Business
Assignment of interests in East Midlands Licence
Assignment of interests in East Midlands Licence.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nEuropa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas\n\n4 October 2016\n\nEuropa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)\n\n Assignment of interests in East Midlands Licence\n\nEuropa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil and gas exploration, development and production company, announces that following the acquisition of Shale Petroleum (UK) Limited (‘SPL’) for a nominal consideration of £1 (see announcement of 15 August 2016 for further details), Europa is assigning SPL’s 16.665% interest in PEDL299, a UK onshore licence located in the East Midlands, as follows:\n\n\n8.335% assigned to Europa Oil & Gas Limited\n\n8.33% assigned to Upland Resources (UK Onshore) Limited\n\n\nFollowing the assignments, which are subject to regulatory approval, the interests in the conventional prospectivity on PEDL 299 will be as follows:\n\n\nINEOS (50% operator)\n\nEuropa Oil & Gas Limited 25%\n\nUpland 25%\n\n\nUnconventional prospectivity on PEDL299 is 100% INEOS.\n\nPEDL299 contains the Hardstoft oil field which was discovered in 1919 by the UK’s first ever exploration well. This produced 26,000 barrels of oil from a Carboniferous limestone reservoir. A CPR on Hardstoft, issued by joint venture partner Upland Resources, identified gross 2C contingent resources of 3.1 million boe and gross 3C contingent resources of 18.5 million boe in PEDL299. Production testing methodologies for carbonate reservoirs have evolved since 1919 and the Company believes these could allow commercial oil flowrates to be achieved at Hardstoft.\n\nEuropa CEO Hugh Mackay said, “The reassignment of interest in PEDL299 ought to be seen in the context of the ongoing active management of our portfolio of licences. The recent sale of a 3.34% interest in the Wressle discovery was a partial monetisation of our asset base. This assignment helps manage the risks and funding requirements associated with oil and gas exploration and development. Once formal approval of the licence award and the reassignment has been received, PEDL299 will have a strong set of partners, each holding a material interest in the licence. This will provide an excellent foundation from which to develop the Hardstoft oil field.â€\n\n* * ENDS * *\n\nFor further informa...