Europa Oil & Gas (Holdings) plc /
Index: AIM / Epic: EOG / Sector: Oil & Gas
4 December 2017
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
P2034
Offshore Licence Sale
Europa Oil & Gas (Holdings) plc, the UK and Ireland focussed exploration, development and
production company, is pleased to announce the sale of its 50%
interest in Promote Licence P2304 (UKCS Block 41/24) to Egdon
Resources plc (‘Egdon’). Europa’s joint venture partner Arenite
Petroleum Limited (‘Arenite’) has also sold its 50% interest to
Egdon as part of the same transaction. P2304 is located to the
immediate south of Egdon’s 100% owned licence P1929 (UKCS Blocks
41/18 and 41/19) offshore North Yorkshire.
The consideration comprises the immediate reimbursement of the
2017 licence rental, OGA Levy and vendors’ legal costs (c. £15,000
in total) and future staged payments that have the potential to
total £1.45million gross contingent consideration on the successful
completion of various potential exploration activities and/or on
reaching certain production milestones, as summarised below:
- £50,000 cash payment on completion of the acquisition of a 3D
survey over any part of the Licence
- £100,000 cash payment on completion of the drilling of the
first well located wholly or partly within the area covered by the
Licence
- £100,000 cash payment on first production, other than testing,
from any well located wholly or partly within the area covered by
the Licence
- £200,000 cash payment on reaching a total production of 5
billion standard cubic feet of gas (‘bcf’) (or oil equivalent) from
any wells located wholly or partly within the area covered by the
Licence
- £1,000,000 cash payment on reaching a total production of 20
bcf (or oil equivalent) from any wells located wholly or partly
within the area covered by the Licence
The transfer of interests in P2304 from Europa and Arenite to
Egdon is subject to OGA approval.
Europa's CEO, Hugh Mackay, said:
“The sale of our interest in P2304 eliminates our exposure to
ongoing costs whilst retaining our exposure to future drilling
success. Furthermore, combining P2304 with Egdon’s licence is
anticipated to enhance the possibility of delivering farmout
success to the benefit of all parties to the transaction.
Today’s disposal is in line with our strategy to optimise the risk
/ reward trade off across our onshore UK and offshore Ireland exploration portfolio. We
continue to focus on securing farm outs, specifically within our
industry leading portfolio of offshore Ireland licences, and I look forward to
providing further updates in due course.”
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
* * 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.
In 2017 Europa produced 113 boepd. Its highly prospective
exploration projects include the Wressle development in the UK and
seven licences offshore Ireland
with the potential to host gross mean un-risked prospective and
indicative resources of 4.7 billion barrels oil equivalent and 1.5
tcf gas across all seven licences.
.
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.