Energy Mix Report
In its interim results for the six-month period ended 31 January 2020, Europa Oil & Gas provided an update on its Morocco operations and financial performance.
The company was awarded the large Inezgane license offshore Morocco covering 11,192 square km in the Agadir Basin offshore Morocco in September 2019. Shell, ENI, Repsol, Hunt and Genel are currently active in the area.
To assist in its exploration planning, the company received data tapes from ONHYM in preparation for seismic reprocessing. Europa says large prospects with resource estimates in excess of 250 mmbbls have already been identified in the Lower Cretaceous fan sand play, a prolific producer in West Africa. The license is attracting interest from a number of operators looking to farm-in
Simon Oddie, Interim CEO and Executive Chairman of Europa, said: “The standout corporate events of the six month review period were the granting of planning consent for the development of Wressle and the award of the Inezgane permit offshore Morocco. Expected to come on stream at a rate of 500bopd in the second half, Wressle will transform Europa’s net production and revenue profile. Together with measures we have taken to reduce our already low cost base and, following the repositioning of our portfolio towards gas, we believe Europa will be well placed to withstand a sustained period of oil price volatility and weakness.
“While the ongoing COVID-19 pandemic may impact activity on the ground, there is much we are still able to get on with, notably working towards the farm-out of our strategic position in the Slyne Basin and continuing desktop work and launching the farm-out of our licence offshore Morocco. With gas set to play a key role in Ireland’s energy mix and our licences located in a gas play proven by the producing Corrib field, Inishkea represents a compelling investment opportunity with an attractive risk / reward profile. While offshore Morocco is at an earlier stage, we are already talking to a number of parties who expressed an interest in our Inezgane licence, even before we had identified multiple targets with up to 250 mmbls of prospective resources.
‘These are clearly challenging times for everyone and our priority has to be to ensure the health and safety of all our employees and stakeholders. With this in mind, we will continue to follow the latest government advice and as a result, timescales for certain activities and milestones, including our efforts to add a third leg to our business by securing a late stage appraisal project, may well need to be lengthened. Importantly, the roadmap we have to increase our onshore UK production and to expose our shareholders to potentially value creating events offshore Ireland and Morocco remains in place.”
Source: Petroleum Africa
