29 Sep 2014 11:00
Regency Mines Plc
("Regency" or the "Company")
Drilling Update, Horse Hill-1, Weald Basin UK
29 September 2014
Regency Mines Plc today advises that the Horse Hill-1 well has now been drilled to the second casing point at 1,795 feet measured depth ("MD"), and the setting and cementing of a 13 3/8-inch steel casing is now underway. The bottom of the well is currently located in the upper part of the Jurassic and the well has encountered the expected mud gas up to C3 (propane) and mineral fluorescence just above current well depth.
Geological analysis and mud logging from rock cuttings circulated out of the hole indicate that geological markers in the well are slightly shallower than initially prognosed based on seismic and the nearby Collendean - 1 well drilled by ESSO in 1964. The second casing point has been revised up from 1,865 feet MD to reflect this.
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 measured depth ("MD") to test a number of conventional oil and gas targets.
The primary oil reservoir targets in this well lie in the Jurassic Portland Sandstone at about 2,200 feet true vertical depth below sea level ("TVD ss") and the Corallian Sandstone at about 3,440 feet TVD ss. There are also a number of secondary oil targets in the Jurassic aged formations, including the Great Oolite Limestone, estimated to be at 4,530 feet TVD ss.
After setting the 13 3/8-inch casing the well will be drilled in 12 ½-inch hole to a depth of approximately 5,900 feet MD where open-hole electric logs will be acquired through the prognosed oil reservoirs before setting a 9 5/8-inch casing. Then an 8 ½-inch hole will be drilled to TD in order to test for Triassic aged formations which are expected to contain gas.
Regency owns a 5% direct interest in Horse Hill Developments Ltd ("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 operatorship 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.
For further information, please contact:
Andrew Bell 0207 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 Trefgarne0203 128 8817 Media Relations MHP Communications
Glossary:
up to C3 (propane) - hydrocarbon gas liquids from spectrometry showing the presence of
C1 (methane), C2, (ethane) and C3 (propane)
MD - measured depth
mineral florescence - light emitted by natural minerals showing, in some circumstances, the presence of
hydrocarbons
mud gas - gases recovered from the drilling fluids (mud)
TD - total depth
TVDss - true vertical depth below sea level