EUROPA OIL & GAS (HOLDINGS) PLC
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
06 February 2017
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Farm-Out of Holmwood, Weald Basin
Europa Oil & Gas (Holdings) plc, UK and Ireland focussed exploration,
development and production company, is pleased to announce that its wholly
owned subsidiary has signed a Farm-Out Agreement (`FOA') in relation to a 12.5%
interest in the PEDL143 licence in the Weald Basin with a wholly owned
subsidiary of Angus Energy PLC ('Angus'). Europa will retain a 20% interest in
PEDL143 where a well targeting the 5.6 mmbo conventional Holmwood prospect
('Holmwood') is anticipated to be drilled in 2017.
FOA sees Europa fully carried to drill Holmwood
* Angus will pay 25% of the costs to drill an exploration well at Holmwood up
to a gross well cost of £3.2 million ('the Cap') for a 12.5% working
interest in PEDL143
* Angus will pay 12.5% of all non-well costs and gross well costs above the
Cap
* Europa will pay 20% of all non-well costs and gross well costs above the
Cap and is now fully carried on well costs up to £3.2 million
* In the event of a discovery and subsequent development on the licence,
Angus has agreed to make a deferred payment to Europa of £265,625 covering
back costs plus a 25% uplift
* The FOA is subject to regulatory approval by the Oil & Gas Authority
Well targeting gross mean unrisked prospective resources of 5.6 mmbo
* P90 - P10 resources of 1 - 11 mmbo - assigned one in three chance of
success
* Holmwood well will penetrate similar stratigraphy to the nearby Brockham
oil field and Horse Hill oil discovery, targeting oil in Upper and Lower
Kimmeridge Limestones and Corallian and Portlandian sandstones
* The 5.6 mmbo prospective resources at Holmwood do not include an estimate
for the Kimmeridge limestones that produced oil at Horse Hill
* Planning permission in place for a deviated exploration well to be drilled
- operations anticipated to commence in 2017
* Fulfilment of planning conditions and detailed well planning and
environmental permitting underway
Holmwood located in prolific UK onshore hydrocarbon region
* PEDL143 is in an area of the Weald Basin where 14 oil and gas fields have
been found, and an estimated 50 million barrels of oil discovered, of which
30 million barrels have been produced to date
* Holmwood lies 5km to the south of the Angus-operated Brockham oil field
('Brockham') and 12km to the west of the Horse Hill-1 well ('Horse Hill')
in PEDL137
+ Brockham produces oil from Portlandian sandstone reservoirs, discovered
by BP in 1987
+ Horse Hill produced at a combined average stable rate of over 1,688
bopd from Upper and Lower Kimmeridge Limestone reservoirs and Upper
Portland sandstone reservoir during flow tests as reported by UK Oil &
Gas Investments PLC ('UKOG')
Europa CEO Hugh Mackay said, "Following today's farmout, Europa will have a
fully carried 20% share in Holmwood and the benefit of a partner with expertise
in the Weald basin. As the operator of the nearby Brockham oil field, Angus
can provide invaluable technical insights in tandem with our other partners
including UKOG, a major stakeholder in the Horse Hill discovery.
"In line with our strategy to expose our shareholders to material rewards
through the drillbit while minimising exposure to exploration risk, this is the
fourth farm-out we have secured for our UK licences within the last 12 months.
We are working hard to replicate this farmout success with our industry-leading
licence position offshore Ireland, and I look forward to providing further
updates on our progress in due course."
Subject to approval of the farm-out from the Oil & Gas Authority, Europa will
retain a 20% interest in and operatorship of PEDL143 alongside Egdon Resources
(18.4%), Altwood Petroleum (1.6%), Warwick Energy (10%), UKOG (30%), UJO
(7.5%), and Angus (12.5%)
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa + 44 (0) 20 7224
3770
Phil Greenhalgh Europa + 44 (0) 20 7224
3770
Matt Goode 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
Susie Geliher 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 2016 Europa produced 123 boepd. Its
highly prospective exploration projects include the Wressle oil development in
the UK and seven licences offshore Ireland with the potential to host gross
mean un-risked prospective and indicative resources of more than 4 billion
barrels oil equivalent and 1.5 tcf gas across all seven licences.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 30 years' experience in petroleum exploration and
a member of the Petroleum Exploration Society of Great Britain, American
Association of Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
Europa Oil & Gas () : Farm-Out of Holmwood, Weald Basin
February 06, 2017 at 02:01 am EST
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© PRNewswire - 2017
