Update on Eagle investment

Source Press Release
Company Andalas Energy and Power plcAtlantic PetroleumHolywell Resources Ltd 
Tags Production/Development, Exploration, Strategy - Upstream, Strategy - Corporate, Upstream Activities
Date December 17, 2018
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Andalas Energy and Power Plc (ADL)

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Monday 17 December, 2018

Andalas Energy and Power Plc

Eagle licence extension

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. 
Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd