6th Feb 2014 12:33
LONDON (Alliance News) - Minding company Stellar Resources PLC said Thursday it has entered into a Binding Heads of Agreement to buy a 7.5% stake in Horse Hill Development Ltd, a special purpose company, which hold the rights to a 65% participating interest and operatorship, in licence number 137 onshore at Horse Hill Wood, in Surrey.
As part of the transaction, Stellar Resources will immediate pay Horse Hill Development Ltd GBP10,000 towards the cost of the Horse Hill-1 Well, and will soon after make a further payment of GBP50,000 towards the cost of the Well.
Under the agreement, Stellar shall bear a further total sum of GBP390,000 of cash calls for the drilling of the Well to be drilled on the Horse Hill Licence.
"Stellar is keen to expand its portfolio of global resource investments and the recent developments in the UK have significantly increased interest in the sector. The Horse Hill Prospect represents an immediate opportunity for the Company to be a key consortium participant in a significant conventional onshore oil and gas play," said Chairman David Lenigas in a statement.
The Horse Hill-1 well is planned to test a number of conventional stacked oil targets at the proven productive Portland sandstone, Corallian sandstone and Great Oolite limestone levels.
Its estimated, prospective recoverable resources total a mean 87 million barrels, with an additional mean 164 billion cubic feet of recoverable prospective resources proposed within the deeper Triassic gas play.
Stellar shares were down 7.8% at 0.461 pence per share before midday Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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