Business
Reorganisation of Romanian Portfolio
Reorganisation of Romanian Portfolio.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n Europa Oil & Gas (Holdings) plc \n\n Reorganisation of Romanian Portfolio \n\nThe Directors of Europa Oil & Gas (Holdings) plc, the production and\nexploration company, are pleased to announce that, following a technical and\neconomic strategic review, it has signed agreements with Aurelian Oil & Gas plc\nwith respect to Europa's Romanian exploration and production portfolio.\n\nUnder the terms of these agreements, which are subject to certain regulatory\nand partner approvals, Europa will release interest in several of its\nconcession areas to Aurelian in return for cash payments and a carry formula\nover three wells.\n\nThe anticipated effects on Europa's portfolio is as follows:\n\n * Sale of Europa's interest in the Bilca-Fratauti Gasfield area,\n \n * Farmout of 11.25% of Europa's 28.75% interest in the EIII-3 Cuejdui\n Concession,\n \n * Farmout of 28.50% of Europa's 47.50% interest in the EIII-4 Bacau\n Concession and\n \n * Farmout of a firm 6.88% and further optional 20.37% of Europa's 80.00%\n interest in the EPI-3 Brates Concession (Eastern part - Costisa area)\n \nEuropa will retain its full working interest in the exploration part of the\nEIII-1 Brodina licence, which includes the Arbore prospect, due to commence\ndrilling in the next few days, and the high-impact Voitinel Prospect, which is\nlikely to be drilled later in 2007 or early 2008. Europa will also retain its\n20% working interest in the EPI-3 Brates Concession (Western part). The\nCostisa-2 appraisal well, located in the eastern part of the Brates Concession,\nis also due to spud in the next few days.\n\nPaul Barrett, Managing Director, said \"This transaction is very good for\nEuropa, realising the value of previous investments in production activities\nand greatly reducing our drilling risk exposure in Romania whilst at the same\ntime retaining significant interests in key exploration upside potential,\nnotably at Voitinel and Costisa. We believe that monetising the Bilca asset\ntoday offers an excellent opportunity to concentrate more resources on our plan\nto build our UK oil production base without prejudicing the upside potential in\nour Romanian portfolio.\"\n\nAdditional Information required under Rule 12, Schedule 4 of the AIM Rules\n\nThe proposed transaction involves Europa's existing interests in four Romanian\nexploration co...