Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Regency Mines back in the Horse Hill saddle

New testing success has prompted a return to the UK oil project which Regency exited last April.
Regency Mines back in the Horse Hill saddle
Angus Energy will own 29.9% of Regency as a result of the deal.

Regency Mines (LON:RGM) is back in the Horse Hill oil project, near Gatwick airport, following the signing of an agreement with Angus Energy.

Andrew Bell’s Regency previously exited the project last April.

The deal to buy back in comes after breakthrough well testing results last week, which propelled the shares of the listed Horse Hill stakeholders sharply higher.

A cash and share deal, which Regency says is worth £400,000 consideration, sees £223,730 paid in cash and 54.23mln Regency shares issued to Angus Energy.

Subsequently, Angus will own 29.9% of the AIM quoted company. And it has also been granted options to purchase a further 17.8mln shares in the next eighteen months at a price of 0.39p.

“We sold out of the same percentage of HHDL last year. We now buy back on broadly equivalent terms,” said Regency chairman Andrew Bell.

“With the additional information now available, the asset now meets the investment criteria stated then.

“The timing of progress to production can be better quantified and in our opinion the potential and scale of the rewards now far outweigh the risk."

Flow testing in the first of three targeted zones - the deeper Kimmeridge limestone reservoir - saw oil retrieved to surface at rates above 450 barrels per day, which was far in excess of expectations.

In an interview with Proactive Investors Stephen Sanderson, chief executive of the largest listed Horse Hill participant UK Oil & Gas (LON:UKOG), highlighted that the project was “no longer a science project” and said it was now at the edge of being a commercially viable discovery.

Two further zones will be assessed in the ongoing testing programme.

View full RGM profile View Profile

Regency Mines Plc Timeline

Newswire
February 23 2016

Related Articles

Kwale-workers.jpg
August 29 2017
Base Resources has a top quality mineral sands asset at Kwale and is benefiting from a recovery in the market
Pioneer Resources: Access latest PPT from Proactive's CEO Sessions
June 18 2017
David Crook talked cash from caesium with investors.
White-Cliff-Minerals-MD-Todd-Hibberd-presenting-Syd-Mar-2017-757.jpg
March 16 2017
Todd Hibberd brought gold, lithium and nickel to investors.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use