REG - Europa Oil & Gas - Inezgane Licence, Offshore Morocco Update

Europa Oil & Gas (Holdings)Announcement

23/11/2022 07:00

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RNS Number : 2660H  Europa Oil & Gas (Holdings) PLC  23 November 2022

 

 

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

 

23 November 2022

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Inezgane Licence, Offshore Morocco Update

 

Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil
and gas exploration, development, and production company, announces that the
extension to the Initial Period of the Inezgane Licence ("Inezgane") offshore
Morocco announced on 21 October 2020 has now come to an end and Europa has
decided not to progress to the First Extension Period. Europa is in the final
stages of completing all its obligations for Inezgane and expects to complete
the final relinquishment report shortly. Once this final obligation has been
satisfied the bank guarantee of US$315,000 will be released and repaid to
Europa, following which the Company will have no further interests associated
with Inezgane.

 

Simon Oddie, CEO of Europa, said:

 

"It has been a difficult decision not to progress to the First Extension
Period as Inezgane offers significant exploration potential. However,
progressing to the next stage would have required Europa to commit to drilling
an exploration well, which we could not justify without obtaining another
partner. We have been working tirelessly with advisors to secure a farm-in
partner but the market appetite for offshore deep water oil exploration is
currently very low and we have ultimately been unsuccessful. During the
Initial Period, the technical team identified multiple exploration prospects
and as such we believe that Inezgane has significant potential and I would
like to thank the Office National des Hydrocarbures et des Mines ("ONHYM"),
the Moroccan hydrocarbons and mines regulatory body, for the opportunity to
work in the region and wish them success in the future.

 

Europa is committed to creating shareholder value by building a balanced
portfolio of exploration, appraisal and production assets in the UK and
Atlantic Ireland. Our balanced portfolio of assets at various stages of the
development cycle, including production and appraisal, ensures that Europa
remains well-placed to deliver affordable energy. We will continue to explore
potential development and exploration opportunities to expand our portfolio
wherever they become available, provided that these can be acquired and
developed on acceptable commercial terms and within the transition context. We
have a healthy balance sheet on which to execute on our stated strategy."

 

* * ENDS * *

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

 Simon Oddie / William Holland / Murray Johnson  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               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. Production for the year
ending 31 July 2022 was 245 bopd. 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 now has a
25% interest. The Company holds one exploration licence offshore Ireland,
which has the potential to host gross mean un-risked prospective resources of
1.5 trillion cubic feet ("tcf") gas. Inishkea 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. In December 2021, Europa announced a collaboration between
Baker Hughes and CausewayGT to conduct a geothermal clean heat project at the
Company's West Firsby field. If this project is successful, it will prove the
operational ability to extract and use geothermal heat from the site.

 

 

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