Upland Resources has signed a heads of terms (HoT) agreement with Pennpetro Energy for a proposed farm-in into its Saouaf permit area, Tunisia
Pennpetro Energy enters these HoT with Upland through its wholly owned subsidiary enterprise, Nobel Petroleum USA (NPUSA).
Pennpetro Energy wishes to enter into a standard petroleum farm-in agreement with Upland's subsidiary in respect of the Saouaf Asset. Pennpetro Energy and NPUSA understand that the current residual work programme needs to be carried out prior to the current expiry of the Saouaf Permit on 23 December 2022 including an obligation to complete the acquisition of three hundred (300) line kilometres of 2D seismic, which Pennpetro has agreed to meet under the farm-in.
As a condition of the farm-in, Pennpetro's subsidiary, NPUSA, will be the operator for the permit and will become a party to the joint venture arrangements that Upland's subsidiary, Upland Saouaf, already has with ETAP.
Bolhassan Di, chief executive of Upland, commented, “The Saouaf Permit although in its early stages, is an exciting prospect, and has a number of leads. This Heads of Agreement with Pennpetro (through its subsidiary Nobel Petroleum USA) means that if the farm out goes through Pennpetro will carry Upland for the remainder of this phase of work and will meet 80% of the costs if the Prospecting Permit is converted into an Exploration Permit.”