Upland Resources Share Discussion Threads

[zengas] 04/8/2018 09:48

Thanks Spangle. Great link.

10 wells on the block and an 11th right on the border with an adjacent block. Exploration hasn't made a dent in the licence nor seismic beyond 1,000 km of lines.

Don't know what to make of the wells - 1 (DK-1) = oil traces/gas shows, 2 (RSB-1 & RSA-2) = Autre which I take means other, 8 (DKB-1, DKA-1, BGU-1, EHF-1, SNJ-1, GGB-1, GGA-1 & EF-1) listed as Petrole ?

S.Staley said there was 5 wells so I wonder are these the ones nearest the pipeline he mentioned ?

He also said the discovery wasn't properly appraised. DK-1 with the oil traces/gas shows might have been a first well then followed by DKA-1 & DKB-1 as follow ups in that labelling sequence and results as petrole, ie discovery but gas instead of oil ?.

[euclid5] 04/8/2018 09:14

Hi Spangle,

Good post, & thanks for the links
_ ________________________________________________________________________________
GEOGRAPHICAL SETTING

The Saouaf block is located in Central-north onshore Tunisia.

ACREAGE

4004KM².

GEOLOGICAL SETTING

The SAOUAF block is crossed by Zaghouan thrust belt fault that separates Tunisian Atlas to the west and the sahel plain to the east. The block is characterized by a variety of structures features including NE – SW (Such as Jebel Serdj/Bargou, Jebel Bou Dabbous and Jebel Jehaf) and N-S trending folds (Such as Jebel Fadhloun and Jebel Garsi). The area acted as a platform to basin transitional zone with deep marine shales to shallow marine carbonates during the Cretaceous and as a platform with carbonate-shale deposit during the Eocene. The area is affected by Pyrenean and Atlasic orogenies.

PETROLEUM SYSTEM

Reservoirs and seals

The Lower Jurassic Oust and the Upper Jurassic Ressas limestones and Dolomites are considered as a primary target in Saouaf block. The intraformational shale or argillaceous layers of the Sidi Khralif formation provide the main seals.
The Aptian Serdj, bioclastic, locally reefal, limestones and dolomites are considered as a secondary target. These reservoirs are oil bearing in the Douleb, -Tamesmida field trend.

The deep marine claystones and marls of Albian Lower Fahdene Formation constitute the main seal. The Campanian to Lower Maastrichtian Abiod chalky and fractured limestones, are considered as potential reservoir in Saouaf block. The Maastrictian to Paleocene El Haria shales will act as seals.

Source Rocks

The Late Cenomanian to Early Turonian Bahloul marine limestones and the Albian Lower Fahdene shales are main mature source rocks in the area.
The middle Jurassic Toarcian shale is considered as potential source rock.

Traps

Faulted anticlines and reef anomalies within the Aptian play constitute the main trap types.

[spangle93] 04/8/2018 06:50

Hello Zengas

The Austrian company OMV reduced its presence in Tunisia recently, but are currently developing a sizeable gas field Nawara (ca. 580 bcf), albeit it's in the south of the country



It says in the link "Government Decree of National Interest signed in June 2015 making Nawara a Project of National Interest" so imagine how much they'd support the development of anything bigger!

The ETAP site is pretty useful for Tunisia assets, as it's partner in many blocks and national administrator. If you visit this page

and click on Carte de Concessions, the Saouaf permit (looks like the tiles I usually end up with at Scrabble) is mid-North, from the shore of the Gulf of Hammamet. The exploration well locations are shown.

Meanwhile this page

gives basic details on hydrocarbon potential of the Saouaf permit. [I can't get the link on this page to open]

[argyle underclap] 03/8/2018 20:31

For anyone reading that interview for the 1st time, the Author incorrectly refers to UPL as an Aim stock.

UPL has a main market standard listing.

Not Aim casino.

[argyle underclap] 03/8/2018 20:05

Zengas re selling on in a success case...

From value the markets 3rd May 2018

SS: “In general, whether or not we hold an asset until production depends on several factors. If we are lucky enough to make a huge discovery, then it is likely that the capital required to develop it would be well beyond our means, even with project financing, so we would probably sell this project on or at least sell a majority stake. With things like Hardstoft, which is onshore, not very big and cheap to develop, we would probably try and stay with it into production.”

[nlmbidc] 03/8/2018 19:38

Not sure there will be any 3d.

The share price will continue to climb now as we get closer to drilling Wick.

[soulsauce] 03/8/2018 18:21

Indeed Zengas interesting. May be shoot a small area of 3d around the find 😉

[zengas] 03/8/2018 18:15

Circle Oil went out of business as they had only $10m cash and $69m of net debt by May 2016.

They were in Egypt, Oman, Morocco and Tunisia and never did anything in Tunisia for around 2-3 years due to cash constraints, debt, dire markets/prices and irregular payments in Egypt, but made what they believed to be a 100 mmboe offshore discovery. SDX Energy bought their Morocco and Egyptian assets. Irish company Dunraven Resources now has the Tunisian permits (some are ex Circle Oil people).

Like Fastnet never getting round to drilling Tendrara which became Sounds company maker at the time - Circle never drilled the small onshore Beni Khaled permit of 55km2. This had the now 27 year old Bir Drassen gas discovery in 1991 by Marathon Oil and tested almost 4,000 boepd gas/small amount of condensate - This is what they said - "At the time this was not of commercial interest".

Looking further into Circle Oils details on this - the small 55 km2 concession was reckoned to have 47-50 bcf of recoverable gas (approx 8 mmboe) and potential for an unappraised oil rim of 6 mmbo in Bir Drassen. It also had the small Beni Khalled oil field of around 2 mmbo with 2 further leads all within the 55 km2. This was in Northern Tunisia.

Duraven who now have it - latest estimates are 3.8 mmbo reserves (600k produced) for the oil field.

This is their cost estimate April 2018 for the Beni Khaled permit -

"An initial investment of US$5 million will cover 50km² of new seismic and the drilling of one well. Licence area contains the undeveloped Bir Drassen discovery well BDR-1, drilled in 1991- tested at a rate of 23.5 million ft3 of gas p/d and 28 bbls/pd of condensate. Internal estimates that most-likely recoverable resources from Bir Drassen of up to 50 billion cubic feet of gas, and potentially six million barrels of oil in a prognosed oil rim". Legendary Investments have taken a 2% stake in Dunraven.

If UPL have a similar gas discovery tucked way and can flow test at anywhere near a similar rate now that gas is much more important and valuable than Marathon passed over 27 years ago - this could be company opening with infrastructure crossing the block. At least 16 mmboe reckoned in 55 km2. With over 70 times greater size in our licence (with an existing gas discovery) the potential for over 100 mmboe should exist given they say "potential for very substantial gas." Bottom line, 50 Bcf like Marathons discovery is not very substantial. All we need is more details on the gas discovery and to learn what has been repackaged into this 4004 km2 licence which made it attractive for investment.

Reading it again - "As indicated by Upland's technical work on the area, the Company believes there is the potential for very substantial quantities of recoverable gas within the permit area. The Company's exploration plans are also partly de-risked by an existing gas discovery in the area made 50 years ago, before the advent of local gas markets."

If Marathon walked away from a 4,000 boepd gas discovery 27 years ago, who left a 50 year old gas discovery behind and how will it compare in terms of numbers ?

[argyle underclap] 03/8/2018 15:58

O/T Absolute freak show over there with posters and mgt to match. Today was the final straw, so i reduced my already greatly reduced holding to a very small free punt. GL all who still hold.

Exciting times for UPL.

It’s a stink free zone.

[doughty] 03/8/2018 15:44

All to play for...have a great weekend peeps :-)

[tialouise] 03/8/2018 15:39

Ht, agree I've sold most my holdings in tern left a little to play out .have a good weekend all the best Tia xx

[hulltiger] 03/8/2018 15:35

Hi tia, I hope you are ok. Great day, I cannot say how chuffed I am to have had the luck to take profits from Terns big rise and find this little gem. Have a great weekend all of you.

[tialouise] 03/8/2018 15:24

Took 500k in two lots of 250 k should show later xx

[argyle underclap] 03/8/2018 15:12

O/T

Michael - can’t stand soaps but that tune is iconic like match of the day or antiques roadshow and hasn’t that tune been the same for like a million years? How could U possibly have been around a million ago? Bally good and well done u nonetheless. The only tunes of mine that I’ve made public was when a packet of them fell out a hole in me trouser pocket whilst standing on a busy buss. The packet split and there were tunes everywhere, one most notably from the back end of a big fat bird when she bent bent over to pick one up and over stretched herself, sounded like a deep E flat trumbone

[michaelwhight] 03/8/2018 15:03

Argyll I see you're interested in Coronation St! I play clarinet on the theme tune for that!

[soulsauce] 03/8/2018 14:37

Yes Zen he did.

[zengas] 03/8/2018 14:32

Maybe wrong, but I thought S Staley said they might sell it on in a success case ?

[euclid5] 03/8/2018 14:29

Not sure if the 40% CoS they give on the Wick is based on the Commercial development CoS% once oil was proven after exploration drilling - recall it was given a 36% CoS by Corallian Energy Limited

"For the purposes of our fully risked valuation, we have ascribed a considerably more conservative discovery to the Wick exploration well amounting to gross recoverable reserves of 23.4 mmbbls.

To this we have applied the economics of a relatively low cost field development which should avoid most UK onshore planning delays. This consists of two production wells and a water injection well which could be drilled from onshore or offshore locations. After the application of a 40% chance of success"

[tyler90] 03/8/2018 14:27

I wonder if the BN will get some press coverage from the newspapers or the financial tip sheets/magazines etc.?

[argyle underclap] 03/8/2018 13:02

O/T

Re TERN
Starkers/doughty over past couple months I reduced/pocketed profit. Now only holding 12.5 percent of what I did as a free punt. good tactic for any1 I guess is a free ride. DA may ultimately pay great rewards but the mgt of the holding co (tern) stinks. here tho, it’s the complete opposite and refreshing and invigorating. Management means everything. Got another 100k this morn.

[doughty] 03/8/2018 12:07

Its the perfect storm of an investment stark

[stark industries] 03/8/2018 11:47

Doughty I was just thinking the same.
I sold out before it hit 20p and was happy as I was eye balling UPL for almost 2 years as Jabba and Argyle were invested in here.
The research from the knowledgeable posters on here and researching Dr Steve Staley and his ambitions aroused me investl my TERN proceeds in here and I also am blessed to be here :)
I was here for 20p but my target has now moved towards £1.00 which I believe is very likely (that's aminimum aimho)
We have a perfect set up.
Timing is something that you rarely get right in the market.
Entry or Exit !!
Dr Steve Staley is a magnificent leader and I'm proud to be under his seasoned wings
This one is worth all the patience as we watch the story unfold right before our eyes.
I'm with Tyler....12p before wick drill
GLA

[doughty] 03/8/2018 11:32

I have been watching TERN from afar for some weeks...only watching...that appears to have turned into a complete and utter shambles and the BB...well !!!

Point is...we are very very blessed to be here with UPL and the BoD that we have...and going in the right direction...upwards !

[argyle underclap] 03/8/2018 10:16

Spangle - no worries, thanks for that. Interesting

[spangle93] 03/8/2018 10:09

Argyle - Sorry, work intervened ;-)

AGM presentation 2016, slide 15

As Zengas says, it's been broadened to North Africa after that, and Doughty gives the reason why.

By the AGM presentation in 2017, the same slide appeared with the 1 Tcf, but headline had been broadened to Morocco and Tunisia, and there was a statement to the effect that Tunisia was again open for business.

But the quantitative figure originally referred only to Morocco.

Frankly I'm happier it's in Tunisia than Morocco, and it sounds like this block has great potential