Europa Oil & Gas (Holdings) Plc Acquisition of offshore Ireland licence

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
           Acquisition of offshore Ireland licence in proven gas play 
 
Highlights 
 
  * Acquisition of licence near Corrib gas field in the Slyne Basin is in line 
    with the refocus of Europa's Irish portfolio towards gas 
  * Includes 1.2 tcf Edge prospect* which together with Europa's nearby 1.5 tcf 
    Inishkea prospect represents a strategic position in a proven gas play 
  * Forward plan is to relaunch farm-out once acquisition has been approved by 
    Irish authorities 
 
Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco focused oil and 
gas exploration, development and production company, is pleased to announce the 
conditional acquisition of a 100% interest in Frontier Exploration Licence 
('FEL') 3/19, offshore Ireland, from DNO ('the Acquisition'). Acquiring FEL 3/ 
19, which is located close to the 1tcf producing Corrib gas field in the Slyne 
basin, will add the 1.2 tcf Edge prospect* to Europa's inventory in Ireland. 
This includes the nearby 1.5 tcf Inishkea prospect on Europa's 100%-owned FEL 4 
/19. 
 
The Acquisition, which is subject to regulatory sign-off, will provide Europa 
with a key strategic position in the proven gas play of the Slyne Basin and is 
in line with the refocusing of the Company's portfolio in Ireland towards gas. 
 
FEL 3/19, which lies 18km east of the producing Corrib gas field, was formerly 
the LO 16/23 block which DNO acquired following the acquisition of Faroe 
Petroleum.  Europa is acquiring a 100% interest in the licence from DNO for a 
nominal upfront fee and the granting of a 5% Net Profits Interest ("NPI") over 
future production of gas and liquids from any accumulation on FEL 3/19 to DNO. 
FEL 3/19 lies close to Europa's own FEL 4/19 which is home to the 1.5 tcf 
Inishkea prospect.  Located near Corrib and associated gas processing 
infrastructure, the Company classifies FELs 3/19 and 4/19 as lower risk 
"infrastructure-led" exploration. 
 
All work commitments on FEL 3/19 have been fulfilled and, subject to regulatory 
approval, Europa's forward plan will be to include FEL 3/19 in a relaunch of 
the farmout of its strategic position in the Slyne Basin. 
 
Simon Oddie, Interim CEO and Executive Chairman of Europa, said: "Subject to 
regulatory approval, our position in the Slyne Basin gas play will soon include 
the 1.2 tcf  Edge prospect* on FEL 3/19, as well as our own 1.5 tcf Inishkea 
prospect on FEL 4/19.  We are confident that by adding FEL 3/19 to our 
portfolio we have not only increased the quantum of gross prospective gas 
resources to 2.7 tcf but have also increased the attractiveness of what was 
already a compelling investment proposition in the Slyne Basin.  With gas set 
to play a key role in Ireland's energy mix and our licences located near Corrib 
and its processing infrastructure, our position benefits from having a highly 
attractive risk / reward profile.  With this in mind, we look forward to 
showcasing our new position to prospective partners, a number of whom we have 
been talking to for some time. 
 
"Both Edge and Inishkea are viewed as being drill ready and our aim will be to 
secure a partner or partners to fund drilling activity on one or both licences 
at the earliest opportunity.  Together with ongoing work on the ground to bring 
the Wressle field in Lincolnshire into production in H2 2020 at an initial 
gross rate of 500bopd, which would more than double Europa's existing UK 
onshore production to over 200bopd, we are well placed to advance our portfolio 
of licences up the development curve and in the process generate value for our 
shareholders." 
 
*estimate of previous owner Faroe Petroleum 
 
                                 * * ENDS * * 
 
For further information please visit www.europaoil.com or contact: 
 
Simon Oddie       Europa                        + 44 (0) 20 7009 
                                                2010 
 
Phil Greenhalgh   Europa                        + 44 (0) 20 7009 
                                                2012 
 
Christopher       finnCap Ltd                   + 44 (0) 20 7220 
Raggett                                         0500 
 
Simon Hicks       finnCap Ltd                   + 44 (0) 20 7220 
                                                0500 
 
Frank Buhagiar    St Brides Partners Ltd        + 44 (0) 20 7236 
                                                1177 
 
Megan Dennison    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 2019 Europa produced 91 boepd. Its 
highly prospective exploration projects include the Wressle development in the 
UK (targeting production start-up in 2020 at 500 bopd gross) and three licences 
offshore Ireland with the potential to host gross mean un-risked prospective 
resources of 3.9 billion barrels oil equivalent and 1.5 trillion cubic feet 
('tcf') gas. The Company's flagship project offshore Ireland is the Inishkea 
prospect - a near field gas exploration project with 1.5 tcf gross mean 
un-risked prospective gas resources. 
 
 
 
END
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