Europa Oil & Gas Holdings PLC (LON:EOG) is predicting its UK production profile will “more than double” if its Wressle project is approved for development by the next UK government.
In a statement to be delivered at its AGM, the AIM-listed oiler, which holds a 30% interest in the East Lincolnshire project, said if the government ruling on the development, expected once the election is out of the way, was positive, it will have a “clear line of sight” towards bringing it into production next year.
READ: Europa Oil & Gas Holdings names Simon Oddie as interim CEO as Mackay steps down
Under the proposed development plan, Wressle will begin production at an initial gross rate of 500 barrels of oil per day (bopd), which will more than double Europa’s UK onshore production to around 240 bopd.
Looking elsewhere, in Ireland, the company said that despite progress on securing farm-in partners for its licences being slow to date, news that the Irish government has highlighted gas as a key transitional fuel as the country moves towards renewables was “encouraging” for its Inishkea licence, which is located close to the Corrib gas field in the Slyne Basin.
“We believe Inishkea has the potential to play an important role in helping to satisfy Ireland’s future energy needs. With farmout discussions continuing with a number of parties, it appears we are not alone”, the company said.
Europa is also continuing its exploration activities in Morocco, where it acquired the Inezgane offshore licence in September this year.
The company said “key elements of a working hydrocarbon system” had been identified and that it currently intends to process 1,300 square kilometres of 3D seismic data that has already been acquired over the acreage. Following this, it intends to build an inventory of prospects to drill.
“Securing a new appraisal/development asset, completing a farm-out for Inishkea with a view to drilling a well within 12-18 months of signing, advancing and de-risking Inezgane, and, bringing Wressle into production, subject to a favourable ruling, are key objectives for the year ahead”, said Simon Oddie, Europa’s interim chief executive and executive chairman.
“Europa is in a position to deliver on multiple fronts thanks to the efforts of our first class technical, operational and management teams… We look forward to building on our achievements to date and in the process delivering on our objective to generate value for all our shareholders”, he added.
In mid-morning trading on Wednesday, Europa's shares were steady at 1.8p.
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