Europa Oil & Gas (Holdings) plc /
Index: AIM / Epic: EOG / Sector: Oil & Gas
18 March 2020
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
Wressle
Development Update
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration,
development and production company, notes today’s update from Egdon
Resources (‘Egdon’) confirming that the development of the Wressle
Oil Field (‘Wressle’ or the ‘Project’) in North Lincolnshire is
economically robust in the current low oil price environment.
This follows work undertaken by Egdon to update its economic
model to reflect recent events in the oil and gas markets. The
results of this work show the Project has an estimated break-even
oil price of US$17.62 per barrel.
On current plans first oil at Wressle, in which Europa holds a
30% working interest, is envisaged during H2 2020. Under the
development plan, Wressle is expected to commence production at an
initial gross rate of 500bopd, which would more than double
Europa’s existing UK onshore production to over 200bopd.
As detailed in Egdon’s press release today, the forward plan for
the Wressle development, which was granted planning consent on
appeal on 17 January 2020, comprises
the following key stages:
- Discharging the planning conditions, finalising detailed
designs, tendering and procurement of materials, equipment and
services and finalising all HSE documentation and procedures
- Installation of the ground water monitoring boreholes and
establishment of baseline conditions through monitoring
- Reconfiguration of the site
- Installation and commissioning of surface facilities
- Sub-surface operations
- Commencement of production
Progress to date has concentrated on the enabling works
highlighted in point 1 above. The initial work on site will
be the installation of the groundwater monitoring boreholes with
the main site operations occurring in the last months of the work
stream. The Planning Inspector also allowed an application for
costs against North Lincolnshire Council (‘NLC’) and this has
subsequently been submitted to NLC.
The Wressle Oil Field was discovered by the Wressle-1 well in
2014. During testing, a total of 710 barrels of oil
equivalent per day were recovered from three separate reservoirs,
the Ashover Grit, the Wingfield Flags and the Penistone
Flags. In September 2016, a
Competent Person’s Report provided independent estimates of
reserves and contingent and prospective oil and gas resources for
the Wressle discovery of 2.15 million stock tank barrels classified
as discovered (2P+2C). Wressle lies on licences PEDL180 & 182
(‘the Licences’). Europa holds a 30% working interest in the
Licences alongside Egdon (operator, 30%), Union Jack Oil (27.5%),
and Humber Oil & Gas Limited (12.5%).
Simon Oddie, Chairman of
Europa, said: “The results of the updated economic model for
Wressle confirm what we have long believed: that the Project
represents a low cost opportunity to more than double Europa’s
production to over 200 bopd. With first oil targeted for H2
2020, I look forward to providing further updates on progress made
towards bringing this UK onshore field into production.”
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
Simon Oddie |
Europa |
+ 44 (0) 20 7224 3770 |
Phil Greenhalgh |
Europa |
+ 44 (0) 20 7224 3770 |
Christopher Raggett |
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 |
Megan Dennison |
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 2019 Europa produced 91 boepd. Its highly
prospective exploration projects include the Wressle development in
the UK (targeting production start-up in 2020 at 500 bopd gross)
and five licences offshore Ireland
with the potential to host gross mean un-risked prospective
resources of 5.7 billion barrels oil equivalent and 1.5 trillion
cubic feet (‘tcf’) gas. The Company’s flagship project offshore
Ireland is the Inishkea prospect –
a near field gas exploration project with 1.5 tcf gross mean
un-risked prospective gas resources.