Andalas Energy and Power Plc Eagle licence extension

 
TIDMADL 
 
17 December 2018 
 
                         Andalas Energy and Power Plc 
 
                         ('Andalas' or the 'Company') 
 
                          Update on Eagle investment 
 
Andalas Energy and Power plc is pleased to provide the following update on its 
investment in Eagle Gas Limited. 
 
  * The OGA has agreed a 5 month extension of the initial term of licence P2112 
    to 19 May 2019. 
 
  * Under the terms of the extension, the licence holder must: 
 
      + By no later than 31 March 2019, advise the OGA that it either: (i) has 
        elected to drill one well to 3800m or 100m into the Namurian (whichever 
        is the shallower) and approved the necessary funding for the well 
        commitment; or (ii) elected to terminate the licence; 
 
      + Provide the results of two G&G studies to the OGA by 1 March 2019 
        together with a conclusion as to whether the results of these studies 
        support a drill decision; and 
 
      + Provide an update to the OGA by 1 March 2019 on all pre-drill decision 
        work. 
 
  * Operator to undertake an additional technical assessment of the Ketch gas 
    prospect after a third-party review concluded that there may be additional 
    gas potential in the Ketch. 
 
  * Identification of additional gas potential in the Ketch may inform the 
    licence holders' decision on the optimal location of an exploration well on 
    the licence. 
 
  * Eagle Gas Limited has the funds available to complete the additional work 
    programme. 
 
Simon Gorringe, CEO of Andalas Energy and Power PLC said, "We are pleased that 
the Badger licence has been extended.  It enables the operator, Holywell 
Resources Ltd, and Atlantic Petroleum UK Limited to complete further work and 
optimise the technical and commercial appraisal and development plans." 
 
Andalas is the owner of a 25% interest in Eagle Gas Limited that is itself the 
100% owner of Holywell Resources Limited, which owns a 66 2/3% interest in 
licence P2112 ("the licence").  Atlantic Petroleum UK Limited owns a 33 1/3% 
interest in the licence.  The licence contains the Badger prospect which 
contains a significant resource which was the subject of the Company's 
announcement of 20 August 2018. 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014 ('MAR).  Upon the publication of this announcement via a 
Regulatory Information Service ('RIS'), this inside information is now 
considered to be in the public domain. 
 
For further information, please contact: 
 
Simon     Andalas Energy and Power Plc                  Tel: [phone] 
Gorringe 
 
Roland    Beaumont Cornish Limited                      Tel: [phone] 
Cornish/  (Nominated Adviser) 
James 
Biddle 
 
Colin     Novum Securities Limited                      Tel: [phone] 
Rowbury   (Joint Broker) 
 
 
Christian Optiva Securities Limited                     Tel: [phone] 
Dennis    (Joint Broker) 
 
Stefania  Cassiopeia Services                           [e-mail] 
Barbaglio Limited 
          (Public Relations) 
 
 
 
END 
 

(END) Dow Jones Newswires

December 17, 2018 02:00 ET (07:00 GMT)