Europa Oil & Gas (Holdings)
plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
12 July 2018
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
New Prospect
Inventory for Atlantic Ireland Licences and Launch of Farmout
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration, development and
production company, is pleased to report that is has completed an
updated prospect inventory for its 100% owned Frontier Exploration
Licences (‘FEL’) 1/17 and 2/13 in the South Porcupine Basin, Atlantic Ireland.
In addition, the Company has today launched a farmout process for
three of its licences in the South
Porcupine Basin FELs 1/17, 2/13 and 3/13, which together are
estimated to hold gross mean un-risked prospective resources of 4.3
billion barrels of oil equivalent (boe).
Highlights
- Marked improvement in seismic quality and a substantial
de-risking of the prospect inventory for FELs 1/17 and FEL 2/13
following pre-stack depth migration (‘PSDM’) reprocessing of
proprietary 3D seismic data originally acquired in 2013
- FEL 1/17: gross mean un-risked prospective resources of 584
million barrels of oil equivalent (“mmboe”) comprised of two
pre-rift prospects Edgeworth and Ervine and one new syn-rift
target, Egerton
- Egerton is interpreted to be
analogous to the Bay du Nord discovery on the conjugate margin,
offshore Newfoundland
- FEL 2/13: gross mean un-risked resources of 817 mmboe comprised
of two pre-rift prospects Kiely East and Kiely West and one Cretaceous target,
Kilroy
- Together with previously announced gross mean un-risked
prospective resources of 2.9 billion boe on FEL 3/13 (see RNS of
5 June 2018), total gross mean
un-risked prospective resources across FELs 1/17, 2/13, and 3/13
now stand at 4.3 billion boe
- Firm drilling targets identified in FEL 1/17, 3/13 and 2/13 -
respectively prospects Edgeworth, Wilde and Kiely East
- The farmout data room to secure partner(s) and fund exploration
drilling activity opened today (12 July
2018)
Hugh Mackay CEO said: “The PSDM reprocessing of our
proprietary 3D seismic data sets over our South Porcupine licences has transformed the
prospect inventory. Prospect volumes have changed, but more
importantly the accuracy of our maps and our confidence in them,
has substantially increased. Our prospects are tightened up and
de-risked. We now have firm drilling targets with clearly positive
economics on each licence. We promised half a dozen drillable
prospects by the end of 2018, now we have four, three here in the
Porcupine and one in the Slyne. Subject to regulatory
approval we will be able to proceed to FEL Phase 2 on each licence
with confidence, and we now believe we have the data to convince
substantive farminees of the compelling case to take these four
licences forward towards drilling with the first well targeted for
mid-2019 on the Inishkea prospects in the Slyne licence LO 16/20,
subject to funding.”
Further Information
Europa has recently completed pre-stack depth migration (PSDM)
reprocessing of 3D seismic data originally acquired in 2013 over
the FEL 1/17, FEL 2/13 and FEL 3/13 licences in South Porcupine Basin, Atlantic Ireland.
Europa has 100% interest in, and is operator of, all three
licences. A location map can be found on Europa’s website
https://bit.ly/2IA1mMR.
The new prospect inventory for FEL 3/13 was reported to
shareholders on 5 June 2018
https://bit.ly/2sxeQTV.
Detailed interpretation of the new reprocessed data has been
completed over FEL 1/17 on the east flank and FEL 2/13 on the west
flank of the South Porcupine
Basin, resulting in a marked improvement in seismic quality and a
substantial de-risking of the prospect inventory. This announcement
concerns the new prospect inventory for FEL 1/17 and FEL 2/13. The
results are summarised below, and further information can be found
in a report on Europa’s website using the following link:
http://www.europaoil.com/reportsandpresentations.aspx
FEL 1/17 contains the Edgeworth and Ervine pre-rift tilted fault
blocks. As a result of the newly reprocessed seismic data, Europa’s
estimates of gross mean un-risked prospective resources in these
structures has been reduced to 225 and 192 mmboe respectively. This
is largely due to a reduction in the upside, and hence a narrowing
of the range of the Company’s predictions - associated with
increased prediction confidence. In addition to pre-rift targets,
Europa has now been able to firm-up a syn-rift target, analogous to
discoveries such as Bay du Nord on the conjugate margin offshore
Newfoundland. The new Egerton prospect has mean un-risked
prospective resources of 167 mmboe.
Numerous play concepts have been suggested for FEL 2/13, however
Europa is now focused on the two most likely to support a
commitment well. These are the Kiely East and Kiely West tilted fault blocks (now
significantly increased in volume with gross mean un-risked
prospective resources on block of 505 mmboe), and lowermost
Cretaceous slope apron deposits characterised by Kilroy (gross mean
un-risked prospective resources of 312 mmboe).
The new prospect inventory arising from interpretation of the
new 3D PSDM reprocessed seismic data across Europa’s three 100%
operated South Porcupine is
tabulated below.
Licence |
Prospect |
Play |
Gross Prospective Resources mmboe* |
|
Un-risked |
|
Low |
Best |
High |
Mean |
|
FEL 1/17 |
Ervine |
Pre-rift |
63 |
159 |
363 |
192 |
|
FEL 1/17 |
Edgeworth |
Pre-rift |
49 |
156 |
476 |
225 |
|
FEL 1/17 |
Egerton |
Syn-rift |
59 |
148 |
301 |
167 |
|
|
|
|
|
|
|
|
|
FEL 3/13 |
Beckett |
mid-Cretaceous
Fan |
111 |
758 |
4229 |
1719 |
|
FEL 3/13 |
Shaw+ |
mid-Cretaceous
Fan |
20 |
196 |
1726 |
747 |
|
FEL 3/13 |
Wilde |
Early Cretaceous
Fan |
45 |
241 |
1082 |
462 |
|
|
|
|
|
|
|
|
|
FEL 2/13 |
Kiely East
+ |
Pre-rift |
52 |
187 |
612 |
280 |
|
FEL 2/13 |
Kiely West
+ |
Pre-rift |
23 |
123 |
534 |
225 |
|
FEL 2/13 |
Kilroy+ |
Cret. Slope Apron |
37 |
177 |
734 |
312 |
|
|
|
|
|
|
|
|
|
Total |
4329 |
|
|
|
|
|
|
|
|
|
*million barrels of oil equivalent. The hydrocarbon system
is considered an oil play and mmboe is used to take account of
associated gas. However, due to the significant uncertainties
in the available geological information, there is a possibility of
gas charge. |
|
|
+prospect extends outside licence, volumes are
on-licence |
|
|
|
|
The firm drilling targets in FEL 1/17, 3/13 and 2/13 are
respectively prospects Edgeworth, Wilde and Kiely East. The key
next step across all three licences is to secure a farmin partner
or partners to fund exploration drilling activity. The farmout data
room opened on 12 July 2018. Europa
believes that the new PSDM seismic data has transformed the
prospectivity on the licences and will be working hard to secure
partners.
Further information regarding Europa’s complete Atlantic Ireland
prospect inventory can be found on its website
(https://bit.ly/2u9c9so).
Europa follows Society of Petroleum Engineers (SPE) guidelines
for petroleum reserves and resources classification. Further
information can be found on the SPE website
https://bit.ly/2LtLVIa.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 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 |
Emily Morris |
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
(targeting production start-up in 2019 at 500 bopd gross) and six
licences offshore Ireland with the
potential to host gross mean un-risked prospective resources of 6.4
billion barrels oil equivalent and 2.5 tcf undiscovered GIIP across
all six licences.