REG - Europa Oil & Gas - EG-08 Revised Prospective Resources

Europa Oil & Gas (Holdings)Announcement

22/07/2024 07:00

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RNS Number : 1853X  Europa Oil & Gas (Holdings) PLC  22 July 2024

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil
& Gas

 

22 July 2024

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

EG-08 Revised Prospective Resources

 

Europa Oil & Gas (Holdings) plc, the AIM quoted UK, Ireland and West
Africa focused oil and gas exploration, development and production company, is
pleased to announce that an additional 716 BCF of unrisked Prospective
Resources have been identified on the EG-08 block bringing the total gross
unrisked Mean Prospective Resources on the block to 2.116 TCFe.

 

Following the acquisition of a 42.9% equity interest in Antler Global Limited
("Antler"), announced on 21 December 2023, Antler and our technical team has
further evaluated the seismic data across the originally identified three
prospects and completed a study to identify additional prospectivity on the
EG-08 block. Antler holds a 80% interest in the EG-08 production sharing
contract, located offshore Equatorial Guinea, with Guinea Ecuatorialde
Petroleos ("GEPetrol"), the National oil company, holding the remaining 20%.
The further technical evaluation of the seismic data has resulted in a Mean
Prospective Resource of 2.116 TCF (internal estimate) for the block as
detailed in the following table and summarised below:

 

The net attributable percentage to Europa is 34% 1 

 

·    798 BCFe Pmean identified in the primary prospect ("Barracuda") in
strata equivalent to the producing Alen Field (the "Alen Strata") in Block O
located 9 km from Barracuda

·    599 BCFe Pmean identified in two low risk tie-in prospects (Cardinal
& Arrowhead) in the Alen Strata

·    344 BCFe Pmean identified in four additional higher risk prospects in
the Alen Strata

·    375 BCFe Pmean identified in two additional leads

·    Revised economic analysis indicates that the minimum gross volume of
a commercial discovery could be in the order of 90 BCFe (15.2 MMBOE)

 

This stage of technical work on the block is complete and the data is now
being loaded into a data room, which will be open in the coming weeks.
Upstream companies will be invited to sign a confidentiality agreement and
then be given access to the data room, however ahead of starting this process
there have already been a number of suitable companies who have expressed
interest in farming into the block. Antler will be seeking a farmin partner to
accelerate drilling an exploration well (the "Farmin Well") which will target
one horizon in the Barracuda prospect, with an estimated GCOS of 70%.  Future
wells will target the significant additional upside in Barracuda and
throughout the license.

 

The technical work that has just completed included a petrophysical evaluation
of the O-2 well drilled in EG-08 down-dip on the Barracuda prospect by Noble
Energy in 2007. This evaluation established that the O-2 well encountered gas
condensate in the upper section of the reservoir. The Farmin Well will target
the same reservoir section up-dip from the O-2 well.

 

Initial discussions have also been initiated with rig providers with a view to
securing a jack-up rig to drill the Farmin Well in H2 2025. With numerous rigs
operating in the area, there appears to be good rig availability over the
period when the well is expected to be drilled.

 

Map showing the prospectivity in block EG-08 and the Alen field to the south
in Block O

 

Will Holland, Chief Executive Officer of Europa, said:

 

"I am very pleased with the progress that Antler and our technical team has
made on the EG-08 licence. The technical work has not only increased the
prospectivity of the block by 50% to over 2TCFe, but also further de-risked
the Barracuda prospect by identifying gas in the O-2 well, which we will be
drilling up-dip from on the same structure.

 

I am confident that we will be able to secure a suitable partner on EG-08 to
carry us through the drilling of an exploration well on the Barracuda
prospect. Whilst the setting up of the data room has taken slightly longer
than expected, I am delighted with the additional information that can now be
offered to potential farminees. Given the proximity to existing
infrastructure, any discovery can be brought online quickly, resulting in
impressive economic returns. In addition, the block has plenty of additional
prospectivity, all of which will be attractive to major upstream companies.

 

I look forward to updating the market further as we continue to progress this
highly prospective asset located in a region which is well supplied by service
companies and supported by an efficient and sophisticated local regulator and
ministry."

 

Qualified Person Review

This release has been reviewed by Jamie White, Chief Geologist at Europa, who
is a geologist with 27 years' experience, is a member of the GESGB and has
consented to the inclusion of the technical information in this release in the
form and context in which it appears.

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014, as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

 

* * ENDS * *

 

For further information, please visit www.europaoil.com
(http://www.europaoil.com/)  or contact:

 

 William Holland                                     Europa Oil & Gas (Holdings) plc            mail@europaoil.com

 Samantha Harrison / Ciara Donnelly / Elliot Peters  Grant Thornton UK LLP - Nominated Adviser  +44 (0) 20 7383 5100

 Peter Krens                                         Tennyson Securities                        +44 (0) 20 7186 9033

 Patrick d'Ancona / Finlay Thomson / Kendall Hill    Vigo Consulting                            +44 (0) 20 7390 0230

 

 

Glossary

 

BCFe
Billion Cubic Feet equivalent

 

GCOS
Geological Chance Of Success

 

H2
Second half

 

MMBOE                               Million
Barrels of Oil Equivalent

 

P10
10% probability that the volumes will equal or exceed the high estimate

 

P90
90% probability that the volumes will equal or exceed the low estimate

 

Pmean  / Mean

Prospect Resources        Probability that the volumes will equal the
average of all of the estimates

 

Prospective Resources  Those quantities of petroleum that are estimated to be
potentially recoverable from undiscovered accumulations

 

TCFe
Trillion Cubic Feet equivalent

 1  Europa hold 42.9% of the shares in Anter and Antler has an 80% interest in
EG-08 (0.429 x 0.8 = 34.3%)

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