Europa Oil & Gas (Holdings) PLC Shareholder Letter
14 Janvier 2019 - 8:00AM
RNS Non-Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) PLC
14 January 2019
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
Europa Oil & Gas (Holdings) plc ('Europa' or 'the
Company')
Shareholder Letter
Europa Oil & Gas (Holdings) plc, the AIM quoted UK and
Ireland-focussed oil and gas exploration and production company, is
pleased to provide its investors with the following update on its
portfolio of multistage licences offshore Ireland and onshore
UK.
Dear Investor,
Happy New Year. This is a quick update following on from the
Annual General Meeting on 4 December 2018 and the General Meeting
on 7 December 2018, which saw the approval by shareholders of our
successful GBP4.3 million fundraising. To view the presentation
which we provided at the AGM, please click here:
https://bit.ly/2Fo4a14.
Following this injection of capital, we are pleased to welcome
some new institutional investors to our register including BGF
Investment Management Limited, a wholly owned subsidiary of the
Business Growth Fund ('BGF') whose shareholding is now close to
15%. This fundraise has had a positive impact on the development
and diversification of our shareholder register, with approximately
34% of the shares in the Company now being owned by institutions,
while a further 9.5% are held by the Board. Previously around 10%
of shares were held by institutions and we regard this significant
increase in institutional representation as testament to the
quality of our asset base offshore Ireland and onshore UK, our
strategy to monetise our licences, and the team we have in place to
deliver.
The funds raised will enable Europa to deliver an exciting work
programme during 2019/20 which we believe will be translated into
enhanced shareholder value.
Offshore Ireland
In Ireland, we opened the virtual data room ('VDR') for our
Inishkea gas prospect on schedule on 20 December. Interested
parties are already active in the VDR and dates have been fixed for
the physical data room. We continue to regard Inishkea as our
flagship project and all the early promise has been confirmed by
the new 3D PSDM seismic data. We are confident that we have
"tcf-scale" prospective resources, within 10km of the Corrib gas
infrastructure, in comparatively shallow water and in a country
that needs more gas. More information about Inishkea can be found
on our website at https://bit.ly/2Fl0jm9 and updates will be
provided in due course.
As investors are aware, the Company is currently negotiating
farm-in agreements with a major international oil and gas company
in respect of LO 16/20, FEL 1/17 and FEL 3/13. We have agreed terms
with their NW Europe division and continue to await a final
investment decision from their head office.
We have begun preparations for and are engaging with the
relevant authorities for up to three site surveys in Atlantic
Ireland in summer 2019: Inishkea in LO 16/20, Kiely East in FEL
2/13 and Edgeworth in FEL 1/17. Successful conclusion to this work
means that all of these prospects can be drilled from 2020 onwards,
subject to funding.
Nexen-CNOOC, together with its partner ExxonMobil, will be
drilling the Iolar prospect in FEL 3/18 in the Porcupine basin in
summer 2019. Exploration success at Iolar potentially de-risks 1
billion boe in five prospects in Europa's Porcupine portfolio and
we regard Kiely East (280 mmboe) and Edgeworth (225 mmboe) as
candidates for immediate follow up drilling. Meanwhile we are
working hard to secure a farm-in partner to drill the Inishkea gas
prospect in the Slyne Basin in 2020. For more information, please
click here: https://bit.ly/2ygIYFY.
Onshore UK
In onshore UK, we conducted workover operations at our West
Firsby oil field on the WF-6 well. Europa is pioneering the use of
the drain hole jetting technique in onshore UK. From a purely
technical perspective the operation has been successful having
placed 16 100m length drain holes exactly where we wanted them and
having set a new record as the most deviated well bore that the
contractor has ever operated in. The well is still cleaning up, but
the interval is already producing some oil, having previously
produced zero oil. We will update investors once the clean-up
operations are completed. We have acquired comparatively unique
technological insight into using radial jetting to enhance flow of
hydrocarbons. We are excited by the possibility of using this
technology in other wells and flowing oil at higher rates than
would otherwise have been possible.
Still in onshore UK, the key task is to get planning permission
for Wressle and to get this important conventional oil discovery
through the appeals process and into production at an initial gross
rate of 500bopd. At this rate, Europa's existing production would
be immediately scaled up to over 200bopd and would generate
significant cash flows for the Company.
New Ventures
As previously reported, we are close to finalising a petroleum
agreement in Morocco. Europa is in the final phase of discussions
with ONHYM (The National Office of Hydrocarbons and Mines), and we
will shortly be meeting with them in Rabat. We look forward to
updating investors later in Q1 2019 following licence award, as we
look to add a third leg to our portfolio of licences. In addition
to Morocco, we continue to be active in new ventures within our
established areas of interest.
I look forward to providing you with further updates throughout
the year as we deliver on our work programmes. In the meantime, I
would like to take this opportunity to thank all our shareholders
for their continued support.
Best regards
Hugh Mackay
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
+ 44 (0) 20 7224
Hugh Mackay Europa 3770
+ 44 (0) 20 7224
Phil Greenhalgh Europa 3770
+ 44 (0) 20 7220
Matt Goode finnCap Ltd 0500
+ 44 (0) 20 7220
Simon Hicks finnCap Ltd 0500
+ 44 (0) 20 7220
Camille Gochez finnCap Ltd 0500
+ 44 (0) 20 7236
Frank Buhagiar St Brides Partners Ltd 1177
+ 44 (0) 20 7236
Susie Geliher St Brides Partners Ltd 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 2018 Europa produced 94 boepd. Its highly
prospective exploration projects include the Wressle development in
the UK (targeting production start-up in 2019 at 500 bopd gross)
and six licences offshore Ireland with the potential to host gross
mean un-risked prospective resources of 6.4 billion barrels oil
equivalent and 2.5 tcf undiscovered GIIP across all six
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.
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END
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