Positive Update on Irish Atlantic Margin Prospects
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
6 November 2012
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Technical Update on Irish Atlantic Margin Mullen Prospect
& Participation in the Atlantic Ireland 2012 Conference, Dublin
Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,
development and production company focused on Europe, is pleased to provide a
technical update on its 100% owned Licensing Options (`LO') 11/7 and LO 11/8,
located in the highly prospective South Porcupine Basin, in the Irish Atlantic
Margin, where two large, previously unknown prospects, Mullen and Kiernan, were
identified on Europa's acreage in September 2012.
Highlights
* Europa believes the South Porcupine Basin has the potential to host a new
hydrocarbon province and is encouraged by the results of the initial
prospect evaluation
* Indicative resources at Mullen range from 66 million (P90) up to
potentially 1.1 billion (P10) barrels of oil
* P50 resources at Mullen are estimated at 318 million barrels of oil and are
supported on seismic data by an amplitude shut-off at a constant depth
* First pass seismic reprocessing over the Mullen prospect has been completed
and reprocessing over Kiernan is on-going
* Europa is seeking a joint venture partner to undertake further technical
work to de-risk the Mullen and Kiernan prospects and mature them to
drillable status
* The Company is presenting the Mullen prospect at the Atlantic Ireland 2012
Conference in Dublin on 12 November 2012
Hugh Mackay, CEO of Europa, commented, "We believe the South Porcupine Basin
has the potential to host a new hydrocarbon province. First pass seismic
reprocessing over our Mullen prospect has proved positive. We are pleased to
note that the P50 resources of 318 million barrels of oil are supported by an
amplitude shut off, with indicative resources ranging from 66 million (P90) up
to over a billion (P10) barrels of oil. Since our identification of these two
large, previously unknown prospects, significant progress has been made towards
uncovering the potential of these large structures. Whilst reprocessing of
seismic for Kiernan, the larger of the two structures with stratigraphic
closures of up to 244sq km, is still on-going, the technical case of Mullen has
been further matured and will be presented at the Atlantic Ireland 2012
Conference in Dublin on 12 November 2012. Additionally the prospectivity of the
South Porcupine basin will be further tested by the upcoming ExxonMobil Dunquin
well, which is expected to be drilled in Q1 2013. In order to maximise the
potential of these prospects we remain in search of a joint venture partner
with whom to further de-risk Mullen and Kiernan and mature them to a drillable
status."
The Mullen and Kiernan Prospects:
Europa has 100% equity in two licensing options in the South Porcupine Basin in
the Irish Atlantic Margin both approximately 1,000sq km in size. LO 11/7 is
over blocks 43/9, 43/10, 43/14 and 43/15 whilst LO 11/8 is over blocks 54/1, 54/2,
54/6 and 54/7.
The option period is from 1 November 2011 to 30 October 2013. Europa has
implemented the technical work programme for this initial period, which
involves the integration and interpretation of existing 2-D seismic and well
data sets, and reprocessing of selected 2-D seismic data. Subject to the
fulfilment of this work programme, government approval and a minimum 25%
relinquishment, a 15 year Frontier Exploration licence may be obtained.
Within these Licensing Options, Europa has identified two prospects: Mullen
within 11/7 and Kiernan within 11/8. The play configuration in both blocks
involve the presence of Early Cretaceous turbidite reservoirs derived from
hinterland areas characterised by the development of Devonian Old Red
Sandstone. These reservoirs are charged by mature Late Jurassic and Early
Cretaceous organic-rich marine shales. Both of these prospects are
stratigraphic traps, reliant upon updip pinch-out of the turbidite reservoir on
to a mud-dominated slope succession. The trapping configurations are analogous
to the Jubilee and Mahogany fields in the equatorial Atlantic Margin province.
This Early Cretaceous play is proven in the North Porcupine Basin by the Burren
oil discovery made by Phillips in 1978 which flowed circa 700 barrels of oil
per day of 34 API oil. The South Porcupine Basin is essentially undrilled and
technical success at the upcoming ExxonMobil Dunquin well, which is expected to
be drilled in Q1 2013, may help de-risk some source rock elements of the Lower
Cretaceous clastic play.
First pass seismic reprocessing over the Mullen prospect has been completed and
reprocessing over Kiernan is on-going and this prospect will be presented at a
later date.
Base seal at Mullen is considered to be Barremian shales. Top seal is provided
by Late Aptian-Early Albian marine mudstones. The Mid-Late Aptian turbidite
reservoir was derived from the Porcupine High and both lateral and updip
stratigraphic pinchout of the reservoir package can be observed on dip and
strike seismic lines.
Upper Jurassic source rocks are proven in the North Porcupine basin, both by
drilling and analysis of produced hydrocarbons. There is only one well, 43/
13-1, in the South Porcupine Basin. The well is located on the flanks of the
Basin and contained thermally immature Upper Jurassic source rocks. It is also
possible that Lower Cretaceous oil prone source rocks might be present in the
South Porcupine Basin. Lack of drilling means these are not proven, although
the presence of parallel continuous seismic facies characteristics, observed on
seismic, may provide some support to the development of potentially
organic-rich mudstone dominated successions within this stratigraphic interval.
The water depth at the Mullen prospect location is approximately 1,000m, and is
therefore feasible for a fixed platform development. Depth to top reservoir is
approximately 3,840m below the mudline. Indicative resources at Mullen are
estimated to be between 66 (P90) mmbo and 1092 mmbo (P10). P50 resources are
318 mmbo and are supported by an amplitude shut-off at a constant depth.
Atlantic Ireland Conference 2012, Dublin
Europa will be participating in the Atlantic Ireland Conference 2012 (`the
Conference') on Monday 12 November 2012 at the Burlington Hotel, Upper Leeson
Street, Co. Dublin, Ireland, a one-day conference and exhibition on Ireland's
offshore hydrocarbon potential.
Hugh Mackay, CEO of Europa, will make a technical presentation regarding the
Company's Mullen prospect in the `Prospects 2 Go' session of the Conference
programme. The Company's technical staff will also be available for discussion
throughout the day at Europa's booth in the exhibition area. For further
information on the Conference, please click on the following link:
http://www.pip.ie/atlantic_ireland_conference_2012.PAGE336.html.
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa + 44 (0) 20 7224 3770
Phil Greenhalgh
Matt Goode finnCap Ltd +44 (0) 20 7220 0500
Henrik Persson
Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Lottie Brocklehurst
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 currently produces
approximately 200 boepd in the UK, generating sufficient revenues to cover
corporate overheads. In addition, it has highly prospective exploration
projects in the UK, Ireland, France and Romania.
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.