Europa Oil & Gas: is there an opportunity for a quick profit?
Europa Oil & Gas (LON:EOG) has core producing oil assets in the UK, along with various exploration and appraisal projects in various stages of development in the UK, Romania, France and Western Sahara. The Company currently produces oil from three UK onshore oilfields, with ongoing appraisal work in Romania. The stock has recently been pretty uninspiring, with problems at their Hykeham well in Lincolnshire.
To date, the well has produced only small volumes of liquid and some gas. This result is completely incompatible with both the wireline log and geological data from the well. The well will be shut-in until the analysis is complete and a decision is made on the forward programme.
That has caused something of a selloff, to its current price of 13.5p. However, this sell-off may present an opportunity. Here's why. Seymour Pierce published a note [ref] Please contact me via Stockopedia if you'd like to see it [/ref] in March, providing a valuation of Europa's assets. Booked reserves are valued at 19p/share - including 8p/share for Hykeham. Clearly there is some doubt about that 8p figure now. However, the jewel in Europa's crown is its 28.7% interest in the Voitinel gas discovery in Romania. The Seymour Pierce report values this at 15p/share, with 36p of possible upside. The 15p/share "core value" for Volitinel (which is additional to the 19p of booked reserves) is based on 2mmboe net to Europa, as opposed to the 15mmbo mentioned in the previously linked RNS.
Now, here's where it gets interesting... Aurelian Oil & Gas Plc (LON:AUL), the operator for Voitinel announced yesterday:
Appraisal of Voitinel/Solca trend in Romania
Results of fracture of 1650 sand available week commencing 17th May with results of flow test from 1400 sand expected in June
So, based on this, we can expect an announcement concerning the 1650 sand next week. I added to my modest holding yesterday. Here's a quick hat tip to Spangle93 who drew this to my attention. Fingers crossed for a positive announcement!
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15 comments
More good new
http://www.investegate.co.uk/Article.aspx?id=20101208131819PDF8D
Barchiz - Oil recovered on DST
The Directors of Europa Oil & Gas (Holdings) plc are pleased to announce that
the upper DST on the Barchiz-1 well has recovered crude oil. Due to a failure
of the DST packer to seal, the sample was contaminated with completion brine
and the Operator is planning to re-run the DST with replacement equipment over
the coming days to obtain better fluid and pressure data.
...... Thank you for all for your help on this one. I've banked profits for now.
AJ
http://www.proactiveinvestors.co.uk/companies/news/23329/europa-oil-gas-barchiz-1-exploration-well-hits-target-depth-being-prepared-for-testing-23329.html
......................The group reported a fortnight ago that the initial results from Barchiz-1, which was spudded on 18 October, were encouraging, giving evidence of an active petroleum system in the area with minor oil shows and mud gas indications encountered between 268 and 275 metres.
The Barchiz prospect is 10 kilometres from, and on trend with, the Geamana oilfield with 50 million barrels of oil (mmbo) reserves. The pre-drill oil-in-place estimate for Barchiz is up to 94 mmbo and there are five additional leads on-block in the same structural play which will be significantly upgraded by success at Barchiz.............
Excellent news.
http://www.investegate.co.uk/Article.aspx?id=20101125070000P36B4
Thursday 25 November, 2010
Europa Oil & Gas (Holdings
Barchiz Test Plans
25th November 2010
Europa Oil & Gas (Holdings) plc
Barchiz Test Programme
The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide an update on drilling results from the Barchiz-1 exploration well in Romania.
The well has now reached a final total depth of 1,450m and is being prepared for testing. Oligocene sandstone reservoirs similar to those seen in the nearby Geamana Field were encountered in th...............
Another nice little update today...
http://www.investegate.co.uk/Article.aspx?id=20101122070000P7F10
Europa Oil & Gas (Holdings
Production Operations Update
22 November 2010
Europa Oil & Gas (Holdings) plc
Production Operations Update
The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide an update on production operations in t..............
tournesol, you have to host them elsewhere and then you can link them in here so they display (click on SHOW EDITOR when posting to get the Image pasting links.
I use imageshack.us for hosting any pics
Holmwood Planning Update as of May this year. The planning permission due in "late 2010" is still outstanding AFAIAA. It would be nice to get it in time for Xmas.
"Europa is pleased to provide an update on the planning application for the Holmwood exploration well in the Weald Basin, southern England.
Surrey County Council have requested that the applicant provides an updated ecological survey over the drilling site location. These surveys will be carried out during summer and the application is due to be heard by the
planning committee towards the end of the year.
The Holmwood exploration well will test a prospect which contains prospective resources net to Europa of up to 13 million barrels.
Interests in the group are Europa Oil & Gas Ltd (Operator) (40%), Egdon Resources (38.4%), Warwick Energy (20%) and Altwood Petroleum (1.6%).
Paul Barrett said that, "The previous surveys over the site are now over two years old now and it is understandable that Surrey County Council have requested the surveys be updated. We anticipate the results of the surveys will
not be materially different. In addition, as the well was not in our 2010 drilling plans, the delay does not have any impact on our exploration work schedule."
Agree completely Tourn. Going to take a small position myself.
Finally managed to get through the weghty tome that was the Goldman Sachs research report on Oil E&P's - quite a read.Most of it was fairly enlightening - and threw up some new investment ideas, such as Igas, Green Dragon, Amerisur,and Panoro, as well as providing some comfort to continuing to hold the likes of FPM, NPE, AEX,BNK.
Currently looking for an entry point into BPC(on weakness), and some NOP & RKH.
I do think they have got both Encore and Hawk wrong - sell and buy respectively. I'd personally have it the other way around. EO has been a fantastic investment, Hawk a complete dog over the years....
Goldman S recently published something that said the best returns are obtained by investing in exploration companies ahead of the rush rather than piling in just before drilling starts.
It was Mark's thread header above that brought this stock to my attention so I had a look at it thinking about short tterm opportunities. However I rapidly formed the opinion that there is so much activity in the next few years that the opportunity combines short-medium-and-long-term potential. I do like that kind of investment. If the early plays go wrong you get a succession of follow-on opportunities. Means that there is less pressure to get entry price and timing spot on - there is plenty of time for things to come right in the end.
I dived in soon after Mark flagged this opportunity and am in no hurry to exit.
T
can you paste images like the table above directly into S'pedia? or do you have to post them to an intermediate site so you can simply paste a link to the external image?
So Barchiz-1 is ongoing and Firsby to spud soon.
News on West Firsby today.
http://www.proactiveinvestors.co.uk/companies/news/23088/europa-oil-gas-starts-construction-work-for-west-firsby-9-development-well-23088.html
.
Worth reading this recent write up :
http://boards.fool.co.uk/europa-oil-gas-eog-and-berenx-12066354.aspx
.
In line with the title but perhaps a different subject matter now, yes there is a good chance of a quick profit with the results of the ongoing Romanian drill. Not long to go now and the potential is there for a significant re-rating if they strike, given the present tiny market cap and what could be the net barrels of oil for EOG.
http://www.proactiveinvestors.com/companies/news/9937/europa-oil-gas-prepares-to-drill-main-section-of-barchiz-1-oil-well-shares-rise-9937.html
Wednesday, November 10, 2010
Europa Oil & Gas Prepares To Drill Main Section Of Barchiz-1 Oil Well, Shares Rise
Europa Oil & Gas (LON:EOG) has reported more progress from the closely followed drilling of the Barchiz-1 exploration well in Rom/....................
The result is out this morning: http://fool.uk-wire.com/cgi-bin/articles/20100524070000PA175.html
Regards,
Mark