(Alliance News) - Pennpetro Energy PLC and UK Oil & Gas PLC on Monday said they have agreed to extend their conditional agreement for Pennpetro to farm-in to the Horse Hill oil field in southern England.
The term sheet agreed back in March calls for Pennpetro to earn a 49% stake in incremental production from the project near Gatwick airport by funding 100% of the cost of conducting a seismic survey and drilling an infill production well, to be called HH-3.
When the term sheet was signed, the survey was targeted for the second half of 2023. It now is targeted for the first half of 2024, so the agreement has been extended until June 30 next year.
UK Oil & Gas subsidiaries will continue to hold 100% of Horse Hill-1 and HH-2, alongside 51% of HH-3. UKOG itself holds an 85.6% net interest in Horse Hill and surrounding licenses. Alba Mineral Resources PLC has an 11.8% effective interest.
UKOG and Alba are listed on AIM in London, while Pennpetro trades on the London Main Market. UKOG shares were down 4.8% to 0.024 pence on Monday morning. Pennpetro shares were up 4.0% at 2.29p. Alba shares were up 3.4% at 0.091p.
Pennpetro also on Monday said the workover rig for the Chalk Talk 4H well arrived on Friday last week, which was earlier than expected. The well is at the Peach Creek, or Austin Chalk, oil field in Gonzales County, Texas.
By Tom Waite, Alliance News editor
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Pennpetro Energy (PPP)
Uk Oil & Gas (UKOG)
Alba Mineral Resources (ALBA)