21 Jul 2014 07:00
REGENCY MINES PLC
("Regency" or the "Company")
Update on Horse Hill
21 July 2014
Further to the announcement of 11th July 2014, Regency announces that Horse Hill Developments Ltd ("HHDL") has on the 17th July received formal notification from the UK Department of Energy and Climate Change ("DECC") that:
• The Secretary of State has approved the transfer and apportionment of rights of 65% of Licence PEDL 137 from Magellan Petroleum (UK) Limited to HHDL.
• The Secretary of State has approved the appointment of HHDL as Operator of Licence PEDL 137.
These approvals and consents have been granted by DECC until 17th October 2014, to enable HHDL to meet its obligation under the agreements in place between HHDL and Magellan Petroleum (UK) Limited to drill the Horse Hill-1 well on Licence PEDL 137.
The Horse Hill - 1 well is proposed to have a total depth of 8,512 feet and is targeting a number of conventional stacked oil and gas targets.
Regency has a Heads of Agreement in place to own a direct 5% interest in HHDL, a special purpose company that owns a 65% participating interest in and has operatorship of the Horse Hill project. This investment follows a decision by Alba Mineral Resources Plc ("Alba"), in which Regency currently has a 14.87% direct stake, to acquire a 5% interest in HHDL.
Andrew Bell, Chairman, comments: "We now await spudding of the Horse Hill-1 well, along with Angus Energy and our AIM-listed co-investors in HHDL, Alba, UK Oil and Gas, Solo Oil, Doriemus, and Stellar Resources."
For further information contact:
Andrew Bell0207 747 9960 or 0776 647 4849 Chairman Regency Mines Plc
Colin Aaronson / David Hignell 0207 383 5100 NOMAD Grant Thornton UK LLP
Nick Emerson 01483 413500 Broker SI Capital Ltd.
Saif Janjua 0207 382 8416 Joint Broker Beaufort Securities Ltd
Rupert Trefgarne 0203 128 8817 Media Relations MHP Communications