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.”