Europa Oil & Gas (Holdings) Plc Extension of Agreement to Sell Interest in Wressle
22 February 2017 - 1:05AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
21 February 2017
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Extension of Agreement to Sell Interest in Wressle Oil Discovery
Europa Oil & Gas (Holdings) plc, the UK and Ireland focussed exploration,
development and production company, is pleased to announce an extension to the
Sale and Purchase Agreement ('SPA') signed between its wholly owned subsidiary
and Upland Resources (UK Onshore) Limited ('Upland') in relation to a 10%
interest in Europa's PEDL180 and PEDL182 ('the Licences') in North
Lincolnshire.
Europa currently has a 30% working interest in the Licences, which include the
Wressle discovery and the Broughton North prospect, alongside Egdon Resources
(operator, 25%), Celtique Energie Petroleum Ltd (33.33%), and Union Jack Oil
(11.67%), (together "the Joint Venture partners"). Completion of the SPA would
result in Europa retaining a 20% interest in the Licences.
As set out in the Company's announcement of 24 November 2016, completion of the
SPA is conditional upon, inter alia, approval from the Oil & Gas Authority and
approval of the Wressle Field Development Plan. On 7 February 2017, the
Company announced the decision by the Joint Venture partners to appeal against
the refusal by North Lincolnshire Council to grant planning consent for the
development of Wressle and to file a new planning application which will
include more detailed information covering the specific concerns outlined by
the Council's planning committee. To allow sufficient time for the appeal and
application processes to be completed, Upland has agreed to an extension of the
'long stop' date by which the conditions of the SPA are to be satisfied to 30
September 2017. The previous 'long stop' date had been fixed at 31 March
2017.
On satisfaction of the conditions, the sale to Upland of a 10% interest in the
Licences is to be effected by way of an assignment from Europa. As part of the
consideration due to Europa on completion of the SPA, the Company is to be
issued with 23,076,923 new ordinary shares in Upland ('the Initial
Consideration Shares'). The remainder of the initial consideration is to be
settled in cash. Following the extension of the 'long stop' date to 1
September 2017, Europa has agreed not to dispose of any of the Initial
Consideration Shares before 1 September 2018. This is subject to certain
limited exceptions.
* * ENDS * *
For further information please visit 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 2016 Europa produced 123 boepd. Its
highly prospective exploration projects include the Wressle development in the
UK 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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