Business
Signature of Serenity Farm-in Agreement
Signature of Serenity Farm-in Agreement.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8169I\n Europa Oil & Gas (Holdings) PLC\n 21 April 2022\n \n \n \n \n \n \n \n Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas\n \n \n 21st April 2022\n \n \n \n \n \n Europa Oil & Gas (Holdings) plc \n \n \n (\"Europa\" or \"the Company\")\n \n \n \n \n \n Signature of Serenity Farm-in Agreement \n \n \n \n \n \n \n \n \n Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, announces the signature of the Serenity farm-in agreement with i3Energy North Sea Limited (\"i3E\") \n in respect of UK Seaward Production Licence P.2358, Block 13/23c (\"Serenity\")\n . \n \n \n \n \n \n Highlights\n \n \n \n \n \n · \n Europa is acquiring a 25% interest in Serenity by paying 46.25% of the appraisal well cost, equating to a 1.85 to 1 carry (the \"Carry\").\n \n \n · \n The farm-in is in line with Europa's previously stated strategy to acquire an appraisal asset, adding to its existing producing and high impact exploration assets, and thereby creating a more balanced asset portfolio for its investors.\n \n \n · \n The Serenity appraisal well is scheduled to be drilled and formation tested in late Q3 2022 at a gross cost of £14 million.\n \n \n · \n The Carry is capped at a gross well cost of £15 million, of which Europa's interest will be £6.94 million. Thereafter, each party will fund its interests proportionally.\n \n \n · \n Serenity is strategically located near existing infrastructure in the North Sea, however the appraisal well could provide sufficient recoverable volumes for a standalone development.\n \n \n · \n There are no material conditions for Europa to satisfy to complete the farm-in,\n \n \n · \n Europa will fund an escrow account with its paying interest obligation.\n \n \n · \n Completion is subject to approval of the North Sea Transition Authority (\"NSTA\") to the creation of a new block within Licence P.2358 (the \"New Serenity Block\") and to assignment of an interest in the Licence and New Serenity Block to Europa.\n \n \n \n \n \n \n \n \n \n Simon Oddie, CEO said\n \n : \n \n \n \n \n \n \"I'm delighted to announce the signature of this farm-in which fulfils our promise...