Europa Oil & Gas (Holdings) Plc COVID-19 Update
31 March 2020 - 5:00PM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
31 March 2020
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
COVID-19 Update
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas
exploration, development and production company, provides a corporate update in
relation to the global COVID-19 pandemic and associated market volatility and
oil price weakness. Following a comprehensive review and cost reduction
programme existing cash reserves are expected to be sufficient to finance
current and upcoming activity, including the Wressle Field Development Project,
ongoing farmout activities and reduced work programmes offshore Ireland and
Morocco, without the need for additional external funding.
Wressle Field Development Project ('Wressle' or the 'Project')
On 18 March 2020, Europa issued an update on the Wressle Field Development
Project in North Lincolnshire, highlighting studies carried out by the
operator, Egdon Resources. These demonstrated that, with an estimated
breakeven oil price of US$17.62 per barrel, the Project is economically robust
at current oil prices. 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. On current
plans first oil at Wressle, in which Europa holds a 30% working interest, is
envisaged during H2 2020.
Corporate Initiatives
In response to the current oil price environment, Europa has implemented a
programme of corporate cost reductions including salary cuts, and cancellation
of non-core contracts. In Ireland a review of the portfolio to avoid
unnecessary licence costs may lead to further relinquishments and intangible
asset write offs. In Morocco, Europa intends to delay its current work
programme, which primarily comprises 3D seismic reprocessing. Should the oil
price not improve by the end of 2020 further economies are planned to maintain
positive operating cashflow.
Simon Oddie, Interim Chief Executive Officer and Executive Chairman of Europa,
said:
"These are challenging times for the oil and gas exploration and production
industry with the combination of market turbulence and depressed oil prices. We
have responded by making appropriate cost savings and adjustments in the
business whilst maintaining the integrity of our core strategy. Further
economies will be made if conditions do not improve in the medium term."
* * 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 finnCap Ltd + 44 (0) 20 7220
Raggett 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.
END
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