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EOG Europa Oil & Gas (holdings) Plc

1.05
0.00 (0.00%)
18 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Europa Oil & Gas (holdings) Plc LSE:EOG London Ordinary Share GB00B03CJS30 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.05 1.00 1.10 1.05 1.05 1.05 689,584 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Oil And Gas Field Expl Svcs 6.65M -852k -0.0009 -11.67 10.05M

Europa Oil & Gas (Holdings) Plc Annual General Meeting Statement

08/12/2016 7:00am

UK Regulatory


 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
8 December 2016 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                       Annual General Meeting Statement 
 
Europa Oil & Gas (Holdings) plc, the AIM quoted UK and Ireland-focussed oil and 
gas exploration and production company, is holding its Annual General Meeting 
('AGM') later today.  At the meeting, CEO Hugh Mackay will make the following 
statement: 
 
"Against a backdrop of low oil prices, 2016 saw excellent progress made in 
delivering on Europa's twin strategies: growing its licence base in our chosen 
markets of offshore Ireland and onshore UK; while at the same time actively 
managing our existing projects to maximise value for our shareholders.  Most 
notably, Europa has become a leading explorer in Atlantic Ireland with one of 
the largest licence positions and a strong and diversified portfolio. Atlantic 
Ireland is a rapidly emerging exploration hotspot which this year saw the 
arrival of majors including ExxonMobil, Nexen and Statoil in the latest Irish 
licence round.  Meanwhile in the UK, we secured two sales and a farmout which 
will enable us to fund our share of the costs associated with bringing the 
Wressle discovery into production and drilling the Holmwood well in the Weald 
basin in 2017. 
 
"Following the best licensing round ever in offshore Ireland, earlier this year 
the Irish Government awarded 28 licences to 14 groups/companies, five of which 
went to Europa.  Today, our Irish portfolio of seven operated licences covers 
an area of 5,818 sq km, six play types, three basins and twenty prospects and 
leads. The portfolio potentially holds gross mean unrisked resources of 4 
billion barrels of oil equivalent (Europa estimates) and 1.5 TCF of gas (Europa 
estimates).  We already have two prospects which are drill ready and our 
objective is to generate six drill ready prospects, any one of which could 
deliver a company maker for Europa.  For a company with a GBP12 million market 
capitalisation, Europa, in our view, punches well above its weight in terms of 
our potential exposure to high impact exploration success, an impressive 
achievement considering the blue-chip names which have recently entered the 
region. 
 
"Our new licences provide Europa with exposure to all the various play types 
which have attracted the majors to the region: Paleocene, Cretaceous Shelf, 
Cretaceous Fan, Syn-rift, Pre-rift and Triassic gas. In particular the Syn-rift 
play, which yielded Statoil's Bay du Nord discovery in the Flemish Pass, 
offshore Newfoundland in 2013 and recently attracted exploration investment of 
over C$2 billion, is hoped to be developed in Atlantic Ireland. Europa has a 
range of prospects from deepwater high risk frontier exploration to shallow 
water, lower risk infrastructure led exploration next to the Corrib gas field. 
 We are currently focused on securing farm-out partners for our South Porcupine 
licences and at the same time conducting technical work across all the licences 
to mature leads to prospects and prospects to drill ready. By being exposed to 
all the major plays and basins currently being targeted in the region, Europa 
stands to benefit from the success of other operators and not just our own. 
With Providence Resources looking to drill in 2017, Woodside Petroleum the 
following year, and with newly arrived majors having already acquired seismic 
on their licences, we predict an increase in exploration drilling in Atlantic 
Ireland over the next five or six years. Europa is therefore well placed to 
benefit from any exploration success. 
 
"Activity is also picking up onshore UK.  Following two separate sales 
totalling a combined 13.34% interest in PEDLs 180 and 182, our share of the 
costs associated with bringing the Wressle discovery into production in 2017 is 
fully funded, and we will therefore not need to seek external funding to fund 
our share of these costs.  Once brought on stream we expect our existing UK 
production to increase by 100 boepd to 220 boepd.  At this level, we expect 
Europa will have a positive cash flow from operating activities at oil prices 
above US$30 per barrel.  Aside from generating funds for reinvestment, the two 
farm-outs highlight the value attributed by the industry to UK onshore 
production or near production assets compared to the value ascribed by the 
market.  Following the sales we value our remaining 20% interest in the two 
licences at GBP3.7 million.  Combined with the consideration for the sale of a 
13.3% interest in both licences, we believe more than half our current market 
capitalisation is accounted for by PEDLs 180 and 182 alone. 
 
"The read across is that the other half of Europa's market capitalisation 
comprises the above-mentioned industry leading position in Atlantic Ireland, as 
well as our other UK onshore licences.  These include three fields which 
produced 123 boepd in the year ended 31 July 2016; a 32.5% interest in the 
Holmwood prospect, which we rank as one of the best undrilled conventional 
prospects onshore UK and that we intend to drill in 2017; a 25% interest in the 
Hardstoft oil field PEDL299 on which gross 2C contingent resources of 3.1 
million boe and gross 3C contingent resources of 18.5 million boe were 
identified in a CPR issued by our joint venture partner Upland Resources;  and 
a 45% interest in PEDL343, which contains the Cloughton gas discovery.  As we 
continue with our strategy to monetise our asset base through the drillbit, 
farm-outs and other corporate activity, we are confident the inherent value of 
our portfolio of multistage licences will be realised." 
 
                                 * * ENDS * * 
 
For further information please visit 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 2016 Europa produced 123 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 
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

December 08, 2016 02:00 ET (07:00 GMT)

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