For immediate release: 18 October 2006
Europa Oil & Gas (Holdings) plc
Proposed Acquisition of onshore UK oilfield
The Directors of Europa Oil & Gas (Holdings) plc, the AIM-listed production and
exploration company, are pleased to announce that terms have been agreed with
Edinburgh Oil & Gas Limited for the acquisition of 100% of DL001, the UK
onshore licence containing the Crosby Warren Oilfield.
The Crosby Warren Oilfield is situated in the East Midlands Oil Province some
30km north of Europa's existing West Firsby production facility. Crosby Warren
currently produces approximately 35 barrels of oil per day (bopd) and
associated gas with less than 20% water cut from a single production well. Oil
production is exported to the nearby Immingham refinery, whilst gas is sold to
the adjacent Scunthorpe steelworks.
With only one part-time producer and multiple pay zones, the Directors believe
Crosby Warren provides potential for production optimisation and field
redevelopment.
Over the last three years, Europa has built a solid production base in the East
Midlands. With this acquisition, the company will own three producing assets
and associated exploration acreage. Europa's investment at Whisby is a prime
example of realising the value of under-funded fields: producing less than 5
bopd, the production was transformed by Europa's Whisby-4 well, which has since
produced over 200,000 bbls and continues to produce at c.150bopd.
Paul Barrett, Managing Director, said `I am especially pleased that it is still
possible to acquire proven producing reserves with upside potential for a
reasonable price even in the current climate of sustained high oil prices. The
synergies with our existing East Midlands production operations will inevitably
lead to more efficient operations and cost savings in the short term and we
will be looking at the potential for drilling further production wells in the
medium term.'
Europa Oil & Gas (Holdings) plc
Europa Oil & Gas (Holdings) plc focuses on the production and exploration of
hydrocarbons in Europe and North Africa. Europa currently produces over 500
barrels of oil equivalent per day from its operations in the UK, Romania and
the Ukraine. Operating a balanced portfolio, Europa also has field appraisal
and exploration activity on a number of projects in the UK and Romania and a
strong new ventures programme across Europe and the North African region.
For more information please visit www.europaoil.com
Contact Information:
Paul Barrett, Managing Director, Europa Oil & Gas (Holdings) plc +33 5 63 33 18
97
Jonathan Wright / Parimal Kumar, Seymour Pierce Limited +44 20 7107 8000
Jade Mamarbachi, GTH Media Relations +44 20 7153 8035
12 month average to July 2006