Business
2007 Year End Review
2007 Year End Review.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nEuropa Oil & Gas (Holdings) plc (`Europa' or the `Company')\n\n2007 End of Year Review\n\nThe Directors of Europa Oil & Gas (Holdings) plc, the exploration and\nproduction company, are pleased to provide a review of the Company's financial\nand operational highlights for the 2007 calendar year.\n\nFinancial Highlights\n\nIn May, the Company undertook a reorganisation of its Romanian portfolio,\ngenerating £2.0 million cash and a £2.5 million contribution to future drilling\ncosts.\n\nAlso in May, the Royal Bank of Scotland, bankers to the Company, provided a £\n2.0 million credit facility, primarily for use on its UK production projects.\n\nIn June, agreement was reached with Gemini Oil & Gas Limited to repay the loan\nprovided for the purchase of the West Firsby Oilfield and cancel Europa's\nobligation to make payments to Gemini from future field revenues. The loan was\nfully settled in November.\n\nIn July, Europa contracted Energy Resource Consultants Limited to undertake an\nindependent review of the Company's UK oil reserves. Following the review the\nCompany was able to increase its booked Proven plus Probable reserves by 75% to\n1.0 million barrels of oil (at 31 July, 2007).\n\nEuropa ended 2007 with daily oil production of approximately 250 bbls/day at a\nrealised price of $90/bbl. This provides Europa with a healthy monthly cashflow\ncurrently in the region of $700,000/month.\n\nOperational Highlights\n\nIn February, Europa was awarded operatorship and a 50% interest in two blocks\nin the UK East Irish Sea. These blocks, 109/5 and 112/30, contain the large\nEllen Vannin Prospect, an undrilled structure with most-likely Prospective\nResources of 1.6 trillion cubic feet (tcf) of gas (270 million barrels of oil\nequivalent).\n\nIn March, Europa was awarded the Béarn des Gaves Permit in the Aquitaine Basin\nof southwest France. The acreage lies adjacent to the largest onshore gas\nproducing area in France, the Lacq/Meillon Gasfields, which together have\nproduced over 12 tcf (2 billion barrels of oil equivalent).\n\nIn April, the Company completed the acquisition of 50km of 2D seismic over its\nsouthwest Lincoln acreage (PEDL150). The interpretation of the seismic data has\nidentified a very low-risk prospect demonstrating a common closing contour with\nthe nearby Whisby Oilfield and updip of a well wit...