Europa Oil & Gas (Holdings) plc /
Index: AIM / Epic: EOG / Sector: Oil & Gas
08 March 2017
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
US$6 million
Farm-Out of Offshore Ireland Licence to Cairn Energy
Europa Oil & Gas (Holdings) plc, UK and Ireland focussed exploration, development and
production company, is pleased to announce that it has signed a
Farm-Out Agreement (`FOA') with a wholly owned subsidiary of
leading operator Cairn Energy PLC Group (LSE: CNE) in relation to a
70% interest in and operatorship of Licensing Option 16/19 (‘LO
16/19’ or the ‘Licence’). Europa will retain a 30% interest in the
Licence, which is located on the Western flank of the South
Porcupine Basin, offshore Ireland. Click on the link to view
a map http://www.europaoil.com/OperationsIreland.aspx
The FOA, which is subject to Irish Government approval, has been
signed with Capricorn Ireland Limited (‘Capricorn’), a fully owned
entity of Capricorn Energy Limited which is a wholly owned
subsidiary of Cairn Energy PLC.
Europa to be fully carried on
US$6million work programme
- Capricorn to fund a US$6 million
work programme, which includes the acquisition, processing, and
interpretation of 3D seismic, to acquire a 70% interest in and
operatorship of LO 16/19
- 3D seismic to be acquired in 2017 and processed product will be
delivered in 2018
- Future exploration will be based on the results of detailed
prospect mapping work
- Europa will fund its 30% interest in LO 16/19 on completion of
the fully carried work programme
Existing data indicates presence of
Cretaceous submarine fans on LO 16/19
- Europa previously provided a technical update on LO 16/19 on
18 July 2016
http://www.europaoil.com/documents/160718LO16_19technicalupdate.pdf
- LO 16/19 is covered by a sparse grid of 2D seismic and whilst
detailed prospect mapping is not possible, Europa’s proprietary 3D
in its adjacent Frontier Exploration Licence (‘FEL’) 2/13 is
interpreted to contain Cretaceous submarine channels feeding
submarine fans in LO 16/19
- The Directors believe that LO 16/19 holds Cretaceous fans
similar to those developed in Europa’s 100% owned FEL 3/13 where
three prospects have been identified with combined gross mean
un-risked prospective resources of 1.5 billion barrels of oil
equivalent
- Europa will apply its considerable experience in mapping
Cretaceous fans on 3D seismic in the Porcupine to the new 3D to be
acquired over LO 16/19
Further farm-outs are being targeted
of Europa’s leading licence position offshore Ireland
- Europa has seven offshore Ireland licences covering 5,818 sq km, six
play types, three basins, and twenty prospects and leads which
potentially hold gross mean unrisked resources of more than 4
billion barrels of oil equivalent and 1.5 TCF of gas (Europa
estimates)
- The FOA, which is the first by any company in Atlantic Ireland
since 2013, demonstrates Europa’s ability to execute its strategy
to secure partners to advance its offshore Ireland licences
- Europa is focussed on delivering farmouts on its remaining six
100%-owned licences
Europa CEO Hugh Mackay said, “We
are delighted to have secured a farm-in partner of the proven
calibre of Cairn, and also to accelerate exploration on the Licence
through the acquisition of 3D seismic this summer. We continue to
talk to other potential partners for our remaining six offshore
Ireland licences which provide us
with exposure to all the various play types being targeted in the
region: Paleocene; Cretaceous Shelf; Cretaceous Fan; Syn-rift;
Pre-rift; and Triassic gas.
“Activity across the Porcupine Basin is expected to increase
markedly this year and beyond: Providence Resources is expected to
drill the Druid prospect in 2017; two new exploration wells may be
drilled in 2018; and a natural conclusion to 3D seismic data
acquired this summer and last summer could be more exploration
drilling. In terms of acreage and number of licences, Europa
is a leading exploration company in Atlantic Ireland with a range
of prospects spanning deep water high risk frontier exploration to
shallow water, lower risk infrastructure-led exploration next to
the Corrib gas field. We believe Europa will benefit from any
exploration success in the region either as a trail-blazer or
fast-follower.”
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
Hugh Mackay |
Europa |
+ 44 (0) 20 7224 3770 |
Phil Greenhalgh |
Europa |
+ 44 (0) 20 7224 3770 |
Matt Goode |
finnCap Ltd |
+ 44 (0) 20 7220 0500 |
Simon Hicks |
finnCap Ltd |
+ 44 (0) 20 7220 0500 |
Frank Buhagiar |
St Brides Partners Ltd |
+ 44 (0) 20 7236 1177 |
Susie Geliher |
St Brides Partners Ltd |
+ 44 (0) 20 7236 1177 |
Notes
Europa Oil & Gas (Holdings) plc has a diversified portfolio
of multi-stage hydrocarbon assets that includes production,
exploration and development interests, in countries that are
politically stable, have transparent licensing processes, and offer
attractive terms. Its highly prospective exploration projects
include the Wressle oil development in the UK and seven licences
offshore Ireland with the
potential to host gross mean un-risked prospective and indicative
resources of more than 4 billion barrels oil equivalent and 1.5 TCF
gas across all seven licences. In 2016 Europa produced 123 boepd
from its portfolio of onshore UK licenses.
Qualified Person Review
This release has been reviewed by Hugh
Mackay, Chief Executive of Europa, who is a petroleum
geologist with 30 years' experience in petroleum exploration and a
member of the Petroleum Exploration Society of Great Britain, American Association of
Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information
in this release in the form and context in which it appears.