Key Licence Conversion, Weald Basin

RNS Number : 2132D

Stellar Resources PLC

05 July 2016

 

Stellar Resources plc

("Stellar" or the "Company")

Key Licence Conversion, Kimmeridge and Portland Region, Weald Basin  

Stellar Resources PLC (LSE AIM: STG) is pleased to announce that the Oil and Gas Authority ("OGA") has granted a licence conversion to new model terms for Horse Hill ("HH") PEDL137 and PEDL246.

At the Operator Horse Hill Developments Ltd's ("HHDL") election, the licences will adopt 2016 14th Round licence terms permitting the HH Licences to continue without further relinquishment. A Retention Area ("RA") covering the entire 55 square mile licence area and an outline work programme has been agreed with the OGA. The RA will continue throughout the agreed work programme period currently due to expire on June 30, 2018 for PEDL137 and June 30, 2017 for PEDL246. The HH Licences forward work plan includes long-term production testing of 3 Kimmeridge Limestone zones plus the overlying Portland, two contingent appraisal/development wells and 3D seismic.

Interest in Horse Hill

Stellar owns a 10% direct interest in HHDL. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.

Qualified Person's Statement:

Stephen Sanderson, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

For further information please contact:

Stellar Resources plc:	[phone]
Alastair Clayton
Nominated Adviser:	[phone]
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker:	[phone]
Optiva Securities Limited
Christian Dennis / Jeremy King
Public Relations:	[phone]
Square1 Consulting
David Bick

 

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