Proactive Investors - Run By Investors For Investors

Europa Oil & Gas edges higher it looks forward to new Wressle appeal in November

If approved, Wressle's development would see Europa double its onshore UK production base.
oil and gas operations
The new public inquiry is expected to run for five days

Europa Oil & Gas Holdings plc (LON:EOG) shares edged higher on Monday as it told investors that a public inquiry will take place in November to hear an appeal against last year’s denial of planning permission to the Wressle field.

The new hearing is expected to start on 5 November and will last around 5 days.

Chief executive Hugh Mackay highlighted that the Wressle application had been recommended for approval by the North Lincolnshire Council’s planning officer and it was supported by an expert third party review undertaken on behalf of the council.

READ: Europa deals out of Holmwood project

“The partners [in the project] are not alone in believing the new proposals for the development of Wressle comprehensively address all the points raised by the planning inspector in the original appeal,” Hugh Mackay, Europa chief executive.

“At a proposed initial gross rate of 500bopd, Wressle has the potential to more than double Europa’s existing production to over 200bopd which, with Brent currently trading above US$70 per barrel, would generate a significant revenue stream for the company.

“We are therefore keen to bring this discovery online at the earliest opportunity and with this in mind we are looking forward to the public inquiry in November.”

In a note to clients, analysts at ‘house’ broker finncap commented: “While not critical to the investment case, this is still a valuable opportunity, potentially worth more than a third of Europa’s current market cap. A successful outcome will lead to rapid cash flow and underpin the shares.”

They added: “More material for the share price is the awaited outcome of farm-out negotiations that could see three high-impact exploration wells added to the calendar from 2020. Europa’s risk/reward profile continues to look extremely attractive.”

finnCap repeated a 45p target price on Europa O&G which in afternoon trading were 0.4% higher at 2.85p.

 -- Adds analyst comment, share price --

View full EOG profile View Profile

Europa Oil & Gas (Holdings) Plc Timeline

Related Articles

Hydrogen fuel gauge
April 05 2019
The company’s technology, DMG, uses a process of small scale gasification to turn waste products into energy rich clean synthetic gas from which electrical power and hydrogen can be produced
Touchstone
January 17 2019
An independent evaluation confirming the potential of the Ortoire block is a “significant milestone”, according to analysts at SP Angel
North Sea
May 08 2019
Operator Equinor is analysing all the data to assess options at Verbier and the rest of the licence

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use