Update, Horse Hill-1, Weald Basin UK

RNS Number : 0467S

Stellar Resources PLC

18 September 2014

 



18 September 2014

Stellar Resources plc

("Stellar Resources" or "the Company")

Update, Horse Hill-1, Weald Basin UK

Stellar Resources plc (AIM: STG) today confirms that drilling operations on the Horse Hill-1 well are continuing as planned with the 20-inch surface casing having been set successfully at 84 feet below ground level.  Operations are continuing at the site and further news will be issued as appropriate.

The Company is also pleased to confirm that Magellan Petroleum Corporation ("Magellan") have now confirmed that they will not proceed with their option to acquire additional logs beyond those required for the conventional targets in the Horse Hill-1 well. This will assist Horse Hill Developments Ltd ("HHDL") to complete the well on schedule in about six weeks.

Additionally, the original binding agreements previously put in place for Stellar Resources to own a 10% interest in HHDL have been converted to a definitive Investment Agreement confirming the Company owns 10% of HHDL.  David Lenigas, the Chairman of Stellar Resources, has also been appointed as Chairman of HHDL.

HHDL is a special purpose company that owns a 65% participating interest and operatorship of onshore licences PEDL137 and the adjacent licence PEDL 246 in the UK Weald Basin.  The participants in the Horse Hill-1 well are HHDL with a 65% working interest and Magellan with a 35% interest.

David Lenigas, the Company's Chairman, commented:

"I am pleased to have been appointed as the Chairman of Horse Hill Developments Ltd, to lead and represent the interests of all consortium members in this promising conventional oil and gas well. I am particularly pleased with the support we have received from our partners, government authorities and the local community."

"We remain on track, as planned, in advancing the well towards the conventional oil targets in the Jurassic and we anticipate an exciting few weeks ahead."

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Enquiries:

Stellar Resources plc David Lenigas, Executive Chairman Donald Strang, Finance Director Ed McDermott, Operations Director	[phone]
Cairn Financial Advisers LLP: James Caithie / Paul Trendell Public Relations: Square 1 Consulting Ltd David Bick/Mark Longson	[phone] [phone]

 

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