ADV.L Regulatory News (ADV)

Andalas Energy and Power Plc - Update on Eagle investment

PR Newswire

London, December 10

10 December 2018

Andalas Energy and Power Plc

(‘Andalas’ or the ‘Company’)

Update on Eagle investment

Andalas is the owner of a 25% interest in Eagle Gas Limited that is itself the 100% owner of Holywell Resources Limited (“Holywell”), which owns a 66 2/3% interest in licence P2112 (“the licence”).

The operator, Holywell, is currently negotiating an extension to the initial licence term which ends on 19 December 2018, with the Oil and Gas Authority (“OGA”), on behalf of itself and joint venture partner, Atlantic Petroleum (“Atlantic”), the owner of the remaining 33.3% non-operated interest in the licence. Andalas will update shareholders on the status of the negotiation as soon as further information is made available to it.

Following completion of the 2018 work programme, Holywell provided the results of its seismic interpretation to its partner, Atlantic, and also to its shareholders, including Andalas, which were announced by the Company on 20 August 2018. 

Holywell reported to Andalas that Atlantic, having completed a technical evaluation of the seismic reinterpretation completed by Holywell, formed the view that there was the potential for there to be a further upside gas reserve on the licence that may influence the factors that led to the selection of the initial well location that had been recommended by Holywell.

The licence partners therefore agreed to request an extension to ensure that sufficient time is allowed under the licence to enable the joint venture to complete additional seismic interpretation work on the potential upside gas reserve. Any additional seismic interpretation will provide additional data to enable the joint venture partners to agree the technical and commercial appraisal and development plans for the licence that will inform the joint venture partners individual decision to drill or drop the licence.

The additional seismic reprocessing may result in the operator, Holywell, issuing an updated resource assessment. However, as at the date of this announcement, the previously announced operator assessment of the resource remains unchanged. Any update resulting from the proposed additional seismic reprocessing will be announced at that time.

In parallel with the request for an extension to the licence, the joint venture partners have continued to evaluate potential funding options with regard to progressing the licence to the drill phase. 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

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