Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

UPDATE - Regency Mines eyes stake in oil development near Gatwick

"Strategic shift" into oil and gas may see minerals explorer join a number of other of AIM-listed groups backing the Horse Hill UK onshore play.
UPDATE - Regency Mines eyes stake in oil development near Gatwick

--adds share price--

Regency Mines (LON:RGM) has signed a heads of agreement to acquire a stake in the Horse Hill development near Gatwick Airport.

The minerals explorer will take a 5% stake in Horse Hill Development (HHDL), the special purpose vehicle set up to develop the UK project; HHDl has a 65% interest in the project and is the operator.

Regency directly will pay £300,000 in total, comprising £50,000 initially and the rest as cash calls are required for well drilling. After full payment, it will own a direct 3.25% of the PEDL 137 licence that includes Horse Hill.

Regency said its investment follows a decision by Alba Mineral Resources (LON:ALBA), in which it has a 14.87% direct stake, to participate in the HHDL project. Alba has a binding agreement in place to acquire a 5% interest in HHDL on the same terms.

A first well is expected to spud during July 2014 and is targeting a number of conventional stacked oil and gas targets up to a depth of 8,512 feet.

Andrew Bell, Regency’s chairman said:"The opportunity to invest with Alba, Angus Energy, and the other investors in this exciting UK oil and gas project follows extensive due diligence and analysis.

"By co-investing with Alba, Regency supports Alba in its strategic re-launch into the oil and gas space, which Regency has been assisting.

"Regency increases its exposure to the potential upside of the project while minimising downside risk and total cost, offering Regency investors access to near-term cash generation and an increase in the liquidity of its existing investment in Alba.

"While a relatively small financial commitment at this stage, the Regency board believes that this strategic shift will help unlock value for Regency amidst challenging market conditions in the mineral resource sector."

Other investors in HHDL as well as Alba include Angus Energy, Solo Oil (LON:SOLO), Doriemus (LON:DOR), Stellar Resources (LON:STG) and UK Oil & Gas Investments (LON:UKOG).

Magellan Petroleum owns the other 35% of the project, which is just a few miles from the Brockham oilfield.

Shares in Alba jumped 128% to 0.628p, while Regency was 11% higher at 0.283p.

View full RGM profile View Profile

Regency Mines Plc Timeline

Related Articles

July 17 2018
Tsodilo Resources is currently evaluating a diamond project situated right in the heart of one of the world's most prolific diamond-producing areas
Verde Agritech shifting the dial for farmers and food consumers with Super Greensand
June 25 2018
The world population is expected to balloon by over one third, or 2.3bn by 2050..
The company is hoping to mine its graphite flake, see it turned into concentrate, then produce spherical graphite to supply Korean lithium-ion battery-makers.

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 2018

Proactive Investors 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