Regency Mines PLC Partial loan repayment and Horse Hill Licence (1699Q)
September 08 2017 - 2:00AM
UK Regulatory
TIDMRGM
RNS Number : 1699Q
Regency Mines PLC
08 September 2017
REGENCY MINES PLC
("Regency" or the "Company")
Partial repayment of Convertible Loan
Environment Agency Approval and Council Planning Application at
Horse Hill Licences, Weald Basin, SE UK
8 September 2017
The Company is pleased to report that it has today prepaid in
cash US$350,000 of the one year convertible loan for $1,000,000
($900,000 net of fees) from a consortium led by YA II PN, Ltd
announced on 5 April 2017.
The Company also announces that the Environment Agency has
granted the necessary permits to Horse Hill Developments Limited
("HHDL"), the operator of Horse Hill licences PEDL 137 and PEDL
246, to enable HHDL to carry out extended well tests, drill a
side-track from the existing HH-1 well and drill and test a new
borehole HH-2. As previously advised, a planning application in
relation to these proposed activities has also been submitted to
Surrey County Council (the "Council"). We have been informed by
HHDL that the Council has confirmed that the planning application
is now scheduled to be determined at October's meeting of its
planning committee. Members of the planning committee completed a
scheduled visit to the Horse Hill site yesterday, 7 September, in
preparation for the October meeting
Regency Chairman Andrew Bell commented: "We are pleased to have
prepaid a substantial part of the convertible loan taken out in
April this year. We recognised the fears of some investors that
this loan might lead to share issues to the lender that might
negatively affect our share price, and hope that this repayment
demonstrates the firm intention of the Company that this should not
occur.
2017 is the year that oil exploration in the Weald Basin is
coming of age: besides the planned extended well test work at Horse
Hill, flow test work is already under way at Broadford Bridge, and
the operator has applied to carry out further work leading to
production from the nearby Brockham field. This further progress in
the permitting at Horse Hill is a positive development and we look
forward to seeing work under way later this year."
HH-1 Oil Discovery and Regency Interest
The HH-1 Kimmeridge Limestone and Portland oil discovery well is
located within onshore exploration Licence PEDL137, on the northern
side of the Weald Basin, 3 km north of Gatwick Airport. As
previously reported in February and March 2016, two
naturally-fractured limestone members within the Kimmeridge
section, known as KL3 and KL4, flowed dry, 40-degree API oil, at an
aggregate stabilised natural flow rate of 1,365 barrels of oil per
day ("bopd") with no clear indication of depletion. The overlying
Portland flowed dry, 35-37 API gravity crude at a stable pumped
rate of 323 bopd. The Portland was produced at the rod-pump's
maximum achievable rate and thus flow was constrained by the pump's
mechanical capacity.
As previously reported on 4 April 2017, the application for long
term production testing and further appraisal drilling was
submitted to Surrey County Council in October 2016, and is now
scheduled to be decided at the Council's planning committee meeting
in October 2017 (as detailed above).
Regency owns 3.1% of HHDL, the 65% owner of the Horse Hill
licenses, and owns 0.19% of UK Oil & Gas Investments PLC, which
owns 49.9% of HHDL and 100% of the Broadford Bridge License PEDL
234.
Glossary:
degree API a measure of the density of crude oil,
as defined by the American Petroleum
Institute
----------- -------------------------------------------------
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through testing,
sampling and/or logging the existence
of a significant quantity of potentially
moveable hydrocarbons
----------- -------------------------------------------------
flow test a flow test or well test involves testing
a well by flowing hydrocarbons to surface,
typically through a test separator.
Key measured parameters are oil and
gas flow rates, downhole pressure and
surface pressure. The overall objective
is to identify the well's capacity to
produce hydrocarbons at a commercial
flow rate
----------- -------------------------------------------------
limestone a sedimentary rock predominantly composed
of calcite (a crystalline mineral form
of calcium carbonate) of organic, chemical
or detrital origin. Minor amounts of
dolomite, chert and clay are common
in limestones. Chalk is a form of fine-grained
limestone
----------- -------------------------------------------------
step-out a well designed to determine the lateral
extent of a discovered hydrocarbon accumulation
or play
----------- -------------------------------------------------
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
Neil Badger 0129 351 7744 Broker Dowgate Capital Stockbrokers
Ltd.
This information is provided by RNS
The company news service from the London Stock Exchange
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