Europa Oil & Gas (Holdings) Plc 93% Increase in Prospective Resources Atlantic Ireland
05 Juin 2018 - 8:00AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
5 June 2018
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
93% Increase in Mean Un-Risked Prospective Resources Atlantic Ireland FEL 3/13
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration,
development and production company, is pleased to report its updated prospect
inventory resulting in a near doubling of its estimate of gross mean un-risked
prospective resources on FEL 3/13 in the South Porcupine Basin, Atlantic
Ireland, to 2.9 billion barrels of oil equivalent (boe).
Highlights
* 93% increase in estimated combined gross mean un-risked prospective
resources on FEL 3/13 to 2.9 billion barrels of oil equivalent (boe)
* Marked improvement in seismic quality and a substantial uplift to FEL 3/13
prospect inventory following completion of pre-stack depth migration (PSDM)
reprocessing of 3D seismic data originally acquired in 2013
* Confirmation and verification of the Beckett, Shaw and Wilde prospects at
FEL 3/13:
+ Beckett and Shaw previously described as "single cycle events" but now
defined as a fan sequence comprising multiple fan cycles (250-325m
gross)
+ Beckett and Shaw mapped as much thicker and extending over a much wider
area than originally thought - almost doubling estimated volumes
+ Wilde prospect more confidently defined based on seismic detail on the
internal architecture of the fan
Hugh Mackay CEO said: "In FEL 3/13 we are seeing the first fruits of Europa's
major investment in 3D seismic data reprocessing in Atlantic Ireland. The size
of the prize in FEL 3/13 has nearly doubled from 1.5 to 2.9 billion boe.
Confidence in, and definition of, the Wilde prospect has increased
significantly, whilst our new understanding of the size and thickness of the
Beckett-Shaw fan-system has had a transformative effect on estimated volumes.
Wilde remains the lowest-risk prospect from both source and seal viewpoints. We
are also confident that a drill location on Wilde will be optimised which would
also test the larger volumes we have identified on Beckett. Europa intends to
launch a farm-out process for FEL 3/13 once we have brought our other Porcupine
licences (FEL 2/13 and FEL 1/17) to the same level of evaluation and we expect
to make an announcement on this in the next few months."
Further Information
Europa has recently completed pre-stack depth migration (PSDM) reprocessing of
3D seismic data originally acquired in 2013 over the FEL 1/17, FEL 2/13 and FEL
3/13 licences in South Porcupine Basin, Atlantic Ireland. Europa has 100%
interest in, and is operator of, all three licences. A location map can be
found on Europa's website https://bit.ly/2IA1mMR.
Detailed interpretation of the new reprocessed data has been completed over FEL
3/13 on the east flank of the South Porcupine Basin, resulting in a marked
improvement in seismic quality and a substantial uplift to the prospect
inventory.
During 2016, based on the 2013 3D seismic data, Europa released a Competent
Persons Report (https://bit.ly/2ucExH4) that identified combined gross mean
un-risked prospective resources of 1.5 billion boe for three Cretaceous fan
prospects: Beckett, Shaw and Wilde in FEL 3/13.
The updated prospect inventory, based on the 2018 PSDM reprocessed 3D seismic
data, has further confirmed and verified the Beckett, Shaw and Wilde prospects.
The combined gross mean un-risked prospective resources across the three
prospects is now estimated to be 2.9 billion boe. These are Europa in-house
estimates.
The prospective resources are tabulated below. Europa's equity is 100%.
Gross un-risked prospective resources mmboe*
Prospect Low Best High Mean
Beckett 111 758 4229 1719
Shaw (on licence) 20 196 1726 747
Wilde 45 241 1082 462
Total 2928
*million barrels of oil equivalent. The hydrocarbon system is considered an oil
play and mmboe is used to take account of associated gas. However, due to the
significant uncertainties in the available geological information, there is a
possibility of gas charge.
Europa follows Society of Petroleum Engineers (SPE) guidelines for petroleum
reserves and resources classification. Further information can be found on the
SPE website https://bit.ly/2LtLVIa.
The largest uplift is in the volumes for prospects Beckett and Shaw. These were
previously described as "single cycle events". The new PSDM clearly defines a
fan sequence comprising multiple fan cycles (250-325m gross) and is not only
much thicker than previously mapped but is also interpreted to extend over a
wider area. As consequence the estimated volumes have almost doubled.
The increase on prospect Wilde is more modest. The area of the fan has in fact
been reduced, but it is much more confidently defined. Seismic detail on the
internal architecture of the fan has given the Company confidence to increase
its prediction of the thickness of sandstone which might be present, and there
is now seismic evidence for a fault which supports the case for up-dip seal.
The Europa technical team is currently interpreting the 2018 reprocessed 3D
seismic data over FEL 2/13 and FEL 1/17. The quality of the underlying 2018
reprocessed 3D seismic data is, again, a significant improvement on the 2013
data. As a result, the Company expects to have increased confidence in the
resultant prospect inventories. These will be reported in due course. The
farm-out data room for all three Europa-operated South Porcupine licences will
open during mid-2018.
As previously reported the new 3D seismic data acquired in 2017 over LO 16/19
on the west flank of the South Porcupine basin (Cairn operated, Europa 30%) is
being processed by TGS and the final product is anticipated during H2 2018.
The same team at seismic contractor Down Under Geosolutions (DUG) that was
responsible for the South Porcupine reprocessing reported in this RNS is also
responsible for the ongoing LO 16/20 PSDM 3D seismic reprocessing over the
Company's flagship Inishkea gas prospects in the Slyne Basin near the Corrib
gas field. The Company's South Porcupine PSDM reprocessing has proved very
successful and the Board are therefore hopeful for similar results for
Inishkea.
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
* * 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
Emily Morris 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 2017 Europa produced 113 boepd. Its highly prospective exploration projects
include the Wressle development in the UK (targeting production start-up in
2018 at 500 bopd gross) and six licences offshore Ireland with the potential to
host gross mean un-risked prospective resources of 6.2 billion barrels oil
equivalent and 2.5 tcf undiscovered GIIP across all six licences.
END
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June 05, 2018 02:00 ET (06:00 GMT)
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