Big Picture – A Deep Dive Examination of Europa Oil & Gas (Holdings) Plc
Europa Oil & Gas (Holdings) Plc Snapshot
- Europa Oil & Gas (Holdings) plc is an AIM listed oil and gas company with a diverse portfolio of hydrocarbon assets at various stages of the development cycle including high impact exploration in Ireland and revenue from oil production in the UK.
- Europa is a leading explorer in Atlantic Ireland with six exploration licences.
- Estimated combined gross mean un-risked prospective resources of 6.2 billion barrels of oil and 2.5 tcf of undiscovered gas initially in place in Atlantic Ireland.
- Approximately 95 barrels of oil per day are currently produced from three onshore UK oilfields and net 150 bopd awaiting development at Wressle.
- Europa is run by a highly experienced management team with a proven track record in generating substantial shareholder value.
UK Production - Crosby Warren
The Company produces from three oilfields in the East Midlands - a 100% working interest in both the West Firsby and Crosby Warren fields and a 65% non-operated interest in Whisby. Overall daily production is stable at approximately 110 barrels of oil, all of which is transported by tanker to the refinery at Immingham in NE Lincolnshire.
The Crosby Warren field started production in 1987 and is located in the grounds of the steelworks at Scunthorpe. Two production wells operate here on traditional beam pumps or 'nodding donkeys', producing ~30bopd.
Production from the Ashover/Wingfield reservoir units at the Wressle field is anticipated to commence in 2017. Forecast gross production at startup is 500bopd gross (100bopd net to Europa).
Monthly oil production for Crosby Warren, West Firsby and Whisby is provided to OGA (The Oil and Gas Authority) using the UK PPRS "Petroleum Production Reporting System". Data can be viewed on the OGA website.
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Irish Atlantic Margin
Europa is involved in six licences in the Irish Atlantic Margin, covering an area of 4,986 km2. Four of these licences are in the South Porcupine basin, targeting prospectivity on multiple levels including the Cretaceous; the pre-rift; syn-rift; and post-rift plays.
The Cretaceous stratigraphic play comprises Early Cretaceous turbidite sandstone reservoirs; charged by mature Late Jurassic and Early Cretaceous source rocks; and contained in stratigraphic traps with elements of structural closure. The Cretaceous play in Ireland is essentially undrilled and is considered to be analogous to the same play in the equatorial Atlantic Margin province that has delivered the Jubilee and Mahogany oil fields.
Just as Jubilee and Mahogany inspired operators including Europa to target Early Cretaceous turbidite sandstone reservoirs in the Porcupine basin, recent discoveries in other Atlantic basins have opened up the potential for additional plays to be targeted in the Irish Atlantic Margin. In the Flemish Pass basin offshore Newfoundland, Statoil has pioneered the pre-rift play following the Bay du Nord discovery. Offshore Senegal, Cairn’s SNE discovery has opened up the potential for early post-rift sculptural events in the Porcupine. Having its own proprietary 3D seismic provides Europa with valuable technical insights and based on these the Company believes there are at least three essentially undrilled exploration plays in the South Porcupine Basin.
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Hugh Mackay, CEO
Hugh, a geologist who joined Europa in 2011, has a wealth of experience in the oil and gas sector, including eight years at BP in a variety of roles in the UK, Oman and Egypt, then at Enterprise Oil in leadership roles, culminating as head of the SE Asia division. Hugh sold the Peak Group to AGR ASA for $50 million and founded Avannaa Resources, a leading mineral exploration company in Greenland. Hugh has a BSc in Geology from the University of Edinburgh and a Sloan MSc in Management from London Business School.
Phil Greenhalgh, Finance Director
Phil graduated from Imperial College with a BEng in chemical engineering and subsequently became a member of the Chartered Institute of Management Accountants. He began his financial career as Financial Controller with Kelco International, a subsidiary of Merck & Co. He moved to Monsanto plc before becoming Finance Director with Pharmacia Ltd. He moved to Whatman plc, a FTSE 250 company, where he led the financing of a €50m company acquisition, oversaw a substantial share price recovery and was a key player in the Whatman turnaround.
William Ahlefeldt, Non-executive Director
William helped take Europa onto AIM and remains its largest shareholder. He started his career at Maersk as a petroleum engineer followed, in 1987, by IPEC, a London based consultancy, where he was responsible for field reserves estimations. In 1990, he became an independent consultant, undertaking field and portfolio evaluations for acquisitions and field development work on a range of projects in the North Sea, former Soviet Union and Middle East. He is also the founder of IFX Infoforex. William has continued to be active in petroleum engineering consulting, carrying out portfolio evaluations and project management.
Simon Oddie, Non-Executive Chairman Simon has over 40 years of experience as a petroleum engineer, technical consultant, manager and investment adviser in upstream oil and gas. He has worked with Schlumberger, ERC Energy Resource Consultants, Enterprise Oil and Gemini Oil and Gas Advisors LLP and gained extensive experience in technical, senior management and finance functions. He was CEO of Enterprise Italy and architect of the Gemini Oil and Gas royalty funds and has a proven track record in dealing with investors, and initiating and executing oil and gas deals. Simon completed the Advanced Management Program at Harvard Business School, holds an MSc. in Petroleum Engineering from Imperial College and a BSc (First Class) in Electronics from Manchester University.
Brian O'Cathain, Non-executive Director Brian is a geologist and petroleum engineer with over 30 years' experience in senior technical and commercial roles in upstream oil and gas E&P companies, including Shell International, Enterprise Oil and Tullow Oil plc. He has experience in working in West Africa, North Africa, onshore Europe, the North Sea, the Gulf of Mexico, South Asia and offshore Ireland. He was the Managing Director of Tullow Oil's International Business during the Energy Africa acquisition, and served as Chief Executive of Afren plc from 2005 to 2007. He was also the Chief Executive of Petroceltic International plc from 2007 to 2016. During this period Petroceltic discovered the Ain Tsila gas condensate field in Algeria, and concluded a nil-premium merger with Melrose Energy. Mr O'Cathain holds a first-class honours degree in Geology from the University of Bristol.
Roderick Corrie, Non-executive Director
Roderick is a graduate of Cambridge University and an Associate of the Chartered Institute of Banking. He is a strategic adviser and financier with a variety of companies and holds or has held executive or non-executive roles in corporate finance, strategic advice, TV advertising, financial services, health, property, internet services, mineral exploration & development, investment and manufacturing companies.