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EOG Europa Oil & Gas (holdings) Plc

1.05
0.00 (0.00%)
19 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 0.00 00:00:00
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 - Completion of Sale of Interest in Wressle Discovery

22/11/2016 7:00am

PR Newswire (US)


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Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas

22 November 2016

Europa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)

Completion of Sale of Interest in Wressle Discovery

Europa Oil & Gas (Holdings) plc, the AIM traded oil and gas exploration, development and production company focused on Europe, is pleased to announce that its proposed sale of a 3.34% working interest in PEDLs 180 and 182 (‘the Licences’) in North Lincolnshire to Union Jack Oil plc (‘UJO’) for a cash consideration of £600,000 (‘the Transaction’) has been approved by the Oil and Gas Authority (‘OGA’).  The Licences cover the Wressle discovery (‘PEDL180’) and the Broughton North prospect (‘PEDL182’).

Following OGA approval of the Transaction, Europa retains a 30.00% interest in the Licences alongside Egdon Resources UK Limited (25.00%), Celtique Energie Petroleum Limited (33.33%) and UJO (11.67%).  Based on the terms of the Transaction, Europa’s 30.00% interest in the Licences has an implied mark to market valuation of £5.4 million.

The £600,000 cash consideration, which has been received by the Company, will help fund Europa’s share of the costs associated with bringing the Wressle discovery into production in early 2017, expected to be at a gross rate of 500 bopd.  At this level, Europa’s anticipated net share of 150 bopd will more than double the Company’s existing production.

A table summarising gross volumes at Wressle and Broughton North provided by ERC Equipoise Limited (‘ERCE’) in a Competent Persons Report, along with net volumes attributable to Europa’s post Transaction interests, can be found at the end of this announcement.

Europa CEO Hugh Mackay said, “With a mark to market valuation of £5.4 million implied by this Transaction, the value of our remaining 30% interest in PEDLs 180 and 182 accounts for half our current market capitalisation.

“We also hold within our portfolio: seven exploration licences offshore Ireland, which have 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; three producing fields onshore UK, which in the last year produced 123 boepd net to Europa; and a number of exploration projects onshore UK including Holmwood in PEDL143 in the Weald Basin, which we rate as one of the best undrilled conventional prospects onshore UK.  We continue to actively manage our portfolio and will not hesitate to act when opportunities to add shareholder value arise.”

Table summarising gross volumes at Wressle and Broughton North along with net volumes attributed to Europa’s interests before and after transaction

Gross Volumes
 
Net Volumes attributable to Europa
Oil MMstb Gas
Bscf
Oil and Gas* MMboe Oil MMstb Gas    
Bscf

Oil and Gas* MMboe
Wressle
2P Ashover Grit  and Wingfield Flags
               0.62 0.20        0.65                0.19               0.06        0.20
2C Penistone Flags                1.53 2.00        1.86                0.46               0.60        0.56

Broughton North
Mean Unrisked  Prospective Resources
               0.51 0.51        0.60                0.15               0.15        0.18

*Gas converted to oil equivalent using 6 Bscf/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 Europa’s Board of Directors summarising the findings of their CPR has been published on the Company’s website (www.europaoil.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.

* * ENDS * *

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 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.

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