REG - Europa Oil & Gas - FEL 4/19 Update

Europa Oil & Gas (Holdings)Announcement

02/10/2023 07:00

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RNS Number : 2661O  Europa Oil & Gas (Holdings) PLC  02 October 2023

 

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil
& Gas

 

2 October 2023

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

FEL 4/19 Update

 

Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil
and gas exploration, development, and production company, is pleased to
announce that following the interpretation of recent seismic reprocessing, the
Company's Pmean prospective resource estimate for Inishkea West has increased
by 92% to 1.55 TCF. The seismic data has been reprocessed using full waveform
inversion and reverse time migration (RTM) to 20Hz, which are cutting edge
techniques. This has resulted in a marked improvement in the imaging of both
the Inishkea West and Inishkea prospects, with the Inishkea West structure now
being mapped as a large 4-way closure, with a prospective resource Pmean of
1,554 BCF and a range as detailed in the following table:

 

 Inishkea West         P90  P50   Pmean  P10
 GIIP - BCF            440  1920  2219   4336
 Prospective Resource  307  1336  1554   3044

 

The reprocessed seismic has materially improved the subsurface imaging and
provided more confidence in the quality of the seal and trap at Inishkea West,
which in turn has increased the chance of success of the prospect. In
addition, Inishkea West is prognosed as a shallower structure by some 900
meters which means that the reservoir quality will be better than at Inishkea.

 

For the Inishkea prospect, which relied on a degree of side seal for historic
prognosed volumes, the reprocessing has confirmed the likelihood of side seal
breach and therefore resulted in the downgrading of this prospect. In turn,
the Inishkea structure has reduced in size and is now estimated to have a
prospective resource of Pmean 146 BCF.

 

Inishkea West is within easy tie-back range of the Corrib gas field situated
some 18 kilometres to the southeast. This proximity to the Corrib
infrastructure, the mapped 4-way closure, the large prospective resource and
the reduced seal risk means that the Inishkea West prospect has become the
primary target on the FEL 4/19 licence.

 

Given the significant improvement seen in the 20Hz RTM data, it is expected
that the subsurface imaging can be further improved by reprocessing the data
at 30Hz. Therefore, the Company has decided to apply for an extension to the
first phase of its FEL 4/19 licence to allow time for the 30Hz reprocessing to
be completed and to subsequently find a suitable partner to drill an
exploration well.

 

The farm-out process that is being managed by Llamas and Bannister Energy
Advisors, as announced on 11 January 2023, has been paused until the 30Hz
reprocessing has been completed.

 

 

Will Holland, Chief Executive Officer of Europa, said:

 

"This is a very exciting development for the FEL 4/19 licence as the seismic
reprocessing has significantly enhanced the sub-surface imaging which has
improved our understanding of the size of the prospects and the seal risk.
These results have more than justified the additional time and expenditure on
what is a key asset for not only Europa, but also Ireland in terms of
potential indigenous energy security and as part of the country's energy
transition. The seal uncertainty, which the reprocessing has addressed, was a
matter that some of the potential farm-inees had highlighted during the
farm-out process and potential partners wanted to see the results of the
reprocessing before making an offer. However, we now believe that the
sub-surface imaging can be further improved by reprocessing at 30Hz and we
will therefore be applying for a phase one licence extension to allow us to
complete this work before continuing the farm-out process."

 

* * ENDS * *

For further information, please visit www.europaoil.com
(http://www.europaoil.com/)  or contact:

 William Holland                                   Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 James Dance / James Spinney                       Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494
 Peter Krens                                       Tennyson Securities                                        +44 (0) 20 7186 9033
 Patrick d'Ancona / Finlay Thomson / Kendall Hill  Vigo Consulting                                            + 44 (0) 20 7390 0230

 

Notes to Editors

Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets which includes production, development and exploration
interests, in countries that are politically stable, have transparent
licensing processes, and offer attractive terms. Average production for the
6-month period ending 31 January 2023 was 268 bopd. Europa took over
operatorship of PEDL 343 in July 2023; this contains the Cloughton discovery
which has an unaudited GIIP of Pmean 192 BCF, established by summing the
volumes of 5 separate discovered horizons. In April 2022, Europa farmed into
P.2358, Block 13/23c ("Serenity") in the Outer Moray Firth area of the North
Sea. The licence contains the 2019 Serenity oil discovery, in which Europa has
a 25% interest. The Company holds one exploration licence offshore Ireland,
which has two principal prospects, the largest of which has the potential to
host gross mean un-risked prospective resources of 1.5 trillion cubic feet
("tcf") gas. Inishkea West is a near field gas prospect in the Slyne Basin
which the Company classifies as lower risk due to its close proximity to the
producing Corrib gas field and associated gas processing infrastructure.

Glossary

BCF                        Billion Cubic Feet

GIIP                       Gas Initially In Place

Hz                           Hertz (unit of
frequency equivalent to one event per second)

P10                         10% probability that the
volumes will equal or exceed the high estimate

P50                         50% probability that the
volumes will equal or exceed the best estimate

P90                         90% probability that the
volumes will equal or exceed the low estimate

Pmean                  probability that the volumes will
equal the average of all of the estimates

RTM                       Reverse Time Migration

TCF                         Trillion Cubic Feet

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