Business
Update on UK Onshore Licences
Update on UK Onshore Licences.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas \n\n8 January 2015\n\n Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') \n\n Update on UK Onshore Licences \n\nEuropa Oil & Gas (Holdings) plc, the AIM quoted oil and gas exploration and\ndevelopment company with a combination of producing and exploration assets in\nEurope, provides an update on its activities across its UK onshore licences\nlocated in the established East Midlands Petroleum Province.\n\nEuropa produces hydrocarbons from six wells across three fields: Crosby Warren\n(100% interest); Whisby (65% interest); and West Firsby (100% interest). Five\nof the wells are producing in line with expectations, year to date, although\nthe lowest producer of the six, WF9 is currently shut-in and requires a\nrecompletion. WF9 was producing around 8 bopd. At current oil prices however,\nthe Directors have concluded it would not be economic to undertake a\nrecompletion of WF9, which as a result will remain shut-in for the foreseeable\nfuture. The Directors will reconsider this course of action should the oil\nprice recover to a level at which the recompletion of WF9 would become\neconomic.\n\nWith WF9 remaining offline, the Company now expects average production for the\n12 month period to 31 July 2015 to be approximately 144 boepd, compared to\nprevious guidance of 150 boepd. Europa's oil production is sold at a small\ndiscount to Brent crude prices, and consequently the Company's revenues and\nprofitability for the current financial year will be impacted by the recent\nfall in oil prices, with a revised revenue expectation for the full year of\napproximately £2.1 million. As the majority of costs associated with the\nCompany's production are fixed, there will be a corresponding impact on full\nyear profitability.\n\nOperations at Europa's 33% owned Wressle discovery in PEDL 180 and 50% owned\n2.9 mmboe Kiln Lane prospect on PEDL 181 continue as previously disclosed.\nFurther updates will be provided as and when it is appropriate to do so.\n\nEuropa's CEO, Hugh Mackay said, \"The decision not to recomplete WF9 in light of\ncurrent oil prices demonstrates our focus on ensuring capital is prioritised\nfor developing projects that have the potential to generate significant value\nfor shareholders. Thanks to having a portfol...