19th Jun 2014 13:28
LONDON (Alliance News) - Stellar Resources PLC said Thursday that it had agreed to buy a further 2.5% interest in Horse Hill Development Ltd, operator of the Horse Hill Prospect in the Weald Basin near Gatwick Airport, taking its total interest in the company to 10%.
Horse Hill Development owns a 65% participating interest in the prospect.
Construction of the proposed 8,512 feet Horse Hill-1 well is already under way, the company said, and it is expected to spud next month.
Stella Resources will pay GBP10,000 upon signing a revised agreement with Horse Hill, followed by a GBP50,000 payment on signing a definitive agreement and a further GBP90,000 as part of the drilling programme.
"Stellar Resources are pleased to have been able to negotiate a one-third increase in its original investment in this exciting conventional oil and gas drilling opportunity in the Weald Basin," said Chairman David Lenigas in a statement.
Shares in Stellar Resources were trading up 12% at 0.755 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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