Regency Mines has jumped up 77% after the company bought into the Horse Hill Development, the so-called Gatwick Gusher.
Operator UK Oil and Gas said this month that oil had flowed freely to the surface under its own pressure, promising an oil bonanza which had been long promised but also raised some doubts about its potential.
Now Regency, which sold out of the project last year, has now bought 5% from Angus Energy for £400,000 in cash and shares. With further options to be awarded to Angus in due course, Angus could end up with 29.9% of Regency.
Regency chairman Andrew Bell said:
We sold out of the same percentage of [Horse Hill] last year. We now buy back on broadly equivalent terms. With the additional information now available, the asset now meets the investment criteria stated then. The timing of progress to production can be better quantified and in our opinion the potential and scale of the rewards now far outweigh the risk.
Regency shares are currently up 0.25p at 0.575p.
