Regency owns a 2.015% indirect stake in PEDL 137 and PEDL 246 covering a gross area 143km2 in the Weald Basin of the United Kingdom.
Onshore UK Oil Exploration located in the Weald Basin
Licence areas: PEDL137 / PEDL246
Operated by Horse Hill Developments ltd.
The Horse Hill-1 discovery is located on PEDL 137, a licence adjacent to PL 235 where the Brockham field is located. The licence area also includes PEDL 246 shown on the map below, to comprise a total licence area of approximately 143 square kilometres.
Horse Hill Developments Ltd (HHDL) was created to engage in a farmout with Magellan to gain a 65% interest in the Horse Hill licenses and to fund the drilling of the Horse Hill-1 well.
Xodus Group, the independent reserve auditor, has independently verified the conventional Portland reservoir (from which the Brockham field is currently producing) on the PEDL137 / PEDL246 licenses to contain up to 21 MMbbl (gross) of STOIIP.
Horse Hill-1 was originally drilled to a total depth of 8,860ft to test a high-risk gas target in the deeper Triassic formations. There were no significant gas shows at the deeper levels. However, further analysis of the well logs and technical data by US independent petrophysical consultants has indicated significant oil in place numbers over various horizons. The upcoming well test at Horse Hill-1 should verify the oil potential at both the conventional reservoir in the Portland sandstone as well as test the viability of future production from the Weald basin shale horizons.
Regency completed the sale of 1.9% of its 5% stake in HHDL to UK Oil and Gas PLC (AIM:UKOG) during Q3 2017. The company retains 3.1% of HHDL and correspondingly a 2.015% stake in the oil project.