Europa Oil & Gas (Holdings) PLC Update on Extended Well Test on Wressle Discovery

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
4 September 2015 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
         Update on Extended Well Test on Wressle Discovery, Onshore UK 
 
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with 
producing and exploration assets in Europe, is pleased to note today's update 
from Egdon Resources ('Egdon') regarding Extended Well Test ('EWT') operations 
on the Penistone Flags oil zone and the Ashover Grit intervals at the Wressle-1 
oil and gas well ('Wressle' or 'the Well') on Licence PEDL180, which lies on 
structural trend with and 5 km from the Europa operated Crosby Warren field. 
 Europa has a 33.3% working interest in PEDL180 in East Lincolnshire, alongside 
Egdon (operator, 25%), Celtique Energie Petroleum Ltd (33.3%), Union Jack Oil 
(8.3%). 
 
Penistone Flags oil zone ('Zone 3A') 
 
During the EWT, oil and gas flowed from Zone 3A with no evidence of water. 
Analysis of well test and log data indicates the elevation of the oil water 
contact for the Penistone Flags reservoir is deeper than previously considered, 
which potentially has positive implications for the quantity of oil and gas 
volumes contained in the interval.  A further test is planned to establish the 
fluids in the lowermost part of the Penistone.  This will provide a better 
understanding of the oil water contact, enable a more accurate quantification 
of hydrocarbon resource volumes, and also assist with the optimisation of 
future well placement for the development of the reservoir.  Pumped test 
operations over the Penistone Flags oil zone carried out earlier in the year 
recovered over 180 barrels of oil equivalent per day ('boepd'), which exceeded 
pre-test expectations (see announcement dated 21 July 2015). 
 
Plans are currently being finalised for a workover of the Well which will 
involve: removing the completion; cementing off the existing Zone 3A 
perforations; opening new perforations into the lowermost parts of the 
Penistone Flags reservoir; and drilling short horizontal bores into the 
reservoir section by water jetting ('radial drilling').  This will be followed 
by a short test to establish the nature of the fluids in this interval.  The 
planned oil injection test to determine reservoir permeability has not been 
undertaken due to delays in receiving clarification from the Environment Agency 
with regards to whether the current permit for the site allows for such an 
operation. 
 
Ashover Grit Reservoir 
 
To date it is has not been possible to re-establish flow rates from the Ashover 
Grit interval during the EWT, due to either a mechanical problem with the 
down-hole completion, an annular blockage, or an impairment of the perforations 
caused by the well completion operations.   The new planned workover of the 
Well will enable the existing completion to be inspected and, if required, a 
programme of remedial works to be undertaken prior to continuing with the EWT 
of this interval. 
 
During initial testing in early 2015, the Ashover Grit interval achieved free 
flowing oil production rates equivalent to 80 bopd and 47 million cubic feet 
('mcf') of gas per day during a 16 hour main flow period.  Analysis of the well 
test data indicates that the flow rates were impaired due to a high 'Skin 
Factor' and therefore were not representative of the flow rates that could be 
attained from this interval when 'cleaned up'.  The partners are examining 
options that could be implemented to reduce the Skin Factor and increase 
production, including radial drilling of this interval as part of the planned 
workover. 
 
While the forward programme is being finalised and appropriate consents secured 
for the additional operations planned, site operations at Wressle have been 
suspended and costs reduced to a minimum.  Operations are expected to resume in 
early Q4 2015. Planning and permitting work which will support the submission 
of a Field Development Plan ('FDP') and a planning application for production 
at Wressle has commenced.  In addition the results of reprocessing existing 3-D 
seismic data over the Wressle structure is expected shortly which will assist 
in finalising the FDP and also identifying any additional prospectivity. 
 
Europa's CEO, Hugh Mackay, said "We are gaining a thorough understanding of the 
Wressle discovery which, during initial testing earlier this year, produced a 
total of 710 boepd from four payzones.  We are encouraged by the results of the 
EWT of the Penistone oil zone, which could be larger than first envisaged, and 
also by the analysis of well data for the Ashover, which suggests the free 
flowing oil production rates of 80 bopd and 47 mcf of gas per day could be 
improved upon.  The upcoming workover will provide valuable data as well as 
inform on how best to optimise oil production from the discovery.  In addition, 
results are due on the reprocessing of existing 3-D seismic, which could 
identify additional prospectivity on the licence.  All partners are committed 
to achieving early oil production at Wressle, which has the potential to 
significantly increase Europa's existing UK reserves, production and revenues 
and I look forward to providing further updates on our progress." 
 
                                 * * ENDS * * 
 
For further information please visit http://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 
 
Lottie            St Brides Partners Ltd        + 44 (0) 20 7236 
Brocklehurst                                    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 H1/2015 Europa produced 144 boepd 
generating sufficient revenues to cover corporate overheads and some 
exploration expenditure.  Its highly prospective exploration projects include 
the Wressle discovery (recently drilled and tested at an aggregate of 710 boepd 
from 4 zones) in the UK; 100% owned gas exploration prospect (107 bcf) and 
appraisal project (CPR 277 bcf) in onshore France a joint venture with 
Vermillion Energy also 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 un-risked Prospective Resources approximately 1.7 
billion barrels across both 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. 
 
 
 
END
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