Europa Oil & Gas (Holdings) Plc Wressle Development Update
August 03 2020 - 1:00AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Wressle Development Update
Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco focused oil and
gas exploration, development and production company, notes today's update from
Egdon Resources ('Egdon') confirming the commencement of site works at the
Wressle Oil Field development ('Wressle' or the 'Project') in North
Lincolnshire. This is in line with the previously stated target to achieve
first oil at Wressle in H2 2020. Wressle lies on licences PEDL180 & 182 in
which Europa holds a 30% working interest alongside Egdon (30%), and Union Jack
Oil (40%).
As advised by the operator, Egdon, the civils contractor has mobilised to site
and has commenced works to reconfigure the Wressle production area. Works
being undertaken include the installation of a new High Density Polyethelene
impermeable membrane; French drain system; an approved surface water
interceptor; the construction of a purpose-built bund area for storage tanks; a
tanker loading plinth; and an internal roadway system.
The reconfiguration of the Wressle production area forms a central part of the
Wressle development plan, the key stages of which and work carried out to date
are listed below:
* Discharging the planning conditions, finalising detailed designs, tendering
and procurement of materials, equipment and services and finalising all
Health and Safety Executive ("HSE") documentation and procedures:
+ Key planning conditions have been discharged, detailed design tendering
is underway and all HSE documentation and procedures are progressing in
line with expectations
* Installation of groundwater monitoring boreholes and establishing baseline
groundwater quality through monitoring and analysis:
+ Four groundwater boreholes have been installed and two rounds of
sampling and analysis undertaken to date
* Reconfiguration of the site:
+ Site works have commenced
* Installation and commissioning of surface facilities
* Sub-surface operations
* Commencement of production
Simon Oddie, Interim CEO and Executive Chairman of Europa, said: "Today's news
that siteworks have commenced and that the Wressle field remains on course to
commence production in H2 2020 is highly encouraging. With oil at over US$40
per barrel and Wressle requiring oil prices of US$17.62 per barrel to
breakeven, we are keen to get what promises to be a highly profitable UK
onshore field into production. At an initial gross rate of 500bopd, our 30%
share in the field will equate to 150 bopd net to Europa which will scale up
our existing production to well over 200bopd and in the process transform our
revenue profile. This will provide us with a strong platform with which to
advance our portfolio of multistage licences including our industry leading
exploration position in the proven gas play of the Slyne Basin offshore Ireland
and our large Inzegane permit offshore Morocco where initial work has
identified 30 targets which could hold up to 10 billion barrels of oil."
Further Information on Wressle
Wressle was discovered by the Wressle-1 well in 2014. During testing, a total
of 710 barrels of oil equivalent per day were recovered from three separate
reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags.
Under the development plan, Wressle is expected to commence production at an
initial gross rate of 500bopd, which would more than double Europa's existing
UK onshore production to over 200bopd. With an estimated breakeven oil price
of US$17.62 per barrel, production at Wressle is expected to be very profitable
at current oil prices of over US$40 per barrel. In September 2016, a Competent
Person's Report provided independent estimates of reserves and contingent and
prospective oil and gas resources for the Wressle discovery of 2.15 million
stock tank barrels classified as discovered (2P+2C).
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Simon Oddie Europa + 44 (0) 20 7224
3770
Phil Greenhalgh Europa + 44 (0) 20 7224
3770
Christopher finnCap Ltd + 44 (0) 20 7220
Raggett 0500
Simon Hicks finnCap Ltd + 44 (0) 20 7220
0500
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236
1177
Megan Dennison St Brides Partners Ltd + 44 (0) 20 7236
1177
Notes
Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets which includes production, development and exploration
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. In terms of production, in 2019 Europa
produced 91 boepd. Production is set to increase to over 200 boepd in H2 2020
once the Wressle field in the UK, which is currently under development, comes
on stream at a gross rate of 500 bopd.
The Company holds four exploration licences offshore Ireland which have the
potential to host gross mean un-risked prospective resources of 3.9 billion
barrels oil equivalent and 2.7* trillion cubic feet ('tcf') gas (*subject to
regulatory approval for the transfer of FEL 3/19). The Company's flagship
projects offshore Ireland are Inishkea and Edge, two near field gas prospects
in the Slyne Basin which the Company classifies as lower risk
infrastructure-led exploration due to their close proximity to the producing
Corrib gas field and associated gas processing infrastructure. In September
2019, Europa was awarded a 75% interest in the Inezgane permit offshore
Morocco. Initial results of technical work have identified 30 prospects and
leads that have the potential to hold close to 10 billion barrels of unrisked
resources.
END
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