LONDON (Alliance News) - Regency Mines PLC on Monday said it has started active cooperation work with American Resources Inc to try to identify oil and gas investments opportunities in the southern US.
The first project the pair will work on together will, subject to leasing arrangements being satisfactory, involve Regency taking a 50% working interest in the planned redevelopment of the North Francitas Oil project in Jackson and Matagorda counties in Texas.
Regency would have to pay up to USD430,000 to acquire the working interest, which would translate into a 37% net revenue interest.
"The company has begun a co-operation with ARI which it intends to become a long-term working relationship. The initial project aims to add immediate onshore oil production and revenues to Regency Mines, and evidences once more our shift in corporate strategy and investment emphasis," said Andrew Bell, Regency's chairman.
Shares in Regency were down 7.6% to 0.0231 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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