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Regency Mines raises funds as investors look forward to Horse Hill results

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Regency Mines (LON:RGM), one of the investors in the Horse Hill oil exploration well, has raised around £400,000 with the issue of new shares.

The company revealed in a stock market statement that it is will issue 103mln new shares priced at an average of 0.431p. Additionally shares worth £47,700 were issued to certain service providers, the company added.

“Following the company's recent investments in oil and gas, we are now in a stronger position than we have been for some time and took the opportunity to consolidate this progress as we continue to await further developments at Horse Hill and in the US," said chairman Andrew Bell.

A separate statement this morning provided an update for Horse Hill, where drilling has neared the first or the main targets.

The well’s  stakeholders have told investors that drilling has now reached a depth of 1,795 feet and the second casing point is now being set.

It was also reported that due to the observation of geological markers this second casing point is higher in the well than originally anticipated - it was revised from 1,865 feet.

The bottom of the well is presently in the upper part of the Jurassic and, according to the operator’s reports, anticipated mud gas and fluorescence have now been encountered.

Horse Hill’s primary reservoir target is the Jurassic Portland, which has been anticipated at a depth of around 2,000 feet.

Another primary target is the Corallian, at a depth of 3,440 feet, and there are a number of secondary targets including the Great Oolite at around 4,530 feet.

Neil Ritson, Solo’s executive director, said: "The well is running smoothly and the geological formations and the other indicators that have been encountered so far are encouraging for the presence of a trap within a proven hydrocarbon system.  

“We await further drilling results with great interest."

Solo has a 10% stake in Horse Hill Development Limited (or HHDL) which is a special purpose vehicle with a 65% interest in the project.

Other stakeholders in HHDL include: UK Oil & Gas Investments (LON:UKOG), Stellar Resources (LON:STG), Doriemus (LON:DOR), Alba Minerals (LON:ALBA) and Regency Mines (LON:RGM).

In a separate statement David Lenigas, chairman of Solo Oil and other stakeholders including UKOG, said: "Progress on this well has so far been encouraging on all fronts”.

Meanwhile Donald Strang, Doriemus chairman and Stellar Resources FD, said: "We are pleased to see encouraging progress on this well and that the operator is now setting the second casing in a good seal just above the first of the primary targets in the Portland."

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