Europa Oil & Gas (Holdings) PLC CPR on Wressle Discovery & Broughton North Prospect

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
26 September 2016 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
  Competent Person's Report on Wressle Discovery and Broughton North Prospect, 
                                  Onshore UK 
 
Europa Oil & Gas (Holdings) plc, the AIM traded oil and gas exploration, 
development and production company focused on the UK and Ireland, is pleased to 
announce the results of an independent Competent Person's Report ('CPR') 
prepared by ERC Equipoise Ltd ('ERCE'), including estimates of Reserves and 
Contingent and Prospective oil and gas Resources for the UK onshore Wressle 
discovery ('Wressle') and Broughton North prospect. 
 
Wressle and Broughton North are located on licences PEDL180 and PEDL182 and lie 
on structural trend with and 5 km from the Europa operated Crosby Warren field 
in East Lincolnshire. Europa has a 33.34% working interest in both licences, 
alongside Egdon (operator, 25.00%), Celtique Energie Petroleum Ltd (33.33%), 
and Union Jack Oil (8.33%). 
 
ERCE's letter to Europa's Board of Directors summarising the findings of their 
CPR has been published on Europa's website (www.europaoil.com). 
 
Wressle 
 
  * Gross Mean Discovered Stock Tank Oil Initially In Place ('STOIIP') of 14.18 
    million stock tank barrels ('stb') across three reservoir sands: Ashover 
    Grit; Wingfield Flags; and Penistone Flags 
  * 2.15 million stb classified as discovered - as proved and probable reserves 
    ('2P') and contingent resources ('2C') 
  * Gross 2P Reserves across the Ashover Grit and Wingfield Flags: 
      + 0.62 million stb of oil (Justified For Development) - provide the basis 
        for initial Field Development Plan ('FDP') 
      + 0.20 billion standard cubic feet of gas (Justified For Development) - 
        monetisation via on-site power generation with excess power sold into 
        the National Grid 
  * Substantial resources confirmed in the Penistone Flags - gross 2C Resources 
    of 1.53 million stb of oil and 2.0 billion standard cubic feet ('Bscf') of 
    gas 
  * Production at an estimated gross rate of 500 barrels of oil per day 
    ('bopd') expected to commence in early 2017, subject to receipt of all 
    approvals - FDP and planning application with the Oil and Gas Authority 
    ('OGA') and North Lincolnshire Council respectively 
 
  * Plans to produce from the Penistone Flags to be progressed following 
    commencement of production from Ashover Grit - to include monetisation of 
    gas resource by pipeline export or electricity generation and export 
 
Broughton North Prospect 
 
  * High Geological Chance of Success of 40% to 49% assigned by ERCE to 
    Broughton North which is in a fault block immediately to the north-west of 
    Wressle 
  * STOIIP for Broughton North is 3.43 million stb across the Ashover Grit and 
    Penistone Flags with Mean Prospective Resources of 0.51 million stb of oil 
    plus 0.51 billion standard cubic feet of gas. 
 
Europa CEO Hugh Mackay said, "Based on the results of this independent CPR, not 
only is Wressle expected to more than double our net production when it comes 
on stream in early 2017 at a gross rate of 500bopd, but it also substantially 
increases Europa's asset backing.  In addition to the immediate boost to our 
proven reserves, the CPR highlights significant contingent resources in the 
Penistone Flags at Wressle and work will shortly commence on drawing up a 
development plan to monetise this reservoir. The commencement of production at 
Wressle will be significant for Europa as it is expected to lead to a material 
increase in the Company's revenue and operational cashflow.  With this in mind 
ERCE's assessment of Broughton North as low risk is also exciting, as it 
provides us with another drill ready prospect within our growing portfolio of 
UK onshore licences." 
 
Table summarising gross volumes at Wressle and Broughton North along with net 
volumes attributed to Europa's interests 
 
                                             Gross                            Net Volumes 
                                             Volumes                          attributable 
                                                                              to Europa 
 
                              Oil MMstb      Gas      Oil and  Oil MMstb      Gas 
                                             Bscf     Gas*                    Bscf          Oil and 
                                                      MMboe                                 Gas* 
                                                                                            MMboe 
 
Wressle 
2P Ashover Grit  and          0.62           0.20     0.65     0.21           0.07          0.22 
Wingfield Flags 
 
2C Penistone Flags 
                              1.53           2.00     1.86     0.51           0.67          0.62 
 
 
Broughton North               0.51           0.51     0.60     0.17           0.17          0.20 
Mean Unrisked  Prospective 
Resources 
 
*Gas converted to oil equivalent using a 6Bscf/MMboe conversion and added to 
oil volume 
 
Glossary: 
 
Some of the terms used in this announcement are defined below. A more 
exhaustive glossary is contained in ERCE's letter to Egdon's Board of Directors 
summarising the findings of their CPR has been published on the Company's 
website (www.egdon-resources.com). 
 
Proved Reserves 
 
Proved  Reserves  are  those  quantities  of  petroleum,  which  by  analysis 
of  geoscience  and  engineering data,  can  be  estimated  with  reasonable 
certainty  to  be  commercially  recoverable,  from  a  given  date forward, 
from  known  reservoirs  and  under  defined  economic  conditions,  operating 
methods,  and government regulations. 
 
If deterministic methods are used, the term reasonable certainty is intended to 
express a high degree of confidence that the quantities will be recovered.  If 
probabilistic methods are used, there should be at least a 90% probability that 
the quantities actually recovered will equal or exceed the estimate. The area 
of the reservoir considered as Proved includes: 
 
  * the  area  delineated  by  drilling  and  defined  by  fluid  contacts, 
    if  any,  and 
  * adjacent  undrilled  portions  of  the  reservoir  that  can  reasonably 
    be  judged  as  continuous with  it  and  commercially  productive  on 
    the  basis  of  available  geoscience  and  engineering data 
 
In the absence of data on fluid contacts, Proved quantities in a reservoir are 
limited by the lowest known hydrocarbon  (LKH)  as  seen  in  a  well 
penetration  unless  otherwise  indicated  by  definitive  geoscience, 
engineering,  or  performance  data.  Such definitive  information  may 
include  pressure  gradient  analysis and  seismic  indicators.  Seismic  data 
alone  may  not  be  sufficient  to  define  fluid  contacts  for  Proved 
Reserves  (see  "2001  Supplemental  Guidelines,"  Chapter  8).  Reserves  in 
undeveloped  locations  may  be classified as Proved provided that the 
locations are in undrilled areas of the reservoir that can be judged with 
reasonable certainty to be commercially productive and interpretations of 
available geoscience and engineering  data  indicate  with  reasonable 
certainty  that  the  objective  formation  is  laterally  continuous with 
drilled Proved locations.  For  Proved  Reserves,  the  recovery  efficiency 
applied  to  these  reservoirs  should  be  defined  based  on  a range  of 
possibilities  supported  by  analogues  and  sound  engineering  judgment 
considering  the characteristics of the Proved area and the applied development 
programme. 
 
2P 
 
Proved + Probable, a best estimate category of Reserves. 
 
Contingent Resources 
 
Contingent  Resources  are  those  quantities  of  petroleum  estimated,  as 
of  a  given  date,  to  be  potentially recoverable  from  known 
accumulations  by  application  of  development  projects,  but  which  are 
not currently considered to be commercially recoverable due to one or more 
contingencies. 
 
Contingent  Resources  may  include,  for  example,  projects  for which 
there  are  currently  no  viable markets,  or  where  commercial  recovery 
is  dependent  on  technology  under  development,  or  where evaluation  of 
the  accumulation  is  insufficient  to  clearly  assess  commerciality. 
Contingent  Resources  are further  categorized  in  accordance  with  the 
level  of  certainty  associated  with  the  estimates  and  may  be sub? 
classified based on project maturity and/or characterized by their economic 
status. 
 
2C 
 
A best estimate category of Contingent Resources. 
 
Prospective Resources 
 
Prospective  Resources  are  those  quantities  of  petroleum   which  are 
estimated,  as  of  a  given  date,  to  be potentially recoverable from 
undiscovered accumulations. Potential accumulations are evaluated according to 
their chance of discovery and, assuming a discovery, the  estimated 
quantities  that  would  be  recoverable  under  defined  development 
projects.  It  is recognized  that  the  development  programs  will  be  of 
significantly  less  detail  and  depend  more  heavily on analog developments 
in the earlier phases of exploration. 
 
                                 * *S * * 
 
For further information please visit http://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 
 
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 H1 2016 Europa produced 124 boepd. 
Its highly prospective exploration projects include the Wressle development 
(targeting production start-up in early 2017 at up to 500 bopd gross) in the 
UK; 100% owned gas exploration prospect (107 bcf) and appraisal project (CPR 
277 bcf) in onshore France, a joint venture with Vermilion Energy also in 
onshore France; and seven licences offshore Ireland with the potential to host 
gross mean un-risked prospective and indicative resources of more than 4 
billion barrels oil equivalent and 1.5 tcf gas across all seven 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

September 26, 2016 02:00 ET (06:00 GMT)