Increase in interest in Horse Hill Prospect

RNS Number : 0691K

Stellar Resources PLC

19 June 2014

 

Stellar Resources Plc

("Stellar Resources" or the "Company")

Increase in interest in conventional Horse Hill Oil and Gas Prospect, UK

Stellar Resources Plc (AIM: STG) announces that it has today entered into a Binding Heads of Agreement ("HOA") to buy a further 2.5% equity interest in Horse Hill Development Ltd ("HHDL"), the operators of the Horse Hill Prospect in the Weald Basin near Gatwick Airport, taking its interest from 7.5% to 10%.

Site construction for the proposed 8,512 feet Horse Hill-1 well is already underway.  The well is expected to spud in July 2014 and is targeting a number of conventional stacked oil and gas targets.

Stellar Resources now has binding agreements in place to own a direct 10% interest in Horse Hill Development Ltd, a special purpose company that owns a 65% participating interest and operatorship of the Horse Hill Prospect.

David Lenigas, the Company's Chairman, commented:

"Stellar Resources are pleased to have been able to negotiate a one-third increase in its original investment in this exciting conventional oil and gas drilling opportunity in the Weald Basin. Work is already underway with site construction and we look forward to the spudding of the well next month."

The breaking of ground at the Horse Hill Prospect marks the start of a potentially exciting era for Stellar Resources and the Horse Hill Development partners."

Payments to be made by Stellar Resources to increase its interest in HHDL from 7.5% to 10%:

1.       £10,000 on signing revised agreement;

2.       £50,000 on signing definitive agreement;

3.       £90,000 when cash called as part of the drilling programme.

Note: These terms are pro rata to the original deal Stellar Resources negotiated to acquire the initial 7.5% interest in HHDL as announced on 6 February 2014.

-ENDS-

For further information, please contact:

Enquiries:

Stellar Resources plc David Lenigas, Executive Chairman Donald Strang, Finance Director	[phone]
Cairn Financial Advisers LLP James Caithie / Paul Trendell Public Relations: Square 1 Consulting Ltd David Bick / Mark Longson	[phone] [phone]

 

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