Upland Resources (LSE:UPL) said Phase Two of Lost Soldier Oil and Gas' (LSOG) development programme has begun, with the GMF-5 well spudded on 18 September in Wyoming's Green River Basin.
The AIM-quoted oil and gas company holds its interest in the project through wholly owned subsidiary Upland Resources (Wyoming) Ltd.
Drilling is expected to take approximately 60 days, targeting a depth of around 19,000 feet to test an overpressured zone beneath the formations drilled in the project's first two wells.
LSOG's phase one estimates point to potential resources of up to 5-6 trillion cubic feet of gas across multiple stacked formations, with GMF-5 aimed at assessing the deeper Niobrara and Frontier targets.
LSOG plans to connect three wells to a pipeline under construction this year, with production targeted before year-end.
Upland has invested approximately $4.3 million in LSOG to date and holds a further $9.5 million in LSOG Class C unit options, giving total exposure of $13.8 million, around 5% of the private placement.
Its Class C units carry a royalty interest on production from the Wild Mustang Federal Unit leases without exposure to well costs, meaning any Phase Two discovery would benefit Upland at no further cost.
LSOG in turn holds approximately 6% of Upland, and separately committed $100 million to fund upstream farm-in opportunities across Upland's Southeast Asian portfolio between 2026 and 2030.
"Our investment in LSOG reflects our confidence in the potential of the Green River Basin", said Datuk Bolhassan Di, Upland's chairman and chief executive.
Upland said its Southeast Asian portfolio is progressing towards a number of asset-level milestones, with further updates expected as they become appropriate for announcement.
