Europa Oil & Gas (Holdings) PLC CPR on Wressle Discovery & Broughton North Prospect
26 September 2016 - 4:00PM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
26 September 2016
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Competent Person's Report on Wressle Discovery and Broughton North Prospect,
Onshore UK
Europa Oil & Gas (Holdings) plc, the AIM traded oil and gas exploration,
development and production company focused on the UK and Ireland, is pleased to
announce the results of an independent Competent Person's Report ('CPR')
prepared by ERC Equipoise Ltd ('ERCE'), including estimates of Reserves and
Contingent and Prospective oil and gas Resources for the UK onshore Wressle
discovery ('Wressle') and Broughton North prospect.
Wressle and Broughton North are located on licences PEDL180 and PEDL182 and lie
on structural trend with and 5 km from the Europa operated Crosby Warren field
in East Lincolnshire. Europa has a 33.34% working interest in both licences,
alongside Egdon (operator, 25.00%), Celtique Energie Petroleum Ltd (33.33%),
and Union Jack Oil (8.33%).
ERCE's letter to Europa's Board of Directors summarising the findings of their
CPR has been published on Europa's website (www.europaoil.com).
Wressle
* Gross Mean Discovered Stock Tank Oil Initially In Place ('STOIIP') of 14.18
million stock tank barrels ('stb') across three reservoir sands: Ashover
Grit; Wingfield Flags; and Penistone Flags
* 2.15 million stb classified as discovered - as proved and probable reserves
('2P') and contingent resources ('2C')
* Gross 2P Reserves across the Ashover Grit and Wingfield Flags:
+ 0.62 million stb of oil (Justified For Development) - provide the basis
for initial Field Development Plan ('FDP')
+ 0.20 billion standard cubic feet of gas (Justified For Development) -
monetisation via on-site power generation with excess power sold into
the National Grid
* Substantial resources confirmed in the Penistone Flags - gross 2C Resources
of 1.53 million stb of oil and 2.0 billion standard cubic feet ('Bscf') of
gas
* Production at an estimated gross rate of 500 barrels of oil per day
('bopd') expected to commence in early 2017, subject to receipt of all
approvals - FDP and planning application with the Oil and Gas Authority
('OGA') and North Lincolnshire Council respectively
* Plans to produce from the Penistone Flags to be progressed following
commencement of production from Ashover Grit - to include monetisation of
gas resource by pipeline export or electricity generation and export
Broughton North Prospect
* High Geological Chance of Success of 40% to 49% assigned by ERCE to
Broughton North which is in a fault block immediately to the north-west of
Wressle
* STOIIP for Broughton North is 3.43 million stb across the Ashover Grit and
Penistone Flags with Mean Prospective Resources of 0.51 million stb of oil
plus 0.51 billion standard cubic feet of gas.
Europa CEO Hugh Mackay said, "Based on the results of this independent CPR, not
only is Wressle expected to more than double our net production when it comes
on stream in early 2017 at a gross rate of 500bopd, but it also substantially
increases Europa's asset backing. In addition to the immediate boost to our
proven reserves, the CPR highlights significant contingent resources in the
Penistone Flags at Wressle and work will shortly commence on drawing up a
development plan to monetise this reservoir. The commencement of production at
Wressle will be significant for Europa as it is expected to lead to a material
increase in the Company's revenue and operational cashflow. With this in mind
ERCE's assessment of Broughton North as low risk is also exciting, as it
provides us with another drill ready prospect within our growing portfolio of
UK onshore licences."
Table summarising gross volumes at Wressle and Broughton North along with net
volumes attributed to Europa's interests
Gross Net Volumes
Volumes attributable
to Europa
Oil MMstb Gas Oil and Oil MMstb Gas
Bscf Gas* Bscf Oil and
MMboe Gas*
MMboe
Wressle
2P Ashover Grit and 0.62 0.20 0.65 0.21 0.07 0.22
Wingfield Flags
2C Penistone Flags
1.53 2.00 1.86 0.51 0.67 0.62
Broughton North 0.51 0.51 0.60 0.17 0.17 0.20
Mean Unrisked Prospective
Resources
*Gas converted to oil equivalent using a 6Bscf/MMboe conversion and added to
oil volume
Glossary:
Some of the terms used in this announcement are defined below. A more
exhaustive glossary is contained in ERCE's letter to Egdon's Board of Directors
summarising the findings of their CPR has been published on the Company's
website (www.egdon-resources.com).
Proved Reserves
Proved Reserves are those quantities of petroleum, which by analysis
of geoscience and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward,
from known reservoirs and under defined economic conditions, operating
methods, and government regulations.
If deterministic methods are used, the term reasonable certainty is intended to
express a high degree of confidence that the quantities will be recovered. If
probabilistic methods are used, there should be at least a 90% probability that
the quantities actually recovered will equal or exceed the estimate. The area
of the reservoir considered as Proved includes:
* the area delineated by drilling and defined by fluid contacts,
if any, and
* adjacent undrilled portions of the reservoir that can reasonably
be judged as continuous with it and commercially productive on
the basis of available geoscience and engineering data
In the absence of data on fluid contacts, Proved quantities in a reservoir are
limited by the lowest known hydrocarbon (LKH) as seen in a well
penetration unless otherwise indicated by definitive geoscience,
engineering, or performance data. Such definitive information may
include pressure gradient analysis and seismic indicators. Seismic data
alone may not be sufficient to define fluid contacts for Proved
Reserves (see "2001 Supplemental Guidelines," Chapter 8). Reserves in
undeveloped locations may be classified as Proved provided that the
locations are in undrilled areas of the reservoir that can be judged with
reasonable certainty to be commercially productive and interpretations of
available geoscience and engineering data indicate with reasonable
certainty that the objective formation is laterally continuous with
drilled Proved locations. For Proved Reserves, the recovery efficiency
applied to these reservoirs should be defined based on a range of
possibilities supported by analogues and sound engineering judgment
considering the characteristics of the Proved area and the applied development
programme.
2P
Proved + Probable, a best estimate category of Reserves.
Contingent Resources
Contingent Resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from known
accumulations by application of development projects, but which are
not currently considered to be commercially recoverable due to one or more
contingencies.
Contingent Resources may include, for example, projects for which
there are currently no viable markets, or where commercial recovery
is dependent on technology under development, or where evaluation of
the accumulation is insufficient to clearly assess commerciality.
Contingent Resources are further categorized in accordance with the
level of certainty associated with the estimates and may be sub?
classified based on project maturity and/or characterized by their economic
status.
2C
A best estimate category of Contingent Resources.
Prospective Resources
Prospective Resources are those quantities of petroleum which are
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations. Potential accumulations are evaluated according to
their chance of discovery and, assuming a discovery, the estimated
quantities that would be recoverable under defined development
projects. It is recognized that the development programs will be of
significantly less detail and depend more heavily on analog developments
in the earlier phases of exploration.
* *S * *
For further information please visit http://www.europaoil.com/ or contact:
Hugh Mackay Europa + 44 (0) 20 7224
3770
Phil Greenhalgh Europa + 44 (0) 20 7224
3770
Matt Goode finnCap Ltd + 44 (0) 20 7220
0500
Simon Hicks finnCap Ltd + 44 (0) 20 7220
0500
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236
1177
Susie Geliher St Brides Partners Ltd + 44 (0) 20 7236
1177
Notes
Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets that includes production, exploration and development
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. In H1 2016 Europa produced 124 boepd.
Its highly prospective exploration projects include the Wressle development
(targeting production start-up in early 2017 at up to 500 bopd gross) in the
UK; 100% owned gas exploration prospect (107 bcf) and appraisal project (CPR
277 bcf) in onshore France, a joint venture with Vermilion Energy also in
onshore France; and seven licences offshore Ireland with the potential to host
gross mean un-risked prospective and indicative resources of more than 4
billion barrels oil equivalent and 1.5 tcf gas across all seven licences.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 30 years' experience in petroleum exploration and
a member of the Petroleum Exploration Society of Great Britain, American
Association of Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
END
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