REG - Europa Oil & Gas - Whisby - Net Profits Agreement Terminated

Europa Oil & Gas (Holdings)Announcement

18/12/2024 07:00

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RNS Number : 4621Q  Europa Oil & Gas (Holdings) PLC  18 December 2024

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

 

18 December 2024

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Whisby - Net Profits Agreement Terminated

 

Europa Oil & Gas (Holdings) plc, the AIM quoted UK, West Africa and
Ireland focused oil and gas exploration, development and production company,
announces that the royalty agreement associated with the Whisby 4 well with
BritNRG, the Whisby field operator and licence holder, (the "Agreement") has
been terminated. Recently the Agreement has not generated any income for the
Company and further investment is required to potentially return the Agreement
to a cash generating arrangement. Given the technical risks associated with
any further investment, it was decided that the Company's capital is better
spent on the other assets held by Europa.

 

The carrying value of the Agreement is currently written down to nil in the
Company's accounts. Upon termination of the Agreement, there are no remaining
associated liabilities, since these have been written off by the parties to
the Agreement. This has resulted in a £185,000 net gain to the Company's
balance sheet.

 

Will Holland, Chief Executive Officer of Europa, said:

 

"The Whisby 4 well was drilled in 2003 and since then it has been producing on
natural decline to the point where the original net profits interest agreement
is no longer profitable for Europa. Given the uncertainties associated with
any further investment in the Whisby 4 well, the Board decided that our
capital is better spent on other projects that offer our shareholders a better
value proposition."

 

* * 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

 Samantha Harrison / Ciara Donnelly / Elliot Peters              Grant Thornton UK LLP - Nominated Adviser  +44 (0) 20 7383 5100

 Peter Krens                                                     Tennyson Securities                        +44 (0) 20 7186 9033

 Patrick d'Ancona / Finlay Thomson / Kendall Hill / Anna Stacey  Vigo Consulting                            +44 (0) 20 7390 0230

 

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