Europa Oil & Gas (Holdings) PLC Signature of Serenity Farm-in Agreement (8169I)
21 Abril 2022 - 1:00AM
UK Regulatory
TIDMEOG
RNS Number : 8169I
Europa Oil & Gas (Holdings) PLC
21 April 2022
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
21(st) April 2022
Europa Oil & Gas (Holdings) plc
("Europa" or "the Company")
Signature of Serenity Farm-in Agreement
Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland
and Morocco focused oil and gas exploration, development, and
production company, announces the signature of the Serenity farm-in
agreement with i3Energy North Sea Limited ("i3E") in respect of UK
Seaward Production Licence P.2358, Block 13/23c ("Serenity") .
Highlights
-- Europa is acquiring a 25% interest in Serenity by paying
46.25% of the appraisal well cost, equating to a 1.85 to 1 carry
(the "Carry").
-- The farm-in is in line with Europa's previously stated
strategy to acquire an appraisal asset, adding to its existing
producing and high impact exploration assets, and thereby creating
a more balanced asset portfolio for its investors.
-- The Serenity appraisal well is scheduled to be drilled and
formation tested in late Q3 2022 at a gross cost of GBP14
million.
-- The Carry is capped at a gross well cost of GBP15 million, of
which Europa's interest will be GBP6.94 million. Thereafter, each
party will fund its interests proportionally.
-- Serenity is strategically located near existing
infrastructure in the North Sea, however the appraisal well could
provide sufficient recoverable volumes for a standalone
development.
-- There are no material conditions for Europa to satisfy to complete the farm-in,
-- Europa will fund an escrow account with its paying interest obligation.
-- Completion is subject to approval of the North Sea Transition
Authority ("NSTA") to the creation of a new block within Licence
P.2358 (the "New Serenity Block") and to assignment of an interest
in the Licence and New Serenity Block to Europa.
Simon Oddie, CEO said :
"I'm delighted to announce the signature of this farm-in which
fulfils our promised goal of adding an appraisal asset to the
Europa portfolio. Serenity is a late-stage appraisal and
development asset that provides our shareholders with exposure to a
very exciting asset that could deliver significant near-term value
to our shareholders with the drilling of the Serenity appraisal
well expected in late Q3 of 2022. The objective of the well is to
prove up additional volumes of hydrocarbons beyond those
encountered in the original discovery well, which alone are
considered commercially viable. It is a welcome addition to our
existing producing and high impact exploration assets and part of
our long-term strategy to create a balanced portfolio of
high-quality assets with the view of creating long-term value for
our shareholders."
Background
Europa announced a Conditional Fundraising to raise up to GBP7
Million on 2(nd) March 2022 to fund the acquisition by the Company
of a farm in of Serenity located in the Central North Sea. On 3(rd)
March it announced that it had conditionally raised gross proceeds
of GBP7.02 million, before expenses, through the conditional
placing of 390,000,000 new ordinary shares of GBP0.01 each at an
issue price of 1.8 pence per share and this was subsequently
approved at the General Meeting held on 25(th) March. The Farm-in
Agreement in for Serenity was signed on 20(th) April 2022.
Qualified Person Review
This release has been reviewed by Alastair Stuart, engineering
advisor to Europa, who is a petroleum engineer with over 35 years'
experience and a member of the Society of Petroleum Engineers and
has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
Simon Oddie Europa mail@europaoil.com
Murray Johnson Europa mail@europaoil.com
+ 44 (0) 20 7220
Christopher Raggett finnCap Ltd 0500
+ 44 (0) 20 7220
Simon Hicks finnCap Ltd 0500
+44 (0) 20 7186
Peter Krens Tennyson Securities 9033
+ 44 (0) 20 7236
Susie Geliher St Brides Partners Ltd 1177
+ 44 (0) 20 7236
Oonagh Reidy St Brides Partners Ltd 1177
Notes to Editors
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. Production in the half-year to 31st January 2022
was 208 boepd. The Company holds two exploration licences offshore
Ireland, which have the potential to host gross mean un-risked
prospective resources of 1.5 trillion cubic feet ('tcf') gas.
Inishkea is a near field gas prospect in the Slyne Basin which the
Company classifies as lower risk due to its 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 in excess of one billion barrels of unrisked
oil resources. In December 2021, Europa announced a collaboration
between Baker Hughes and CausewayGT to conduct a geothermal clean
heat project at the Company's West Firsby field. If this project is
successful it will prove the operational ability to extract and use
geothermal heat from the site.
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