Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
Europa Oil & Gas (Holdings) plc (‘Europa’ or ‘the Company’)
Director Retirement and Corporate Update
Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco focused oil and gas exploration, development and production company, announces that Finance Director Mr Phil Greenhalgh has informed the Board of his intention to retire. Phil, who has been Finance Director of Europa since January 2008, has agreed to remain on the Board until 14 October 2020 to ensure an orderly handover of his duties and to complete the Group Annual Report and Accounts for the year to 31 July 2020.
The Company does not intend to appoint a replacement Finance Director at the current time. Instead Phil’s responsibilities will be divided and assigned to existing members of the team at Europa. In line with this, Ms Alison Fuller will become Financial Controller and Mr Murray Johnson will assume the position of Company Secretary.
In addition, the Board has asked Executive Chairman Mr Simon Oddie to continue as Interim CEO for at least a further six months.
The Company is pleased to provide a corporate update in relation to activity across its portfolio of multistage licences onshore UK, offshore Ireland and offshore Morocco and its ongoing cost management programme as part of its response to COVID-19 and volatile oil and gas markets.
Onshore UK – Wressle Field Development Project (‘Wressle’)
The development of the Wressle field in North Lincolnshire, in which Europa holds a 30% working interest, continues according to plan with first oil on track to commence in H2 2020. Under the development plan, Wressle is expected to commence production at an initial gross rate of 500bopd, which would more than double Europa’s existing UK onshore production to over 200bopd. With an estimated breakeven oil price of US$17.6 per barrel, production at Wressle is expected to be very profitable at current oil prices of over US$40 per barrel. Further updates on progress made towards bringing Wressle into production will be provided to the market as and when it is appropriate to do so.
Offshore Ireland – Inishkea and Edge prospects in Slyne Basin
Europa recently announced the conditional acquisition of a 100% interest in Frontier Exploration Licence (‘FEL’) 3/19, which holds the 1.2 tcf Edge prospect. FEL 3/19 lies close to Europa’s 100%-owned FEL 4/19, which holds the 1.5 tcf Inishkea prospect, and the ~1tcf producing Corrib gas field. Both licences therefore provide Europa with a key strategic position in the proven gas play of the Slyne basin.
The acquisition of FEL 3/19 is subject to regulatory sign-off and once this has been received the Company intends to undertake a comprehensive evaluation of the technical data covering the licence. Following this, the forward plan is to launch the farmout process for both licences in the Slyne Basin. Ahead of the formal launch of the farmout, the Company is in discussions with several interested parties.