London-listed Upland Resources (LON:UPL ) says its wholly-owned subsidiary, Upland UK, has relinquished licence P2470 in the Inner Moray Firth, part of the UK Continental Shelf.
The independent oil and gas firm told investors on Wednesday that it would, alongside its partners, let go of the licence which holds blocks 11/23, 11/24c and 11/25b.
The blocks surround the Wick Prospect in the IMF on which Upland UK participated in the dry Wick Well (11/24b-4) at the beginning of 2019.
The group noted that although the blocks contain the small Knockinnon oil discovery and several small prospects that they have been downgraded by results of the Wick Well.
Shares in Upland Resources were 11.76% lower at 0.75p in early trading on Wednesday.
The results of 3D seismic reprocessing work were completed but it seemed were ‘not encouraging’ and resulted in the decision which went into effect from 31 March 2020.
"The original application was made prior to the drilling of the Wick Prospect and following a post-drill review of the well, the remaining potential of the P2470 licence has been downgraded,” said Chris Pitman, CEO of Upland Resources Limited.
He added, “The relinquishment of P2470 is in line with our strategy of focussing solely on opportunities that will provide meaningful returns to our shareholders."
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