LONDON (Alliance News) - Doriemus PLC said Thursday it has agreed with Angus Energy Weald Limited to increase its participating interest in the Lidsey Oilfield in West Sussex.
In the latest development in the ongoing story, Doriemus has increased its interest from 10% to 20% with immediate effect.
The firm last week signed a deal with Angus Energy making it joint operator of Angus' Lidsey oil well in return for a 10% interest in the field.
The Company still has a first right of refusal to increase its participating interest in Lidsey from 20% to 25%.
The companies are planning to rework the well to increase production.
Angus Energy will be paid an initial cash payment of GBP10,000 for the increase in the participating interest, followed by three additional cash payments amounting to an aggregate of GBP140,000. The firm will also be issued 100 million ordinary 'consideration' shares in Doriemus.
Application will be made to have the Consideration Shares admitted to trading on AIM on completion of the necessary agreements in order to formally increase the Doriemus's interest in Lidsey to 20%, expected to be completed by 22 November 2013. Following Admission, the company's enlarged issued share capital will comprise 4,059,999,998 ordinary shares.
Donald Strang, Doriemus's Chairman, said, "The recent success in increasing oil production from 25 bopd to 84 bopd this week and the potential to further increase production in the coming weeks has cemented the board's commitment to increasing the Company's stake as soon as possible in this exciting UK onshore conventional oil field. The new CPR on Lidsey is due within the month and Doriemus looks forward to planning for the new Lidsey-2 well scheduled for spudding towards the end of Q1 next year."
Shares in Doriemus were trading up 6.78% Thursday at 0.22 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
Copyright © 2013 Alliance News Limited. All Rights Reserved.
