Europa Oil & Gas (Holdings) PLC Annual General Meeting Statement (0949N)
28 Enero 2021 - 1:00AM
UK Regulatory
TIDMEOG
RNS Number : 0949N
Europa Oil & Gas (Holdings) PLC
28 January 2021
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
Europa Oil & Gas (Holdings) plc ('Europa' or 'the
Company')
Annual General Meeting Statement
Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco
focused oil and gas exploration, development and production company
is holding its Annual General Meeting ('AGM') later today. At the
meeting, Brian O'Cathain, Chairman of Europa, will make the
following statement:
"In last year's AGM Statement, Simon Oddie set out how, subject
to receipt of planning permission, the development of the Wressle
oil field in North Lincolnshire promised to more than double
Europa's existing production to over 200bopd. One year on and
Wressle is on course to do just that. With planning permission
granted and with operations at the site underway, the field is
forecast to be brought online at an estimated initial gross rate of
500bopd shortly. Importantly, following a stress testing exercise
of the field's economics in response to the lower oil price
environment, production at Wressle, which has a breakeven oil price
of below US$18 per barrel, will be highly profitable at today's
US$50 plus per barrel level. Wressle is set to transform Europa's
financial as well as its production profile.
"Production at Wressle represents a key milestone for the
Company. Europa's corporate objective is dual-focused: to expose
shareholders to significant value creating opportunities while
minimising risk. Together with production from our three existing
UK onshore fields, Wressle will provide us with a low risk, cash
flow generative platform with which to pursue higher reward /
higher risk exploration across our portfolio. This includes an
industry-leading position in the proven gas play of the Slyne Basin
offshore Ireland and the Inezgane permit offshore Morocco which, in
terms of size, is the equivalent of 50 blocks in the UK North
Sea.
"Pictures on our Twitter account showing site reconfiguration
works and the well workover operations provide tangible markers of
Wressle's ongoing transformation from a development project into a
production asset. In addition, technical work has been progressing
across our licences in Ireland and Morocco during the last twelve
months.
"Offshore Ireland, our portfolio has undergone a decisive pivot
away from oil to gas, specifically to the proven gas play of the
Slyne Basin where the producing Corrib field and our 1.5 tcf
Inishkea gas prospect in Frontier Exploration Licence ('FEL') 4/19
are both located. This pivot involved the relinquishment of some
exploration licences where oil was the primary target, and also the
acquisition, for a nominal sum, of a 100% interest in FEL 3/19
which includes the 1.2 tcf Edge prospect in the Slyne Basin. With
existing production and processing facilities at Corrib, we view
exploration in the Slyne as infrastructure-led, lower risk, and
potentially lower cost in terms of development when compared to the
unproven basins that we had been targeting elsewhere offshore
Ireland. Lower risk typically comes with lower reward, but this is
not the case with our position in the Slyne. Thanks to aggregate
gross unrisked prospective resources of over 2 tcf, success with
the drill bit would be a major liquidity event for Europa. The
acquisition of FEL 3/19 is awaiting regulatory sign-off and once
this is in place, we intend to relaunch the farm-out of our Slyne
Basin licences with a view to moving to the next development
stage.
"Offshore Morocco, when we acquired the Inezgane block in
September 2019 we believed this large licence had the potential to
hold multiple sizeable prospects in the Lower Cretaceous play, a
prolific producer elsewhere in West Africa. Technical work centred
around reprocessing and interpreting historic 3D seismic data has
since strengthened our conviction. To date we have mapped over 20
prospects and leads, which, in aggregate, have the potential to
hold in excess of one billion barrels of unrisked oil resources.
Work is ongoing to de-risk the new prospect inventory ahead of
launching a farm-out to secure one or more partners to drill wells,
and we remain in dialogue with several parties who have expressed
an interest in Inezgane.
"In a year of unprecedented disruption caused by the ongoing
pandemic and associated lockdowns, much has been achieved thanks to
the professionalism and hard work of the Europa team and our
partners. As a result, we are on course to achieve one part of our
corporate objective in the coming weeks: to scale up and de-risk
our financial profile via the commencement of production at
Wressle. This in turn will put us in a strong position to pursue
the second part of our corporate objective: to expose our
shareholders to value creating opportunities, those found both
within and outside of our existing portfolio. With this in mind I
look forward to providing further updates on our progress."
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
Simon Oddie Europa mail@europaoil.com
Murray Johnson Europa
Christopher + 44 (0) 20 7220
Raggett finnCap Ltd 0500
+ 44 (0) 20 7220
Simon Hicks finnCap Ltd 0500
+ 44 (0) 20 7236
Frank Buhagiar St Brides Partners Ltd 1177
+ 44 (0) 20 7236
Megan Dennison St Brides Partners Ltd 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 the year to 31 (st)
July 20 20 Europa produced 92 boepd. Production is expected to
increase to over 200 boepd in January 2021 once the Wressle field
in the UK, which is currently under development, comes on stream at
a forecast 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 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 in excess of one billion barrels of
unrisked oil resources.
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