Europa Oil & Gas (Holdings) Plc US$6m Farm-Out of Ireland Licence to Cairn Energy

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
08 March 2017 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
       US$6 million Farm-Out of Offshore Ireland Licence to Cairn Energy 
 
Europa Oil & Gas (Holdings) plc, UK and Ireland focussed exploration, 
development and production company, is pleased to announce that it has signed a 
Farm-Out Agreement (`FOA') with a wholly owned subsidiary of leading operator 
Cairn Energy PLC Group (LSE: CNE) in relation to a 70% interest in and 
operatorship of Licensing Option 16/19 ('LO 16/19' or the 'Licence'). Europa 
will retain a 30% interest in the Licence, which is located on the Western 
flank of the South Porcupine Basin, offshore Ireland.  Click on the link to 
view a map http://www.europaoil.com/OperationsIreland.aspx 
 
The FOA, which is subject to Irish Government approval, has been signed with 
Capricorn Ireland Limited ('Capricorn'), a fully owned entity of Capricorn 
Energy Limited which is a wholly owned subsidiary of Cairn Energy PLC. 
 
Europa to be fully carried on US$6million work programme 
 
  * Capricorn to fund a US$6 million work programme, which includes the 
    acquisition, processing, and interpretation of 3D seismic, to acquire a 70% 
    interest in and operatorship of LO 16/19 
  * 3D seismic to be acquired in 2017 and processed product will be delivered 
    in 2018 
      + Future exploration will be based on the results of detailed prospect 
        mapping work 
  * Europa will fund its 30% interest in LO 16/19 on completion of the fully 
    carried work programme 
 
Existing data indicates presence of Cretaceous submarine fans on LO 16/19 
 
  * Europa previously provided a technical update on LO 16/19 on 18 July 2016 
    http://www.europaoil.com/documents/160718LO16_19technicalupdate.pdf 
  * LO 16/19 is covered by a sparse grid of 2D seismic and whilst detailed 
    prospect mapping is not possible, Europa's proprietary 3D in its adjacent 
    Frontier Exploration Licence ('FEL') 2/13 is interpreted to contain 
    Cretaceous submarine channels feeding submarine fans in LO 16/19 
  * The Directors believe that LO 16/19 holds Cretaceous fans similar to those 
    developed in Europa's 100% owned FEL 3/13 where three prospects have been 
    identified with combined gross mean un-risked prospective resources of 1.5 
    billion barrels of oil equivalent 
  * Europa will apply its considerable experience in mapping Cretaceous fans on 
    3D seismic in the Porcupine to the new 3D to be acquired over LO 16/19 
 
Further farm-outs are being targeted of Europa's leading licence position 
offshore Ireland 
 
  * Europa has seven offshore Ireland licences covering 5,818 sq km, six play 
    types, three basins, and twenty prospects and leads which potentially hold 
    gross mean unrisked resources of more than 4 billion barrels of oil 
    equivalent and 1.5 TCF of gas (Europa estimates) 
  * The FOA, which is the first by any company in Atlantic Ireland since 2013, 
    demonstrates Europa's ability to execute its strategy to secure partners to 
    advance its offshore Ireland licences 
  * Europa is focussed on delivering farmouts on its remaining six 100%-owned 
    licences 
 
Europa CEO Hugh Mackay said, "We are delighted to have secured a farm-in 
partner of the proven calibre of Cairn, and also to accelerate exploration on 
the Licence through the acquisition of 3D seismic this summer. We continue to 
talk to other potential partners for our remaining six offshore Ireland 
licences which provide us with exposure to all the various play types being 
targeted in the region: Paleocene; Cretaceous Shelf; Cretaceous Fan; Syn-rift; 
Pre-rift; and Triassic gas. 
 
"Activity across the Porcupine Basin is expected to increase markedly this year 
and beyond: Providence Resources is expected to drill the Druid prospect in 
2017; two new exploration wells may be drilled in 2018; and a natural 
conclusion to 3D seismic data acquired this summer and last summer could be 
more exploration drilling.  In terms of acreage and number of licences, Europa 
is a leading exploration company in Atlantic Ireland with a range of prospects 
spanning deep water high risk frontier exploration to shallow water, lower risk 
infrastructure-led exploration next to the Corrib gas field.  We believe Europa 
will benefit from any exploration success in the region either as a 
trail-blazer or fast-follower." 
 
                                 * * 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. 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. In 2016 Europa produced 123 boepd from its 
portfolio of onshore UK licenses. 
 
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
(END) Dow Jones Newswires
March 08, 2017 02:00 ET (07:00 GMT)
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