LONDON (ShareCast) - (ShareCast News) - Alba Mineral Resources has reached a deal with Angus Energy to increase its stake in the Horse Hill Developments (HHDL) near Gatwick Airport.
Alba said it will acquire the 5% stake in Horse Hill owned by Angus Energy, bringing its total interest in the project to 15% from 10%.

HHDL owns 65% of and is the operator of onshore exploration licences PEDL 137 and PEDL 246 known as Horse Hill.

In addition, the company has an option to acquire a further 5% shareholding in HHDL, which it can execute up to 21 days after the deal has been finalised.

Alba will also have an option to farm into 5% of Production Licence 235, which comprises the producing onshore Brockham Oil Field.

Alba will pay Angus £365,000 in cash for the extra stake in Horse Hill, with £90,000 payable immediately and the balance of £275,000 payable immediately upon completion.

Chief executive officer Mike Nott said: Previous exploration at Horse Hill has been successful with a significant and potentially commercial onshore oil discovery previously announced. The drilling of the Horse Hill-1 well not only resulted in an oil discovery in the Jurassic Portland Sandstone but also revealed further opportunities for additional oil potential, particularly in the Kimmeridge limestones.

"Alba is now even better placed to benefit from further success at Horse Hill. The option we have to acquire a direct 5% interest in the producing Brockham oil field represents a further opportunity to significantly increase our involvement in the Weald Basin."

At 1340 BST, Alba shares were up 13.3% at 0.43p.

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