Stellar Resources has entered into a Binding Heads of Agreement (HOA) to buy a further 2.5% equity interest in Horse Hill Development Limited (HHDL), the operators of the Horse Hill Prospect in the Weald Basin near Gatwick Airport. The acquisition takes its interest from 7.5% to 10%.
Site construction for the proposed 8512 feet Horse Hill-1 well is already underway. The well is expected to spud in July 2014 and is targeting a number of conventional stacked oil and gas targets.
Stellar Resources now has binding agreements in place to own a direct 10% interest in Horse Hill Development Ltd, a special purpose company that owns a 65% participating interest and operatorship of the Horse Hill Prospect.
David Lenigas, Stellar Chairman, commented: "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. Work is already underway with site construction and we look forward to the spudding of the well next month."
“The breaking of ground at the Horse Hill Prospect marks the start of a potentially exciting era for Stellar Resources and the Horse Hill Development partners."
Payments to be made by Stellar Resources to increase its interest in HHDL from 7.5% to 10%:
- £10,000 on signing revised agreement;
- £50,000 on signing definitive agreement;
- £90,000 when cash called as part of the drilling programme.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/20062014/stellar_resources_increases_uk_oil_and_gas_prospect_interest_871/