Europa Oil & Gas (Holdings) PLC AGM Statement

 
TIDMEOG 
 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 
 
9 December 2015 
 
          Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company') 
 
                       Annual General Meeting Statement 
 
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas exploration and 
development company with a combination of producing and exploration assets in 
Europe, is holding its Annual General Meeting ('AGM') later today.  At the 
meeting, CEO Hugh Mackay will make the following statement: 
 
"Europa has a portfolio of multi-stage projects in three areas of interest: 
onshore UK; offshore Ireland; and onshore France. Our stated objective is to 
become an upper quartile oil and gas company on AIM by proving up the 45 
million boe net mean risked & diluted resources we have identified on our 
licences, and in the process generate substantial value for our shareholders. 
2015 saw significant progress made across our asset base and as a result the 
year ahead should see a step up in both our existing UK onshore production and 
our asset backing in terms of proven reserves, while at the same time we will 
continue to build our portfolio of exploration opportunities. 
 
"The most advanced of our exploration and development assets is the Wressle 
discovery on Licence PEDL 180 in East Lincolnshire where first oil is targeted 
for H2 2016, subject to receipt of all required consents.  Reservoir 
engineering analysis indicates up to 500 bopd gross could be recovered from the 
Ashover Grit, one of four productive payzones at Wressle.  With a 33% interest, 
this has the potential to more than double our existing production, which for 
the year ended 31 July 2015 averaged 141 boepd and generated revenues of GBP2.2 
million.  Wressle therefore has the potential to provide us with a cash 
generative platform from which to grow and prove up our prospect inventory. 
 
"We have no shortage of exciting prospects in our existing portfolio.  In the 
UK, further exploration potential exists on the trend which runs between 
Wressle and our producing Crosby Warren field.  Reprocessing of existing 
seismic data has been completed and may lead to new drill candidates emerging. 
In the Weald Basin, following receipt of planning approval, we will discharge 
the planning conditions and obtain EA permits to drill an exploration well on 
the Holmwood prospect next winter (subject to farmdown / funding).  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.  In tandem with advancing our existing licences up the development 
curve, we are also actively looking to significantly grow our portfolio through 
our participation in the latest UK onshore licencing round, the results of 
which are expected in the near term. 
 
"Success onshore UK is transformational in terms of cash flow.  Success 
offshore Ireland would be a company maker.  We currently hold two licences, FEL 
2/13 and FEL 3/13, in the South Porcupine Basin, an emerging exploration 
hotspot.  Based on 2,565 km2 of state of the art 3-D seismic, a CPR on FEL 3/13 
undertaken by ERC Equipoise estimated audited resources of 1.5 billion barrels 
of oil equivalent across three prospects with an audited value of US$7 billion 
for a 100% non-carried interest. This is more than 600 times our market cap or 
US$1.1 billion on a risked basis, 100 times our market cap.  With numbers like 
these, Ireland represents our home run. In addition Europa has estimated 
unaudited gross mean unrisked prospective resources of 595 million boepd across 
four prospects in FEL 2/13. 
 
"Following the withdrawal of our partner Kosmos from Ireland, we are in the 
process of transferring 100% equity and operatorship of the licences back to 
Europa.  We intend to secure a new partner for our Irish licences to fund what 
could be a playmaking well at the earliest possible date and to take advantage 
of dramatically lower rig rates, which have halved over the past year.  Our 
data room opens on 11 January 2016, and already both January and February are 
almost fully booked.  The response we are getting from major and mid-cap 
companies is highly encouraging.  Combined with the record number of 
applications in the latest Irish Atlantic Margin Licensing Round in which 
Europa lodged multiple applications, we clearly are not alone in recognising 
the enormous potential of the South Porcupine Basin. 
 
"Onshore France, we successfully farmed out an 80% interest in and operatorship 
of the Tarbes permit to Vermilion, leaving Europa with 20% equity in the 
licence and a carry on a EUR4.65 million work programme, which may include 
drilling a new well and/or workover. Being the largest producer onshore France, 
Vermilion is the perfect partner for us.  With two previously drilled wells on 
the permit, both of which produced oil, Tarbes is potentially a low risk 
project and we look forward to receiving a prospect inventory from Vermilion in 
2016 in advance of confirmation of a forward work programme. Additionally we 
are continuing to farm out our Bearn des Gaves permit, also in France. 
 
"While forecasting the future direction of oil prices is a thankless task, we 
have taken swift action to rebase the Company to the lower oil price 
environment.  Already we have reduced our cost base by 20% over the course of 
the year.  Thanks to the combination of lower costs and Wressle potentially 
coming on stream at up to 500 bopd gross in H2 2016, the Board is highly 
confident that Europa's move up the AIM oil and gas sector rankings remains on 
track." 
 
                                 * * 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 2015 Europa produced 141 boepd.  Its 
highly prospective exploration projects include the Wressle development 
(targeting production startup in H2 2016 at up to 500 bopd gross) 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 of approximately 2 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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