TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
31 March 2020 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                                COVID-19 Update 
 
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas 
exploration, development and production company, provides a corporate update in 
relation to the global COVID-19 pandemic and associated market volatility and 
oil price weakness.  Following a comprehensive review and cost reduction 
programme existing cash reserves are expected to be sufficient to finance 
current and upcoming activity, including the Wressle Field Development Project, 
ongoing farmout activities and reduced work programmes offshore Ireland and 
Morocco, without the need for additional external funding. 
 
Wressle Field Development Project ('Wressle' or the 'Project') 
 
On 18 March 2020, Europa issued an update on the Wressle Field Development 
Project in North Lincolnshire, highlighting studies carried out by the 
operator, Egdon Resources.  These demonstrated that, with an estimated 
breakeven oil price of US$17.62 per barrel, the Project is economically robust 
at current oil prices.  Under the development plan, Wressle is expected to 
commence production at an initial gross rate of 500bopd, which would more than 
double Europa's existing UK onshore production to over 200bopd. On current 
plans first oil at Wressle, in which Europa holds a 30% working interest, is 
envisaged during H2 2020. 
 
Corporate Initiatives 
 
In response to the current oil price environment, Europa has implemented a 
programme of corporate cost reductions including salary cuts, and cancellation 
of non-core contracts. In Ireland a review of the portfolio to avoid 
unnecessary licence costs may lead to further relinquishments and intangible 
asset write offs. In Morocco, Europa intends to delay its current work 
programme, which primarily comprises 3D seismic reprocessing. Should the oil 
price not improve by the end of 2020 further economies are planned to maintain 
positive operating cashflow. 
 
Simon Oddie, Interim Chief Executive Officer and Executive Chairman of Europa, 
said: 
 
"These are challenging times for the oil and gas exploration and production 
industry with the combination of market turbulence and depressed oil prices. We 
have responded by making appropriate cost savings and adjustments in the 
business whilst maintaining the integrity of our core strategy. Further 
economies will be made if conditions do not improve in the medium term." 
 
                                 * * ENDS * * 
 
For further information please visit www.europaoil.com or contact: 
 
Simon Oddie       Europa                        + 44 (0) 20 7224 
                                                3770 
 
Phil Greenhalgh   Europa                        + 44 (0) 20 7224 
                                                3770 
 
Christopher       finnCap Ltd                   + 44 (0) 20 7220 
Raggett                                         0500 
 
Simon Hicks       finnCap Ltd                   + 44 (0) 20 7220 
                                                0500 
 
Frank Buhagiar    St Brides Partners Ltd        + 44 (0) 20 7236 
                                                1177 
 
Megan Dennison    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 2019 Europa produced 91 boepd. Its 
highly prospective exploration projects include the Wressle development in the 
UK (targeting production start-up in 2020 at 500 bopd gross) and five licences 
offshore Ireland with the potential to host gross mean un-risked prospective 
resources of 5.7 billion barrels oil equivalent and 1.5 trillion cubic feet 
('tcf') gas. The Company's flagship project offshore Ireland is the Inishkea 
prospect - a near field gas exploration project with 1.5 tcf gross mean 
un-risked prospective gas resources. 
 
 
 
END 
 

(END) Dow Jones Newswires

March 31, 2020 02:00 ET (06:00 GMT)