Despite the company's lack of significant news releases, the Upland Resources Ltd (LON: UPL) share price has risen 336.1% in a month. The last significant news report from the company was regarding the evaluation of a new-generation drill rig that could be used at its SK334 block in Sarawak.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Earlier today, the company issued another update about its Block SK334 in Brunei, where gas was recently discovered in two previously unknown reservoirs in the neighbouring block in Brunei. The block is located close to SK334 and has a similar geological context.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Admiral Markets More than 4500 stocks & ETFs available – Read our Review
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- IG Top-tier regulation – Read our Review
- XTB UK regulated by the FCA – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Upland Resources’ massive rally could be attributed to investors' optimism about its prospects, especially the potential oil and gas resources yet to be discovered at its block SK334 in Sarawak, Brunei.
The company has also witnessed multiple share purchases by its directors, who bought millions of shares. Bolhassan Di, the CEO, purchased 20.8 million shares, while Gerard Murray bought 1,350,000 shares, and John Forrest bought 1,750,000, with Andrew Hurst purchasing 833,333.
Today’s update triggered a spike higher, but UPL shares had given up all their gains at the time of writing and were trading in negative territory. The initial rally faded as sellers overpowered buyers and lowered UPL’s share price.
The material gas discoveries within the neighbouring blocks to SK334 further inspire confidence about the company’s prospects. The company noted that the gas in the neighbouring block had been flared at the surface and that some additional formations were yet to be tested.
Earlier estimates released in July indicated that Block SK334 had similar resources to those found in the neighbouring billion-barrel Seria field, equivalent in scale to some of Europe's most extensive offshore Oil & Gas fields.
Hydrocarbon structural plays have been mapped and evaluated in the primary objective Belait Formation in the northwest (Limbang) of Block SK334. The secondary objective Meligan Formation is located in the Limbang and northeast (Lawas) block.
Bolhassan Di, Upland Chairman and CEO, commented: “We view this development as a material upgrade to Block SK334, correlating key characteristics and understanding of the adjacent block prospectivity, further strengthening our position. Additionally, gas is a core pillar and major catalyst in Sarawak's roadmap to sustainability. We look forward to updating the market of any further developments.”
Upland Resources share price.
Upland Resources shares have risen 336.08% in the past month, driven by management share purchases.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.