Europa Oil & Gas (Holdings)
plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
5 June 2018
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
93% Increase in Mean Un-Risked
Prospective Resources Atlantic Ireland FEL 3/13
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration, development and
production company, is pleased to report its updated prospect
inventory resulting in a near doubling of its estimate of gross
mean un-risked prospective resources on FEL 3/13 in the South
Porcupine Basin, Atlantic Ireland, to 2.9 billion barrels of oil
equivalent (boe).
Highlights
- 93% increase in estimated combined gross mean un-risked
prospective resources on FEL 3/13 to 2.9 billion barrels of oil
equivalent (boe)
- Marked improvement in seismic quality and a substantial uplift
to FEL 3/13 prospect inventory following completion of pre-stack
depth migration (PSDM) reprocessing of 3D seismic data originally
acquired in 2013
- Confirmation and verification of the Beckett, Shaw and Wilde
prospects at FEL 3/13:
- Beckett and Shaw previously described as “single cycle events”
but now defined as a fan sequence comprising multiple fan cycles
(250-325m gross)
- Beckett and Shaw mapped as much thicker and extending over a
much wider area than originally thought – almost doubling estimated
volumes
- Wilde prospect more confidently defined based on seismic detail
on the internal architecture of the fan
Hugh Mackay CEO said: “In FEL 3/13 we are seeing the
first fruits of Europa’s major investment in 3D seismic data
reprocessing in Atlantic Ireland. The size of the prize in FEL 3/13
has nearly doubled from 1.5 to 2.9 billion boe. Confidence in, and
definition of, the Wilde prospect has increased significantly,
whilst our new understanding of the size and thickness of the
Beckett-Shaw fan-system has had a transformative effect on
estimated volumes. Wilde remains the lowest-risk prospect from both
source and seal viewpoints. We are also confident that a drill
location on Wilde will be optimised which would also test the
larger volumes we have identified on Beckett. Europa intends to
launch a farm-out process for FEL 3/13 once we have brought our
other Porcupine licences (FEL 2/13 and FEL 1/17) to the same level
of evaluation and we expect to make an announcement on this in the
next few months.”
Further Information
Europa has recently completed pre-stack depth migration (PSDM)
reprocessing of 3D seismic data originally acquired in 2013 over
the FEL 1/17, FEL 2/13 and FEL 3/13 licences in South Porcupine
Basin, Atlantic Ireland. Europa has 100% interest in, and is
operator of, all three licences. A location map can be found on
Europa’s website https://bit.ly/2IA1mMR.
Detailed interpretation of the new reprocessed data has been
completed over FEL 3/13 on the east flank of the South Porcupine
Basin, resulting in a marked improvement in seismic quality and a
substantial uplift to the prospect inventory.
During 2016, based on the 2013 3D seismic data, Europa released
a Competent Persons Report (https://bit.ly/2ucExH4) that identified
combined gross mean un-risked prospective resources of 1.5 billion
boe for three Cretaceous fan prospects: Beckett, Shaw and Wilde in
FEL 3/13.
The updated prospect inventory, based on the 2018 PSDM
reprocessed 3D seismic data, has further confirmed and verified the
Beckett, Shaw and Wilde prospects. The combined gross mean
un-risked prospective resources across the three prospects is now
estimated to be 2.9 billion boe. These are Europa in-house
estimates.
The prospective resources are tabulated below. Europa’s equity
is 100%.
|
Gross
un-risked prospective resources mmboe* |
Prospect |
Low |
Best |
High |
Mean |
Beckett |
111 |
758 |
4229 |
1719 |
Shaw (on licence) |
20 |
196 |
1726 |
747 |
Wilde |
45 |
241 |
1082 |
462 |
Total |
|
|
|
2928 |
*million barrels of oil equivalent. The hydrocarbon system is
considered an oil play and mmboe is used to take account of
associated gas. However, due to the significant uncertainties
in the available geological information, there is a possibility of
gas charge.
Europa follows Society of Petroleum Engineers (SPE) guidelines
for petroleum reserves and resources classification. Further
information can be found on the SPE website
https://bit.ly/2LtLVIa.
The largest uplift is in the volumes for prospects Beckett and
Shaw. These were previously described as “single cycle events”. The
new PSDM clearly defines a fan sequence comprising multiple fan
cycles (250-325m gross) and is not
only much thicker than previously mapped but is also interpreted to
extend over a wider area. As consequence the estimated volumes have
almost doubled.
The increase on prospect Wilde is more modest. The area of the
fan has in fact been reduced, but it is much more confidently
defined. Seismic detail on the internal architecture of the fan has
given the Company confidence to increase its prediction of the
thickness of sandstone which might be present, and there is now
seismic evidence for a fault which supports the case for up-dip
seal.
The Europa technical team is currently interpreting the 2018
reprocessed 3D seismic data over FEL 2/13 and FEL 1/17. The quality
of the underlying 2018 reprocessed 3D seismic data is, again, a
significant improvement on the 2013 data. As a result, the Company
expects to have increased confidence in the resultant prospect
inventories. These will be reported in due course. The farm-out
data room for all three Europa-operated South Porcupine licences
will open during mid-2018.
As previously reported the new 3D seismic data acquired in 2017
over LO 16/19 on the west flank of the South Porcupine basin (Cairn
operated, Europa 30%) is being processed by TGS and the final
product is anticipated during H2 2018.
The same team at seismic contractor Down Under Geosolutions
(DUG) that was responsible for the South Porcupine reprocessing
reported in this RNS is also responsible for the ongoing LO 16/20
PSDM 3D seismic reprocessing over the Company’s flagship Inishkea
gas prospects in the Slyne Basin near the Corrib gas field. The
Company’s South Porcupine PSDM reprocessing has proved very
successful and the Board are therefore hopeful for similar results
for Inishkea.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
* * 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 |
Emily Morris |
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 2017 Europa produced 113 boepd. Its highly prospective
exploration projects include the Wressle development in the UK
(targeting production start-up in 2018 at 500 bopd gross) and six
licences offshore Ireland with the
potential to host gross mean un-risked prospective resources of 6.2
billion barrels oil equivalent and 2.5 tcf undiscovered GIIP across
all six licences.