Europa Oil & Gas (holdin... Share Discussion Threads

[currypasty] 14/7/2017 09:50

thanks for the research jus

level 2 is two on the bid one on the ask, few more buys and a tick up?

[guesswhosback] 14/7/2017 07:51

Very interesting Jus and one we really had overlooked as we didnt see the connection until now. Another good reason to be here investing. Thanks for the research.

[jusmasel99] 14/7/2017 05:36

More interesting stuff on Corrib overnight ..

This from the Irish Times ..

"Indeed, the CPPIB’s head of natural resources, Avik Dey, told The Irish Times yesterday he is well aware of the level of interest in this particular region, the so-called Porcupine Basin. He indicated the fund may seek to increase its interests off the west coast in time – saying the Canadians would “evaluate other opportunities” in the region that may present themselves.
“We think [Corrib] is an attractive asset in an attractive basin,” he said."

This morning I received a reply from Vermillion to an enquiry I had made about Corrib stating that they would of course be looking at replacing production in due course and that Corrib is better than expected at the moment running at full capacity and expected to do so now until mid 2018.

That would mean that there probably would be spare capacity for a new production field from about 2020 at projected decline rates - so they need to start looking pretty soon.

Given the above who is to say that CPPIB wouldn't be interested in funding (part) an exploration well sooner rather than later......

[currypasty] 13/7/2017 15:00

“This is very exciting news for Europa. RD Shell had no interest in doing any further work on Corrib, one can assume that this will not be the case for the new Canadian partners,” the analyst said.

“Corrib will require back fill gas in order to prolong its life and Europa is in the ideal position to provide it if exploration is funded and successful.”

At present, Europa is analysing technical data (existing or ‘legacy’ seismic data) as it assesses the area’s exploration potential and, more broadly, the company is advancing farm-out processes to bring in partners to its Irish projects.

Exploration partners sought for Irish ventures

Earlier this year, Europa agreed its first Irish farm-out deal with Cairn Energy joining the company in a separate exploration venture in the Porcupine basin, in the Atlantic margin.

[jusmasel99] 13/7/2017 14:30

proactiveinvestors.co.uk/companies/news/180831/us12bn-corrib-stake-sale-is-very-exciting-news-for-europa-oil-gas-analyst-180831.html

[jusmasel99] 13/7/2017 14:04

It's not just me .. who is getting excited by this ...
[...]

US$1.2bn Corrib stake sale is “very exciting” news for Europa Oil & Gas - analyst

[guesswhosback] 13/7/2017 12:01

Great posts chaps thank you for that information. Much appreciated.

Curry - which level2 do you use?

[rogerlin] 13/7/2017 11:07

The Fugro Venturer is on its way to the Porcupine on behalf of Nexen, I think this must be a site survey which suggests that they intend to drill, whatever the result at Druid/Drombeg.

[jusmasel99] 13/7/2017 10:35

Back to Druid and for those new potential investors looking in on the back of the fact that our Porcupine Basin assets will be substantially derisked (all 4.2 Billion Barrels) by success at Druid, EOG produced this summary yesterday ..

hxxp://www.europaoil.com/documents/1707Providencereadacross.pdf

[jusmasel99] 13/7/2017 09:25

There is a similar slide for Holmwood somewhere but I can't find it... bring it on though .. I wonder if Lenigas will sit out Holmwood or will he find an entry point?

Back to Corrib though .. from yesterday's news about Vermillion taking over the operatorship and Shell having withdrawn.

This is what was said at the time of the Shell drill ...

SHELL EP Ireland plans to drill a satellite well north of the Corrib gas field which could produce additional gas reserves.
The Sedco 711-submersible rig arrived on location some 80km off the Mayo coast last week and has been booked for the summer.
Seismic information gathered last year on the Corrib North block has proved to be “very positive”, according to industry sources.
If the field proves commercial, it could result in a significant extension of the Corrib offshore and onshore infrastructure, subject to Government approval.
Vermilion, which bought out Marathon’s share in Corrib last year for a quoted price of $400 million (€330 million), described Corrib North last year as “a four-way dip closure that has the potential to hold about 200 billion cubic feet of gas”.
The Canadian company’s chief executive Lorenzo Donadeo told the industry journal, Upstream, that if the well was successful, “the discovery could be tied back to Corrib’s infrastructure via two sub-sea wells at a cost of up to $117.8 million.
The current Corrib gas field on the Slyne Basin is estimated to have a 20-year lifespan, with a capability of producing up to 60 per cent of Ireland’s energy needs over five years.
Shell EP Ireland confirmed that it “intended to drill an exploration well” on the site.

SO Shell drilled the well and went back the next summer for an environmental study which MUST suggest they found commercial quantities...

a) Seismic VERY POSITIVE
b) 200 BILLION CF GAS
c) a significant extension of the Corrib Onshore and Offshore infrastructure

Now all that is great for us because we now hold the whole licence area (at the time of drilling Shell had already relinquished a major part of it as is the norm)
BUT it begs the question why Vermillion didn't make a move for this when it came up for grabs last year. There could be negative connotations of course but that wouldn't explain why Shell went back the following year.

We certainly know that Shell took the decision at around the time of the second drill to start selling assets and halt/slow down capex and it could be that they had decided to exit Ireland already.

Then there is the question why did EOG decide to go for that licence which is a bit off the beaten track for them? Did our partners in France, Vermillion give them a nudge in the right direction?

And why didn't Faroe apply - maybe they did - as they picked up other adjacent licences to Corrib annd have already farmed them out?

WHich leads to why hasn't anybody farmed in to our Corrib licences yet? Are they not up for grabs or are we waiting for Vermillion to make a move?

Curiouser and curiouser.... and exciting at the same time ...

[currypasty] 13/7/2017 08:52

great update, pity its not reflected on trading volume

[rogerlin] 13/7/2017 08:33

Slide 7 a depiction of the limestone layers at Brockham, described as "thick" which is encouraging although perhaps a bit of an exaggeration!

[currypasty] 12/7/2017 20:00

"This morning Providence announced that they have spudded the Druid & Drombeg exploration well in the South Porcupine basin offshore Ireland and released the information extracted below. This is an important well for Ireland and Europa. Success at this well has the potential to de-risk 4.2 billion boe gross mean un-risked prospective resources (“recoverable” not “in place”) in Europa’s four licences in the basin. We will look forward to the outcome of the Providence well with great interest. "

[ride daice] 12/7/2017 19:27

You're clearly a few steps ahead of me on this one. It's going to be an interesting few months. :-)

[jusmasel99] 12/7/2017 19:19

That is true RD ... there are a couple of variables though that have made a difference. First the licencing round allowed those in the queue of interested farm inees to obtain their own licences. These are now being surveyed and no doubt will need to be analysed to see if they have a better prospect for a drill.

The two licences we have that are Frontier Exploration are moving into their second phase which carries a drill commitment so a perfectly reasonable explanation why they have not been farmed out.

And then third of course is the news of the Druid drill. For those majors not involved yet in the Porcupine why not wait until after a successful drill before making a farm in decision.

Finally .. and I am pretty sure this is the case at the moment ... the farm in on offer is to become the major interest holder and operator of the licence. Leaving them to fund and find additional farm in partners. That is a major strategic decision for oil companies not already here so my guess is the queue outside Hugh's door in September will be lengthy.

Having written that though makes me wonder about the potential for Hugh to sit down with the investment companies that funded the initial phase of this well and for EOG to do exactly what PVR have done. It has certainly worked out well for the FIs involved...

[ride daice] 12/7/2017 19:05

It's hard for an outsider to know exactly the level of farm in interest to date and whether it's the majors who have lacked interest or Hugh who's been keeping his powder dry. One thing is for sure imho. If PVR strike then we'll be fighting them off with a baseball bat.

[jusmasel99] 12/7/2017 18:59

Well maybe they will sit up and take notice of this...

A summary of the read across to our assets if Druid/Drombeg delivers

hxxp://www.europaoil.com/documents/1707Providencereadacross.pdf

Hot off the press

4.2 Billion BOE substantially derisked ...

In 45 to 60 days this share price cannot stay the same. You take a punt now on Druid/Drombeg and the worst that can happen is a return to this level because backing it all up is this Autumn's drill into Holmwood.

So say by the time the results are due 10p - if positive result we should be valued in excess of £100m (30p)

[cheek212] 12/7/2017 17:44

I'm quite happy for the muppets to stay there!

[guesswhosback] 12/7/2017 16:13

We simply do not have that kind of following. It's almost impossible to read the UKOG board for Muppets posting rockets and ramping. I guess it gets price action.

[currypasty] 12/7/2017 15:50

Angus going bananas again, up 25%... what about us.. come on Huge, get the word out

[jusmasel99] 12/7/2017 14:10

Oh! I was out playing golf .. missed this .. this is huge for us. Perfect. At the back of my mind there has always been a missing link in why we ended up taking a licence near Corrib. Based on the stuff I have posted here in the past about the well in our licence that Shell seemed to ignore but Vermillion were really excited about - even getting down to costs for the tieback! There has to be something going on in the background between us and Vermillion who after all are our partners in France.

South Porcupine - with Druid drilling
Holmwood coming up with all the Kimmeridge excitement.
The Maxwell field with BP drilling a similar well offshore.
Hardstoft as well could be mega.
Wressle is fast turning into a trickle of our future prospects but will give the share price a lift when we finally get permission.

And now Corrib - right into play... wow... the perfect storm is brewing for a £20m cap company ... I just love being in the right place at the right time...

[edgein] 12/7/2017 11:12

Roger,

That would make sense, you never know who EOG will partner up with in the end. The scope is out there to get much bigger than CNE or Kosmos. Even though they're excellent partners to have/had due to their exploration track records.

Regards,
Ed.

[rogerlin] 12/7/2017 11:08

Europa has identified a number of prospects and leads on LO 16/20 with estimated gross mean unrisked prospective and indicative resources of 1.0 tcf gas.

Europa is currently focused on maturing the leads on the licence to drillable prospect status by reprocessing the historic 3D seismic and securing a farm-in partner with which to drill a low-cost, low-risk exploration well.

[rogerlin] 12/7/2017 11:00

Vermilion to become operator of Corrib. Surely a farm out possible here for the adjacent licence.