness: Fully deployable drilling management systems with built-in compliance, safety, and risk management.

· Digital & AI Advantage: Real-time oversight of drilling performance, cost visibility, and predictive risk management across multiple projects.

· Human Capital Integration: Placement of Vanguard's most senior operational leaders into Upland's drilling programmes ensures seamless execution and rapid knowledge transfer.

· Rig Operations: Since 2017, Vanguard has operated a fleet of onshore LOC rigs, including the Huisman LOC 400 #6 ("LOC 6"), a high-specification and compact drilling unit engineered for efficiency and safety. LOC 6 is under consideration as one of the rigs that Upland may deploy in its forthcoming work programmes.

· Commercial Transparency: Enhanced forecasting, scheduling, and cost optimisation via Mission Control's AI-driven platform.

· Regional Growth Platform: UDSS creates a scalable operating base for Upland, capable of servicing internal projects and offering third-party services in return for production and project equity.

Chairman's Comment

Datuk Bolhassan Di, Chairman of Upland Resources, commented:

 "This agreement marks an important milestone for Upland at a pivotal and transformative stage in our development. By acquiring Vanguard's intellectual property and integrating its senior personnel into our operations, we are significantly enhancing our ability to deliver projects to the highest international standards. The establishment of Upland Drilling Services Sarawak positions us not only as an operator, but as a recognised regional specialist. Importantly, it also positions Upland uniquely in what is a high-growth region. For investors, this is a clear and confident statement: Upland is building a platform for growth, operational excellence, and long-term value creation in Southeast Asia's energy sector."

Comment from Vanguard CEO

Josh Galloway, CEO of Vanguard Drilling Limited, added:

"Vanguard has always prided itself on operational discipline and safety leadership. Integrating with Upland allows us to apply those strengths on a larger scale, in some of the most exciting growth markets in the world. Over recent months, my team and I have been working closely with Upland and are genuinely excited by the emerging potential. I have also participated in a number of constructive engagements with regulators and government representatives, which has reinforced the strong alignment between Upland and its stakeholders. I am delighted to join Upland as Head of Drilling Services, where we will ensure the successful execution of Upland's projects. Together, we are building an operator with distinctive capabilities and a compelling growth profile for shareholders."

Further Information

Please see the link below to view a presentation outlining the Group's capabilities

https://upland.energy/wp-content/uploads/2025/09/VES-UR-Company-Profile-4.pdf

Next Steps

The parties will now move forward with definitive agreements. The transaction is expected to close within thirty days. A further update will be provided once binding contracts are executed.

For further information, please contact:

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