Client NewsUpland Resources Limited – Corporate Update
Further to the recent announcements concerning the offer period for Upland Resources Limited (LSE:UPL), the Company provides the following corporate update. The approach was dismissed by the board due to the value assigned.
Following the receipt of an offer from a potential offeror, Upland, in full compliance with the Takeover Code, liaised with its advisors and the Takeover Panel and consequently the Company was deemed to be in an ‘Offer Period’. RNS announcements were formulated and/or vetted by our Rule 3 advisors and lawyers (SP Angel & Hill Dickinson respectively) and subsequently reviewed by the Takeover Panel. Following the UK procedure for takeovers, all communications were necessitated by and aligned with requirements of the Takeover Code to ensure adherence with legal and fiduciary standard practice.
Subsequent to the ‘Offer Period’ beginning, the ‘Potential Offeror’ became unengaged and failed to sustain communications with Upland. Further investigation and evidence eventually led to the conclusion that the ‘Potential Offeror’ was not bona fide. This was confirmed by the Takeover Panel and subsequently announced.
The Board will seek further advice on any action to be taken and support any investigations by the relevant authorities.
The Company considers matters pertaining to this Offer Period closed and is now focused on executing its defined strategy of exploring, appraising and developing Block SK334 in Sarawak.
Upland’s Chairman and CEO, Bolhassan Di, has had regular meetings with the Company’s Joint Technical Study partner in Sarawak, Petroleum Sarawak Berhad PETROS. It is a long-standing relationship built over several years. They are fully supportive of Upland Resources and recognise the Company’s long-term commitment to developing Block SK334.
Upland is advanced in the process of securing the Production Sharing Contract of Block SK334, onshore Sarawak. Block SK334 is frontier exploration acreage that is adjacent to large hydrocarbon reserves in Brunei and Sarawak. Through a close working relationship with the local regulator PETROS, we are confident that on completion of the Joint Technical Study, Upland will be in the best position to progress the Block SK334 Production Sharing Contract with PETROS. Preparation for the first exploration well will begin in 2024.
From a global resource perspective, Upland is also uniquely positioned to open new plays in Block SK334 in Sarawak and return very significant value to investors.
We are fully focused on building significant value for our investors through the execution of our defined strategy being the successful development of Block SK334.
In late November, Upland’s Executive and Board have scheduled to meet PETROS in Sarawak. Upland is in an advanced stage of technical due diligence with a view to commence preparatory work on the SK334 drilling campaign in 2024.
The company are in the final stages of rig selection, our technical team, made up of drilling engineers and well management specialists are scheduled to meet in Holland in early November with a view to materially advancing the SK334 drilling campaign.
Bolhassan Di, Upland Chairman and CEO commented:
“The Company’s full focus is on the SK334 PSC and developing the asset. The Upland team have spent many years working to progress Block SK334 in Sarawak and to countenance any premature, preliminary offers is not part of this particular Company’s strategy. Upland Resources as an entity is fully committed to unlocking the full value potential of something we consider to be unique amongst the world’s remaining high potential lower risk oil and gas exploration plays.
We can assure shareholders that this has not detracted the company from the task at hand, fundamentally the business is in the strongest position it has ever been in and operationally we are now ready to finalise the Joint Technical Study and progress towards the SK334 onshore drilling campaign with preparatory work commencing in 2024.
We are grateful for the guidance of our advisors and the Takeover panel through this period but now we look forward to executing upon our objectives and to keeping shareholders abreast of news flow over the coming weeks and months.”
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