Increase in Horse Hill Acreage Holding

RNS Number : 8634Q

Regency Mines PLC

04 September 2014

 



For Immediate Release

4 September 2014

Regency Mines PLC

("Regency" or the "Company")

Increase in Horse Hill Acreage Holding

Regency (AIM:RGM) is pleased to announce that as a direct result of the commencement of drilling operations at Horse Hill on 2 September 2014, Horse Hill Developments Ltd ("HHDL") now additionally owns a 65% participating interest in the adjacent United Kingdom Petroleum Exploration and Development Licence (PEDL) 246.

The 43.58 km² (10,769 acre) PEDL 246 is immediately east of and adjacent to the 99.29 km² (24,525 acre) Horse Hill PEDL 137 located in Surrey, where the Horse Hill-1 well is currently being drilled.

The transfer of the 65% interest in PEDL 246 to HHDL from Magellan Petroleum (UK) Limited, a subsidiary of Magellan Petroleum Corporation, is conditional only on gaining final approval from UK Secretary of State for Energy and Climate Change.

Horse Hill Developments Ltd ("HHDL"), is a special purpose company with a 65% operating interest in PEDL's 137 and 246 in the Weald Basin to the north of Gatwick Airport in Surrey. Regency has binding agreements in place to own a direct 5% interest in HHDL and holds an additional 0.628% interest indirectly by virtue of its 12.56% ownership in Alba Mineral Resources PLC ("Alba"). Alba has binding agreements in place to own 5% of HHDL.

The participants in the PEDL's 137 and 246 are HHDL (65%) and Magellan Petroleum Corporation (35%).

Andrew Bell, the Company's Chairman, commented:

"The spudding of the Horse Hill-1 well has secured the HHDL consortium a further 43 km² of prospective acreage in this important part of the Weald Basin, a basin well known for its conventional oil and gas reservoirs."

For further information, please contact:

Regency Mines PLC

Andrew Bell, Chairman                                                 0207 747 9960 or 0776 647 4849   

Beaumont Cornish Limited (Nominated Adviser)

Rosalind Hill Abrahams

Roland Cornish                                                             0207 628 3396

Dowgate Capital Stockbrokers Ltd (Broker)

Jason Robertson                                                            01293 517744                                 

MHP Communications (Media Relations)

Rupert Trefgarne                                                          0203 128 8817                        

-ENDS-

 

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