Europa Oil & Gas (Holdings) PLC AGM Statement
09 Décembre 2015 - 8:00AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
9 December 2015
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Annual General Meeting Statement
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 holding its Annual General Meeting ('AGM') later today. At the
meeting, CEO Hugh Mackay will make the following statement:
"Europa has a portfolio of multi-stage projects in three areas of interest:
onshore UK; offshore Ireland; and onshore France. Our stated objective is to
become an upper quartile oil and gas company on AIM by proving up the 45
million boe net mean risked & diluted resources we have identified on our
licences, and in the process generate substantial value for our shareholders.
2015 saw significant progress made across our asset base and as a result the
year ahead should see a step up in both our existing UK onshore production and
our asset backing in terms of proven reserves, while at the same time we will
continue to build our portfolio of exploration opportunities.
"The most advanced of our exploration and development assets is the Wressle
discovery on Licence PEDL 180 in East Lincolnshire where first oil is targeted
for H2 2016, subject to receipt of all required consents. Reservoir
engineering analysis indicates up to 500 bopd gross could be recovered from the
Ashover Grit, one of four productive payzones at Wressle. With a 33% interest,
this has the potential to more than double our existing production, which for
the year ended 31 July 2015 averaged 141 boepd and generated revenues of GBP2.2
million. Wressle therefore has the potential to provide us with a cash
generative platform from which to grow and prove up our prospect inventory.
"We have no shortage of exciting prospects in our existing portfolio. In the
UK, further exploration potential exists on the trend which runs between
Wressle and our producing Crosby Warren field. Reprocessing of existing
seismic data has been completed and may lead to new drill candidates emerging.
In the Weald Basin, following receipt of planning approval, we will discharge
the planning conditions and obtain EA permits to drill an exploration well on
the Holmwood prospect next winter (subject to farmdown / funding). With gross
mean un-risked prospective resources of 5.6 million barrels of oil, as
estimated in a CPR published in June 2012, Holmwood would be the UK's fifth
largest onshore field were the mean resources case to be proved by drilling
success. In tandem with advancing our existing licences up the development
curve, we are also actively looking to significantly grow our portfolio through
our participation in the latest UK onshore licencing round, the results of
which are expected in the near term.
"Success onshore UK is transformational in terms of cash flow. Success
offshore Ireland would be a company maker. We currently hold two licences, FEL
2/13 and FEL 3/13, in the South Porcupine Basin, an emerging exploration
hotspot. Based on 2,565 km2 of state of the art 3-D seismic, a CPR on FEL 3/13
undertaken by ERC Equipoise estimated audited resources of 1.5 billion barrels
of oil equivalent across three prospects with an audited value of US$7 billion
for a 100% non-carried interest. This is more than 600 times our market cap or
US$1.1 billion on a risked basis, 100 times our market cap. With numbers like
these, Ireland represents our home run. In addition Europa has estimated
unaudited gross mean unrisked prospective resources of 595 million boepd across
four prospects in FEL 2/13.
"Following the withdrawal of our partner Kosmos from Ireland, we are in the
process of transferring 100% equity and operatorship of the licences back to
Europa. We intend to secure a new partner for our Irish licences to fund what
could be a playmaking well at the earliest possible date and to take advantage
of dramatically lower rig rates, which have halved over the past year. Our
data room opens on 11 January 2016, and already both January and February are
almost fully booked. The response we are getting from major and mid-cap
companies is highly encouraging. Combined with the record number of
applications in the latest Irish Atlantic Margin Licensing Round in which
Europa lodged multiple applications, we clearly are not alone in recognising
the enormous potential of the South Porcupine Basin.
"Onshore France, we successfully farmed out an 80% interest in and operatorship
of the Tarbes permit to Vermilion, leaving Europa with 20% equity in the
licence and a carry on a EUR4.65 million work programme, which may include
drilling a new well and/or workover. Being the largest producer onshore France,
Vermilion is the perfect partner for us. With two previously drilled wells on
the permit, both of which produced oil, Tarbes is potentially a low risk
project and we look forward to receiving a prospect inventory from Vermilion in
2016 in advance of confirmation of a forward work programme. Additionally we
are continuing to farm out our Bearn des Gaves permit, also in France.
"While forecasting the future direction of oil prices is a thankless task, we
have taken swift action to rebase the Company to the lower oil price
environment. Already we have reduced our cost base by 20% over the course of
the year. Thanks to the combination of lower costs and Wressle potentially
coming on stream at up to 500 bopd gross in H2 2016, the Board is highly
confident that Europa's move up the AIM oil and gas sector rankings remains on
track."
* * 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 2015 Europa produced 141 boepd. Its
highly prospective exploration projects include the Wressle development
(targeting production startup in H2 2016 at up to 500 bopd gross) 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 two licences in offshore Ireland with the potential to host gross
mean un-risked Prospective Resources of approximately 2 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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