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Europa Oil & Gas confident it is set for a highly active period

Wressle will double Europa's UK production later this year, meanwhile, it continues to look forward to an Irish gas partnership deal

Europa Oil & Gas Holdings PLC - Europa Oil & Gas confident its set for a highly active period

Europa Oil & Gas Holdings PLC (LON:EOG) has told investors it is confident that the next year will be a highly active period for the company, led by the Wressle start-up later in 2020.

Onshore Lincolnshire, the 30%-owned Wressle project is due to begin production during the second half of this year and it will deliver some 500 barrels oil equivalent per day (boepd) of gross production.

It will mean that Europa’s net UK onshore production will double to over 200 boepd.

Significantly, Europa today highlighted that with a US$17 per barrel breakeven Wressle promises to be very profitable at current oil prices of over US$40 per barrel.

READ: Europa has increased farm-out chances offshore Ireland

Europa also announced the intended retirement of its finance director Phil Greenhalgh, who will remain on the board until October 14, 2020. The company said it does not intend to appoint a replacement at the current time, instead, his responsibilities will be assigned to existing team members, with Alison Fuller becoming financial controller and Murray Johnson becoming company secretary.

Elsewhere, in the Europa portfolio, the company said it continues to plan the launch of a formal farm-out process for its Irish gas exploration assets, in the neighbourhood of the Corrib gas field.

It is presently awaiting regulatory sign-off for its agreed acquisition of the Frontier Exploration Licence 3/19, which is close to its Inishkea assets (in FEL 4/19) and is host to the 1.2 trillion cubic feet Edge prospect. The company noted that it will have a key strategic position in the proven gas play of the Slyne basin.

Significantly, the company noted that Corrib is now Ireland’s sole producing gas field following the recent closure of the Kinsale Head gas field, and the company’s package of assets now represent the only large scale, drill-ready prospects in a gas play that has been significantly de-risked by Corrib.

For Morocco, the group added, desktop technical work has continued despite the coronavirus pandemic and is focused on the reprocessing and interpreting 3D seismic data. The project aims to de-risk large prospects in the Lower Cretaceous play, a prolific producer in West Africa.

Some 14 prospects and 16 leads have so far been estimated with the potential, according to Europa, close to 10bn barrels of oil. So far, meanwhile, each prospect is estimated to have around 150mln barrels, giving them over 5bn barrels of resource potential. There’s potential for ‘stacked’ reservoirs, with multiple structural styles, Europa noted.

Europa aims to define a robust prospect inventory before securing an industry partner for drilling.

In Monday’s statement, interim chief executive and executive chairman Simon Oddie said: “We are confident that the next year promises to be a highly active period for Europa, with Wressle due to come on stream later this year, our unrivalled position in the Slyne Basin gas play set to be bolstered further once the transfer of FEL 3/19 is completed, and with the ongoing technical work offshore Morocco to date confirming Inezgane’s exciting potential.”

Quick facts: Europa Oil & Gas Holdings PLC

Price: 1.1 GBX

AIM:EOG
Market: AIM
Market Cap: £4.89 m
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