Business
Sale of Interest in Wressle Discovery
Sale of Interest in Wressle Discovery.
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\n27 September 2016\n\nEuropa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)\n\nSale 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 it has signed a Sale and Purchase Agreement (`SPA') in relation to its 33.34% interest in PEDL180 and PEDL182 (‘the Licences’) in North Lincolnshire with Union Jack Oil plc (‘UJO’). The Licences cover the Wressle discovery (PEDL180) and the Broughton North prospect (PEDL182).\n\n\nUnder the terms of the SPA, UJO will acquire a 3.34% working interest in the Licences from Europa for a cash consideration of £600,000\n\nThe transaction implies a £5.4 million mark to market for Europa’s remaining 30% interest in the Licences\n\n\n\nWressle is anticipated to commence production at a gross rate of 500 bopd in early 2017\n\nEuropa’s anticipated net share of 150 bopd from Wressle is expected to more than double existing production from the West Firsby and Crosby Warren fields and Whisby-4 well\n\nSummary details of a Competent Persons Report compiled by ERC Equipoise Limited (‘ERCE’) were published by Europa and its partners in respect of Wressle and the Broughton North Prospect on 26 September 2016\n\nSubject to approval of the assignment of interest from the Oil & Gas Authority, Europa will retain a 30.00% interest in the Licences alongside Egdon Resources UK Limited (25.00%), Celtique Energie Petroleum Limited (33.33%) and Union Jack Oil plc (11.67%)\n\n\nEuropa CEO Hugh Mackay said, “We consider this transaction to represent a sensible monetisation of part of the asset now it has been largely de-risked, whilst still retaining sizeable exposure to production and upside on the other reservoirs. Importantly, this transaction provides investors with a point of reference for the value of our remaining 30% interest in the Licences. At £5.4 million our 30% interest in these two licences accounts for almost half our current market capitalisation.\n\n“PEDL180 and 182 are just two of a portfolio of licences we hold. These include three UK onshore fields which in H1 produced 124 boepd net to Europa; PEDL143 conta...