TIDMEOG
RNS Number : 8285I
Europa Oil & Gas (Holdings) PLC
07 December 2022
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
7 December 2022
Europa Oil & Gas (Holdings) plc
("Europa" or the "Company")
Annual General Meeting Statement
Europa Oil & Gas (Holdings) plc, the AIM quoted UK and
Ireland focused oil and gas exploration and production company, is
holding its Annual General Meeting ("AGM") later today. At the AGM,
Simon Oddie, CEO of Europa, will make a short presentation
detailing the activities of the Company, which will be uploaded
onto the Company's website shortly thereafter, and Brian O'Cathain,
Chairman of Europa, will make the following statement:
"The last year was an exceptionally busy period for Europa,
positioning it very strongly for the future. Despite the continuing
economic volatility, the period delivered good operational results.
Our onshore UK Wressle oilfield, which came onstream in January
2021, has continued to outperform expectations, underpinning our
production where our total average net rate for the year ending 31
July 2022 was 245 bopd, strengthening both revenues and our balance
sheet.
Wressle hit an initial gross production rate in August 2021 of
over 500 bopd, exceeding the pre-operations target. Following
upgrades to the production facilities, these initial gross flow
rates continued to increase, reaching the current rate of 700-750
bopd, or net 210-225 bopd to Europa. We are excited about
undertaking further development on the Wressle field with a planned
gas monetisation project unlocking further upside potential for oil
production rates and gas sales from the field. This could add an
additional 50% to oil production rates, further boosting Europa's
revenues.
As well as our onshore operational success at Wressle, we also
farmed into the Serenity field offshore UK, taking a 25% interest
in the Serenity oil discovery operated by i3 Energy ("i3E").
Although the appraisal well in October 2022 was disappointing and
did not encounter oil-bearing sands, together with our partner i3E
we are assessing the various development options to bring the field
into production.
Via the Memorandum of Understanding that we signed with Causeway
Geothermal (NI) Ltd in June 2021, we continue to investigate the
potential of the West Firsby field as a geothermal production site,
providing a future role for our mature oil fields. The
collaboration is exploring the utilisation of existing
infrastructure and wells for geothermal applications to deliver
clean, reliable, and cheap sources of heat. This would give the
potential to convert onshore legacy oilfields into sources of clean
and reliable energy as part of our ESG strategy and Europa's stated
desire to participate in the national energy transition.
Within our offshore Ireland acreage, the Inishkea prospect alone
has potential to supply the majority of the gas required for the
five new gas fired power stations in Ireland, and I am delighted
that our application to extend the first phase of the licence to 31
January 2024 has been granted. This will enable us to continue with
our technical studies and provide more time to find a project
partner for FEL 4/19. The licence contains the large, low risk,
Inishkea gas prospect and is a strategic asset that can potentially
provide a reliable source of low emission energy for Ireland and
play a key role in the transition to renewable green power. Gas
from the Corrib field, adjacent to the Inishkea prospect, is one of
the lowest carbon-intensity gases in Europe, much lower than long
distance pipeline gas from Norway, the UK or the Russian gas
previously piped to Europe. Given that Ireland will continue to
require gas into the foreseeable future, having recently agreed
plans to build new gas-powered electricity plants, it makes sense
to keep this potentially valuable source of indigenous gas
available. We are therefore delighted that the requested licence
extension was granted, which will allow the Company to carry out
further technical studies and seek a project partner.
In November 2022, we decided not to extend our Inezgane offshore
permit located in the Agadir Basin in Morocco given our lack of
success in securing a farm-in in partner.
In terms of the Board, we were delighted to welcome Will Holland
as CFO in June 2022. Will brings a wealth of corporate, financial
and M&A experience in the upstream sector that will be of
crucial importance as we continue to grow the business, and I am
enjoying working with him at this very exciting time for the
Company.
Looking forward, I believe that we are starting to reap the
rewards of delivering on our strategic vision, with strong cash
flows from our onshore production, further development
opportunities at Wressle and Serenity as well as material upside
potential with our exploration assets in Ireland, about which we
are very excited. The Board continues to believe that Europa would
benefit from holding further appraisal and early development assets
and supported by our strong cash flows we will continue to seek
opportunities to acquire these types of assets. Our aim remains to
engage in potentially high reward activity without putting the
Company's balance sheet at risk.
In terms of the country's net zero goals, I firmly believe that
the hydrocarbons that we produce and new fields that we develop all
contribute to supplying the domestic demand of their local regions
and as such displace imported hydrocarbons and reduce the emissions
associated with hydrocarbon consumption. This strategy to supply
local demand will continue to drive our activities as we focus on
growing our existing portfolio both organically and via
acquisitions to create a more balanced portfolio.
Finally, on behalf of the Board, I would like to thank the
management, employees and consultants for their hard work on behalf
of our shareholders and stakeholders during the past year. We have
achieved a lot and will continue to build on the solid foundations
that we now have in place."
* * ENDS * *
For further information, please visit www.europaoil.com or
contact:
Simon Oddie / William Europa Oil & Gas (Holdings) mail@europaoil.com
Holland / Murray Johnson plc
Strand Hanson Limited
- Nominated & Financial +44 (0) 20 7409
James Dance / James Spinney Adviser 3494
+44 (0) 20 7186
Peter Krens Tennyson Securities 9033
Patrick d'Ancona / Finlay + 44 (0) 20 7390
Thomson Vigo Consulting 0230
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 for the year ending 31 July 2022 was
245 bopd. In April 2022, Europa farmed into P.2358, Block 13/23c
("Serenity") in the Outer Moray Firth area of the North Sea. The
licence contains the 2019 Serenity oil discovery, in which Europa
now has a 25% interest. The Company holds one exploration licence
offshore Ireland, which has 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 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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