Alba Mineral Resources plc completes acquisition of interest in Horse Hill

23 October 2015

Kerman & Co advised Alba Mineral Resources plc on the acquisition of the following assets from Angus Energy Ltd:

-    5% of the issued share capital of Horse Hill Developments Ltd (HHDL), so increasing Alba’s stake in HHDL from 10% to 15%; and

-    an option to farm into 5% of Production Licence 235 (“PEDL 235”), which comprises the producing onshore Brockham Oil Field.

There are seven companies with a stake in Horse Hill Developments Ltd, a special-purpose vehicle which owns a 65% participating interest in the Horse Hill licence (PEDL137/PEDL246).  A discovery well was drilled in at Horse Hill in 2014 and revealed oil in the Portland Sandstone, as well as in some deeper formations including the Kimmeridge Clay, Oxford Clay and Liassic Shale. HHDL is now in the process of appraising the Portland oil discovery, with a view to potential early production and to further the “proof of concept” specifically for the Kimmeridge limestone tight oil play. Horse Hill Developments has received full planning approvals and landowner agreements to construct an exploratory well site and drill one borehole to allow short-term testing for hydrocarbons.

Partner Una Deretic advised on these acquisitions and was supported by solicitors David Tink and Cindy Wang.