logo-loader
viewEuropa Oil & Gas Holdings PLC

Europa Oil & Gas set for low-cost production at Wressle field

Snapshot

  • Low-cost Wressle to transform production
  • High impact exploration in Atlantic Ireland 
  • The company was recently awarded an asset offshore Morocco 
oil rig

Quick facts: Europa Oil & Gas Holdings PLC

Price: 1 GBX

AIM:EOG
Market: AIM
Market Cap: £4.45 m
Follow

What it does

Europa Oil & Gas PLC (LON:EOG) is an AIM-listed oil and gas exploration and production company with assets in Europe and Africa.

How is it doing?

Onshore UK

Europa’s UK business is poised with the promise of low-cost, cash generative production onshore thanks to the long-awaited delivery of the Wressle oil field.

The company holds 30% interest in the Wressle onshore oil field in North Lincolnshire, which was granted planning permission in January after operator Egdon Resources lodged an appeal against the local council.

In April, Europa chief executive told investors that the pending start-up of the Wressle field will transform the company’s production and revenue profile.

A fresh review of Wressle in March determined that it was “economically robust in the current low oil price environment”.

Modelling by operator Egdon Resources in March estimated a US$17.62 per barrel break-even price for the field.

Once established Wressle will yield around 500 barrels of oil per day (bopd), and, as such contributions from the field will double Europa’s net production volumes.

Ireland

Europa holds six licences in Atlantic Ireland which, in aggregate, cover an area of over 4,985 sq km.

Acreage includes six play types in three basins and contain over 30 prospects and leads that potentially hold gross mean un-risked prospective resources of 6.4bn barrels oil equivalent and 1.5 tcf gas.

Six prospects at drill-ready status including: Inishkea gas project in LO 16/20 in the Slyne Basin; Kiely East in FEL 2/13 and Edgeworth in FEL 1/17 in the South Porcupine Basin. 

Inishkea is regarded by Europa as its flagship project due to its location in a play that has been proven by the Corrib gas field, its potential to be larger than Corrib, its proximity to existing processing facilities, and Ireland’s need for more gas supplies.

Negotiations have been ongoing for farm-in agreements to three Irish licences (LO 16/20, FEL 1/17 and FEL 3/13).

In January 2020, it was revealed that a major international oil company had dropped out of the process amid its own internal business review.

Europa hopes a deal will see it fully carried on a well on each licence and retain a material interest in each.

Site surveys for wells at Inishkea, Kiely East and Edgeworth are under application subject to regulatory approval.

Exploration areas with “limited” potential, Licensing Option (LO) 16/19, in the South Porcupine Basin, were relinquished in February.

Morocco

Europa entered Morocco in September 2019, landing an eight-year licence for the Inezgane area in partnership with national energy company ONHYM.

There is a number of "large structural traps located on the edges and above salt diapirs" across the 11,228 square kilometres area, each holding up to 250mln barrels of crude.

What the boss says

“Together with measures we have taken to reduce our already low cost base and, following the repositioning of our portfolio towards gas, we believe Europa will be well placed to withstand a sustained period of oil price volatility and weakness,” Oddie, Europa’s chairman and interim chief executive said in a statement accompanying the oiler's interim results.

Video

Inflexion points

  • Start-up at Wressle
  • Farm-in at Irish developments

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Europa Oil & Gas Holdings PLC named herein, including the promotion by the Company of Europa Oil & Gas Holdings PLC in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Europa Oil's Simon Oddie talks Wressle, partnering discussions and 2020 plans

Europa Oil & Gas Plc’s (LON:EOG) Simon Oddie caught up with Proactive's Andrew Scott to discuss the recent Wressle development, onshore UK, which received a long awaited greenlight in a planning permission dispute. Europa owns 30% of the project which promises to double Europa’s oil...

on 30/1/20

3 min read