Europa Oil & Gas (Holdings) Plc Correction: Update on Wressle, North Lincolnshire

 
TIDMEOG 
 
The following amendment has been made to the ' Update on Wressle, North 
Lincolnshire' announcement released on 18 January 2018 at 7.00 a.m. 
 
The announcement relating to the Planning Inspector's decision to reject 
Egdon's appeals against the two planning refusals by North Lincolnshire County 
Council's Planning Committee, was announced on 5 January 2018, not 5 January 
2017. 
 
All other details remain unchanged. 
 
The full amended text is shown below. 
 
 Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
18 January 2018 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                     Update on Wressle, North Lincolnshire 
 
Europa Oil & Gas (Holdings) plc, the UK and Ireland focussed oil and gas 
exploration, development and production company, notes today's update from 
Egdon Resources ('Egdon') regarding the forward plan for the Wressle oil field 
development on PEDL 180 in the East Midlands, including preparation and 
submission of two new planning application to North Lincolnshire Council 
seeking its consent for the Wressle oil field developmentand and to extend the 
current planning consent 
 
This follows the Planning Inspector's decision to reject Egdon's appeals ('the 
Appeals') against the two planning refusals by North Lincolnshire County 
Council's Planning Committee, as announced on 5 January 2018.  Europa has a 30% 
working interest in Wressle alongside Egdon (operator, 25%), Celtique Energie 
Petroleum Ltd (30%), and Union Jack Oil (15%), ('the Joint Venture partners'). 
Egdon`s full RNS is reproduced at the end of this release. 
 
Update on proposed sale of 10% interest in Wressle to Upland Resources (UK 
Onshore) Limited ('Upland') 
 
Following the dismissal of the Appeals by the Planning Inspector, Upland has 
informed Europa of its intention to withdraw from the Sale and Purchase 
Agreement ('SPA') signed between the two parties on 24 November 2016.  Under 
the terms of the SPA, Upland was to acquire a 10% interest in PEDLs 180 and 182 
from Europa subject to, inter alia, planning permission and approval of the 
Wressle Field Development Plan ('FDP'). See announcement of 24 November 2016 
for further details. 
 
Upland's decision has minimal impact on Europa in the short term, as the 
Company had been and continues to pay its 30% share of the costs at Wressle. 
Europa will repay GBP160.000 paid by Upland as deposit. Europa's share of any 
future production will now be 30% compared to 20% had the SPA with Upland been 
completed.  Based on an anticipated gross flow rate of 500bopd on production 
startup, Europa's net share of production will therefore be an estimated 150 
bopd rather than 100bopd.  In addition, the SPA was agreed in November 2016 
when Brent Crude was trading between US$45-US$50 compared to US$69 per barrel 
at the time of writing. 
 
The Company maintains a good relationship with Upland, with whom it is a 
partner on PEDL299 in the East Midlands which contains the Hardstoft oil 
field.  As a result, management would have no hesitation in cooperating with 
Upland in future new venture opportunities.  As mentioned at the AGM in 
December 2017, Europa is actively engaged in the review of new venture 
opportunities across the E&P spectrum both within its core areas of interest 
and also in three new jurisdictions. 
 
Europa's CEO, Hugh Mackay, said: "Wressle is a proven oil discovery with proven 
reserves, significant upside and capable of flowing at 500 bopd gross on 
production startup. It remains an excellent opportunity to significantly 
increase our net production.  Along with all the partners, we therefore support 
Egdon's plans to submit new applications that address the issues raised by the 
Inspector.  We are confident these issues are not insurmountable and that 
Wressle will finally be brought online.   Following Upland's withdrawal from 
the SPA, our 30% share would see Europa's net daily production more than double 
to around 250 bopd. 
 
"Wressle is just one of many value generating opportunities within our 
portfolio.  As well as interests in other UK onshore licences including the 
Holmwood prospect which lies next door to the Horse Hill discovery in the Weald 
Basin, we have an industry leading position offshore Ireland comprised of seven 
licences exposed to six different play types in three basins. Combined these 
licences have the potential to host gross mean un-risked prospective and 
indicative resources of 4.7 billion barrels oil equivalent and 1.5 tcf gas.  We 
are focused on realising the potential across all our licences, including 
Wressle, and I look forward to providing updates on our progress in the year 
ahead." 
 
Egdon`s RNS published today is as follows: 
 
Egdon Resources plc (AIM:EDR) can advise the forward plan for the Wressle oil 
field development following the decision made by the Planning Inspector issued 
on 4 January 2018, to reject the appeals by Egdon against the two planning 
refusals by North Lincolnshire Council's Planning Committee. 
 
Having taken legal and planning advice and having fully considered the specific 
reasons for rejection of the appeals as set out by the Inspector in his 
Decision Notice, the Company can advise that it will now: 
 
a)         Prepare and submit a new planning application to North Lincolnshire 
Council seeking its consent for the Wressle oil field development. This 
application, which will be submitted prior to the expiry of the current 
planning consent, will address in detail all matters highlighted by the 
Inspector in his Decision Notice to dismiss the appeals 
 
b)         Prepare and submit a new application to North Lincolnshire Council 
to extend the current planning consent (which now expires on the 28 April 2018 
following our successful appeal) to ensure that North Lincolnshire Council has 
sufficient time for consideration of the new application and to maintain 
consent for the current site. 
 
We remain fully prepared to take these new planning applications through the 
appeals process should they be delayed or refused. 
 
In addition we continue to take legal advice in respect of the Decision Notice. 
 
Mark Abbott Managing Director of Egdon Resources plc, said: 
 
"Egdon and its joint venture partners remain fully committed to the Wressle 
project and the proposed new application will address the limited reasons for 
refusal highlighted by the Inspector. I look forward to updating the market on 
Wressle in due course. 
 
Elsewhere with Egdon's extensive portfolio, the coming period will see 
potentially high impact drilling activity at Springs Road, Biscathorpe, 
Holmwood and possibly North Kelsey, and the results of workovers at FIskerton 
Airfield.  We are also developing plans for the Keddington, KIrkleatham, Dukes 
Wood/Kirklington and Waddock Cross fields which will benefit from the improving 
oil price." 
 
The information communicated in this announcement is inside information for the 
purposes of Article 7 of Regulation 596/2014. 
 
                                 * * 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 
 
Emily Morris      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 2017 Europa produced 113 boepd.  Its highly prospective exploration projects 
include the Wressle development in the UK and seven licences offshore Ireland 
with the potential to host gross mean un-risked prospective and indicative 
resources of 4.7 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

January 18, 2018 05:00 ET (10:00 GMT)