3 Sep 2014 07:00
For Immediate Release
3 September 2014
Regency Mines PLC
("Regency" or the "Company")
Drilling begins at Horse Hill
Regency Mines PLC (AIM: RGM) is pleased to announce that drilling operations on the Horse Hill-1 well have now commenced.
The Horse Hill-1 well is planned to be drilled to a Total Depth ("TD") of 2,646 metres (8,680 feet) and is designed to test for a number of conventional stacked oil targets in the Jurassic, as well as a deeper conventional gas target in the Triassic.
The operator, Horse Hill Developments Ltd ("HHDL"), is a special purpose company with a 65% operating interest in the PEDL 137 license in the Weald Basin to the north of Gatwick Airport in Surrey. Regency has binding agreements in place to own a direct 5% interest in HHDL and holds an additional 0.628% interest by virtue of its 12.56% ownership in Alba Mineral Resources PLC ("Alba"). Alba also has binding agreements in place to own a direct 5% of HHDL.
The participants in the Horse Hill Prospect are HHDL (65%) and Magellan Petroleum Corporation (35%).
Andrew Bell, the Company's Chairman, commented:
"After a few weather delays we spud at Horse Hill to test one of the largest onshore targets to be drilled for many years. It has taken fifty years of endeavour and appraisal to follow up the first well drilled on the edge of this target. The risk-reward on the Horse Hill-1 well is great on the oil alone, as we test a number of conventional oil formations, but the well will also test for potential conventional gas in the deeper Triassic formations which, if discovered, might be of still greater significance."
About Horse Hill:
The 99.29 km2 (24,525 acre) Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) ("Horse Hill") is located in Surrey, a few miles from Gatwick Airport
The Horse Hill Prospect OOIP and OGIP and prospective resources are summarised in Table 1.
Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.
Target Reservoir Oil | OOIP Upside Potential (MMSTB) | OOIP Mean (MMSTB) | Prospective Resources Mean (MMSTB ) |
Upper Portland Sandstone | 116 | 57 | 17 |
Lower Portland Sandstone | 284 | 147 | 44 |
Corallian Sandstone | 67 | 33 | 10 |
Greater Oolite Limestone | 204 | 104 | 16 |
Total Oil | 671 | 341 | 87 |
Target Reservoir Gas | OGIP Upside Potential (Bcf) | OGIP Mean (Bcf) | Prospective Resources Mean (Bcf) |
Triassic Sandstone | 456 | 234 | 164 |
For further information, please contact:
Regency Mines PLC
Andrew Bell, Chairman 0207 747 9960 or 0776 647 4849
Beaumont Cornish Limited (Nominated Adviser)
Rosalind Hill Abrahams
Roland Cornish 0207 628 3396
Dowgate Capital Stockbrokers Ltd (Broker)
Jason Robertson 01293 517744
MHP Communications (Media Relations)
Rupert Trefgarne 0203 128 8817
Glossary:
MMSTB million stock barrels
Bcf billion cubic feet
OOIP Original Oil in Place
OGIP Original Gas in Place
Prospective Resource Prospective resources are estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled. This class represents a higher risk than contingent resources since the risk of discovery is also added. For prospective resources to become classified as contingent resources, hydrocarbons must be discovered, the accumulations must be further evaluated and an estimate of quantities that would be recoverable under appropriate development projects prepared.
-ENDS-