Upland to raise £3m for drilling

Upland Resources has announced plans to raise £3 million to help pay for the costs of drilling a 250 million barrel prospect in the Moray Firth.

The firm intends to raise the cash through placing of 120 million shares at 2.5pence each.

Upland, along with Baron Oil and Gas, have struck deals with operator Corallian Energy for stakes in the Wick prospect.

The well is due to spud in quarter three of this year.

Last month Corallian said higher fuel costs have driven up the cost of drilling Wick by £1 million.

It is thought to have 250 million barrels of

“2018 will be a very exciting time for Upland”

oil in place, with Upland holding a 40% stake in the prospect.

Upland said the £3 million raised will also be used for new opportunities in North Africa.

Chief executive Stephen Staley said: “I am very pleased to announce this oversubscribed placing; it leaves the business very well capitalised as we enter a busy period for the company.

“2018 will be a very exciting time for Upland with the spudding of the high impact Wick well on the UKCS later this year. I also expect continued good progress on new opportunities in Sarawak and North Africa.

“I would like to thank new and existing shareholders for their support in backing the business and I look forward to updating the market as to our progress as we execute on our strategy of building a geographically diversified oil and gas business.”