Europa Oil & Gas (Holdings) PLC Wressle Update (1185I)

TIDMEOG

RNS Number : 1185I

Europa Oil & Gas (Holdings) PLC

03 August 2023

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas

3 August 2023

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

Wressle Update

Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil and gas exploration, development, and production company, announces that the Wressle 1 well ("W1") (in which Europa has a 30% interest) has begun to produce a small amount of water, which accounted for an average of 3.72% of the total production fluid during July 2023. The well continues to free flow without the need for artificial lift and as of the end of July 2023 the cumulative production from the W1 well totalled 492,876 bbls of oil.

With water production starting at this late stage, it provides further evidence that the expected recoverable volumes from the Ashover Grit will be at the top end of the estimates detailed in the independent Competent Person's Report ("CPR") prepared by ERC Equipoise Ltd ("ERCE") and announced on 26 September 2016. The 2016 CPR forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and 3P 1.12 MMstb.

As announced on 17 January 2023, a new CPR has been commissioned and the work, which is being undertaken by ERCE, continues. With the advent of water production, ERCE is revisiting the reservoir modelling and incorporating the event into the various work streams. This has delayed the completion of the report but the results of the ERCE work will be announced in due course when available.

Will Holland, Chief Executive Officer of Europa, said:

"The contribution of formation water has been long expected at the W1 well and we are prepared to handle the water. The size of the oil accumulation within the Ashover Grit formation is still expected to be at the top end of the original CPR estimate and I look forward to updating the market with the updated reserves once the new production data has been incorporated into the dynamic reservoir model. This will ensure that the second development well is drilled in the optimal location and that the recovery rate is maximised."

* * ENDS * *

For further information, please visit www.europaoil.com or contact:

 
 William Holland                Europa Oil & Gas (Holdings)    mail@europaoil.com 
                                 plc 
                                Strand Hanson Limited 
                                 - Nominated & Financial       +44 (0) 20 7409 
 James Dance / James Spinney     Adviser                        3494 
                                                               +44 (0) 20 7186 
 Peter Krens                    Tennyson Securities             9033 
 Patrick d'Ancona / Finlay                                     + 44 (0) 20 7390 
  Thomson / Kendall Hill        Vigo Consulting                 0230

Notes to Editors

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. Average production for the 6-month period ending 31 January 2023 was 268 bopd. In April 2022, Europa farmed into P.2358, Block 13/23c ("Serenity") in the Outer Moray Firth area of the North Sea. The licence contains the 2019 Serenity oil discovery, in which Europa has a 25% interest. The Company holds one exploration licence offshore Ireland, which has two principal prospects, the largest of which has the potential to host gross mean un-risked prospective resources of 1.5 trillion cubic feet ("tcf") gas. Inishkea is a near field gas prospect in the Slyne Basin which the Company classifies as lower risk due to its close proximity to the producing Corrib gas field and associated gas processing infrastructure.

Glossary

   2P                           Proven and Probable 
   3P                           Proven, Probable and Possible 
   bbls                        barrels 
   MMstb                 million stock tank barrels

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