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 Volumes
|
|
|
Net
Volumes attributable to Europa |
|
|
Oil
MMstb |
Gas
Bscf |
Oil and
Gas* MMboe |
Oil
MMstb |
Gas
Bscf |
Oil and Gas* MMboe |
Wressle
2P Ashover Grit and Wingfield Flags |
0.62 |
0.20 |
0.65 |
0.21 |
0.07 |
0.22 |
2C
Penistone Flags |
1.53 |
2.00 |
1.86 |
0.51 |
0.67 |
0.62 |
Broughton North
Mean Unrisked Prospective Resources |
0.51 |
0.51 |
0.60 |
0.17 |
0.17 |
0.20 |
*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.
* * ENDS * *
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.