Oil & Gas News
Europa Oil & Gas (EOG LN, 9.63p, ? 0.0%) today announced the resumption of production at the West Firsby 7 well in the East Midlands, UK. As reported in the announcement of 16 December 2011, the West Firsby 7 well had been shut in due to a suspected hole in a section of the tubing. The workover programme confirmed and rectified the problem and production at the well restarted on 18 January 2012. Prior to the shut in at West Firsby 7, Europa's average daily production had been running at approximately 200 barrels of oil per day (`bopd'). Following the unscheduled downtime, the Company is pleased to confirm that it remains on course to produce an average of approximately 185 bopd for the six months to 31 January 2012 in line with the range provided in the announcement of 16 December 2011, and representing a 22% improvement on the 151 bopd achieved in the equivalent period the previous year.
In addition, following a review of the Company's assets by the new management, the Company announces its decision to relinquish its 28.75% working interest in the Brodina concession in Romania in order to focus on the Company's other assets including the Berenx gas appraisal project in onshore France. An extensive review of the EIII-1 Brodina concession in northern Romania both in isolation as well as within the context of the portfolio as a whole was undertaken. The result of this analysis has led to the Company's decision to notify its partners of its intention to withdraw from the Joint Operating Agreement (`JOA') in the EIII-1 Brodina licence in which it holds a 28.75% interest. The end of Phase 1 of the four year extension of the Initial Exploration Period for the Brodina licence is 22 March 2012. A minimum 60 day notice period leading up to the anniversary date is required to be given by any participating party wishing to relinquish an interest in the JOA. As a result, 22 January 2012 is the final date for an existing participant to withdraw from the Brodina JOA. Exploration costs of £2.7million previously incurred by the Company on the Voitinel and Horodnic wells at Brodina will be written off. The Company continues to actively manage its asset base and remains focused on developing its highly prospective exploration projects in the UK, Ireland, France and Romania.
Mining News
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