LONDON (Alliance News) - Solo Oil PLC Wednesday said it has entered into a binding heads of agreement to buy a 10% interest in Horse Hill Development Ltd, a special purpose company which holds the rights to a 65% participating interest and operatorship in licence PEDL 137 onshore in the UK Weald Basin.
Horse Hill has an exclusive farm-in agreement with Magellan Petroleum UK Ltd, subsidiary of NASDAQ-listed Magellan Petroleum Corp, which currently owns 100% of the 99.29 square kilometres Exploration and Development Licence No. 137 (PEDL 137).
Under the terms of the deal, Horse Hill can earn a direct 65% participating interest and operatorship in the licence, under certain contractual conditions, through the drilling of the proposed 2,646 metres Horse Hill-1 exploration well by the end of August.
Solo said the Horse Hill-1 well is planned to test a number of conventional stacked oil targets at the proven productive Portland sandstone, Corallian sandstone and Great Oolite limestone levels.
Prospective recoverable resources totalling around 87 million barrels have been estimated, with an additional average of around 164 billion cubic feet of recoverable prospective resources proposed within the deeper Triassic gas play, it added.
Solo Oil shares were up 2.6% at 0.221 pence in early morning trade Wednesday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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