Europa Oil & Gas (Holdings) PLC hails planning permission at Wressle

Proactive Investors
Giulia Bottaro

Snapshot

High impact exploration in Atlantic Ireland and supported by revenue from oil production in onshore UK
The company was recently awarded an asset offshore Morocco

Quick facts: Europa Oil & Gas Holdings PLC

Price: 2.05 GBXAIM:EOG

Market: AIM Market Cap: £9.12 m Follow

What it does

Europa Oil & Gas PLC (LON:EOG) is an AIM-listed oil and gas exploration and production company with assets in Europe and Africa.

Ireland

Europa holds six licences in Atlantic Ireland which, in aggregate, cover an area of over 4,985 sq km.

Acreage includes six play types in three basins and contain over 30 prospects and leads that potentially hold gross mean un-risked prospective resources of 6.4bn barrels oil equivalent and 1.5 tcf gas.

Six prospects at drill-ready status including: Inishkea gas project in LO 16/20 in the Slyne Basin; Kiely East in FEL 2/13 and Edgeworth in FEL 1/17 in the South Porcupine Basin.

Inishkea is regarded by Europa as its flagship project due to its location in a play that has been proven by the Corrib gas field, its potential to be larger than Corrib, its proximity to existing processing facilities, and Ireland’s need for more gas supplies.

Negotiations have been ongoing for farm-in agreements to three Irish licences (LO 16/20, FEL 1/17 and FEL 3/13).

In January 2020, it was revealed that a major international oil company had dropped out of the process amid its own internal business review.

Europa hopes a deal will see it fully carried on a well on each licence and retain a material interest in each.

Site surveys for wells at Inishkea, Kiely East and Edgeworth are under application subject to regulatory approval.

Morocco

Europa entered Morocco in September 2019, landing an eight-year licence for the Inezgane area in partnership with national energy company ONHYM.

There is a number of “large structural traps located on the edges and above salt diapirs” across the 11,228 square kilometres area, each holding up to 250mln barrels of crude.

Onshore UK

Europa produces from three oilfields in the East Midlands: West Firsby (100% working interest); Crosby Warren (100%); and the Whisby-4 well (65%).

Production in the 12 months to 31 July averaged 91 barrels per day generating revenue of £1.7mln.

It also holds 30% interest in the Wressle onshore oil field in North Lincolnshire, which was granted planning permission in January after operator Egdon Resources lodged an appeal against the local council.

After starting up at Wressle, Europa expects revenue to reach up to £400mln annually, while production from the project is expected to raise its UK onshore production to around 240 barrels per day.

What the boss says: Simon Oddie, chairman

“The granting of planning consent for the development of the Wressle oil field is a milestone event for Europa.

“Under the development plan, Wressle is expected to commence production at an initial gross rate of 500bopd, which would more than double Europa’s existing UK onshore production to over 200bopd.”