Business
Proposed Acquisition of onshore UK oilfield
Proposed Acquisition of onshore UK oilfield.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nFor immediate release: 18 October 2006\n\n Europa Oil & Gas (Holdings) plc \n\n Proposed Acquisition of onshore UK oilfield \n\nThe Directors of Europa Oil & Gas (Holdings) plc, the AIM-listed production and\nexploration company, are pleased to announce that terms have been agreed with\nEdinburgh Oil & Gas Limited for the acquisition of 100% of DL001, the UK\nonshore licence containing the Crosby Warren Oilfield.\n\nThe Crosby Warren Oilfield is situated in the East Midlands Oil Province some\n30km north of Europa's existing West Firsby production facility. Crosby Warren\ncurrently produces approximately 35 barrels of oil per day (bopd) and\nassociated gas with less than 20% water cut from a single production well. Oil\nproduction is exported to the nearby Immingham refinery, whilst gas is sold to\nthe adjacent Scunthorpe steelworks.\n\nWith only one part-time producer and multiple pay zones, the Directors believe\nCrosby Warren provides potential for production optimisation and field\nredevelopment.\n\nOver the last three years, Europa has built a solid production base in the East\nMidlands. With this acquisition, the company will own three producing assets\nand associated exploration acreage. Europa's investment at Whisby is a prime\nexample of realising the value of under-funded fields: producing less than 5\nbopd, the production was transformed by Europa's Whisby-4 well, which has since\nproduced over 200,000 bbls and continues to produce at c.150bopd.\n\nPaul Barrett, Managing Director, said `I am especially pleased that it is still\npossible to acquire proven producing reserves with upside potential for a\nreasonable price even in the current climate of sustained high oil prices. The\nsynergies with our existing East Midlands production operations will inevitably\nlead to more efficient operations and cost savings in the short term and we\nwill be looking at the potential for drilling further production wells in the\nmedium term.'\n\nEuropa Oil & Gas (Holdings) plc\n\nEuropa Oil & Gas (Holdings) plc focuses on the production and exploration of\nhydrocarbons in Europe and North Africa. Europa currently produces over 500\nbarrels of oil equivalent per day from its operations in the UK, Romania and\nthe Ukraine. Operating a balanced portfolio, Europa also has field appraisal\nand exploration activity ...