Source - RNS
RNS Number : 6581M
Regency Mines PLC
17 October 2016
 

For Immediate Release                                                                                            17 October 2016

REGENCY MINES PLC

("Regency" or the "Company")

Horse Hill -1 Oil Discovery Planning Application

 

17 October 2016

Regency Mines PLC, the natural resource development and investment company with interests in oil and mineral exploration, announces that Horse Hill Developments Ltd ("HHDL") has informed the Company that a planning application has been submitted to Surrey County Council seeking permission to conduct further appraisal testing and drilling at the Horse Hill-1 ("HH-1") oil discovery, located in Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery reported a total flow rate of 1,688 bopd (gross) from two Kimmeridge limestones plus the overlying Portland sandstone during a short period of testing in early 2016. The Company holds a 3.25% interest in PEDL137.

Subject to the required regulatory approvals, the first phase of the proposed development is planned to consist of the extended production testing of four zones, designed to confirm the commerciality of the discovery, and to examine a previously untested Kimmeridge limestone. The planning application also seeks permission for a two-well drilling phase, which contingent upon successful testing, will appraise further the extent of the oil accumulations and the field's production capabilities. The proposed drilling phase includes; plans for a deviated sidetrack, HH-1z, to be drilled from the existing HH-1 borehole, together with a new well, Horse Hill-2 ("HH-2"). On successful completion of drilling, both the HH-1z and HH-2 wells are planned to be long-term production tested.

HHDL has also reported that in order to minimise impact to the locality, feedback from both a public consultation and engagement process, undertaken in July, and subsequent meetings with local residents' representatives, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle for an application not requiring an Environmental Impact Assessment such as at Horse Hill, takes approximately 13 weeks.

HHDL and the Company's Interest in the Licence

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licence. RGM now owns a 5% beneficial shareholding in HHDL, which equates to a 3.25% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.

 

For further information, please 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

Jason Robertson 0129 351 7744                                           Broker Dowgate Capital Stockbrokers Ltd.

 


This information is provided by RNS
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