Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
16 February 2015
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Farm-Out of Tarbes Permit in France
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas exploration and
development company with a combination of producing and exploration assets in
Europe, is pleased to announce it has signed a Farm-Out Agreement (`FOA') in
relation to its 100% owned Tarbes Val d'Adour Permit (`Tarbes') onshore France
with Vermilion REP SAS, a wholly owned subsidiary of Vermilion Energy Inc
(`Vermilion') a Calgary, Alberta based international oil and gas producer.
Tarbes has previously produced oil from two fields and is located in the
Aquitaine basin close to the giant Lacq - Meillon gas fields. This update is in
line with Europa's strategy to advance and monetise its multi-stage portfolio
of licences.
* Under the terms of the FOA, Vermilion acquires an 80% interest in, and
operatorship of, Tarbes with Europa holding the remaining 20% interest.
* Should Vermilion decide to proceed with exploration activities, they will
assume 100% of the cost of an optional work programme, which may include
seismic acquisition/reprocessing and drilling operations up to a total of €
4.65 million. Once costs above this level are incurred, Europa will be
responsible for its 20% share of future work programme costs
* Tarbes contains several oil accumulations that were previously licensed by
Elf but were abandoned in 1985 due to a combination of technical issues and
low oil prices. Two fields, Jacque and Osmets, were drilled using vertical
wells and generated modest production.
* The FOA is subject to the relevant approvals being granted by the French
authorities - for the transfer of equity and operatorship to Vermilion and
obtaining an extension for the permit. Both these approvals processes have
already started.
The farm-out process for Europa's other French permit "Bearn des Gaves", also
in the Aquitaine basin, is on-going in parallel with planning and permitting
for a Berenx shallow well to evaluate the 107 bcf gross mean un-risked
contingent resources. A lease has been obtained for the drill site and drilling
permit documentation is currently being exchanged with the French authorities.
Europa's CEO, Hugh Mackay said, "Vermilion is the leading exploration and
production company currently active in France with net production of
approximately 11,000 boepd. They have an excellent technical and operational
track record with specific experience of workovers, infill drilling, and
secondary recovery opportunities. They are the ideal partner for us on this
permit, and we look forward to working alongside them, as we progress Tarbes up
the value curve.
"2015 promises to be an exciting year with operations at Wressle and Kiln Lane
continuing as previously announced. We will provide further updates with
respect to progress when appropriate. We also anticipate the possibility of
expanding our UK portfolio via the 14th onshore licensing round and most
importantly a drill decision by Kosmos on our Irish licenses. Following on from
our announcement last week about testing oil at Wressle completing the first
French farmout is another good start to the year."
* * 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
Henrik Persson finnCap Ltd +44 (0) 20 7220 0500
Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Lottie St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Brocklehurst
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. The Company produced 165 boepd in the UK
during the 2013/2014 financial year, generating sufficient revenues to cover
corporate overheads and some exploration expenditure. Its highly prospective
exploration projects include the Wressle (recently drilled and
currentlyundergoing production testing) and Kiln Lane prospects (due to be
drilled in Q1 2015) in the UK; 100% owned gas exploration prospect (107 bcf)
and appraisal project (CPR 277 bcf) in onshore France; and a joint venture with
leading independent Kosmos to explore two licences in offshore Ireland with the
potential to host gross mean unrisked prospective resources of 1.5 billion
barrels.