www.europaoil.com
Europa Oil & Gas is an active oil and gas explorer throughout the European region. It holds core producing oil assets in the UK, along with a wide range of exploration and appraisal projects in various stages of development in the UK, Romania, France and Western Sahara.
The Company currently produces oil from three UK onshore oilfields, with ongoing appraisal work in Romania. The Company also holds a key gas appraisal asset in southwest France. Exploration for both conventional and unconventional hydrocarbons is an integral part of the portfolio and the Company continues to pursue this upside potential in all areas.
Europa Oil & Gas: West Firsby-7 production restarts; to relinquish stake in Brodina concession
Europa Oil & Gas (LON:EOG) said this morning that production has restarted from the West Firsby-7 well in the East Midlands after a workover.
The news came as part of a wider update in which it was also revealed the group will relinquish its 28.75 per cent interest in Romania’s Brodina concession.
This, it says, will allow Europa to concentrate on its other assets including the Berenx onshore gas project in France, which is described as a potential company maker.
Exploration costs of £2.7million previously incurred on the Voitinel and Horodnic wells at Brodina will be written off, Europa said.
Chief executive Hugh Mackay added: “Today's news regarding the Brodina licence in Romania is an example of the disciplined approach we have applied to the management of our highly prospective asset base.
“We continually evaluate the risk/reward trade-off on all our licences and are committed to taking action, whether this involves progressing an individual project along the development curve or, in the case of Brodina, choosing to exit. It is a mark of the quality of our asset base, that Brodina is no longer a priority for Europa.
“The potential company maker that is Berenx, in onshore France, as well as our highly exciting exploration licences in the UK and Ireland remain our focus and I look forward to providing the market with updates on our progress."
Firsby-7, meanwhile, was shut-in on December 16 to fix a hole in a section of tubing. It restarted on Wednesday.
Average daily production for the six months to the end of January is predicted to be around 185 barrels a day.
This is marginally down on the rate before the shut in, but still in line with guidance and represents a 22 per cent improvement on the same period last year.
Mackay said: “I am delighted that our workover programme for West Firsby-7 has been completed on schedule and that the effect of the shut-in on our overall daily production has been kept to a minimum.
“Our UK producing assets generate considerable cash flow that covers our corporate overheads and at the same time underpins our market valuation.”
