UK markets closed

Europa Oil & Gas (Holdings) Plc - Ireland Farm-out Update

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas

23 January 2020

Europa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)

Ireland Farm-out Update

Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration, development and production company, provides an update on the farm-out process in respect of the Company’s 100% owned Frontier Exploration Licences (FELs) 4/19, 1/17 and 3/13 (‘the Licences’) offshore Ireland. 

As announced on 29 October 2019, the Company has been in farm-out discussions with a number of parties in relation to the above Licences, including negotiations with the NW Europe division of a major oil company (the 'Major') which had been ongoing for more than twelve months.  The Major has now informed the Company that, as part of a wider strategic review, the Licences are no longer under consideration for farm-in. 

Discussions with several other parties regarding the farm-out of the Licences are continuing.  The Company is prioritising securing a partner to drill its flagship prospect in Ireland, the Inishkea prospect which lies on FEL 4/19 in the Slyne basin.  Inishkea is located close to the ~1tcf producing Corrib gas field and associated infrastructure.  The Company therefore regards Inishkea as lower risk “infrastructure-led” exploration and has assigned gross unrisked prospective resources of 1.5tcf and an estimated geological chance of success of one in three to the prospect.

In tandem with ongoing farm-out discussions, the site survey process for a drilling location at Inishkea is being advanced. The Company hopes to obtain permission for the survey to be conducted during summer 2020, which would enable drilling to occur during 2021.

Simon Oddie, Interim Chief Executive Officer and Executive Chairman of Europa, said: “With gross unrisked prospective gas resources of 1.5tcf, a one in three chance of success, a location in a proven hydrocarbon region and lying close to the producing Corrib gas field, Inishkea represents a compelling drill target, one that continues to attract considerable interest from a number of potential partners.  While we cannot comment on timings for the conclusion of ongoing discussions, we remain optimistic that we will secure a partner for Inishkea with whom we can drill what has the potential to be a transformational well for Europa. 

“In the meantime, activity continues across our asset base including working with our partners to bring the Wressle field in the UK into production later this year at an initial gross rate of 500bopd as well as technical work in Morocco focused on reprocessing and interpreting data to build a prospect inventory.  I look forward to providing further updates on our progress as we look to advance our multi-stage portfolio of assets and in the process generate value for our shareholders.”

* * ENDS * *

For further information please visit www.europaoil.com or contact:

Simon Oddie Europa + 44 (0) 20 7224 3770
Phil Greenhalgh Europa + 44 (0) 20 7224 3770
Christopher Raggett finnCap Ltd + 44 (0) 20 7220 0500
Simon Hicks finnCap Ltd + 44 (0) 20 7220 0500
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236 1177
Megan Dennison St Brides Partners Ltd + 44 (0) 20 7236 1177

Notes

Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage hydrocarbon assets that includes production, exploration and development interests, in countries that are politically stable, have transparent licensing processes, and offer attractive terms. In 2019 Europa produced 88 bopd. Its highly prospective exploration projects include the Wressle development in the UK (targeting production start-up in 2020 at 500 bopd gross) and six licences offshore Ireland with the potential to host gross mean un-risked prospective resources of 6.4 billion barrels oil equivalent and 1.5 tcf gas across all six licences. The Company’s flagship project offshore Ireland is the Inishkea prospect – a near field gas exploration project with 1.5 trillion cubic feet (‘TCF’) gross mean un-risked prospective gas resources.