AGM Statement
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
10 December 2013
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Annual General Meeting Statement
Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,
development and production company focused on Europe, is holding its Annual
General Meeting (`AGM') later today. At the meeting, Chairman Bill Adamson will
make the following statement:
"Twelve months ago at the 2012 AGM, we reported that our high impact
exploration licences in the Irish Atlantic Margin; appraisal and exploration
permit onshore France; and production and exploration assets onshore UK had
combined net mean risked resources of 27 million barrels of oil equivalent*
(`mmboe'). A year on, the equivalent figure now stands at 43 mmboe*, a more
than 50% increase, thanks to the addition of gross mean unrisked resources of
1.6 billion barrels* for the Kiernan prospect offshore Ireland and a six fold
jump to 416 bcf* for the shallow gas prospect at Berenx, onshore France
following a detailed mapping exercise on both licence areas.
"Offshore Ireland, our partner Kosmos Energy, the pioneer of the Cretaceous
Atlantic Margin plays, recently funded the acquisition of 3D seismic covering
both our Irish blocks in the South Porcupine Basin, thereby fulfilling Phase 1
commitments well in advance of the July 2016 deadline. We believe the speed
with which Kosmos has acted since farming into an 85% interest in April 2013
demonstrates their commitment. Moreover we expect the progress made to date to
continue in 2014, including the interpretation of the 3D data which could
significantly de-risk the prospectivity already identified and potentially lead
to a decision to drill a well on one or both blocks in 2015/16. Under the terms
of the farm-out, 100% of the cost of the first exploration well on each block
will be borne by Kosmos, subject to a combined cap of US$200 million. Europa
effectively has a free carry on a 15% interest in potentially two high impact
wells, should they be drilled, each of which, subject to a positive outcome, we
believe would be transformational for the Company.
"We are also confident that 2014 may see a number of key value triggers for our
100% owned French permit. In tandem with launching a farm-out, we have already
commenced the planning process to drill a well to test the 416 bcf* Berenx
Shallow gas prospect. Subject to completing a farm out agreement or similar
funding, we could be drilling a well to test the shallow gas prospectivity
within the next 18 months. At an estimated drill cost of US$6m we believe
drilling the Shallow prospect offers a clear route to monetising the potential
of this permit.
"Our UK portfolio offers a combination of production along with a number of low
risk/ potentially material reward exploration targets. Our three producing
fields, which generated approximately £4.5m in revenues in the last financial
year, continue to help fund exploration work, most recently our share of 2D
seismic acquisition costs on the 50% owned PEDL 181 licence. We will shortly be
releasing an updated geological model as well as a forward plan for this large
undrilled licence onshore UK. In addition we are funded to cover our share of
drilling costs at the Wressle prospect in the East Midlands where a well is
expected to spud early in 2014. This is later than envisaged due to Wressle
being among the first conventional wells to have to comply with new EA
regulations which has led to what we believe will be a short delay in the
commencement of drilling.
"Our in-house technical work over the last eighteen months has exposed our
shareholders to considerable potential value upside. In addition to evaluating
new ventures, we are now moving into the next phase of our strategy which is to
de-risk and prove up our substantial resource base. 2014 will not only see us
drill Wressle, which has a one in three chance of materially adding to our
existing production, but we believe will also see progress made in advancing
our projects offshore Ireland and onshore France, as we look to deliver on our
objective and build substantial value for shareholders."
* - Europa management estimates
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770
Phil Greenhalgh Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770
Matt Goode finnCap Ltd +44 (0) 20 7220 0500
Henrik Persson finnCap Ltd +44 (0) 20 7220 0500
Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Lottie Brocklehurst St Brides Media and Finance 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. The Company produced 182 boepd in the UK
during the 2012/2013 financial year, generating sufficient revenues to cover
corporate overheads. Its highly prospective exploration projects include the
Wressle prospect in the UK where a well is due to be drilled later in the near
term; 100% owned gas exploration prospect (416 bcf) and appraisal project (CPR
277 bcf) in onshore France; and a joint venture with leading independent Kosmos
to explore two licences in offshore Ireland in which Europa has identified two
prospects with estimated gross mean un-risked indicative resources of 482
million barrels oil and 1.6 billion barrels oil respectively.
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.