Last checked at 13 May 2015 14:00
13 May 2015
Stellar Resources plc
("Stellar Resources" or the "Company")
Horse Hill Licence Extensions, UK Weald Basin
The Board of Stellar Resources plc (AIM: STG) is pleased to announce that it has been informed by Horse Hill Developments Ltd ("HHDL") that the exploration stage of the Horse Hill ("HH") PEDL137 licence, in which the Company has net attributable interest of 6.5%, has been extended for a further year by the Oil & Gas Authority ("OGA", formerly the Department of Energy and Climate Change). The exploration stage of the PEDL137 licence has been extended to 30 September 2016.
Subject to the results of an intended Horse Hill-1 ("HH-1") flow test later in 2015, for which regulatory approval is required, the Company is informed that HHDL would seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via, inter alia, the submission of a HH Field Development Plan ("FDP") to the OGA. The PEDL137 licence provides for a potential Production Period of 19 years. HHDL has informed the Company that its application for the flow test is based on the roadmap document published by the Department of Energy and Climate Change (now the OGA) for onshore oil and gas exploration in the UK.
Stellar Resources' interest in Horse Hill:
The Horse Hill-1 well is located within onshore exploration License PEDL137, on the northern side of the Weald Basin near Gatwick Airport. Stellar Resources owns a 10% direct interest in Horse Hill Developments Ltd. HHDL is a special purpose company that owns 65% participating interests and is the operator of licence PEDL137 and the adjacent licence PEDL246 in the UK Weald Basin. The remaining 35% participating interests in the PEDL137 and PEDL246 licenses are held by Magellan Petroleum Corporation.
Stellar Resources' licence interests
Following the extensions to the exploration stages of PEDL137 and PEDL126, the Company has interests in the following Horse Hill oil & gas licences:
Asset | Licence | Licence Holder | Stellar Resources' Economic Interest | Operator or Non-Operator | Area (km2) | Current Licence Period Expiry |
Horse Hill 1 | PEDL137 | Horse Hill Developments Ltd | 6.5% | Non-Operator (HHDL is Operator) | 99.29 | 30 September 2016 |
Horse Hill 1 | PEDL246 | Horse Hill Developments Ltd | 6.5% | Non-Operator (HHDL is Operator) | 43.58 |
30 June 2019 |
Notes
1 Exploration licence. UK exploration licences provide for the extension beyond the exploration stage into a production period, subject to meeting certain criteria, approval by the relevant authorities and, inter alia, the submission of an FDP to the OGA. Production Periods are typically for 20 years from grant of approval.
For further information please contact:
Stellar Resources plc Donald Strang
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+44 (0) 20 7440 0640 |
Cairn Financial Advisers LLP: James Caithie / Avi Robinson
Public Relations: Square 1 Consulting Ltd David Bick/Mark Longson |
+44 (0) 20 7148 7900
+44 (0) 20 7929 5599
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