Europa Oil & Gas (holdin... Share Discussion Threads

[jusmasel99] 19/9/2017 12:12

30th Offshore licencing round closing soon ... some coastal acreage near our onshore licences could be of interest hxxps://www.ogauthority.co.uk/media/4015/30r_round_offer.pdf

Wonder whether we will apply or are happy with our lot at the moment. I suggest the latter - our order book of prospective company makers is pretty full to overflowing at the moment.

[jusmasel99] 18/9/2017 17:29

I do like the graph above - a real trend line with spikes that if you play your cards right can be traded. I've done all right on that score so far but remain a long term holder as well.

Holmwood planning in October is merely a deferment asking questions on the proposals to meet the conditions. Pretty straightforward to respond to given that our planners negotiate the responses with the SCC CPA. The SCC planning committee will be struggling to come up with additional requests. Pretty sure the majority of local residents will want to get the whole thing over and done with as soon as possible.

[funtimejonny] 18/9/2017 14:23

Why not showing in the daily tally of buys?

[tommy241] 18/9/2017 13:50

2 x 200k buys just reported

[currypasty] 18/9/2017 12:06

I think there is a big buyer about, or some buy trades to be reported as the MM's are paying over the odds

only 4 weeks till Holmwood planning meeting!

[fardels bear] 18/9/2017 10:05

Hear hear.

[greatfull dead] 18/9/2017 09:11

OT.

I personally would like to see PV/LOGP concentrate on the Barryroe field the when producing there get back to the AM assets.

GLA,
GD

[jusmasel99] 18/9/2017 09:10

Yes gwb - ANGS has 50% (possibly 60 if they ever manage to have their other purchase approved by the OGA) of 9km2 - call it 6km2 - of the original 100km2 PEDL143 via Brockham. They also have 10% of the remainder so 10km2. We have 20% of that so 18km2 PLUS of course we are fully covered for the costs of the well while Angus are in for 20% of the cost.

SO we own more yet are valued at 1/3rd of Angus. Plus of course we have production while ANGS await news from SCC who must provide the OGA with details of planning permission for Brockham before the OGA approves the Brockham FDP.

[guesswhosback] 18/9/2017 08:58

Interesting thoughts. I seem to remember that we also have more exposure to the Weald Kimmeridge than ANGS.

[currypasty] 18/9/2017 08:00

However, if the reported possible presence of bitumen is confirmed as being real then this would have the effect of de-risking the presence and effectiveness of source rock. We can infer that if oil is present then a source rock is present and effective somewhere in the vicinity. Europa considers that Late Jurassic mudstones (and possibly Earliest Cretaceous mudstones) provide the source rock for all the hydrocarbon plays in the South Porcupine basin: Pre-rift, Syn-rift, Cretaceous Slope, Cretaceous Fan and Paleocene. If the Drombeg bitumen is verified as oil then we would interpret this to de-risk some of the source rock presence and effectiveness component across all four of Europa's licences in the basin.

[rayrac] 15/9/2017 23:29

Nice mix here. I'm staying for the ride...........

[edgein] 15/9/2017 09:43

Yes chaps ANGS has made a bit of a hash of things with operations on incorrectly labelled wells etc etc. But Hugh is working with a clean slate and I'm sure SCC will be professional enough to treat these as entirely separate cases. Hopefully we'll get some firm progress soon and we'll start to be part of the weald party that's going on. We're lagging someway behind the caps of ANGS and UKOG that's for sure. All these wells to date drilled in the Weald have encountered substantial live oil saturated reservoir and pay over what is a very large area of the basin (HH, Brockham and BB). Hopefully our turn next.

Regards,
Ed.

[jusmasel99] 15/9/2017 08:40

We will soon have further news from PVR regarding the traces of Hydrocarbons they found and that will help confirm the source potential of the basin. So this is interesting from our recent shareholder newsletter ..

Adjacent to FEL 3/13 is FEL 1/17. Europa has identified three pre-rift prospects with combined 898 million boe GMUPR . The pre-rift play comprises Jurassic reservoirs in tilted fault block structures, the analogue is the Brent Province in the North Sea.

Whilst success at Druid and Drombeg will not de-risk the reservoir and trap of the pre-rift play it will de-risk the source rock element of the play in FEL 1/17. Europa is conducting a 3D reprocessing project on its propriety data over both FEL 3/13 and FEL 1/17 with the objectiveof de-risking the pre-rift prospects in both licences. The reprocessing project will be completed during Q4 2017.

So we may have some news soon on that project ...

[jusmasel99] 15/9/2017 08:39

Corrib gas field is exceeding expectations at the moment and still operating at 100% capacity but that won't last for ever and depletion rates will be tested in the next year or so. Early next year approval should be given for the buyout of Shell by the Canadian Pension company and operatorship passed to Vermillion (who have recently been stung in France) Corrib is vitally important for Ireland still but already plans are being put in place for its run down. A new pipeline from Scotland to Ireland is being built and talk is of a new LNG terminal to import gas from the USA. Both are expensive options and by far the cheapest is for the life of Corrib to be extended through exploration discovery. There is no doubt in my mind that further exploration wells will be drilled and Nexen and Faroe are actively looking for prospects in the area. If we can develop out prospects in our licences (one of which is the original Corrib exploration licence with a Shell exploration well drilled there whose results are 'tight' or secret) then we could be looking at an early farm out and participation in a well(s) leading to early production.

From our shareholders newsletter ...

The outcome of the Drombeg/Druid well will have no bearing on our 100% owned LO 16/20 and LO 16/21 400 km to the north in the Slyne Basin adjacent to the producing Corrib gas field. The field has a gross plant capacity of approximately 350 million cubic feet of natural gas per day, provides approximately 60% of Ireland's natural gas consumption and constitutes approximately 95% of Ireland's gas production. These two licences are targeting a low risk infrastructure led play in the Greater Corrib area. Here too there has been considerable corporate activity in recent months, specifically Nexen farming into an 80% interest in Faroe Petroleum's LO 16/23. More recently Vermilion and the Canada Pension Plan Investment Board, the investment arm of Canada Pension Plan, acquired a 45% interest in the Corrib gas field itself for US$1.23bn .

[jusmasel99] 13/9/2017 20:19

Our (EOG) Original planning application predated the new legislation and as such when ultimately approved by the inspector did not contain an application for the new requirement so they had to apply for that after the appeal was heard. It didn't take long to get.

"An application for planning permission to drill the Holmwood prospect on PEDL143 was submitted in 2008 and was dismissed by Surrey County Council in 2011. A planning appeal in 2012 was dismissed by the Planning Inspectorate. Europa successfully challenged this decision in the High Court in 2013. In 2014 the Court of Appeal upheld the 2013 High Court judgment in the Company’s favour and a second planning appeal was heard at an eight day public inquiry in April and June 2015. The Planning Inspectorate issued a decision to allow the remitted appeal on 7 August 2015 and Surrey County Council allowed planning permission for the underground drilling corridor on 23 September 2015."

[itsriskythat] 13/9/2017 19:14

jusmasel99,

Interesting views that you have, as I didn't consider surface outline or underground activity to be relevent to the original decision as it dates back to 2007.

I assume that planning decisions from 2007 like this one are nevertheless still valid? Otherwise the SCC would have mentioned Angus's underground activities in their letter to the OGA.

It seems like Angus have chosen to fight for the validity of the original decision.

Like you say, one easier way forward, and that is to address this "standoff" by getting SCC's approval for production.

Meanwhile the OGA holds fire until SCC gives approval. There no other explanation for them contacting the SCC in August and asking if SCC gave permission for production.

As the answer came back negative, it appears to me that the clock is still ticking and the ball is now back in Angus's court.

[jusmasel99] 13/9/2017 17:10

Incidentally - when the new regulations came out about the surface offset planning permission Europa were one of the first to successfully apply for such at Holmwood with the SCC of all people...

So to put it into context ANGS want to proceed with a well without the same level of planning permissions that EOG has ?

[itsriskythat] 13/9/2017 16:06

jusmasel99,

"OGA Approval only comes after planning permission is granted I am afraid."

Seen this comment of yours above about Angus. Totally agree.

Point 1) Europa, Angus are partners in the Holmwood well. I attended the recent planning committee session for the Europa TMP on Holmwood. IMO a disappointing performance from their spokesperson. Tricky dealing now with SCC as ultra cautious of public opinion.

Point 2) Angus are battling with SCC over drilling permission for the BRX4-Z sidetrack. Tricky dealing now with SCC as probably now regreting their earlier permission was given so easily.

I do have great sympathy for Angus as I spent time reading their planning approvals from SCC:

My comments: "I've had time to read the report by Mrs Clack on MO07/0161 and have come to the conclusion that the third well was given permission to produce by SCC. I've also read the letter from SCC to the OGA which states that this well does not have permission to produce under MO07/0161 because it post-dates MO06/1294. So its a hell of an unusual situation, a "standoff".

I don't understand the reasons for SCC persisting with their position. Nor do I know how this is going to be resolved. Until it is resolved Brockham BRX4-Z isn't going into production, as the OGA shouldn't approve the addendum without all permissions being in place first. Angus needs to inform the market at this point as it is creating uncertainty."

I got hammered for suggesting that the OGA won't proceed until SCC permission for BRX4-Z is given. Some people on BB's don't want to know how it works, I'm afraid.

[carbon man] 13/9/2017 15:54

From the chart, feels like 5.5 is the price to pay short term

[jusmasel99] 13/9/2017 08:38

And it is also ANGS turn to meet with SCC planning committee today .. that should be interesting .. hxxps://surreycc.public-i.tv/core/portal/webcast_interactive/305124

I reread the minutes of the last meeting and can see no reason why the questions raised by them cannot be answered in the next October meeting. They seemed quite reasonable requests and I understand several of the issues have been resolved i.e. the tree preservation.

One matter though is that they wanted a 3d simulation of HGV traffic going through the lane and they also stated that HGVs would damage the canopy. Well is that not a matter for Roads who raised no objection and as far as I know HGVs are allowed to travel unrestricted along the lane at present.

Our planning chaps will be in discussion with SCC Planners no doubt to ensure the put forward resolutions to all the matters raised.

[jusmasel99] 12/9/2017 10:00

Corrib is the sleeping giant in my opinion. I was thinking about Nexen's farm in and why they didn't farm in to us but the fact is that farm in to Faroe was to pay for the acquistion of Seismic which we already have for one of our licences. I don't recall if Hugh has even stated if we are open to a farm in for Corrib yet - rather wait, reprocess that seismic and develop the prospects and then open up the data room.

Remember we also have data from one well drilled by Shell after Corrib was nearing production so Shell were at one point looking to increase resources around there and as I pointed out the MD of Vermillion was quite excited by the prospect even costing out the tie back. We know why Shell left (quote from Boardroom "I'm not spending another effin quid on Ireland just get us out of there") and when they decided to leave (shortly after the well was drilled) Shell had Corrib on the market for some time before the Canadians took an interest. While there may be negotiations going on in the background already all is on hold until the Government rubber stamps the sale next year (don't know why it takes so long but there you go).

One idea as well - given that it is so close to a producing field and infrastructure is to look for a royalty farm out rather than just one or two wells.

Thanks Rogerlin - for the last few weeks I have been getting up looking at Marine Traffic now for the foreseeable future I'll be looking at the Western General waiting lists ...