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Europa Oil & Gas shares extra stake in Hardstoft field with Upland Resources

Published: 07:38 04 Oct 2016 BST

Onshore oil well
Hardstoft hosts an estimated 18.5mln barrels of oil 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.

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