Member Article

Alba increases stake in Horse Hill development

Alba has agreed a deal with Angus Energy Limited to increase its stake in the Horse Hill development.

The mineral resource company has acquired a further 5 per cent of the issued share capital of Horse Hill Developments Ltd, thereby increasing Alba’s interest in HHDL from 10% to 15%.

HHDL are the 65% owners and operators of onshore exploration licences PEDL 137 and PEDL 246 (known as “Horse Hill”). The development, located at a site near Gatwick airport, will yield an estimated 271 million barrels of oil per square mile (mmbo).

Alba is to pay £365k in cash, £90k of which immediately upon completion, as well as issuing Angus 137 million new Alba shares and warrants for a further 45.9mln new shares (exercisable at 0.5p per share).

Mike Nott, Alba’s CEO, commented: “We are very pleased to announce this agreement by Alba to acquire a further interest in the Horse Hill project. Previous exploration at Horse Hill has been successful with a significant and potentially commercial onshore oil discovery previously announced.

“The drilling of the Horse Hill-1 well not only resulted in an oil discovery in the Jurassic Portland Sandstone but also revealed further opportunities for additional oil potential, particularly in the Kimmeridge limestones.

“These discoveries have had the benefit of two independent studies, the conclusions of which have been previously released to the market.

“Alba is now even better placed to benefit from further success at Horse Hill. The option we have to acquire a direct 5% interest in the producing Brockham oil field represents a further opportunity to significantly increase our involvement in the Weald Basin.”

This was posted in Bdaily's Members' News section by Ellen Forster .