Hykeham-1 Further Update
The Directors of Europa Oil & Gas (Holdings) plc wish to provide more
information regarding the results of the Hykeham-1Z well. Following on from the
update issued on the 4th December, the well is now cased and cemented and the
rig is being demobilized from the site.
Independent wireline log analysis identified 4 net metres of oil-saturated
Basal Sandstone with approximately 16% porosity and 60% oil saturation. This
unit is the same as that encountered in the Whisby Field wells, some 1.5km to
the northwest of Hykeham. In addition to this Whisby equivalent sand, the log
analysis indicated an additional potential 4.4m of pay in sands above this
unit.
The Whisby Field as a whole, where the Basal Sandstone average thickness is
less than 4m, has produced approximately 700,000bbls to date from 3 wells, a
total revenue of $50million at today's oil price. As profits from Hykeham are
not expected to be liable for the 20% supplementary tax charge, the development
has a significantly higher post-tax value per barrel.
The forward programme is to perforate the lower 4m pay interval and flow test
this into temporary production facilities for up to 6 months (subject to
relevant approvals). This will be achieved without the need for a rig and
production will be exported to the refinery via Europa's existing facilities.
Paul Barrett, Managing Director of Europa, said `An extended welltest, expected
to commence in January, will not only provide valuable reservoir information
but generate early revenues from the project.'
For further information, please contact:
Paul Barrett Europa Oil & Gas +44 1235 553 266
Jonathan Wright Seymour Pierce +44 20 7107 8000
The technical information and opinions contained in this announcement have been
reviewed by Dr. Erika Syba, Europa's Operations Director, who has 25 years of
experience in the oil exploration and production industry. She has consented to
the inclusion herein of such technical information and opinions.