Europa Oil & Gas (Holdings) PLC Update on Porcupine Licences, Offshore Ireland

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
22 September 2015 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                Update on Porcupine Licences, Offshore Ireland 
 
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with 
producing and exploration assets in Europe, announces that, subject to an 
application being made to the Irish Authorities and approval granted, it 
intends to assume 100% interest in, and operatorship of, licences FEL 2/13 and 
FEL 3/13 in the Porcupine Basin, offshore Ireland.  This follows Kosmos Energy 
Ireland's ('Kosmos') decision to exercise its option to withdraw from the Joint 
Operating Agreements for both licences.  FEL 2/13 and FEL 3/13 have the 
potential to hold gross mean un-risked Prospective Resources of approximately 
1.7 billion barrels of oil equivalent (boe), and given the record number of 
applications in Ireland's 2015 Atlantic Margin Round, the Board is confident 
there will be interest in partnering with Europa in both licences. 
 
Ireland's 2015 Atlantic Margin Licensing Round closed on 16 September 2015. 
The Irish Authorities have reported they have received 43 applications from 
major, mid cap and small companies, the largest number of applications ever 
received in any Irish offshore licensing round.  Europa has applied for 
multiple blocks in the 2015 Irish Atlantic Margin Licensing Round and has 
undertaken considerable proprietary technical work in relation to these licence 
applications. 
 
Europa's enthusiasm for the petroleum potential of its Ireland's Atlantic 
Margin licences FEL 2/13 and FEL 3/13 remains undiminished. A CPR by ERC 
Equipoise announced on 12 May 2015 identified gross mean un-risked prospective 
resources of 1.5 billion boe over three prospects in FEL 3/13.  On 16 June 
2015, the Company announced that its then 15% interest in FEL 3/13 had a net 
mean un-risked NPV10 of US$1.6 billion.  Subject to Europa being reassigned a 
100% interest in FEL 3/13, this net mean un-risked NPV10 will increase.  Europa 
is the beneficiary of more than US$15 million expenditure across both blocks 
and Europa has enjoyed a free carry on most of this expenditure. Work done 
includes acquisition of a state of the art 2,565 km2 3D seismic survey in 2013, 
delivery of a processed dataset and prospect inventory in 2014 which led to 
Europa's CPR and valuation in 2015. The technical insights gained from 
interpretation of this exclusive 3D dataset have proved absolutely invaluable; 
not only for Europa's independent assessment of FEL 2/13 and 3/13 but also for 
guiding our applications in the 2015 Atlantic Margin Licensing Round. 
 
Europa's CEO, Hugh Mackay, said "Europa has been active in the Atlantic Margin 
since 2011. We have a very strong technical team and in particular have 
conducted substantial and independent technical work on the Atlantic Margin 
throughout most of 2015 in support of our CPR and valuation (RNS of 12 May 2015 
and 16 June 2015) and our applications in the 2015 Atlantic Margin Licensing 
Round that closed on 16 September 2015.  As a consequence we have an up to date 
and detailed understanding of the prospectivity of both licences and have no 
hesitation in stepping up to assume operatorship of FEL 2/13 and 3/13. 
 
"Whilst we are disappointed that Kosmos has elected to withdraw from Ireland we 
appreciate the necessity for portfolio rationalisation in the current business 
environment and their decision brings opportunity to Europa. Drilling costs 
have already fallen substantially: day rates for rigs capable of drilling in 
the Atlantic Margin have reduced from US$600,000 per day to US$300,000 per day 
or less.  We anticipate that the 2015 licensing round will bring new entrants 
into the basin including major and mid-cap oil companies.  We are very 
confident in our technical and commercial work and look forward to updating the 
market as we take these licences forward." 
 
Kosmos will remain operator during the period of its withdrawal from the 
Contract and Joint Operating Agreement.  Further announcements will be made as 
and when appropriate. 
 
                                 * * ENDS * * 
 
For further information please visit http://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            St Brides Partners Ltd        + 44 (0) 20 7236 
Brocklehurst                                    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 H1/2015 Europa produced 144 boepd 
generating sufficient revenues to cover corporate overheads and some 
exploration expenditure.  Its highly prospective exploration projects include 
the Wressle discovery (recently drilled and tested at an aggregate of 710 boepd 
from four zones) in the UK; 100% owned gas exploration prospect (107 bcf) and 
appraisal project (CPR 277 bcf) in onshore France a joint venture with 
Vermillion Energy also in onshore France; and two licences in offshore Ireland 
with the potential to host gross mean un-risked Prospective Resources 
approximately 1.7 billion barrels across both licences. 
 
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. 
 
 
 
END
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