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Investment in UK Onshore Oil and Gas Prospect
Investment in UK Onshore Oil and Gas Prospect.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 9818L Regency Mines PLC 11 July 2014 \n \n\nREGENCY MINES PLC\n \n(\"Regency\" or the \"Company\")\nInvestment in UK Onshore Oil and Gas Prospect\n11 July 2014\n \nRegency Mines Plc (\"Regency\" or the \"Company\"), the mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Papua New Guinea and Sudan, is pleased to announce that it has signed a Heads of Agreement (\"HOA\") with Horse Hill Developments Ltd (\"HHDL\") for Regency to acquire a 5% stake in HHDL. \n \nThis investment follows a decision by Alba Mineral Resources Plc (\"ALBA\"), in which Regency currently has a 14.87% direct stake, to participate in the HHDL project.\n \nHHDL is a newly incorporated special purpose company which has the rights to acquire a 65% participating interest in the Petroleum Exploration and Development Licence 137 (\"PEDL 137\") in the Weald Basin, UK. The 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 will receive its 65% interest by completing the proposed well at the property by the end of August 2014. The well is expected to spud during July 2014 and is targeting a number of conventional stacked oil and gas targets up to a depth of 8,512 feet. \n \nThe Weald Basin is prospective for conventional oil in Mesozoic sandstones, with the primary reservoir rocks being the Portland sandstone formations where Purbeck Mudstones form the capping rock. The Horse Hill prospect lies 7.5 km to the south-east of the Brockham oilfield and was drilled by Esso in 1964 with oil shows, in a location shown by seismic re-interpretation to be separated by a fault from the main target structure.\n \nCo-investors in HHDL besides Alba, include Angus Energy Ltd, Solo Oil Plc (AIM:SOLO), Doriemus Plc (AIM:DOR), Stellar Resources Plc (AIM:STG) and UK Oil & Gas Investments Plc (AIM:UKOG).\n \nAcquisition Terms\n \nThe total consideration payable by the Company is £300,000. An initial non-refundable deposit of £10,000 is payable on signing of the HOA and the balance is subject to completion and execution of definitive agreements which the parties are currently finalising. At completion, RGM will make a further payment of £40,000 and th...