Proactiveinvestors RSS feed en Thu, 23 Mar 2017 00:23:53 +0000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Europa Oil & Gas hands stake in Cloughton gas field to partner ]]> Europa Oil & Gas Plc (LON:EOG) has transferred a 10% stake in the PEDL 343 licence, onshore UK, to partner Arenite Petroleum.

It comes after Europa picked up 22.5% of the licence through the acquisition of Shale Petroleum (UK) for a nominal consideration of £1.

The licence is located in north east England, its operated by Third Energy UK Gas Limited, contains the Cloughton gas discovery as tested by a 1986 well, and it is deemed by Europa as an appraisal asset.

Europa now has 35% of the licence alongside Third Energy with 20%, Arenite with 15%, Egdon Resources Plc (LON:EDR) with 17.5% and Petrichor Energy UK Gas Limited with 12.5%.

Tue, 14 Mar 2017 07:31:00 +0000
<![CDATA[RNS press release - Assignment of interest in UK onshore Licence ]]> Tue, 14 Mar 2017 07:00:00 +0000 <![CDATA[Media files - Europa Oil & Gas hails farmout deal with Cairn Energy where size of prize is potential 1bn barrels ]]> Wed, 08 Mar 2017 15:14:00 +0000 <![CDATA[Media files - Europa Oil & Gas technicals reveal ‘decent buy signal’, says Zak Mir ]]> Wed, 08 Mar 2017 09:25:00 +0000 <![CDATA[News - Europa Oil & Gas boosted by Cairn Energy farm-out, looks for more tie-ups offshore Ireland ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) is continuing to advance its partnership efforts bolstered by its high profile new deal.

The company has signed a far-out agreement with Cairn Energy PLC (LON:CNE) which will now partner Europa in an early stage exploration project offshore Ireland.

Together Cairn and Europa will shoot 3D seismic in an under-explored area in the Atlantic margin off the west coast.

Cairn is covering costs of the US$6mln exploration programme and in return it will earn 70% of the project (Licensing Option 16/19).

Significantly, LO 16/19 lies adjacent to Europa’s more advanced FEL 2/13 where the AIM quoted group’s prior 3D seismic programme identified some 1.5bn barrels of oil potential across three targets, and it is believed that the farm-out area contains similar features.

WATCH: Europa O&G boss hails farm-out deal ... WATCH: Zak Mir sees 'decent buy signal' ...

Europa at the same time continues to seek further farm-out deals for its other Irish assets (it has seven offshore licences comprising 20 prospects, estimated in excess of 4bn barrels of oil and 1.5 trillion cubic feet of gas).

Hugh Mackay, Europa chief executive, said: “We are delighted to have secured a farm-in partner of the proven calibre of Cairn, and also to accelerate exploration on the licence through the acquisition of 3D seismic this summer.

“We continue to talk to other potential partners for our remaining six offshore Ireland licences which provide us with exposure to all the various play types being targeted in the region.”

Mackay highlights that oil and gas industry activity is expected to increase markedly in 2017 and beyond – noting that Cairn and Providence plan to drill a well this summer and at least two further wells may be drilled in 2018.

“In terms of acreage and number of licences, Europa is a leading exploration company in Atlantic Ireland with a range of prospects spanning deep water high risk frontier exploration to shallow water, lower risk infrastructure-led exploration next to the Corrib gas field,” he added.

“We believe Europa will benefit from any exploration success in the region either as a trail-blazer or fast-follower.”

Europa shares advanced 1.15p, 24%, on Wednesday morning to trade at 5.9p each.

Wed, 08 Mar 2017 08:32:00 +0000
<![CDATA[RNS press release - US$6m Farm-Out of Ireland Licence to Cairn Energy ]]> Wed, 08 Mar 2017 07:00:00 +0000 <![CDATA[News - Europa Oil & Gas extends deadline for Wressle deal with Upland Resources ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) has extended the deadline on its deal to sell a stake in the Wressle field to Upland Resources Ltd (LON:UPL).

A deal for 10% of Wressle was agreed in November before the planning application for the field’s development was rejected by the Lincolnshire county council.

The Wressle partners earlier this month announced their intention to appeal the council’s decision.

And it has now been agreed that the ‘long stop’ date for the transaction will be extended to September 30, from March 31.

The deal sees Upland acquiring 10% of Wressle in return for £1.85mln, leaving Europa with 20%.

The other partners in the project are Egdon Resources Plc (LON:EDR), the operator with 25%, Celtique Energie with 33.3%, and Union Jack Oil PLC (LON:UJO).

Tue, 21 Feb 2017 14:23:00 +0000
<![CDATA[RNS press release - Extension of Agreement to Sell Interest in Wressle ]]> Tue, 21 Feb 2017 14:05:00 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 09 Feb 2017 07:00:00 +0000 <![CDATA[News - Europa Oil & Gas says Wressle partners will appeal planning refusal ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has told investors that the partners in the Wressle project, in Lincolnshire, will launch an appeal to the decision that blocked the oil field development.

The North Lincolnshire Council last month refused to grant planning consent for Wressle.

Now, the Wressle partners intend to file a new application including more detailed information to address the specific concerns outlined in the negative planning decision.

The appeal and new application will be lodged at the earliest opportunity, Europa said.

“Wressle is located in the heart of the East Midlands petroleum province and at an anticipated gross rate of 500 bopd would almost double our existing production based on a 20% interest,” said Hugh Mackay, Europa chief executive.

“We are keen to see this conventional oil field brought into production as soon as possible.”

Europa currently has a 30% stake in Wressle, though an agreement is in place for Upland Resources to acquire a 10% interest from the company. The other partners in the project are Egdon Resources Plc (LON:EDR), the operator with 25%, Celtique Energie with 33.3%, and Union Jack Oil PLC (LON:UJO).

Union Jack’s David Bramhill added: “The joint venture is supportive of the dual approach taken by Egdon to resolve this situation with the minimum of delay.

“For Union Jack, it is very much business as usual and plans for the preparation  of drilling of Biscathorpe-2 and Holmwood-1 conventional wells continue in respect of what the company considers to be two excellent prospects, both with significant volumetric potential if successful and moderate geological risk.”

In a separate statement, Egdon Resources has downgraded its production guidance – to 100 to 110 barrels oil equivalent per day, from 165 boepd – as a result of Wressle not coming online within the expected timeframe.

Tue, 07 Feb 2017 07:57:00 +0000
<![CDATA[RNS press release - Update on Wressle Oil Discovery ]]> Tue, 07 Feb 2017 07:00:00 +0000 <![CDATA[Media files - Europa's latest farm out deal 'the gold standard' says CEO Hugh Mackay ]]> Mon, 06 Feb 2017 09:07:00 +0000 <![CDATA[News - Europa Oil & Gas deals Angus Energy into Holmwood project in Weald basin ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has agreed a farm-out deal with Angus Energy Plc (LON:ANGS) for the Holmwood project, onshore UK.

Angus acquires a 12.5% stake in Holmwood which will be host to the next well to test the kimmeridge limestones in the UK’s Weald basin – following on the group’s apparent success at the nearby Brockham well.

To acquire the stake in Holmwood, Angus agrees to pay 25% of the costs of the upcoming well (up to a gross cost of £3.2mln) and will cover 12.5% of the costs above that cap.

Europa will retain a 20% stake in Holmwood and its participation will now be fully covered (assuming the well is with the £3.2mln budget).

“Following today’s farmout, Europa will have a fully carried 20% share in Holmwood and the benefit of a partner with expertise in the Weald basin,” said Hugh Mackay, Europa chief executive.

“As the operator of the nearby Brockham oil field, Angus can provide invaluable technical insights in tandem with our other partners including UKOG, a major stakeholder in the Horse Hill discovery.

Mackay added: “In line with our strategy to expose our shareholders to material rewards through the drillbit while minimising exposure to exploration risk, this is the fourth farm-out we have secured for our UK licences within the last 12 months.”

The partners list for the Holmwood project now comprises Europa (operator, with 20%), UK Oil & Gas Investments (LON:UKOG) with 30%, Egdon Resources Plc (LON:EDR) with 18.4%, Angus Energy with 12.5%, Warwick Energy with 10%, Union Jack Oil PLC (LON:UJO) with 7.5% and Altwood Petroleum with 1.6%.

The proposed Holmwood well is ostensibly targeting between 1mln and 11mln barrels of oil resources in shallower oil reservoirs, but significantly the well will also target the deep and potentially much bigger Kimmeridge limestone play which has been successfully encountered at both the Horse Hill and Brockham projects nearby.

Planning permission is in place for Holmwood and the partners are working towards the start of operations later this year.

Mon, 06 Feb 2017 07:35:00 +0000
<![CDATA[RNS press release - Farm-Out of Holmwood, Weald Basin ]]> Mon, 06 Feb 2017 07:00:00 +0000 <![CDATA[News - City analyst blasts council decision to block Wressle field development ]]> Local government officials that have blocked the start-up of the Wressle oil field, in Lincolnshire, have overstepped their remit, so says City broker SP Angel.

It was announced on Wednesday that North Lincolnshire County Council turned down an application for planning permission.

Europa Oil & Gas (Holdings) PLC (LON:EOG), a key stakeholder in the Wressle project, says the council’s planning decision goes against a positive recommendation by the council’s own planning officer which followed an extensive and thorough review of the field development plan.

Hugh Mackay, Europa chief executive, on Wednesday told investors that the company is disappointed with the decision and the partners in the project will consider options including the right to appeal.

SP Angel oil and gas analyst Zac Phillips, in a note, said: “If the public record of the statements made at the planning meeting are correct the rejection of the Wressle development planning application was not based on the merits of the application, but in reaction to the Environment Agency's handling of the flood response in the recent past.

“On this basis, the councillors have overstepped their remit and while they may have a point about the Environment Agency, they have opened themselves up to legal challenge.”

Phillips added: “The planning approval process must only be concerned with planning matters and, with no respect any concerned, they should do their jobs, not grandstand.”

Europa Oil & Gas has a 30% stake (albeit it has recently agreed to divest down to 20%) in Wressle, alongside AIM quoted partners Egdon Resources (LON:EDR) and Union Jack Oil (LON:UJO) which own 25% and 11.67% respectively.

Thu, 12 Jan 2017 11:53:00 +0000
<![CDATA[RNS press release - Update on Wressle Oil Discovery ]]> Wed, 11 Jan 2017 16:16:00 +0000 <![CDATA[RNS press release - Result of AGM ]]> Thu, 08 Dec 2016 17:33:00 +0000 <![CDATA[News - Europa Oil says UK onshore activity rising ]]> Europa OiI and Gas PLC (LON:EOG) has given a bullish update on prospects to shareholders at its annual meeting.

Activity is picking up onshore UK, said Hugh Mackay, the oil and gas group’s chief executive.

Once Wressle, in Lincolnshire, comes online, Europa’s UK production will increase by 100 boepd (barrels per day) to 220 boepd, which will mean a positive cashflow at oil prices above US$30 per barrel, he said.

Europa is fully funded for Wressle’s development following the sale of a combined 13.34% interest in the associated licences, PEDLs 180 and 182.

Mackay said the company values its 20% interest at £3.7mln or half of its market value including the proceeds of the stake sale.

In addition, Europa has seven operated licences covering an area of 5,818 sq km, six play types, three basins and twenty prospects and leads offshore Ireland.

The portfolio potentially holds gross mean unrisked resources of 4bn barrels, said Mackay.

In the UK, Europa also has a 32.5% interest in the Holmwood prospect, “which we rank as one of the best undrilled conventional prospects onshore UK and that we intend to drill in 2017”

There is a 25% interest in the Hardstoft oil field PEDL299 with contingent resources of 3.1mln boe and a 45% interest in PEDL343, which contains the Cloughton gas discovery.  

Thu, 08 Dec 2016 09:01:00 +0000
<![CDATA[RNS press release - Annual General Meeting Statement ]]> Thu, 08 Dec 2016 07:00:00 +0000 <![CDATA[News - Europa Oil & Gas divests more of Wressle ]]>  

Thu, 24 Nov 2016 15:15:00 +0000
<![CDATA[RNS press release - Sale of Interest in Wressle Discovery to Upland ]]> Thu, 24 Nov 2016 13:28:00 +0000 <![CDATA[News - Europa Oil & Gas Holdings gets cash boost as it sells Wressle stake sale ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has completed its sales of a 3.34% stake in the Wressle field, in Lincolnshire, to Union Jack Oil PLC (LON:UJO).

Subsequently Europa retains 30% of Wressle, and UJO’s interest in the project rises to 11.67%.

It delivers £600,000 of cash to Europa, which will be used to cover its share of costs to bring Wressle onto production.

Wressle is expected to come online in early 2017 at a predicted rate of 500 barrels of oil per day, and Europa’s 500 bopd share would more than double group production.

“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,” said Hugh Mackay, Europa chief executive.

He added: “We continue to actively manage our portfolio and will not hesitate to act when opportunities to add shareholder value arise.”

Mackay highlighted that the Europa portfolio also includes seven exploration licences offshore Ireland, with the potential for 4 billion barrels oil equivalent and 1.5 tcf gas; three producing fields onshore UK, producing around 123 boepd net to Europa; as well as a number of other exploration including Holmwood in PEDL143, in the Weald Basin, which is seen as one of the best undrilled conventional prospects onshore UK.  

Tue, 22 Nov 2016 07:43:00 +0000
<![CDATA[RNS press release - Completion of Sale of Interest in Wressle Discover ]]> Tue, 22 Nov 2016 07:00:00 +0000 <![CDATA[News - Europa puts ‘drill ready’ Wilde prospect in shop window ahead of Dublin industry event ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has detailed its exploration prospects in a particular exploration area offshore Ireland.

A brief statement, highlighting an ERC Equipoise competent persons report from 2015, puts Frontier Exploration Licence (FEL) 3/13 in the shop window ahead of an industry event in Dublin next week.

“The board would be pleased to meet interested parties in Dublin to discuss insights and opportunities arising from the company’s Atlantic Ireland portfolio,” Europa said in a stock market statement.

The company told investors that the Wilde prospect, in FEL 3/13, is considered ‘drill ready’ and is estimated to host some 428mln barrels of potential resources. It noted that the well would cost just US$37mln and has a 1/5.3 chance of success.

Europa added that a well on Wilde would be positioned so that it would also penetrate the edge of the potentially larger Beckett prospect – with a view to returning new insights into the 728mln barrel prospect.

The explorer unveiled the ERC Equipoise report last May, the report detailed some 1.5bn barrels of possible resources in FEL 3/13.

Wed, 26 Oct 2016 07:46:00 +0100
<![CDATA[RNS press release - Publication of CPR on Offshore Ireland Licence ]]> Wed, 26 Oct 2016 07:00:00 +0100 <![CDATA[News - Europa Oil & Gas and its big plans onshore UK and offshore Ireland ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) is making headway in its aim to become a robust oil firm and the market has noticed progress too.

Shares have risen over 35% since the beginning of July to where they now stand at 4.75p each.

The final results to the end of that month showed a strong performance in the face of what are well documented challenges in the oil sector.

Chief executive Hugh Mackay told the results statement:  "We have reduced costs by one third, our UK production is set to double, we are preparing to drill a high impact well onshore UK at Holmwood, we have delivered three deals, landed seven new licences in the UK and Ireland and perhaps most importantly built a leading position in Atlantic Ireland."

It is worth noting that the Holmwood exploration well is a follow on to the breakthrough Horse Hill well near Gatwick airport.

Over the year in total production from Europa’s UK onshore assets amounted to 123 barrels oil equivalent per day.

WATCH - Europa Oil & Gas (Holdings) Plc on cusp of break even at US$30 a barrel UK output set to double with Wressle

Production at the Wressle discovery in North Lincolnshire is set to begin in early 2017 and the project, in which it sold  a 3.34% interest to Union Jack Oil, but retains 30%, is central to the group's production aims.

It is set to provide 150 barrels  a day net to Europa, which on  top of the 123 barrels a day from the other three fields, will double revenues and  mean the company will break even at US$30 a barrel.

Mackay recently told Proactive: "That's quite an important metric for us and distinguishes us from many companies on AIM who can’t do that."

One of the leading explorers in offshore-Ireland

The Atlantic margin, off the coast of the Emerald Isle, is one of the buzz topics in oil exploration at the moment. After a period of intense interest in the region a few years ago, it went off the radar, as firms thought it was too expensive to drill there.

Now, in 2015 it has played host to the most successful licensing round ever in Ireland, while major oil firms and supermajors are also bak in the area and have already begun work programmes

As Mackay noted this is "a remarkable outcome" given sub $50 oil prices currently, and he expect that this activity will likely result in exploration drilling.

Europa now has five offshore licences in Ireland  - literally named Doyle, Wilde, Beckett and Shaw, and  over the next two to three years hopes to deliver half a dozen drillable targets -  any one of which, says Mackay, could be a 'company maker'.

Excitement building at Holmwood

The group has obtained planning for an exploration well at Holmwood - a conventional hydrocarbon prospect with unranked prospective resources of 5.6mln boe (barrels of oil equivalent) in the Weald basin in southern England. If it came in at that it would be the fifth largest onshore field in the UK.

The firm has a 32.5% interest and expects to begin drilling in 2017.

Significantly, there is positive the read -across from the Horse Hill well near Gatwick airport - just 12 km away, where 13,00 barrels a day flowed , which, as MacKay says, is very good for an onshore well.

"There is absolutely no doubt that the results at Horse Hill are relevant for Holmwood," he recently told Proactive.

Wed, 05 Oct 2016 15:09:00 +0100
<![CDATA[News - Europa Oil & Gas shares extra stake in Hardstoft field with Upland Resources ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has confirmed a reassignment of interests in PEDL299, which host the Hardstoft oil field.

The company previously acquired an additional 16.665% interest in the asset from Shale Petroleum Limited, paying a nominal £1. That stake is now being split with fellow partner Upland Resources. As a result Europa takes 8.335% while the other 8.33% is taken by Upland.

Subsequently, Europa and Upland each hold 25% of Hardstoft, and INEOS owns 50%.

INEOS retains 100% of the unconventional prospectivity in PEDL299.

“The reassignment of interest in PEDL299 ought to be seen in the context of the ongoing active management of our portfolio of licences,” said chief executive Hugh Mackay.

“The recent sale of a 3.34% interest in the Wressle discovery was a partial monetisation of our asset base. This assignment helps manage the risks and funding requirements associated with oil and gas exploration and development.”

Mackay added that Hardstoft has a “strong set of partners” and that is an “excellent foundation” for a development.

Hardstoft, first discovered in 1919, has historically produced 26,000 barrels of oil.

A third party report has estimated some 3.1mln barrels of 2C contingent oil resources at Hardstoft, meanwhile more prospective resources are estimated as 18.5mln barrels of oil equivalent.

It is believed that modern production methods could unlock commercial oil flows from the Hardstoft reservoirs.

Tue, 04 Oct 2016 07:38:00 +0100
<![CDATA[RNS press release - Assignment of interests in East Midlands Licence ]]> Tue, 04 Oct 2016 07:00:00 +0100 <![CDATA[Media files - Europa Oil & Gas (Holdings) Plc on cusp of break even at US$30 a barrel ]]> Mon, 03 Oct 2016 15:46:00 +0100 <![CDATA[News - Europa Oil & Gas highlights strong annual performance ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has reported on what chief executive Hugh Mackay has described as a strong performance in the face of difficult market conditions.

“We have reduced costs by one third, our UK production is set to double, we are preparing to drill a high impact well onshore UK at Holmwood, we have delivered three deals, landed seven new licences in the UK and Ireland and perhaps most importantly built a leading position in Atlantic Ireland,” Mackay said.

Reporting on the twelve months to July 31, Europa said group revenue amounted to £1.3mln compared to £2.2mln. Cost of sales was cut by 33% and administrative expenses were 39% lower, the company added.

Production from Europa’s UK onshore assets amounted to 123 barrels oil equivalent per day for the year.

A pre-tax loss of £1.9mln included a £1.2mln write off against the Béarn des Gaves exploration project.  Excluding the exploration write off a £0.7mln loss narrowed compared to a corresponding figure of £0.8mln a year ago. Overall, Europa made a £1.6mln loss after tax.

It ended the year with a £1.7mln net cash balance.

Europa’s focus in the year were its growing portfolio offshore Ireland, the advancing Wressle discovery and the preparations for the upcoming Holmwood exploration well which is a follow on to the breakthrough Horse Hill well near Gatwick airport.

The Irish portfolio features a number of “company making” assets, Mackay highlights.

“The tide is turning in Atlantic Ireland: the 2015 Licensing Round was the most successful licensing round ever in Ireland. Major oil companies are back and have already begun substantive work programmes.

“This is a remarkable outcome given sub $50 oil prices and in due course we expect that this activity will likely result in exploration drilling.

“We will continue to mature our Irish portfolio with the intention of delivering half a dozen drill-ready prospects – any one of which has the potential to be a company maker for Europa.”

Mon, 03 Oct 2016 07:28:00 +0100
<![CDATA[RNS press release - Final Results for the year to 31 July 2016 ]]> Mon, 03 Oct 2016 07:00:00 +0100 <![CDATA[News - Europa boss Hugh Mackay is excited as Holmwood seeks to repeat Horse Hill's success ]]> Europa Oil & Gas Plc (LON:EOG) chief executive Hugh Mackay has told Proactive Investors he is very excited about the Holmwood prospect, a Horse Hill lookalike in Southern England’s Weald basin.

Mackay’s comments come as the group has unlocked £600,000 from a divestment of a small stake in the Wressle field, another new onshore UK discovery. The cash is already earmarked for Holmwood, where drilling is planned for 2017.

Holmwood is just 12 kms due east of Horse Hill – or ‘Gatwick Gusher’ as some call it - and, according to the Europa boss, there’s reason to believe drilling next year could see a repeat success.

Those following developments in the weald closely were mindful of the follow on potential being presented to Europa’s Holmwood prospect as the Horse Hill programme advanced and eventually delivered breakout success.

By the time UKOG, Horse Hill’s largest stakeholder teamed up with Europa last June, the cat was well and truly out of the bag.

Mackay, in an interview with Proactive Investors’ Stocktube, talked through the potential for similarly between Horse Hill and Holmwood.

“We can see a lot of technical read across from the Horse Hill success to Holmwood,” Mackay said.

“And whilst we’re not going to adjust the prospective resources or the risks [ahead of drilling], we feel that Horse Hill is a very relevant well, there is good technical read across and it is certainly making us feel better about the prospect of finding hydrocarbons at Holmwood.

He emphasised an excitement at the possibility that success in the Kimmeridge targets – those proved by the Horse Hill breakthrough – could confirm that zone as a “missed pay” in the UK’s Weald basin.

It was Horse Hill’s Kimmeridge discovery that prompted a number of very large, headline grabbing estimates for the project. Third party analysis points to the potential for billions of barrels of oil to be in place through the basin, which spans a large portion of southern England.

More wells are needed to prove the extent of these resources, as well as the commercial case – though another result like Horse Hill will further quieten the sceptics.

Tue, 27 Sep 2016 13:05:00 +0100
<![CDATA[Media files - Europa Oil & Gas boss says Wressle deal is "win-win" ]]> Tue, 27 Sep 2016 10:31:00 +0100 <![CDATA[News - Europa Oil & Gas cashes out part of Wressle to Union Jack Oil ]]> Europa Oil & Gas Holdings Plc (LON:EOG)  has agreed to sell a 3.34% interest in the Wressle field to Union Jack Oil PLC (LON:UJO) in a deal valuing the former’s original stake in the project at £6mln.

Union Jack Oil is paying £600,000 in cash for the 3.34% stake and as a result its total interest in Wressle, in North Lincolnshire, rises to 11.67% from 8.8%.

“We consider this transaction to represent a sensible monetisation of part of the asset now it has been largely de-risked, whilst still retaining sizeable exposure to production and upside on the other reservoirs,” said Hugh Mackay, Europa chief executive.

“Importantly, this transaction provides investors with a point of reference for the value of our remaining 30% interest in the licences.”

Europa retains 30% of the project and based on the deal terms its remaining interest is worth £5.4mln, compared to a market capitalisation of around £11.4mln.

Wressle, which is operated by 25% stakeholder Egdon Resources Plc (LON:EDR), is expected to start oil production at a rate of 500 barrels of per day by early 2017.

News of the transaction comes after a new competent person’s report for the field was unveiled on Monday. The third party assessment confirmed the field’s commerciality.

Wressle is being fast-tracked to production following a successful exploration well which achieved excellent flow rates in testing last summer.

Egdon Resources highlighted on Monday that the new estimate - 14.18mln barrels of oil initially in place, of which 2.15mln barrels is considered discovered -  had exceeded its expectations.

Egdon managing director Mark Abbott said: “The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas reserves and contingent resources exceeding our original pre-drill estimates.”

Europa’s Mackay, meanwhile, said it would use the money from the Wressle stake sale to fund drilling on the Holmwood project, in south east England, close to the Horse Hill discovery near Gatwick airport.

Holmwood is rated by Mackay as ‘the best undrilled conventional prospect onshore UK’, and he noted that drilling is expected there in 2017 subject to securing permits and permissions.

Highlighting the depth of Europa’s portfolio, he added: “PEDL180 and 182 are just two of a portfolio of licences we hold. 

“These include three UK onshore fields which in H1 produced 124 boepd net to Europa; PEDL143 containing the Holmwood prospect in the Weald Basin, which we rate as the best undrilled conventional prospect onshore UK; and seven licences offshore Ireland which we estimate to have gross mean un-risked prospective and indicative resources of more than 4 billion barrels of oil equivalent and 1.5 tcf of gas.”

Europa has a 40% stake in Holmwood, alongside partners which include Horse Hill driller UK Oil & Gas Investments Plc (LON:UKOG).

Pre-drill estimates put the exploration target at 5.6mln barrels, made in 2012, though that does not include the potential in the deeper plays confirmed in the Horse Hill well.

The Horse Hill well last year tested more than 1,500 barrels of oil per day in aggregate from a number of reservoir intervals.

Tue, 27 Sep 2016 07:39:00 +0100
<![CDATA[RNS press release - Sale of Interest in Wressle Discovery ]]> Tue, 27 Sep 2016 07:00:00 +0100 <![CDATA[News - Wressle start-up expected to double production for Europa Oil & Gas Plc ]]> The Wressle field is expected to double Europa Oil & Gas Plc’s (LON:EOG) net production when it comes online in early 2017.

Wressle is being fast-tracked to production following a successful exploration well which delivered excellent flow rates in testing last summer.

A new third party assessment has now rubber stamped the field’s commerciality.

“Based on the results of this independent CPR, not only is Wressle expected to more than double our net production when it comes on stream in early 2017 at a gross rate of 500bopd, but it also substantially increases Europa’s asset backing,” said Hugh Mackay, Europa chief executive.

“In addition to the immediate boost to our proven reserves, the CPR highlights significant contingent resources in the Penistone Flags at Wressle and work will shortly commence on drawing up a development plan to monetise this reservoir.”

Project operator Egdon Resources Plc (LON:EDR) in a separate statement highlighted that the new estimate - 14.18mln barrels of oil initially in place, of which 2.15mln barrels is considered discovered -  had exceeded its expectations.

Egdon managing director Mark Abbott said: “The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas Reserves and Contingent Resources exceeding our original pre-drill estimates. ”

Egdon Resources owns 25% of Wressle, whilst AIM quoted peers Europa Oil & Gas Plc (LON:EOG) and Union Jack Oil PLC (LON:UJO) have 33.34% and 8.33% respectively. Privately owned Celtique Energie has the other 33.3% of the project.

Wressle oil is found across three reservoirs; the Ashover Grit, Wingfield Flags and Penistone Flags.

Some 620,000 barrels of oil are classified as proved and probably (2P) reserves, and that oil is the basis of the initial field development plan. The reserves are from the Ashover Grit and Wingfield Flags, whereas 1.53mln barrels of contingent resources as estimated in the Penistone Flags reservoir interval.

Production is expected to focus on the Ashover Grit, and it is expected to include the monetisation of gas flows into pipeline infrastructure.

Ashover Grit is expected to deliver gross production rates of around 500 barrels per day by early 2017.

Egdon added that the nearby Broughton North field, located immediately to the north-west in a fault block, is now see as a relatively low risk - 40-49% chance of success – near term drill target.

Broughton North has also been evaluated and it is estimated to host some 3.43mln barrels of oil in the Ashover Grit and Penistone Flags reservoir sands.

Mon, 26 Sep 2016 07:56:00 +0100
<![CDATA[RNS press release - CPR on Wressle Discovery & Broughton North Pro ]]> Mon, 26 Sep 2016 07:00:00 +0100 <![CDATA[News - Europa continues to unearth Ireland’s exploration potential ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) continues to unearth and detail the potential within its recently expanded exploration portfolio in the Atlantic waters off Ireland’s west coast.

It estimated between 300mln and 600mln barrels of indicative oil equivalent resources in the Licensing Option 16/22 in the Padraig Basin, which is located at the eastern margin of the Rockall Trough.

This latest technical update, released on Monday, covered an area in one of the seven licences and licence options in the Europa portfolio.

At its crux the exploration concept is typical of the group’s portfolio – the area is believed to host reservoirs like those discovered in a geologically similar area on the other side of the Atlantic off the Canadian coast (specifically those discovered by StatOil at the Flemish Pass).

Europa has staked 100% of these areas and the plan is to bring in partners to participate in exploration drilling.

“Following Statoil’s exploration success at the play-opening Bay du Nord oil discovery in the Flemish Pass basin offshore Newfoundland there is considerable industry interest in Flemish Pass analogues being found offshore west Ireland,” said Hugh Mackay, Europa chief executive.

“Whilst most of the industry is currently focused on exploring for this play in the South Porcupine basin our restoration of the conjugate margin prior to Atlantic seafloor spreading suggests the possibility that the Padraig basin may be a better fit with the Flemish Pass basin.

“The potential of the Flemish Pass play in Ireland is currently being pioneered in the South Porcupine basin by the oil majors.”

Mackay added that the Padraig Basin would likely be focus of follow on phases of exploration.

“Whilst the Padraig Basin play is currently at an early exploration stage and at the higher risk end of the exploration spectrum, we have a work programme to de-risk this evolving play. 

“In particular we are hopeful that successful reprocessing of historic 2-D seismic might allow us to mature existing leads to drillable prospect status at comparatively low cost and without the necessity to acquire new seismic data.”

Mon, 22 Aug 2016 12:02:00 +0100
<![CDATA[RNS press release - Technical Update on Offshore Ireland Licence ]]> Mon, 22 Aug 2016 07:00:00 +0100 <![CDATA[Media files - Europa Oil & Gas doubles down on UK licences ]]> Mon, 15 Aug 2016 13:45:00 +0100 <![CDATA[News - Europa raises stakes in UK onshore projects in deal with Shale Petroleum Ltd ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) has increased its footprint onshore UK by acquiring Shale Petroleum (UK) Limited.

The deal, for a nominal £1 fee, sees the company raise its stakes in the PEDL299 and PEDL343 licences which were awarded in the 14th Licensing Round.

Europa will now have a 33.32% interest in the INEOS operated PEDL299 (up from 16.66%) which includes the Hardstoft oil field, meanwhile its stake in the Third Energy operated PEDL343 where the focus is the appraisal of the Cloughton gas discovery increases to 45% (from 22.5%).

“We are pleased to increase our equity in two 14th round licences and provide our investors with exposure to two high quality and low risk projects,” said Hugh Mackay, Europa chief executive.

“The Hardstoft oil field in the East Midlands Petroleum Province was discovered in 1919 by the UK’s first ever exploration well.”

“A competent person’s report on Hardstoft, issued by joint venture partner Upland Resources, identified gross 2C contingent resources of 3.1 million barrels oil (mmbo) and gross 3C contingent resources of 18.5 mmbo in PEDL299. PEDL343 is in the Cleveland basin and contains the Cloughton gas discovery made in 1986 and tested gas to surface from Carboniferous sandstone reservoir.”

Mackay added: “We are excited by the possibility of producing commercial quantities of gas from this reservoir interval.”

Mon, 15 Aug 2016 07:33:00 +0100
<![CDATA[RNS press release - Acquisition of Shale Petroleum (UK) Limited ]]> Mon, 15 Aug 2016 07:00:00 +0100 <![CDATA[News - Europa Oil & Gas secures extension for Irish exploration areas ]]> Europa Oil & Gas (Holdings) Plc (LON:EOG) has extended the first exploration phase for some of its key licences off Ireland’s west coast.

Phase one of Frontier Exploration Licences 2/13 and 3/13 has been extended by a year, and now ends on July 4 2017.

The exploration company told investors that extension allows it to mature existing prospects and perform detailed mapping of all potential prospective levels on both licences, whilst at the same time seek partners for the next phase of work.

Europa has already outlined prospects containing some 1.5bn barrels of oil equivalent in these exploration areas. Meanwhile, recently added Licensing Option 16/2, which adjoins FEL 3/13, is seen to host prospects with around 900mln barrels of resource potential.

Exploration targets in this area have been partially de-risked by successes in other similar areas in the Atlantic Margin, and the exploration concept has been further validated by the influx of major oil and gas firms via a recent government licensing round.

Hugh Mackay, Europa chief executive, said: “Recent discoveries offshore Newfoundland and Senegal, backed up by our own technical analysis of our proprietary 3D seismic, demonstrate the clear potential for both FEL 2/13 and 3/13 to hold new exploration plays and new exploration prospects.

“Thanks to this 12 month extension, we can now investigate these further, with the aim of securing a farm out partner for drilling.”

In particular Mackay highlighted what he described as “clearly high potential’ of the Cretaceous plays in the area.

“We believe there is scope to further enhance this potential with additional plays in the Syn-rift, Pre-rift and Tertiary. 

“Whilst we hope that all of these plays are proved successful in the South Porcupine basin by drilling, at this early stage in the exploration of a frontier basin, it is beneficial to have a diversity of plays in our portfolio.”

Tue, 02 Aug 2016 07:19:00 +0100
<![CDATA[RNS press release - Extension of 100%-owned offshore Ireland Licences ]]> Tue, 02 Aug 2016 07:00:00 +0100 <![CDATA[Media files - Corrib drilling could begin sooner than planned, says Europa Oil & Gas (Holdings) Plc CEO ]]> Mon, 01 Aug 2016 10:32:00 +0100 <![CDATA[News - Europa Oil & Gas sees a lot more gas near Shell’s Corrib gas field ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has given investors insight into newly added acreage, offshore Ireland, which is sees as a lower risk opportunity.

In the recent offshore licensing round Europa secured Licensing Options 16/20 and 16/21 which are located in the vicinity of Ireland’s landmark Corrib gas field.

The exploration acreage spans nearly 2,000 square kilometres of the Greater Corrib area of the Slyne basin, off the coast of county Mayo, and as such it is near existing infrastructure and is in shallower water that other areas auctioned off by the Irish government this year.

Europa sees potential for some 1.5 trillion cubic feet of gas in the area, following its initial assessment, and like its other Irish acreage the company plans to bring in a partner to help take the venture forward.

The next phase of work is expected to see the reprocessing of historic 3D seismic data.

Hugh Mackay, Europa chief executive, told investors that it is hoped data reprocessing could sufficiently de-risk exploration targets to the point that they can be deemed ‘drillable’.

 “Not everything offshore west Ireland is high risk, deepwater, frontier exploration.  LOs 16/20 and 16/21 are in the greater Corrib area of the Slyne Basin and represent exploration in a proven play, in the vicinity of a gas field that is newly on production and with substantial gas infrastructure already in place,” he said.

“Clearly we are at a very early stage in the exploration cycle, however, equally clearly we have a well defined work programme to de-risk the play.”

The Shell operated Corrib gas field reached a long awaited milestone with the start of production earlier this year. It followed many years of delays relating to the development of export infrastructure from the offshore location.

Corrib comprises 6 wells tied to pipelines into a facility onshore at Bellanaboy Bridge.

The Corrib field is thought to contain about 1 trillion cubic feet of gas reserves.

Across the nearby LO 16/20 and LO 16/21 Europa sees potential for a total of 1.5 trillion cubic feet of gas, with 1TCF of prospective resources seen in 16/20 and 0.5TCF  of  indicative resources estimated for 16/21. The exploration area comprises water depths from 300 metres to 2,000 metres.

Today’s update further bolsters Europa’s portfolio of potentially significant exploration ventures in Irish waters.

As Mackay highlights, the company now sees potential for some 4bn barrels of oil equivalent and 1.5TCF of gas across seven licence areas offshore Ireland.

“We feel there is an excellent balance between these two LOs and our four licences in the South Porcupine Basin and our Padraig Basin licence,” he added.

Mon, 01 Aug 2016 08:42:00 +0100
<![CDATA[RNS press release - Technical Update on Offshore Ireland Licences ]]> Mon, 01 Aug 2016 07:00:00 +0100 <![CDATA[News - Europa Oil puts on a spurt after non-exec bumps up stake ]]> Christian William Ahlefeldt-Laurvig, non-executive director of Europa Oil & Gas (Holdings) PLC (LON:EOG) has bumped up his shareholding in the company.

He purchased 9.5mln shares at 4p a pop, taking his holding up to 35mln shares, equivalent to around 14.3% of the company’s issued share capital.

The purchase was announced just before the end of trading on Wednesday, prompting the shares to close at 4.125p, up from 3.96p on Tuesday’s close.

The shares made further progress this morning, advancing 17.6% to 4.85p in the first hour of trading.

The shares are up 57.5% year-to-date.

Read: Europa Oil & Gas expands Irish farm-out Watch: Recent licence wins “fantastic”, says Europa Oil & Gas CEO


Thu, 28 Jul 2016 08:42:00 +0100
<![CDATA[RNS press release - Directors Dealings ]]> Wed, 27 Jul 2016 16:08:00 +0100 <![CDATA[News - Europa Oil & Gas expands Irish farm-out ]]> Europa Oil & Gas Holdings Plc (LON:EOG) has revealed new estimates for several exploration targets, each seen between 300mln and 1bn barrels, in its recently acquired acreage.

Licensing Option 16/19 was awarded to Europa in Ireland’s latest licencing round, and the highly prospective acreage is now being rolled into an ongoing farm-out process alongside an adjacent area.

The exploration company highlighted that ‘Cretaceous submarine channels’ seen in its neighbouring FEL 2/13 cross into LO 16/19.

“Europa has a deep technical understanding of the Cretaceous fan play in the Porcupine Basin and has insights that allowed us to map submarine fans in LO 16/19 fed directly by submarine channels in FEL 2/13,” said Hugh Machay, Europa chief executive.

“There is strong technical and commercial synergy with our existing licences in FEL 2/13, FEL 3/13 and LO 16/2 and we can immediately include this award in the data room for the ongoing farm-out of these licences.”

Mackay added that the recent entry of majors and super-majors into the basin is already having an impact in what he describes as a ‘hotspot’.

“Europa has prime acreage in what is clearly an exploration hotspot and we look forward to developments with great interest,” he added.

Mon, 18 Jul 2016 07:58:00 +0100