24 Sep 2014 13:00
REGENCY MINES PLC
("RGM" or the "Company")
Drilling Update, Horse Hill-1, Weald Basin UK
24 September 2014
Regency Mines Plc, the natural resources exploration and investment company with interests in oil in the United Kingdom and United States, and nickel and other minerals in Australia, Papua New Guinea and Sudan,today confirms that drilling operations on the Horse Hill-1 well are continuing successfully and the Marriott 50 rig is now drilling ahead at a depth of 116 feet Measured Depth ("MD") today at 12:00 hours. Current rate of drill penetration is about 30 feet an hour.
The Horse Hill-1 well is located on the northern side of UK Weald Basin near Gatwick Airport and is planned to drill to a Total Depth ("TD") of 8,680 feet MD to test a number of conventional oil and gas targets.
The surface casing has been cemented at a depth of 84 feet below ground level and the well is now being drilled in 17 1/2-inch hole to the next casing point at about 1,865 feet MD, where a 13 3/8-inch casing will be installed and cemented before drilling on.
The primary oil reservoir targets in this well lie in the Jurassic Portland Sandstone and the Corallian Sandstone. There are also a number of secondary oil targets in Jurassic period formations, including the Great Oolite Limestone. After penetrating the Jurassic, the well will be drilled to TD in order to test for Triassic period formations, which are expected to contain gas.
RGM owns a 5% direct interest in HHDL and an additional 0.47% interest in HHDL by virtue of its 9.39% ownership in Alba Mineral Resources Plc ("Alba"). Alba owns 5% of HHDL.
HHDL is a special purpose company that owns a 65% participating interest and is the operator of onshore licences PEDL 137 and the adjacent licence PEDL 246 in the UK Weald Basin. The participants in the Horse Hill-1 well are HHDL with a 65% working interest and Magellan Petroleum Corporation with a 35% interest.
Andrew Bell, Chairman, comments:"Horse Hill Developments Limited has successfully installed the main drilling rig and the well is proceeding towards the first conventional oil objectives in the Jurassic. We look forward to updating the market with any significant news as the well progresses."
For further information, please contact:
Andrew Bell0207 747 9960 or 0776 647 4849 Chairman Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.
Rupert Trefgarne 0203 128 8817 Media Relations MHP Communications