Horse Hill Licences

RNS Number : 4709L

Solo Oil Plc

28 April 2015

 

FOR IMMEDIATE RELEASE, 7 am                                                                                                28 April 2015

SOLO OIL PLC

("Solo" or the "Company")

Horse Hill Licences, UK Weald Basin

Solo notes the comments in yesterday's press in relation to the Horse Hill licences ("Horse Hill") in which the Company has an interest of 6.5 percent.  The Company confirms the current two exploration licences over Horse Hill and their expiry dates are as follows:

the PEDL137 licence (within which the Horse Hill-1 well was drilled and which was the subject of the Company's announcement on 9 April 2015) expires on 30 September 2015, and

PEDL246 licence expires on 30 June 2019.

The operator of the two licences, Horse Hill Developments Limited ("HHDL"), has already applied to the Oil & Gas Authority ("OGA") (formerly the Department of Energy and Climate Change) for a one year extension of the exploration period of PEDL137.

The OGA has the power, under certain circumstances, to grant extensions to the term of exploration licences and onshore exploration licences can be converted to a production period of 20 years at any time prior to expiry if the Secretary of State approves a field development plan. 

Further, the Company has been informed by the PEDL137 operator, HHDL, that it intends to conduct a flow test on Horse Hill-1 later in 2015 and that it has already submitted the required applications to the authorities for their consent.  Planning approval for a flow test on Horse Hill-1 is already in place since it was part of the original Surrey County Council planning approval.  Subject to the results of the flow test, the operator would seek to move the PEDL137 licence into the production period, via submission of a field development plan.

Neil Ritson, Solo Chairman, commented:

"The timings associated with these licences are well understood and we are working with the operator and the OGA to ensure that sufficient time is available to properly evaluate the discoveries that have recently been made, and to seek the necessary production licence if that is appropriate."

Solo will update the market on this licence extension in due course.

Solo's interest in Horse Hill:

Solo owns a 10% interest in HHDL, a special purpose company which owns a 65% participating interest and operatorship of onshore licences PEDL137 and the adjacent licence PEDL246 in the UK Weald Basin.  Magellan Petroleum Corporation holds a 35% interest in both PEDL137 and PEDL246.  

For further information:

Solo Oil plc Neil Ritson Fergus Jenkins	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Old Park Lane Capital Plc Joint Broker Charles Laughton Zoe Alexander Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Bell Pottinger                            Public Relations Henry Lerwill Cassiopeia Services Investor Relations Stefania Barbaglio	[phone] [phone] [phone] [phone]

 

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