REG - Europa Oil & Gas - PEDL 180 and PEDL 182 Competent Person’s Report

Europa Oil & Gas (Holdings)Announcement

02/01/2024 07:00

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RNS Number : 2680Y  Europa Oil & Gas (Holdings) PLC  02 January 2024

 

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

 

2 January 2024

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

PEDL 180 and PEDL 182 Competent Person's Report

 

Europa Oil & Gas (Holdings) plc, the AIM quoted UK, Ireland and West
Africa oil and gas exploration, development and production company, is pleased
to provide summary details from a Competent Person's Report ("CPR" or the
"Report") for the Wressle field ("Wressle") and Broughton North Prospect,
dated 31 December 2023, prepared by ERC Equipoise Limited ("ERCE" or the
"Competent Person").

 

ERCE's summary of the findings of the Wressle CPR has been published on the
Company`s website www.europaoil.com

Europa holds a 30% economic interest in PEDL180/182. All figures are in gross
terms, unless otherwise stated.

 

HIGHLIGHTS

 

·    263% increase in 2P Reserves compared to 2016 CPR

·    Reclassification of 1,883 mboe in Penistone Flags Contingent
Resources to 2P Reserves

·    59% upgrade to the Ashover Grit and Wingfield Flags Estimated
Ultimate Recoverable ("EUR")

·    23% upgrade to Broughton North Prospective 2U Resources

 

Wressle Competent Person's Report

 

ERCE has made an independent estimate of the hydrocarbon Reserves and
Resources (Contingent and Prospective) associated with Wressle and the
Broughton North Prospect, located in onshore licences PEDL180 and PEDL182 on
the western margin of the Humber Basin in Lincolnshire.

 

The CPR was prepared on behalf of Egdon Resources U.K. Limited (the
"Operator"), Union Jack Oil plc and Europa.

 

In the preparation of the Report, ERCE has adopted the June 2018 SPE/WPC/AAPG/
SPEE/SEG/SPWLA/EAGE Petroleum Resources Management System ("PRMS") as the
standard for classification and reporting. A glossary of all technical terms
used is included in the Report.

 

ERCE has produced the CPR with an effective date of 30 June 2023. The Report
was based on information provided by the Operator up to 24 July 2023, which
has included updated seismic interpretations and production data.

 

Estimates of recovery factors were prepared, based on consideration of the
results of production performance analysis, reservoir simulation models,
classical reservoir engineering calculations and the performances of analogue
fields. ERCE has derived independent estimates of Reserves and prepared
forecasts of production of oil and gas.

 

Production profiles have been generated by ERCE for both Reserves and
Contingent Resources. The forecasts generated for Reserves have then been used
as input to an economic model to undertake an Economic Limit Test ("ELT") and
assess commerciality. The economic model has been provided to ERCE by the
Operator and has been reviewed by ERCE to confirm the fiscal regime is
correctly represented.

 

Wressle Gross Oil and Gas Reserves (mboe)

 Category                  Gross Reserves
                           1P     2P     3P
 2016 CPR                  303    655    1,356
 Added                     -      -      -
 Produced to 30 June 2023  (519)  (519)  (519)
 Revisions                 258    354    403
 Reclassified              864    1,883  3,649
 2023 CPR                  906    2,373  4,888

 Reserves Change           199%   263%   261%

Source:  Europa Oil & Gas

Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of
natural gas

 

Wressle Gross Oil and Gas Reserves: Ashover Grit and Wingfield Flags (mboe)

 Category                  Gross Reserves
                           1P      2P      3P
 2016 CPR                  303     655     1,356
 Added                     -       -       -
 Produced to 30 June 2023  (504)   (504)   (504)
 Revisions                 244     340     388
 Reclassified              -       -       -
 2023 CPR                  42      490     1,240

Source:  Europa Oil & Gas

Note:           1 barrel of oil equivalent ("boe") is equal to
5,714scf of natural gas

 

Wressle Gross Oil and Gas Contingent Resources and Reserves: Penistone Flags
(mboe)

 Category      Gross Contingent Resources       Gross Reserves
               1C         2C         3C         1P     2P     3P
 2016 CPR      831        1,880      3,385      -      -      -
 Added         -          -          -          -      -      -
 Revisions     33         3          264        -      -      -
 Reclassified  (864)      (1,883)    (3,649)    864    1,883  3,649
 2023 CPR      -          -          -          864    1,883  3,649

Source:  Europa Oil & Gas

Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of
natural gas

 

Broughton North Oil and Gas Prospective Resources

The Broughton North prospect lies within Licence PEDL180 and is located
immediately northwest of the Wressle field, across a northeast-southwest
trending fault. The majority of the prospect is covered by the same 3D seismic
survey that covers the Wressle field.

 

 

Broughton North Oil and Gas Gross Prospective Resources (mboe)

 Category                  Gross Unrisked Prospective Resources
                           1U             2U             3U
 2016 CPR                  180            494            1,156
 Added                     -              -              -
 Produced to 30 June 2023  -              -              -
 Revisions                 34             115            376
 Reclassified              -              -              -
 2023 CPR                  213            608            1,532

Source:  Europa Oil & Gas

Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of
natural gas

 

 

Will Holland, Chief Executive Officer of Europa, said:

 

"I'm very pleased to announce the material 263% upgrade in 2P reserves at
Wressle, which marks the completion of an extensive and detailed independent
technical evaluation of Wressle and the surrounding prospectivity. The ERCE
evaluation included the reprocessed 3D seismic and the historical production
performance at Wressle, which has refined the original 2016 CPR and has led to
the significant upgrades in the recoverable reserves of the Ashover Grit,
Wingfield Flags and Penistone Flags, and the increase in Broughton North's
Prospective Resources. With NSTA approval for the FDP, I look forward to
updating the market during 2024 as we seek to progress the field development
and continue to realise the value of the field."

 

Competent Person's Statement

In accordance with the "AIM Rules - Note for Mining and Oil and Gas
Companies", the information contained within this announcement has been
reviewed and signed off by Alastair Stuart, Chief Operating Officer, who has
over 40 years of international oil and gas industry experience.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014, as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

* * ENDS * *

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

 William Holland / Alastair Stuart                 Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 James Dance / James Spinney / Rob Patrick         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

 

Glossary

 1C                                     Low estimate of Contingent Resources

 2C                                     Best estimate of Contingent Resources

 3C                                     High estimate of Contingent Resources

 1P                                     Low estimate of Reserves. Proved Reserves

 2P                                     Best estimate of Reserves. The sum of Proved plus Probable Reserves

 3P                                     High estimate of reserves. The sum of Proved plus Probable plus Possible
                                        Reserves

 1U                                     The unrisked low estimate qualifying as Prospective Resources.

 2U                                     The unrisked best estimate qualifying as Prospective Resources.

 3U                                     The unrisked high estimate qualifying as Prospective Resources.

 bcf                                    billion cubic feet

 Contingent Resources                   Those quantities of petroleum estimated, as of a given date, to be potentially
                                        recoverable from known accumulations by application of development projects,
                                        but which are not currently considered to be commercially recoverable owing to
                                        one or more contingencies.

 Estimate Ultimate Recoverable ("EUR")  Those quantities of petroleum estimated, as of a given date, to be potentially
                                        recoverable plus those quantities that have been already produced. For
                                        clarity, EUR must reference the associated technical and commercial conditions
                                        for the resources; for example, proved EUR is Proved Reserves plus prior
                                        production.

 mbbl                                   thousands of standard oil barrels

 mboe                                   thousands of barrels of oil equivalent

 Prospective Resources                  Those quantities of petroleum that are estimated, as of a given date, to be
                                        potentially recoverable from undiscovered accumulations.

 Reserves                               Reserves are those quantities of petroleum anticipated to be commercially
                                        recoverable by application of development projects to known accumulations from
                                        a given date forward under defined conditions.

 Technically Recoverable Resources      Those quantities of petroleum producible using currently available technology
                                        and industry practices, regardless of commercial or accessibility
                                        considerations

 

 

 

 

 

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