Business
Farm-Out of Holmwood, Weald Basin
Farm-Out of Holmwood, Weald Basin.
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\n06 February 2017\n\nEuropa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)\n\n Farm-Out of Holmwood, Weald Basin \n\nEuropa Oil & Gas (Holdings) plc, UK and Ireland focussed exploration, development and production company, is pleased to announce that its wholly owned subsidiary has signed a Farm-Out Agreement (`FOA') in relation to a 12.5% interest in the PEDL143 licence in the Weald Basin with a wholly owned subsidiary of Angus Energy PLC (‘Angus’). Europa will retain a 20% interest in PEDL143 where a well targeting the 5.6 mmbo conventional Holmwood prospect (‘Holmwood’) is anticipated to be drilled in 2017.\n\nFOA sees Europa fully carried to drill Holmwood\n\n\nAngus will pay 25% of the costs to drill an exploration well at Holmwood up to a gross well cost of £3.2 million (‘the Cap’) for a 12.5% working interest in PEDL143\n\nAngus will pay 12.5% of all non-well costs and gross well costs above the Cap\n\nEuropa will pay 20% of all non-well costs and gross well costs above the Cap and is now fully carried on well costs up to £3.2 million\n\nIn the event of a discovery and subsequent development on the licence, Angus has agreed to make a deferred payment to Europa of £265,625 covering back costs plus a 25% uplift\n\nThe FOA is subject to regulatory approval by the Oil & Gas Authority\n\n\nWell targeting gross mean unrisked prospective resources of 5.6 mmbo\n\n\nP90 – P10 resources of 1 - 11 mmbo – assigned one in three chance of success\n\n\n\nHolmwood well will penetrate similar stratigraphy to the nearby Brockham oil field and Horse Hill oil discovery, targeting oil in Upper and Lower Kimmeridge Limestones and Corallian and Portlandian sandstones\n\nThe 5.6 mmbo prospective resources at Holmwood do not include an estimate for the Kimmeridge limestones that produced oil at Horse Hill\n\n\n\nPlanning permission in place for a deviated exploration well to be drilled - operations anticipated to commence in 2017\n\nFulfilment of planning conditions and detailed well planning and environmental permitting underway\n\n\nHolmwood located in prolific UK onshore hydrocarbon region\n\n\nPEDL143 is in an area of the Weald Basin where 14 oi...