JOHANNESBURG (miningweekly.com) – Aim-listed Regency Mines has completed the sale of a 1.9% interest in Horse Hill Developments (HHDL), the special purpose vehicle owning oil and gas licences in southern England.
Regency sold the 19 shares in HHDL to UK Oil and Gas Investments (UKOG) for £323 000 in cash and shares. UKOG now holds 49.9% of HHDL.
Regency retained a 3.1% interest in HHDL. Should the company wish to sell this holding within 18 months of the date of the transaction, UKOG has first right of refusal.
HHDL has a 65% participating interest in and has the operatorship of licence PEDL 137 and the adjacent licence PEDL 246 in the UK Weald basin. The Horse Hill-1 well, where a discovery was announced in October 2014, is located within onshore exploration licence PEDL 137, on the northern side of the Weald basin near Gatwick Airport.
The HHDL licences cover an area of 143 km2 north of the Gatwick Airport and contain the Horse Hill-1 Portland sandstone and Kimmeridge Limestone oil discoveries. HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1 688 bbl/d of oil. Regulatory permissions are being sought for a significant long-term production testing and appraisal programme of the productive Kimmeridge Limestone and Portland reservoirs.