24 Aug 2017 07:00
Regency Mines Plc
("Regency" or "the Company")
Completion of Partial Sale of Interest in Horse Hill Discovery and Licenses, Weald Basin, UK
24 August 2017
Regency Mines Plc, the natural resource company with interests in oil and mineral exploration, announces that it has completed the sale of 1.9% (19 shares) of Horse Hill Developments Ltd ("HHDL") to UK Oil and Gas Investments PLC ("UKOG") that was announced on 10 July 2017.
Highlights:
· Sale of 1.9% of HHDL for £323,000
· Regency receives 17,361,862 new UKOG shares in respect of £268,502 of consideration
· Current value of UKOG shares received of £1,319,502 based on closing price on 22 August 2017
· Regency retains 3.1% of HHDL
Transaction Summary
For a total consideration of £323,000, the Company sold a 1.9% shareholding in HHDL. The total consideration, with an effective date of 28 June 2017, comprised £54,498 settled in cash and £268,502 in the form of new ordinary shares in UKOG ("Consideration Shares"). The number of Consideration Shares was calculated using a share price equivalent to the 30-day volume weighted average price per UKOG share prior to 29 June 2017.
The Company retains a 3.1% interest in HHDL. Should the Company wish to sell this holding within 18 months of the date of the transaction, UKOG has first right of refusal.
The 19 shares in HHDL were acquired for £152,000 in February 2017 and are carried in Regency's books at £284,809 as at the last audited balance sheet date, 30th June 2016.
Background on HHDL and UKOG
HHDL is a special purpose company that owns a 65% participating interest in and has the operatorship of license PEDL 137 and the adjacent license PEDL 246 in the UK Weald Basin. The Horse Hill-1 well, where a discovery was announced on 24 October 2014, is located within onshore exploration license PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.
The HHDL licences cover an area of 55 square miles (143 km2) north of Gatwick Airport and contain the Horse Hill-1 ("HH-1") Portland sandstone and Kimmeridge Limestone oil discoveries. As previously reported on 21 March 2016, HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day. Regulatory permissions are being sought for a significant long-term production testing and appraisal programme of the productive Kimmeridge Limestone and Portland reservoirs.
Following completion of the transaction, UKOG owns 49.9% of HHDL.
UKOG is an investment company that invests primarily in oil and gas assets located in the Weald Basin in southern England. It has interests in 11 licenses, all but one onshore. Apart from its interest in HHDL, UKOG holds a 100% economic interest in the 115.9 square mile (300 km2) Broadford Bridge license in the Weald, where the BB-1 well encountered oil in the Kimmeridge Limestone strata in drilling this Summer and flow testing is currently under way.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
For further information contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Neil Badger 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.