Business
Sale of Interest in Wressle Discovery to Upland
Sale of Interest in Wressle Discovery to Upland.
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\n24 November 2016\n\nEuropa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)\n\nSale of Interest in Wressle Discovery to Upland Resources\n\nEuropa Oil & Gas (Holdings) plc, the UK & Ireland focussed oil and gas exploration, development and production company, is pleased to announce that its wholly owned subsidiary has signed a Sale and Purchase Agreement (“SPAâ€) in relation to a 10% interest in Europa’s PEDL180 and PEDL182 (‘the Licences’) in North Lincolnshire with Upland Resources (UK Onshore) Limited (“Uplandâ€). The Licences cover the Wressle discovery (PEDL180) and the Broughton North prospect (PEDL182).\n\n· Upland to acquire a 10% working interest in the Licences from Europa for a consideration of £1.85 million comprising an initial consideration of £1.6 million and a contingent consideration of £0.25 million.\n\n· The initial consideration will be met via a payment of £1.3 million in cash and the issue to Europa of 23,076,923 new ordinary Upland Resources Limited shares (“Upland Sharesâ€) to the value of £0.3m (at the issue price of 1.3p per share).\n\n· The contingent consideration is subject to certain production milestones being met by June 2025 and will be met by the issue of 19,230,769 new ordinary Upland Shares to the value of £0.25m (at the issue price of 1.3p per share).\n\n· Completion of the SPA is conditional upon inter alia approval from the Oil & Gas Authority and approval of the Wressle Field Development Plan\n\n· Wressle is anticipated to commence production at a gross rate of 500 bopd in early 2017\n\n· Post completion of the transaction, Europa’s anticipated net 100 bopd from Wressle combined with existing UK onshore production is expected to increase the Company’s overall production to around 220 bopd\n\n· At 220 bopd it is expected that Europa will have a positive cash flow from operating activities at oil prices above US$30 per barrel.\n\nEuropa CEO Hugh Mackay said, “Europa is delivering on its strategy to actively manage its portfolio and realise value for shareholders. So far this year we have farmed out part ...