Europa Oil & Gas (Holdings) Plc New Irish Prospect Inventory and Farmout Launch
July 12 2018 - 2:00AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
12 July 2018
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
New Prospect Inventory for Atlantic Ireland Licences and Launch of Farmout
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration,
development and production company, is pleased to report that is has completed
an updated prospect inventory for its 100% owned Frontier Exploration Licences
('FEL') 1/17 and 2/13 in the South Porcupine Basin, Atlantic Ireland. In
addition, the Company has today launched a farmout process for three of its
licences in the South Porcupine Basin FELs 1/17, 2/13 and 3/13, which together
are estimated to hold gross mean un-risked prospective resources of 4.3 billion
barrels of oil equivalent (boe).
Highlights
* Marked improvement in seismic quality and a substantial de-risking of the
prospect inventory for FELs 1/17 and FEL 2/13 following pre-stack depth
migration ('PSDM') reprocessing of proprietary 3D seismic data originally
acquired in 2013
* FEL 1/17: gross mean un-risked prospective resources of 584 million barrels
of oil equivalent ("mmboe") comprised of two pre-rift prospects Edgeworth
and Ervine and one new syn-rift target, Egerton
* Egerton is interpreted to be analogous to the Bay du Nord discovery on the
conjugate margin, offshore Newfoundland
* FEL 2/13: gross mean un-risked resources of 817 mmboe comprised of two
pre-rift prospects Kiely East and Kiely West and one Cretaceous target,
Kilroy
* Together with previously announced gross mean un-risked prospective
resources of 2.9 billion boe on FEL 3/13 (see RNS of 5 June 2018), total
gross mean un-risked prospective resources across FELs 1/17, 2/13, and 3/13
now stand at 4.3 billion boe
* Firm drilling targets identified in FEL 1/17, 3/13 and 2/13 - respectively
prospects Edgeworth, Wilde and Kiely East
* The farmout data room to secure partner(s) and fund exploration drilling
activity opened today (12 July 2018)
Hugh Mackay CEO said: "The PSDM reprocessing of our proprietary 3D seismic data
sets over our South Porcupine licences has transformed the prospect inventory.
Prospect volumes have changed, but more importantly the accuracy of our maps
and our confidence in them, has substantially increased. Our prospects are
tightened up and de-risked. We now have firm drilling targets with clearly
positive economics on each licence. We promised half a dozen drillable
prospects by the end of 2018, now we have four, three here in the Porcupine and
one in the Slyne. Subject to regulatory approval we will be able to proceed to
FEL Phase 2 on each licence with confidence, and we now believe we have the
data to convince substantive farminees of the compelling case to take these
four licences forward towards drilling with the first well targeted for
mid-2019 on the Inishkea prospects in the Slyne licence LO 16/20, subject to
funding."
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.
The new prospect inventory for FEL 3/13 was reported to shareholders on 5 June
2018 https://bit.ly/2sxeQTV.
Detailed interpretation of the new reprocessed data has been completed over FEL
1/17 on the east flank and FEL 2/13 on the west flank of the South Porcupine
Basin, resulting in a marked improvement in seismic quality and a substantial
de-risking of the prospect inventory. This announcement concerns the new
prospect inventory for FEL 1/17 and FEL 2/13. The results are summarised below,
and further information can be found in a report on Europa's website using the
following link: http://www.europaoil.com/reportsandpresentations.aspx
FEL 1/17 contains the Edgeworth and Ervine pre-rift tilted fault blocks. As a
result of the newly reprocessed seismic data, Europa's estimates of gross mean
un-risked prospective resources in these structures has been reduced to 225 and
192 mmboe respectively. This is largely due to a reduction in the upside, and
hence a narrowing of the range of the Company's predictions - associated with
increased prediction confidence. In addition to pre-rift targets, Europa has
now been able to firm-up a syn-rift target, analogous to discoveries such as
Bay du Nord on the conjugate margin offshore Newfoundland. The new Egerton
prospect has mean un-risked prospective resources of 167 mmboe.
Numerous play concepts have been suggested for FEL 2/13, however Europa is now
focused on the two most likely to support a commitment well. These are the
Kiely East and Kiely West tilted fault blocks (now significantly increased in
volume with gross mean un-risked prospective resources on block of 505 mmboe),
and lowermost Cretaceous slope apron deposits characterised by Kilroy (gross
mean un-risked prospective resources of 312 mmboe).
The new prospect inventory arising from interpretation of the new 3D PSDM
reprocessed seismic data across Europa's three 100% operated South Porcupine is
tabulated below.
Licence Prospect Play Gross Prospective Resources mmboe*
Un-risked
Low Best High Mean
FEL 1/17 Ervine Pre-rift 63 159 363 192
FEL 1/17 Edgeworth Pre-rift 49 156 476 225
FEL 1/17 Egerton Syn-rift 59 148 301 167
FEL 3/13 Beckett mid-Cretaceous Fan 111 758 4229 1719
FEL 3/13 Shaw+ mid-Cretaceous Fan 20 196 1726 747
FEL 3/13 Wilde Early Cretaceous Fan 45 241 1082 462
FEL 2/13 Kiely East + Pre-rift 52 187 612 280
FEL 2/13 Kiely West + Pre-rift 23 123 534 225
FEL 2/13 Kilroy+ Cret. Slope Apron 37 177 734 312
Total 4329
*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.
+prospect extends outside licence, volumes are
on-licence
The firm drilling targets in FEL 1/17, 3/13 and 2/13 are respectively prospects
Edgeworth, Wilde and Kiely East. The key next step across all three licences is
to secure a farmin partner or partners to fund exploration drilling activity.
The farmout data room opened on 12 July 2018. Europa believes that the new PSDM
seismic data has transformed the prospectivity on the licences and will be
working hard to secure partners.
Further information regarding Europa's complete Atlantic Ireland prospect
inventory can be found on its website (https://bit.ly/2u9c9so).
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 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
2019 at 500 bopd gross) and six licences offshore Ireland with the potential to
host gross mean un-risked prospective resources of 6.4 billion barrels oil
equivalent and 2.5 tcf undiscovered GIIP across all six licences.
END
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