TIDMEOG
RNS Number : 2774J
Europa Oil & Gas (Holdings) PLC
26 April 2022
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
26(th) April 2022
Europa Oil & Gas (Holdings) plc
("Europa" or "the Company")
Wressle Update
Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland
and Morocco focused oil and gas exploration, development, and
production company, notes the update by Operator Egdon Resources
U.K. Limited ("Egdon") on activities issued today in their Half
Yearly Statement.
Europa is pleased to highlight this update.
Wressle production has significantly exceeded the original 500
barrels of oil per day ("bopd") expectation and is currently
producing at permit constrained rates of 760-800 bopd following
upgrades to the production facilities.
Wressle, in which Europa holds a 30% interest, quickly exceeded
pre-production expectations of 500 bopd on resumption of production
following the successful proppant-squeeze and coiled-tubing
operation on the 19 August 2021. Instantaneous rates of over 1,000
bopd have been achieved. Early restrictions to production have been
successfully addressed through upgrades and modifications to the
site facilities, including installation of a secondary separator
and progressive upgrades to the gas incineration system, which have
culminated in the installation of a larger capacity enclosed
incineration unit. Production is currently limited by the 10 tonnes
per day gas incineration limit imposed by the Environmental Permit
to between 760-800 bopd (228-240 bopd net). Once the gas
monetisation development is complete, this production limitation
will be removed and the production rate is expected to be increased
significantly. Pressure test analysis has indicated potential flow
rates for Wressle-1 of between approximately 1,200 and 1,500
bopd.
Since production commenced at Wressle-1 in January 2021, the
cumulative production has exceeded 150,000 barrels of oil with no
formation water produced to date.
A revised Field Development Plan was submitted to the North Sea
Transition Authority ("NSTA") during April 2022.
The likely preferred gas monetisation approach will be to export
the gas via a short pipeline (approximately 600m) into the local
gas distribution network. This will require regulatory consents
(Planning and EA) and it is hoped to be completed in time for gas
sales during the coming winter. This export route will also be
available in the longer term for the development of the Penistone
Flags reservoir where detailed work is underway.
Environmental monitoring throughout the operations has shown no
measurable impact on surface or groundwater quality, no related
seismicity and that noise levels have been within the permitted
levels.
In the coming period the Operator will:
-- Complete the installation of the remaining permanent production facilities;
-- Progress planning and permitting and implement the gas
monetisation plan, reduce gas flaring and remove the limitations on
oil production; and,
-- Advance the development plan and consenting process to enable
production from the Penistone Flags reservoir.
Outlook:
-- Continuing to optimise oil and gas production from the
Ashover Grit reservoir at Wressle, building on the strong
performance to date;
-- Progressing gas monetisation at Wressle; and,
-- Finalising plans for development of the material Contingent
Resources in the Penistone Flags at Wressle.
Simon Oddie, CEO said :
"The well performance at Wressle continues to exceed our initial
expectations and once the planned connection to the local gas
distribution network is completed by winter 2022 the well will be
able to produce at unrestricted rates which will materially impact
the cash flows associated with the field. This will also allow the
field to be further developed by targeting the contingent resources
located in the Penistone Flags reservoir and I look forward to
updating the market in due course with details of this work
programme."
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
Oonagh Reidy St Brides Partners Ltd 1177
+ 44 (0) 20 7236
Ana Ribeiro 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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