Business
Completion of Sale of Interest in Wressle Disco...
Completion of Sale of Interest in Wressle Disco....
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\n22 November 2016\n\nEuropa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)\n\nCompletion of Sale of Interest in Wressle Discovery\n\nEuropa Oil & Gas (Holdings) plc, the AIM traded oil and gas exploration, development and production company focused on Europe, is pleased to announce that its proposed sale of a 3.34% working interest in PEDLs 180 and 182 (‘the Licences’) in North Lincolnshire to Union Jack Oil plc (‘UJO’) for a cash consideration of £600,000 (‘the Transaction’) has been approved by the Oil and Gas Authority (‘OGA’). The Licences cover the Wressle discovery (‘PEDL180’) and the Broughton North prospect (‘PEDL182’).\n\nFollowing OGA approval of the Transaction, Europa retains a 30.00% interest in the Licences alongside Egdon Resources UK Limited (25.00%), Celtique Energie Petroleum Limited (33.33%) and UJO (11.67%). Based on the terms of the Transaction, Europa’s 30.00% interest in the Licences has an implied mark to market valuation of £5.4 million.\n\nThe £600,000 cash consideration, which has been received by the Company, will help fund Europa’s share of the costs associated with bringing the Wressle discovery into production in early 2017, expected to be at a gross rate of 500 bopd. At this level, Europa’s anticipated net share of 150 bopd will more than double the Company’s existing production.\n\nA table summarising gross volumes at Wressle and Broughton North provided by ERC Equipoise Limited (‘ERCE’) in a Competent Persons Report, along with net volumes attributable to Europa’s post Transaction interests, can be found at the end of this announcement.\n\nEuropa CEO Hugh Mackay said, “With a mark to market valuation of £5.4 million implied by this Transaction, the value of our remaining 30% interest in PEDLs 180 and 182 accounts for half our current market capitalisation.\n\n“We also hold within our portfolio: seven exploration licences offshore Ireland, which have the potential to host gross mean un-risked prospective and indicative resources of more than 4 billion barrels oil equivalent and 1.5 tcf gas; three producing fields onshore UK, which in the last year produced 123 boepd net to Europa; and a number of exploration projects onsh...