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

[edgein] 15/9/2017 09:43

Yes chaps ANGS has made a bit of a hash of things with operations on incorrectly labelled wells etc etc. But Hugh is working with a clean slate and I'm sure SCC will be professional enough to treat these as entirely separate cases. Hopefully we'll get some firm progress soon and we'll start to be part of the weald party that's going on. We're lagging someway behind the caps of ANGS and UKOG that's for sure. All these wells to date drilled in the Weald have encountered substantial live oil saturated reservoir and pay over what is a very large area of the basin (HH, Brockham and BB). Hopefully our turn next.

Regards,
Ed.

[jusmasel99] 15/9/2017 08:40

We will soon have further news from PVR regarding the traces of Hydrocarbons they found and that will help confirm the source potential of the basin. So this is interesting from our recent shareholder newsletter ..

Adjacent to FEL 3/13 is FEL 1/17. Europa has identified three pre-rift prospects with combined 898 million boe GMUPR . The pre-rift play comprises Jurassic reservoirs in tilted fault block structures, the analogue is the Brent Province in the North Sea.

Whilst success at Druid and Drombeg will not de-risk the reservoir and trap of the pre-rift play it will de-risk the source rock element of the play in FEL 1/17. Europa is conducting a 3D reprocessing project on its propriety data over both FEL 3/13 and FEL 1/17 with the objectiveof de-risking the pre-rift prospects in both licences. The reprocessing project will be completed during Q4 2017.

So we may have some news soon on that project ...

[jusmasel99] 15/9/2017 08:39

Corrib gas field is exceeding expectations at the moment and still operating at 100% capacity but that won't last for ever and depletion rates will be tested in the next year or so. Early next year approval should be given for the buyout of Shell by the Canadian Pension company and operatorship passed to Vermillion (who have recently been stung in France) Corrib is vitally important for Ireland still but already plans are being put in place for its run down. A new pipeline from Scotland to Ireland is being built and talk is of a new LNG terminal to import gas from the USA. Both are expensive options and by far the cheapest is for the life of Corrib to be extended through exploration discovery. There is no doubt in my mind that further exploration wells will be drilled and Nexen and Faroe are actively looking for prospects in the area. If we can develop out prospects in our licences (one of which is the original Corrib exploration licence with a Shell exploration well drilled there whose results are 'tight' or secret) then we could be looking at an early farm out and participation in a well(s) leading to early production.

From our shareholders newsletter ...

The outcome of the Drombeg/Druid well will have no bearing on our 100% owned LO 16/20 and LO 16/21 400 km to the north in the Slyne Basin adjacent to the producing Corrib gas field. The field has a gross plant capacity of approximately 350 million cubic feet of natural gas per day, provides approximately 60% of Ireland's natural gas consumption and constitutes approximately 95% of Ireland's gas production. These two licences are targeting a low risk infrastructure led play in the Greater Corrib area. Here too there has been considerable corporate activity in recent months, specifically Nexen farming into an 80% interest in Faroe Petroleum's LO 16/23. More recently Vermilion and the Canada Pension Plan Investment Board, the investment arm of Canada Pension Plan, acquired a 45% interest in the Corrib gas field itself for US$1.23bn .

[jusmasel99] 13/9/2017 20:19

Our (EOG) Original planning application predated the new legislation and as such when ultimately approved by the inspector did not contain an application for the new requirement so they had to apply for that after the appeal was heard. It didn't take long to get.

"An application for planning permission to drill the Holmwood prospect on PEDL143 was submitted in 2008 and was dismissed by Surrey County Council in 2011. A planning appeal in 2012 was dismissed by the Planning Inspectorate. Europa successfully challenged this decision in the High Court in 2013. In 2014 the Court of Appeal upheld the 2013 High Court judgment in the Company’s favour and a second planning appeal was heard at an eight day public inquiry in April and June 2015. The Planning Inspectorate issued a decision to allow the remitted appeal on 7 August 2015 and Surrey County Council allowed planning permission for the underground drilling corridor on 23 September 2015."

[itsriskythat] 13/9/2017 19:14

jusmasel99,

Interesting views that you have, as I didn't consider surface outline or underground activity to be relevent to the original decision as it dates back to 2007.

I assume that planning decisions from 2007 like this one are nevertheless still valid? Otherwise the SCC would have mentioned Angus's underground activities in their letter to the OGA.

It seems like Angus have chosen to fight for the validity of the original decision.

Like you say, one easier way forward, and that is to address this "standoff" by getting SCC's approval for production.

Meanwhile the OGA holds fire until SCC gives approval. There no other explanation for them contacting the SCC in August and asking if SCC gave permission for production.

As the answer came back negative, it appears to me that the clock is still ticking and the ball is now back in Angus's court.

[jusmasel99] 13/9/2017 17:10

Incidentally - when the new regulations came out about the surface offset planning permission Europa were one of the first to successfully apply for such at Holmwood with the SCC of all people...

So to put it into context ANGS want to proceed with a well without the same level of planning permissions that EOG has ?

[itsriskythat] 13/9/2017 16:06

jusmasel99,

"OGA Approval only comes after planning permission is granted I am afraid."

Seen this comment of yours above about Angus. Totally agree.

Point 1) Europa, Angus are partners in the Holmwood well. I attended the recent planning committee session for the Europa TMP on Holmwood. IMO a disappointing performance from their spokesperson. Tricky dealing now with SCC as ultra cautious of public opinion.

Point 2) Angus are battling with SCC over drilling permission for the BRX4-Z sidetrack. Tricky dealing now with SCC as probably now regreting their earlier permission was given so easily.

I do have great sympathy for Angus as I spent time reading their planning approvals from SCC:

My comments: "I've had time to read the report by Mrs Clack on MO07/0161 and have come to the conclusion that the third well was given permission to produce by SCC. I've also read the letter from SCC to the OGA which states that this well does not have permission to produce under MO07/0161 because it post-dates MO06/1294. So its a hell of an unusual situation, a "standoff".

I don't understand the reasons for SCC persisting with their position. Nor do I know how this is going to be resolved. Until it is resolved Brockham BRX4-Z isn't going into production, as the OGA shouldn't approve the addendum without all permissions being in place first. Angus needs to inform the market at this point as it is creating uncertainty."

I got hammered for suggesting that the OGA won't proceed until SCC permission for BRX4-Z is given. Some people on BB's don't want to know how it works, I'm afraid.

[carbon man] 13/9/2017 15:54

From the chart, feels like 5.5 is the price to pay short term

[jusmasel99] 13/9/2017 08:38

And it is also ANGS turn to meet with SCC planning committee today .. that should be interesting .. hxxps://surreycc.public-i.tv/core/portal/webcast_interactive/305124

I reread the minutes of the last meeting and can see no reason why the questions raised by them cannot be answered in the next October meeting. They seemed quite reasonable requests and I understand several of the issues have been resolved i.e. the tree preservation.

One matter though is that they wanted a 3d simulation of HGV traffic going through the lane and they also stated that HGVs would damage the canopy. Well is that not a matter for Roads who raised no objection and as far as I know HGVs are allowed to travel unrestricted along the lane at present.

Our planning chaps will be in discussion with SCC Planners no doubt to ensure the put forward resolutions to all the matters raised.

[jusmasel99] 12/9/2017 10:00

Corrib is the sleeping giant in my opinion. I was thinking about Nexen's farm in and why they didn't farm in to us but the fact is that farm in to Faroe was to pay for the acquistion of Seismic which we already have for one of our licences. I don't recall if Hugh has even stated if we are open to a farm in for Corrib yet - rather wait, reprocess that seismic and develop the prospects and then open up the data room.

Remember we also have data from one well drilled by Shell after Corrib was nearing production so Shell were at one point looking to increase resources around there and as I pointed out the MD of Vermillion was quite excited by the prospect even costing out the tie back. We know why Shell left (quote from Boardroom "I'm not spending another effin quid on Ireland just get us out of there") and when they decided to leave (shortly after the well was drilled) Shell had Corrib on the market for some time before the Canadians took an interest. While there may be negotiations going on in the background already all is on hold until the Government rubber stamps the sale next year (don't know why it takes so long but there you go).

One idea as well - given that it is so close to a producing field and infrastructure is to look for a royalty farm out rather than just one or two wells.

Thanks Rogerlin - for the last few weeks I have been getting up looking at Marine Traffic now for the foreseeable future I'll be looking at the Western General waiting lists ...

[rogerlin] 12/9/2017 08:54

Good luck with your back surgery Jusmasel!



Europa's diagram here (Slide 15) is useful. It suggests 2018 drills by Nexen and Woodside. As Nexen have just finished a site survey that may still stand, but I suspect Woodside will delay, they seem to have other priorities. Nexen have also farmed in to a Faroe licence near Corrib.

[jusmasel99] 12/9/2017 08:38

Plenty still to be confident in future success in the Porcupine.

The massive Hibernia oil field in the Jeanne d'arc basin has now yielded in excess of 1 billion barrels but it wasn't all plain sailing to get there. Perseverance and optimism won the day.

In 1971 the first well was spudded in the JdA basin and it wasn't until 19th September 1979 that well Hibernia P-15 (the Hibernia discovery well) flowed oil at the massive rate of 800bpd.
P-15 was the 10th well drilled in the basin.

As of July 31st this year the Canadian Offshore Petroleum Board lists a total of 443 wells drilled of which 168 were exploration, 56 appraisal and 218 development wells.

I have had my fingers burned on here by delving into Geology and throwing up the obvious response that I don't know what I am talking about which is true but I try to learn as I go along.

The analogy between JdA and Porcupine is strong and well documented. The history of exploration in the JdA favours one side of the basin over the other and as far as I can see looking at a cross section of the presumed strata in the Porcupine would suggest to me that the East side is open to more accumulations than the west side of the basin and that is where we have our drill ready prospects (with a significant tax break as well).

Remember it was PVR who chose to drill where they did not any of the Majors. Those of the majors that took licences have opted to explore the southern portion of the basin by and large. I am sure that each of these sectors will be drilled eventually and one day a commercial discovery will be made but it will take time and perseverance.

Still - a bit of a hiatus now as we await further details of the well from PVR and progress reports from the other majors that have now had a year or so to process their 3D Seismic that they shot last year. It won't take much to rekindle interest.

[tommy241] 11/9/2017 18:24

There may still be reason to look again at Drombeg

"Whilst this programme has not delivered, for either Druid or Drombeg, analysis of the latter did provide a glimmer of positivity for future exploration.
The company highlighted that the presence of bitumen in drill cuttings was reported within the Drombeg reservoir interval and, according to Providence, this suggests the potential that there was an early oil charge in the reservoir but it was not retained in this particular location.
Drombeg is seen as a fan system, and it was noted by Providence that the positioning of the exploration well had prioritised the earlier target (Druid), with the decision to extend out to test Drombeg coming only after the budget increased as the Cairn Energy tie-up was agreed.
Indeed, the well had been described as ‘not optimally geologically located’ for Drombeg and it was said to be at the margin of the system.
Time and further analysis will tell whether or not there is any material follow up is warranted at Drombeg, or whether the exploration area is a write-off altogether.
Investors will, however, get a clue in the coming weeks as Total will now have 60 days to take up its option for a 35% stake in the frontier exploration licence. Similarly, Cairn has 60 days to decide whether to take up an option for a 20% stake in the separate Avalon prospect."


proactiveinvestors.co.uk/companies/news/183749/providence-resources-to-focus-on-new-barryroe-drilling-after-drombeg-disappointment-183749.html

[hpotter] 11/9/2017 18:06

I noticed this posted on the ukog thread. Thanks to the contrarianinvestor.

[jusmasel99] 11/9/2017 14:37

Lucky old Europa ...In many respects.Take Holmwood for instance if planning had gone through straight away and drilled dry or wet we would be no more knowledgeable about the kimmeridhe than we are now but we would have missed the potential because presumably we would have relinquished the remainder of the licenceThe price of oil was 25 dollars when we first applied for production at wressle.And we ended up owners of two fels in Ireland with full 3d seismic for nothing thanks to kosmos.My glass is remarkably still half full this pm....Thanks DH. A lot of people worse off than me but glad there is a light at the end of the pins and needles.

[dunderheed] 11/9/2017 14:05

5658/5660


"Unlucky"* management?




* Can think of a few other choice words!

Jus sorry to hear about your back matey and bad luck on the two well results.

[currypasty] 11/9/2017 13:59

as you can see with the date of this thread I started in 2004, that would be a very long time to be unlucky

[guesswhosback] 11/9/2017 13:51

Yes unlucky but only since you arrived....

[currypasty] 11/9/2017 13:17

3 knockbacks in a row, Wressle planning, Holmwood planning, druid/dromberg duster

are we just unlucky?

[jusmasel99] 11/9/2017 12:42

What a strange day so far. I had three drills turning this morning and two of them came up dry - JOG and PVR. Didn't have much in both but still lost a lot. So with two bits of bad news I was expecting another when I went to see my consultant about my back. Last time he recommended pain management and I have been managing to have extreme pain since that visit a year ago. This time he quite unexpectedly recommended and approved an operation on the NHS that I was prepared to pay for privately .. saving me the best part of £10k ... money that I was hoping would come from JOG or PVR.

My emotions are mixed at the moment but I am all for Ed's synopsis and now is the time for all good Weald Men to come to the aid of Europa. I am not sure how we are going to do it but somehow we have to get the Angus Bulls to realise that a) Lidsey produces water that is needed by Brockham to produce oil and b) more importantly we own more of the acreage around Brockham than ANGS do as well as being fully carried by UKOG and ANGS for the actual drill. We have production that covers our running costs and Wressle (God bless Wressle and the Planning Inspector) to come on stream in due course. Our placing is out of the way....

As far as the Porcupine goes I'll look into that further and research the history of the Flemish Pass and Bay du Nord to see how long it took them to come up trumps. Meanwhile - you never know - there may be a little trump card up our sleeves in Padraig ....

The focus of attention in the Porcupine may now change to different play types and we have 2 billion barrels of potential in pre-rift and syn-rift plays that Statoil are more interested in and they are the Bay du Nord champions.

Plus these of course ..

CORRIB ... outstanding possibilities
HARDSTOFT .. look at UPL's presentation on that one .. existing oil field
CLOUGHTON/MAXWELL .. known gas field .. look at Arenite's presentation

ANGS MCAP = £80m
EOG MCAP = £18m

[edgein] 11/9/2017 09:06

Mr Pasty,

Yes of course, did you see the size of the porcupine? There were something like 7 or 8 dry wells in the NS before the first major discovery. Writing off the entire porcupine at this stage would be unwise especially if Drombeg has yet again confirmed oil source.

Regards,
Ed.

[edgein] 11/9/2017 09:03

Dunderheed,

We all knew this was the likely outcome especially after Druid, no shows and a fluid velocity model that showed light oil which turned out to be water. The same model for Drombeg. What needed to be explained was the lack of oil shows in Druid, was there no source or an impervious fault from Diablo ridge. today potentially explains that, oil biodegraded to tar therefore didn't migrate, or previously migrated elsewhere but not through Druid, perhaps on up the Cret fan. So hopefully they'll show this to be the case post-well analysis. That's not a total write off for us at all its potentially proof that again there's widespread source down there, not much use to PVR though on that licence. But again you never know it all depends on time and condition of trap formation. If source is widespread then the chances of an oil discovery increases. Likewise if Druid/Drombeg turned out to be significantly oil saturated didn't mean Shaw would be too.

So now we move towards the main event next H-1, the reason that some of us are here, nout to do with the Irish AM. Look at ANGS and UKOG, soon be time for EOG to play catch up. We're within spitting distance of Brockham and not too far from HH either and UKOG management suggest the KL stretches over 30 miles. We're between Brockham and BB-1. Will we get some cheapuns between now and then, perhaps, but I'm not parting with a single one between here and TD.

Regards,
Ed.