RE: £1.5M+ already traded26 Jul 2024 10:00
Rns 11th December
Horse Hill Farmin Update
London, 11 December 2023 - Pennpetro Energy PLC (LSE: PPP) announces that it has agreed to extend the binding Horse Hill farm-in term sheet ("Agreement") with UKOG (137/246) Ltd and Horse Hill Developments Ltd ("HHDL"), both subsidiaries of UK Oil & Gas plc (collectively "UKOG") until 30 June 2024.
The Horse Hill Oil Field ("Horse Hill"), located about 2 km north of Gatwick airport.
The Agreement, as originally announced on 28 March 2023, enables PPP to farm-in to the Horse Hill Oil Field on an incremental production only basis via funding 100% of the acquisition of a twelve square km 3D seismic survey and the drilling of the next crestal infill production well, designated as HH-3.
The Agreement's binding farm-in terms, which are subject to certain conditions as outlined below, cover the drilling of a new crestal infill well, designated Horse Hill-3 ("HH-3"), to be spudded after the completion of a Pennpetro funded high-definition 3D seismic survey. On completion of HH-3, Pennpetro will receive a 49% share of all production derived from Horse Hill-3 and future wells plus a 49% interest in the Licences. UKOG's subsidiaries will retain their current interests in all oil production from Horse Hill-1 ("HH-1") and HHDL will remain as the named Licence operator.
Tom Evans, PPP's Chief Executive commented: "I'm very pleased to announce that our agreement with UKOG on the potential Horse Hill seismic and drilling farmin has been extended to 30 June 2024. Horse Hill is an exciting project and it could prove to be a very exciting venture for Pennpetro.
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