Business
Investment in UK Onshore Oil and Gas Project
Investment in UK Onshore Oil and Gas Project.
About this update from Alba Mineral Resources Plc
[{"type":"text","content":"\n \nRNS Number : 0321M Alba Mineral Resources PLC 11 July 2014 \n \n\n11 July 2014\n \nAlba Mineral Resources plc\n \n(\"Alba\" or \"the Company\")\n \nInvestment in drill ready onshore UK oil and gas project \n \nAlba Mineral Resources plc (AIM:ALBA) (\"Alba\" or the \"Company\"), the UK based exploration company, is pleased to announce that it has signed a binding Heads of Agreement with Horse Hill Developments Ltd (\"HHDL\") for Alba to invest in a UK onshore oil and gas project. \nThe Horse Hill-1 well, which is scheduled to be completed by the end of August 2014, is planned to test several conventional stacked oil and gas targets in the proven productive Portland Sandstone, Corallian Sandstone and Great Oolite Limestone levels in the well-defined Horse Hill prospect in the Weald Basin situated in Surrey, England.\nAcquisition Terms\nAlba has a binding agreement in place to acquire a 5% interest in HHDL, a special purpose company which has the right to acquire a 65% participating interest and operatorship of PEDL 137. The total consideration payable by the Company is £300,000. An initial non-refundable deposit of £10,000 is payable upon signing, with completion subject to the execution of definitive documentation which the parties are in the process of finalising. Upon completion, Alba will make a further payment of £40,000, with the balance of £250,000 payable in line with the cash calls required for the drilling of the well.\nHorse Hill Prospect\nThe 99.29 square kilometres (24,535 acre) Petroleum Exploration and Development Licence No. 137 (\"PEDL 137\"), held by a subsidiary of Magellan Petroleum Corporation, is located in the Weald Basin in Surrey. The Horse Hill prospect lies about 3 kilometres from Gatwick Airport and covers an area of up to 16 square kilometres in the south-west of PEDL 137. The Collendean Farm-1 well was drilled by Esso in 1964 on the north-eastern edge of the Horse Hill structure and found good oil shows.\nThe participants in the Horse Hill-1 well are HHDL as operator with a 65% farm in interest and Magellan Petroleum Corporation with a 35% interest. HHDL has the right to earn a 65% participating interest in PEDL 137 by completing the proposed well at the property.\nAlba is pleased to further announce that it has been informed by the op...