Regency Mines PLC Partial sale of Horse Hill Discovery interest (5163K)

TIDMRGM

RNS Number : 5163K

Regency Mines PLC

10 July 2017

Regency Mines Plc

Partial Sale of Interest in Horse Hill Discovery

10 July 2017

Regency Mines Plc ("Regency" or the "Company"), the natural resource company with interests in oil and mineral exploration, announces that the Company has agreed to sell 19 of the 50 shares in Horse Hill Development Limited ("HHDL") announced on 22 February 2016 and 23 February 2016.

Highlights:

   --      Sale of 1.9% of HHDL for GBP323,000 
   --      Regency reinvests GBP268,502 in UKOG shares at 1.55p a share or lower 
   --      Regency retains 3.1% of HHDL 
   --      If Regency sells remaining 3.1%, UKOG has right of first refusal for 18 months 

Andrew Bell, Regency Chairman, states: "With this transaction we retain a direct interest in the promising Horse Hill assets, but also gain exposure to Horse Hill and other key Weald Basin assets through a holding in UKOG.

We set a new benchmark price on our holding, and increase the liquidity of our assets and realise a holding gain.

We look forward to participating in the active exploration of the Weald Basin, which we expect to continue as the potential of this new hydrocarbon province is increasingly recognised."

Details

Under the agreement signed on 7 July 2017 the Company has agreed to sell to UK Oil and Gas Investments PLC (AIM:UKOG)("UKOG") a 1.9% interest out of the 5% interest it holds in HHDL for a purchase price of GBP323,000 ("Consideration").

HHDL is a special purpose company that owns a 65% participating interest in and has the operatorship of license PEDL 137 and the adjacent license PEDL 246 in the UK Weald Basin. The Horse Hill-1 well, where a discovery was announced on 24 October 2014, is located within onshore exploration license PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.

The Consideration will be settled by (a) a cash payment of GBP54,498 to be applied to Regency's proportionate share of HHDL cash call 8, and (b) a cash payment of GBP323,000 to be applied to the subscription of new UKOG shares at the lower of (i) the 30 day volume weighted average price ("Relevant Price") as at the date of completion of the sale and (ii) the Relevant Price as at 28 June 2017.

The Relevant Price as at 28 June 2017 was 1.55 pence and the closing price of UKOG shares as at 7 July 2017 was 2.85 pence.

The 19 shares in HHDL were acquired for GBP152,000 in February 2017 and are carried in Regency's books at GBP284,809 as at the last audited balance sheet date, 30(th) June 2016.

Regency has granted UKOG a right of first refusal for 18 months over the 31 shares in HHDL not sold in this transaction.

The transaction is conditional on all relevant approvals being received.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

For further information contact:

Andrew Bell 0207 747 9960 Chairman Regency Mines Plc

Scott Kaintz 0207 747 9960 Executive Director Regency Mines Plc

   Roland Cornish/Rosalind Hill Abrahams 0207 628 3396         NOMAD Beaumont Cornish Limited 

Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 10, 2017 02:00 ET (06:00 GMT)