Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
19 February 2015
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Second Interval at Wressle-1 Well Free Flows Oil & Gas
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with a
combination of producing and exploration assets in Europe, is pleased to note
the announcement of Egdon Resources (`Egdon') today confirming free flowing oil
production rates equivalent to up to 182 barrels of oil per day (`bopd'), along
with 456 thousand cubic feet (`mcf') of gas per day, following testing
operations on the Wingfield Flags reservoir at the Wressle-1 oil discovery
(`Wressle') on Licence PEDL 180 in East Lincolnshire (`PEDL 180'). The
Wingfield Flags is the second of three potentially hydrocarbon bearing zones to
be tested at Wressle, the first of which, Ashover Grit, tested 80 bopd and
47mcf of gas per day, as announced on 9 February 2015. Europa has a 33.3%
working interest in PEDL 180, alongside Egdon (operator, 25%), Celtique Energie
Petroleum Ltd (33.3%), Union Jack Oil (8.3%).
* An interval of 3 metres was perforated at a measured depth of between 1,937
to 1,940 metres
* Following an initial `clean-up' oil and gas flow, two flow tests using
different choke sizes to attempt to optimise oil flow rates were
successfully executed on the Wingfield Flags reservoir - from what proved
to be a high Gas Oil Ratio oil during the clean up period
*
+ Initial test - free flowing oil production rates equivalent to 116 bopd
along with 341 mcf of gas per day were achieved during a 4 hour main
flow period using a 16/64" choke
+ Second test - free flowing oil production rates equivalent to 182 bopd
along with 456 mcf of gas per day were achieved during a 5 hour main
flow period using a wider 32/64" choke
* No appreciable volumes of water were encountered and the oil is of good
quality with a gravity of 39-40o API
* Down-hole pressure data, recorded during the main flow and subsequent
shut-in build-up period, will now be analysed to evaluate the permeability
of the reservoir to determine the increased production rates that could be
achieved during pumped production
* Based on the encouraging free-flow test results from the Ashover Grit and
Wingfield Flags intervals it is intended that a longer term pumped
production test will be undertaken once the on-going test programme has
been completed
* The Wingfield Flags interval will now be isolated with a bridge-plug and
test operations will continue on the Penistone Flags, the third potential
payzone, where hydrocarbons are indicated from log data and gas
chromatograph analysis
Europa's CEO, Hugh Mackay said, "Thanks to free flowing rates of up to 182 bopd
from test #2 in the Wingfield Flags reservoir and the 80 bopd previously
achieved from test #1 in the Ashover Grit, Wressle is so far living up to its
pre-drill billing as a potential oil and gas discovery that could transform our
existing production and revenue profile. Even though a final potential payzone,
the Penistone Flags, is still to be tested, plans are now being advanced to
undertake an extended well test to determine what longer term production rates
can be achieved using pumping equipment. Any oil and gas recovered during this
longer term test will be sold to the market and therefore this test will have a
positive impact on Europa's cash flow. Clearly with a 33.3% interest in
Wressle, Europa has good exposure to the success case.
"In addition to its interest in the Wressle discovery, Europa has a 50%
interest in and is operator of the upcoming Kiln Lane well targeting a 2.9
mmboe conventional oil exploration prospect, some 25km to the east of Wressle
in PEDL 181. I look forward to providing further updates on Wressle and Kiln
Lane along with progress made at our onshore France and offshore Ireland
licences as and when it is appropriate to do so, as we continue with our
strategy to monetise the underlying value of our multistage portfolio of
licences."
* * 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
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236 1177
Lottie Brocklehurst 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. The Company produced 165 boepd in the UK
during the 2013/2014 financial year, generating sufficient revenues to cover
corporate overheads and some exploration expenditure. Its highly prospective
exploration projects include the Wressle (recently drilled and undergoing
testing) and Kiln Lane prospects (due to be drilled Q1 2015) in the UK; 100%
owned gas exploration prospect (107 bcf) and appraisal project (CPR 277 bcf) on
the Bearn des Gaves permit and a joint venture with Vermillion Energy in the
Tarbes Val d'Adour permit onshore France; and a joint venture with leading
independent Kosmos to explore two licences in offshore Ireland with the
potential to host gross mean unrisked prospective resources of 1.5 billion
barrels.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 30 years' experience in petroleum exploration and
a member of the Petroleum Exploration Society of Great Britain, American
Association of Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information in this
release in the form and context in which it appears.