Europa Oil & Gas (Holdings) plc /
Index: AIM / Epic: EOG / Sector: Oil & Gas
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
Wressle
Development Update
Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco focused oil and gas exploration,
development and production company, notes today’s update from Egdon
Resources (‘Egdon’) confirming the commencement of site works at
the Wressle Oil Field development (‘Wressle’ or the ‘Project’) in
North Lincolnshire. This is in line with the previously
stated target to achieve first oil at Wressle in H2 2020.
Wressle lies on licences PEDL180 & 182 in which Europa holds a
30% working interest alongside Egdon (30%), and Union Jack Oil
(40%).
As advised by the operator, Egdon, the civils contractor has
mobilised to site and has commenced works to reconfigure the
Wressle production area. Works being undertaken include the
installation of a new High Density Polyethelene impermeable
membrane; French drain system; an approved surface water
interceptor; the construction of a purpose-built bund area for
storage tanks; a tanker loading plinth; and an internal roadway
system.
The reconfiguration of the Wressle production area forms a
central part of the Wressle development plan, the key stages of
which and work carried out to date are listed below:
- Discharging the planning conditions, finalising detailed
designs, tendering and procurement of materials, equipment and
services and finalising all Health and Safety Executive (“HSE”)
documentation and procedures:
- Key planning conditions have been discharged, detailed design
tendering is underway and all HSE documentation and procedures are
progressing in line with expectations
- Installation of groundwater monitoring boreholes and
establishing baseline groundwater quality through monitoring and
analysis:
- Four groundwater boreholes have been installed and two rounds
of sampling and analysis undertaken to date
- Reconfiguration of the site:
- Site works have commenced
- Installation and commissioning of surface facilities
- Sub-surface operations
- Commencement of production
Simon Oddie, Interim CEO and
Executive Chairman of Europa, said: “Today’s news that
siteworks have commenced and that the Wressle field remains on
course to commence production in H2 2020 is highly encouraging.
With oil at over US$40 per barrel and
Wressle requiring oil prices of US$17.62 per barrel to breakeven, we are keen to
get what promises to be a highly profitable UK onshore field into
production. At an initial gross rate of 500bopd, our 30% share in
the field will equate to 150 bopd net to Europa which will scale up
our existing production to well over 200bopd and in the process
transform our revenue profile. This will provide us with a
strong platform with which to advance our portfolio of multistage
licences including our industry leading exploration position in the
proven gas play of the Slyne Basin offshore Ireland and our large Inzegane permit offshore
Morocco where initial work has
identified 30 targets which could hold up to 10 billion barrels of
oil."
Further Information on Wressle
Wressle 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. 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. With
an estimated breakeven oil price of US$17.62 per barrel, production at Wressle is
expected to be very profitable at current oil prices of over
US$40 per barrel. 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).
* * 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 which includes production,
development and exploration interests, in countries that are
politically stable, have transparent licensing processes, and offer
attractive terms. In terms of production, in 2019 Europa produced
91 boepd. Production is set to increase to over 200 boepd in H2
2020 once the Wressle field in the UK, which is currently under
development, comes on stream at a gross rate of 500 bopd.
The Company holds four exploration licences offshore
Ireland which have the potential
to host gross mean un-risked prospective resources of 3.9 billion
barrels oil equivalent and 2.7* trillion cubic feet (‘tcf’) gas
(*subject to regulatory approval for the transfer of FEL 3/19). The
Company’s flagship projects offshore Ireland are Inishkea and Edge, two near field
gas prospects in the Slyne Basin which the Company classifies as
lower risk infrastructure-led exploration due to their close
proximity to the producing Corrib gas field and associated gas
processing infrastructure. In September
2019, Europa was awarded a 75% interest in the Inezgane
permit offshore Morocco. Initial results of technical work
have identified 30 prospects and leads that have the potential to
hold close to 10 billion barrels of unrisked resources.