REG - Europa Oil & Gas - Serenity SA02 Well Result

Europa Oil & Gas (Holdings)Announcement

10/10/2022 07:00

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RNS Number : 2596C  Europa Oil & Gas (Holdings) PLC  10 October 2022

 

 

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

 

10 October 2022

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Serenity SA02 Well Result

 

Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland and Morocco
focused oil and gas exploration, development, and production
company, announces that the SA02 well currently being drilled on Production
Licence P.2358, Block 13/23c ("Serenity") has been drilled to a total depth of
5,630ft TVDSS. The targeted Lower Cretaceous Captain sand, which contained
hydrocarbons in the 13/23c-10 well, was not present at this location. Over 100
ft of other Captain sands in various sequences were encountered but these were
found to be water wet and as such a decision has been made not to run wireline
logs. The well will now be plugged and abandoned and the rig will then be
released from contract. The well was drilled without any HSE incidents and
significantly below budget. The gross well cost is forecast to be £10.4m
resulting in an estimated total cost to Europa of £4.8m.

 

Data from this well will be incorporated into the field reservoir modelling to
optimise the development plan for the discovered reserves in the eastern area
of the Serenity field that were proven by the discovery well.

 

Simon Oddie, CEO of Europa, said:

 

"Although this is a disappointing result the data gathered during the drilling
of SA02 has improved our understanding of the Serenity field and we continue
to interpret the well data which will help us establish a suitable development
plan to maximise the value of the already discovered resources within the
eastern area of the Serenity field. The SA02 well was drilled safely and below
budget and has demonstrated how well the i3 Energy ("i3E") and Europa teams
work together. We look forward to continuing to build on this strong
relationship with i3E as we work on assessing the monetisation routes for the
discovered resources at Serenity.

 

Europa is in a financially strong position with ongoing production generating
material monthly net income. We will continue to execute on our stated
strategy of pursuing new assets to build a balanced portfolio, focussing on
opportunities that need further appraisal to unlock the asset value.

 

At Wressle we are working with our partners on the continuing development of
the Wressle field and the greater area, which includes further drilling, and I
look forward to sharing the details in due course."

 

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:

 Simon Oddie       Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 William Holland   Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 Murray Johnson    Europa Oil & Gas (Holdings) plc                            mail@europaoil.com

 James Dance       Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494
 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  Vigo Consulting                                            + 44 (0) 20 7390 0230
 Finlay Thomson    Vigo Consulting                                            + 44 (0) 20 7390 0230
 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. Production in the half-year
to 31 January 2022 was 208 boepd. 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 September 2019, Europa was awarded a 75% interest in the
Inezgane permit offshore Morocco. Initial results of technical work have
identified 30 prospects and leads that have the potential to hold in excess of
one billion barrels of unrisked oil resources. 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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