Europa Oil & Gas (Holdings) plc /
Index: AIM / Epic: EOG / Sector: Oil & Gas
16 April 2019
Europa Oil &
Gas (Holdings) plc (‘Europa’ or ‘the Company’)
Sale of
interest in PEDL143, Weald
Basin
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration, development and
production company, is pleased to announce it has conditionally
agreed to sell its 20% interest in UK onshore licence PEDL143 to UK
Oil & Gas plc (‘UKOG’) for a total consideration of £300,000
(‘the Sale’). The Sale is in line with Europa’s strategy to
focus on its high impact portfolio of exploration licences in
Atlantic Ireland, its existing producing assets onshore UK, and the
Company’s pursuit of new ventures in its chosen areas of interest,
specifically the Atlantic seaboard, North
Africa and NW Europe.
The Sale is subject to the signing of a Sale and Purchase
Agreement, the terms of which have been agreed by both parties, and
also approval by the Oil and Gas Authority. The Sale is to be
settled in cash which, under the terms of the proposed SPA, Europa
will then immediately, simultaneously and irrevocably use to apply
for such number of ordinary shares in UKOG (‘the Consideration
Shares’) that is equal to £300,000 divided by 1.1560 pence per share, being the five day volume
weighted average price on 12 April 2019. The Consideration
Shares issued to Europa will be subject to a six month orderly
markets provision. A further announcement will be made on
completion.
Europa CEO Hugh Mackay said, “The
sale of our remaining interest in PEDL143 demonstrates how we
actively manage our portfolio of licences on a risk / reward basis.
We will deploy corporate resources and capital elsewhere in our
portfolio, mainly in monetising our industry-leading licence
position offshore Ireland. Here gross prospective resources
of up to 6.4 billion barrels of oil and 1.5 tcf of gas at our
flagship Inishkea project have been identified, while farm-in
negotiations are ongoing with a major international oil and gas
company with a view to drilling up to three high impact wells from
2020 onwards.
“We continue to look to maximise production from our UK onshore
assets including our three producing fields and the Wressle
discovery in the East Midlands. Finally, we are closing in on
adding a new exploration project to our portfolio, a high impact,
new venture in Morocco which, in
terms of size and company-making potential, is on a similar scale
to our Irish licences. With so much activity underway across
our portfolio, I look forward to providing further updates on our
progress.”
The information communicated in this
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
* * 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 |
Camille Gochez |
finnCap Ltd |
+ 44 (0) 20 7220 0500 |
Frank Buhagiar |
St Brides Partners Ltd |
+ 44 (0) 20 7236 1177 |
Juliet Earl |
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 2018 Europa produced 94 boepd. Its highly
prospective exploration projects include the Wressle development in
the UK (targeting production start-up in 2019 at 500 bopd gross)
and six licences offshore Ireland
with the potential to host gross mean un-risked prospective
resources of 6.4 billion barrels oil equivalent and 1.5 tcf gas
across all six licences.