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USD 7 billion Net Mean Un-risked NPV10 for Offshore Ireland Prospects
Europa Oil & Gas, the AIM quoted oil and gas company with both producing and exploration assets in Europe, is pleased to announce that an independent assessment undertaken by ERC Equipoise estimates a mean Un-risked Net Present Value of approximately US$7 billion to a 100% working interest (subject to government approval) in three prospects on Frontier Exploration Licence 3/13 in the Porcupine Basin, offshore Ireland. On a Risked NPV basis the study estimates a 100% working interest (subject to government approval) at US$1.1 billion. As announced on 12 May 2015, a Competent Persons Report (‘CPR’) prepared by ERCE detailed total Gross mean Un-risked Prospective Resources of 1.5 billion barrels of oil equivalent (‘bboe’) across the three prospects in FEL 3/13.
On 16 June 2015, Europa advised the market of an independent assessment by ERCE of the NPV of its then 15% carried interest in FEL 3/13. Following the announcement of 22 September 2015 that Kosmos Energy Ireland (‘Kosmos’) intends to withdraw from Ireland, Europa instructed ERCE to revise the NPV to reflect a 100% working interest in the permit and without the benefit of a carried work programme. The estimate of NPV provided today also incorporates an updated oil price assumption and cost deck.
CEO Hugh Mackay said “The CPR summary issued on 12 May 2015 identified significant potential volumes of hydrocarbons: Gross mean Un-risked Prospective Resources of approximately 1.5 billion barrels of oil equivalent across three prospects in FEL 3/13. With the imminent departure of Kosmos from the licence our net interest will revert to 100%, subject to government approval, with a potential Net mean Un-risked NPV10 of approximately US$7 billion and a Net mean Risked NPV10 of US$1.1 billion estimated by ERCE. We believe this is a very strong indication of the commercial potential in our licences in offshore Ireland.
“To realise this potential we need to drill exploration wells and find oil. Our mission is to land a farm-in partner to share the costs of drilling and the target audience is major and mid-cap oil companies. As a consequence of the drop in oil prices day rates for state of the art harsh-environment deepwater drilling rigs have halved. The next few years offer an opportunity to drill offshore Ireland at the lowest rig costs in over a decade. We are encouraged by the high levels of participation in the 2015 Atlantic Margin Licensing Round, particularly given the low oil price. It would appear that many other companies share our belief in the technical and commercial case for exploration offshore Ireland. I look forward to updating the market in due course as we focus on securing a farm-in partner with whom we can work to unlock the potential value of these prospects.”
