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Kosmos Energy to Farm-in to Europa’s Irish Li...
Kosmos Energy to Farm-in to Europa’s Irish Li....
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas \n\n18 April 2013\n\n Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') \n\n Kosmos Energy to farm-in to Europa's Irish licences \n\n Analyst Conference Call \n\nEuropa is pleased to announce a farm-in agreement with a subsidiary of the\nindependent oil and gas exploration and production company Kosmos Energy Ltd\n(NYSE:KOS) (`Kosmos') for its two Licencing Options LO 11/7 and LO 11/8 in the\nSouth Porcupine Basin offshore Ireland (`Licences').\n\nUnder the terms of the agreement, Kosmos will:\n\n * acquire an 85% interest and be appointed as operator of both Licences\n \n * fully fund the costs of a 3D seismic programme on each Licence\n \n * pay 85% of costs incurred by Europa to date\n \nContingent upon an election of the companies to enter into a subsequent\nexploration drilling phase on one or both of the blocks, Kosmos will also incur\n100 percent of the costs of the first exploration well on each block. The first\nexploration wells on LO 11/7 and LO 11/8 have investment caps of US$90 million\nand US$110 million respectively. Costs in excess of the investment cap would be\nshared between Kosmos (85%) and Europa (15%).\n\nAs set out in the Company's technical update announcement dated 16 January 2013\nin respect of these Licences, Europa commenced the farm-out process with the\nobjective of finding a partner with the technical and financial resources and\nthe strategic intent to pioneer a new hydrocarbon play in a deepwater frontier\nbasin. The transaction with Kosmos represents the successful conclusion of this\nprocess.\n\nThe completion of the farm-in agreement remains subject to Irish governmental\napproval. Further announcements will be made as and when necessary.\n\nEuropa's CEO Hugh Mackay said: \"We are very pleased to have secured a respected\nleading independent such as Kosmos as a farm-in partner and operator for our\nIrish Licences. Kosmos are a highly experienced operator in frontier basins and\npioneered the Cretaceous stratigraphic play that has resulted in significant\nexploration success in the Atlantic margin basins. We look forward to working\nwith Kosmos and their involvement is a highly significant first step towards\nrealising the potential value of our exciting prospects in a new hydrocarbon\nplay ...