Europa Oil & Gas (Holdings) PLC Shareholder Letter
01 Juillet 2019 - 8:01AM
RNS Non-Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) PLC
01 July 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 the
new venture opportunity it is pursuing offshore Morocco and also on
activity across its existing portfolio, including its leading
licence position offshore Ireland.
Dear Investor,
Morocco
In Morocco we are close to being formally awarded an offshore
exploration permit on the Atlantic Margin of Morocco and in the
process, add a third leg to our portfolio of licences. We have
completed negotiations with ONHYM (The National Office of
Hydrocarbons and Mines) and have prepared the Association Contract
and Petroleum Agreement. The final piece of administration that
needs to be completed is the bank guarantee, which is linked to our
Moroccan branch office and Moroccan bank account. We are working
hard to complete this final round of documentation and once in
place we will sign the agreements with ONHYM in Rabat. At this
point, we will provide our investors with more information about
the licence.
Europa was invited by ONHYM to join them at a panel discussion
on Morocco at a recent industry conference and investors should
view this as a sign of our good standing.
In addition to Morocco, we continue to actively look at
additional new ventures within our established areas of
interest.
Offshore Ireland
We are fully aware that the number one thought on investors'
minds is "when are you going to complete these Irish farmouts".
Europa is required to announce any material developments in its
business to investors without delay and hence the situation remains
that we are 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 are in regular contact with the company and a
final investment decision continues to be awaited from its head
office. In the meantime, we continue to run data rooms and are
actively marketing the opportunities to a number of other
interested parties. Further public comment regarding the ongoing
farm-out process will be made to the market as and when it is
appropriate to do so.
In tandem with the farm-out process, we have submitted
applications for three site surveys in Atlantic Ireland. The public
consultation for a site survey at our flagship Inishkea gas
prospect in LO 16/20 in the Slyne Basin ended on 14 June and we
await further information from the Irish authorities about the next
stage in the process. Not only does Inishkea have "tcf-scale"
prospective resources, but the prospect lies within 10km of the
Corrib gas infrastructure, in comparatively shallow water and in a
country that needs more gas. Needless to say, we are keen to
advance Inishkea towards drilling at the earliest opportunity. In
addition to Inishkea, public consultations for our Kiely East and
Edgeworth prospects in FEL 2/13 and FEL 1/17 in the South Porcupine
basin will end on 8 July.
The objective of these site surveys is to make these prospects
drill ready. There is every reason for us to do so, particularly as
industry press noted the spud of the CNOOC operated Iolar well in
FEL 3/18 on 28 May 2019 http://bit.ly/2X4LHM9. Public domain
information about the well (http://bit.ly/2IRBsXF) shows:
-- 100-day duration, implying TD 5 September 2019
-- 2,162m water depth, TD 6,174mtvdss (4,012m below mud line)
-- Primary target is Middle Jurassic sandstones
-- Secondary targets in Upper Jurassic and Cretaceous sandstones
As we have previously noted; if the Iolar well finds
hydrocarbons and opens the Middle Jurassic hydrocarbon play then
this has the potential to de-risk around 1 billion boe in Europa's
pre-rift (Middle Jurassic) prospect inventory in the South
Porcupine basin. These include the Kiely East prospect (280 mmboe
on block) 70km north of Iolar in FEL 2/13 and Edgeworth (225 mmboe)
in FEL 1/17 some 120 km east of Iolar. Subject to regulatory
approval, these prospects will be candidates for follow up
drilling.
Onshore UK
In the UK, our three oil fields continue to produce at rates in
line with expectations. The realised price remains in the
US$60-70/barrel range. We await the Wressle planning inquiry which
starts 5 November. At a proposed initial gross rate of 500bopd,
Wressle has the potential to more than double our existing
production to over 200bopd and we are therefore looking forward to
the commencement of the inquiry.
Elsewhere in the UK, we completed the sale of our 20% interest
in the UK onshore PEDL143 exploration licence to AIM-traded UK Oil
& Gas PLC ('UKOG') for a consideration of GBP300,000, satisfied
through the issue of 25,951,557 shares ('Consideration Shares') in
UKOG, and as outlined in the announcement dated 16 April 2019. The
Consideration Shares issued to Europa are subject to a six-month
orderly market provision.
Much work is taking place behind the scenes on both our existing
portfolio of licences and also on new venture activity. We have a
first-rate technical team in place, one which has played a major
role in developing and pursuing new ideas and plays offshore
Ireland that have contributed to renewed interest in the region
from industry heavyweights. We are keen to apply this expertise
elsewhere, starting with offshore Morocco. We will update the
market on any material developments as soon as we are in a position
to do so, in the meantime, I would like to take this opportunity to
thank you for your 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
Juliet Earl 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 2020 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 1.5 tcf gas 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NRALFFFFREIIVIA
(END) Dow Jones Newswires
July 01, 2019 02:01 ET (06:01 GMT)
Europa Oil & Gas (holdin... (LSE:EOG)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Europa Oil & Gas (holdin... (LSE:EOG)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024