Europa Oil & Gas (Holdings) PLC Positive Holmwood Update

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
23 September 2015 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                           Positive Holmwood Update 
 
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 
confirm that Surrey County Council's Planning & Regulatory Committee has 
granted permission for the underground drilling corridor of an exploratory 
borehole at the Holmwood prospect ('Holmwood') in the PEDL143 licence in the 
Weald Basin.  Europa holds a 40% interest in PEDL 143, which contains the 
conventional Holmwood prospect, alongside Egdon Resources (18.4%), Altwood 
Petroleum (1.6%), Warwick Energy (20%) and UK Oil & Gas Investments (20% 
subject to completion of farm-in). 
 
The Holmwood prospect is to be drilled as a deviated exploration well. Europa 
and its partners now have planning permission for both the surface site and the 
underground drilling corridor. Next steps will include fulfilment of planning 
conditions and commencement of detailed drilling planning and environmental 
permitting.  It is anticipated that drilling will take place in late 2016 or in 
2017.  Europa and its partner Warwick Energy intend to farm out some of their 
combined 60% equity in licence PEDL 143.  The farm out process has already 
commenced and further updates will be provided as when it is appropriate to do 
so. 
 
An application for planning permission to drill the Holmwood prospect on 
PEDL143 was submitted in 2008 and was dismissed by Surrey County Council in 
2011. A planning appeal in 2012 was dismissed by the Planning Inspectorate. 
Europa successfully challenged this decision in the High Court in 2013.  In 
2014 the Court of Appeal upheld the 2013 High Court judgment in the Company's 
favour and a second planning appeal was heard at an eight day public inquiry in 
April and June 2015. The Planning Inspectorate issued a decision to allow the 
remitted appeal on 7 August 2015 and Surrey County Council allowed planning 
permission for the underground drilling corridor on 23 September 2015. 
 
Europa provided the following information in its Geological Proof of Evidence 
submitted at the Planning Inquiry in April 2015: "In the event of a successful 
oil discovery at Holmwood and based on the most likely resource in place then 
the field is projected [by Europa] to have a Present Value of around GBP137 
million at 60 $/bbl oil price in 2015 rising to 92 $/bbl by 2018 and inflated 
at 2% thereafter.  After taking costs and discounting into account the Net 
Present Value to the Government based on current taxation rates will be around 
GBP86 million with around GBP51 million accruing to the Licensee group. As such the 
Holmwood prospect is considered of material value to both the Government and 
the Licensee." 
 
CEO Hugh Mackay said "Following Surrey County Council's favourable decision, we 
are meeting with our joint venture partners and reviewing plans to take the 
Holmwood prospect forward to drilling.  With gross mean un-risked prospective 
resources of 5.6 million barrels of oil, as estimated in a CPR published in 
June 2012, Holmwood would be the UK's fifth largest onshore field were the mean 
resources case to be proved by drilling success.  Combined with a one in three 
chance of success, we therefore regard Holmwood as one of the best undrilled 
conventional prospects in onshore UK.  I look forward to providing further 
updates, as we look to build on our success at Wressle and in the process 
transform our revenue and reserves profile." 
 
                                 * * 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 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.  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 4 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. 
 
 
 
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