24th Sep 2014 09:08
LONDON (Alliance News) - Regency Mines PLC shares were given a boost on Wednesday after the company said a subsidiary has signed an exploration and investment deal to participate in a joint venture with Carter Oil & Gas and others, giving Regency a 25% stake in the West Virginia shallow-oil project.
Under the deal, Regency has committed to participate in a two-well pilot programme in the fourth quarter of this year at the site, with an option to invest in an initial expansion programme of at least 12 wells in 2015.
Regency said the drilling plan at the site will target 1860s and 1920s-era oilfields using modern techniques, with the sites believed to have a majority of oil still in place.
"The WVSO project offers the company attractive potential returns and near-term cash flow for a modest investment and with a much lower risk profile than many mineral exploration investments," said Regency Chairman Andrew Bell.
Regency shares were up 2.3% to 0.436 pence on the back of the news. The stock touched an intraday high of 0.46p, putting it among the best performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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