Proactive Investors
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Europa Oil & Gas PLC (LON:EOG) is an AIM listed oil and gas exploration and production company.
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Focus is on very high impact exploration in Atlantic Ireland and supported by revenue from oil production in onshore UK.
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Another asset in Morocco is under investigation with terms being negotiated.
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Wressle planning inquiry in UK to start later this year
What it owns
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 ongoing for farm-in agreements to three Irish licences (LO 16/20, FEL 1/17 and FEL 3/13) with a major international oil company.
That is expected to see Europa 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 is looking to new opportunities in new territories – with a project in Morocco currently under close consideration.
Signature for new offshore permit in Morocco remains ‘imminent’.
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%).
First half 2018/19 production averaged 90 barrels per day generating revenue of £0.9mln, 12% higher a year earlier.
Development asset Wressle has a public inquiry scheduled for 5 November 2019 and expected to last six days.
What boss says, Hugh Mackay, chief executive
“We remain optimistic that Wressle will eventually be brought into production at a gross rate of 500 bopd, even after the disappointing decision by the council’s planning committee to refuse permission despite a recommendation from its own professional planning officer.
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Inflexion points
- ‘New ventures activity will not stop at Morocco and we continue to screen various opportunities in our area of interest.’
- In ireland, currently negotiating farm-in agreements with a major international oil and gas company in respect of LO 16/20, FEL 1/17 and FEL 3/13.
- A final investment decision is awaited from the major’s head office. ‘Meanwhile, we continue to run data rooms and market the opportunities to others’.
- The LO 16/20 Inishkea site survey application went into 30-day public consultation on 15 May.
- The FEL 2/13 Kiely East and FEL 1/17 Edgeworth site survey applications are in the pipeline and public consultation is the next step – Site surveys are a pre-requisite for drilling.
- CNOOC and partner ExxonMobil were granted permission to drill on the 52/4-AIolar prospect in FEL 3/18, an new exploration well in the South Porcupine basin.
- Iolar, if successful, would de-risk around 1 billion barrels equivalent in Europa’s pre-rift (Middle Jurassic) prospect inventory ie Kiely East and Edgeworth
