REG - Europa Oil & Gas - Wressle Update

Europa Oil & Gas (Holdings)Announcement

03/08/2023 07:00

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RNS Number : 1185I  Europa Oil & Gas (Holdings) PLC  03 August 2023

 

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

 

3 August 2023

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Wressle Update

 

Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil
and gas exploration, development, and production company, announces that the
Wressle 1 well ("W1") (in which Europa has a 30% interest) has begun to
produce a small amount of water, which accounted for an average of 3.72% of
the total production fluid during July 2023. The well continues to free flow
without the need for artificial lift and as of the end of July 2023 the
cumulative production from the W1 well totalled 492,876 bbls of oil.

 

With water production starting at this late stage, it provides further
evidence that the expected recoverable volumes from the Ashover Grit will be
at the top end of the estimates detailed in the independent Competent Person's
Report ("CPR") prepared by ERC Equipoise Ltd ("ERCE") and announced on 26
September 2016. The 2016 CPR forecast gross volumes from the Ashover Grit of
2P 0.54 MMstb and 3P 1.12 MMstb.

 

As announced on 17 January 2023, a new CPR has been commissioned and the work,
which is being undertaken by ERCE, continues. With the advent of water
production, ERCE is revisiting the reservoir modelling and incorporating the
event into the various work streams. This has delayed the completion of the
report but the results of the ERCE work will be announced in due course when
available.

 

Will Holland, Chief Executive Officer of Europa, said:

 

"The contribution of formation water has been long expected at the W1 well and
we are prepared to handle the water. The size of the oil accumulation within
the Ashover Grit formation is still expected to be at the top end of the
original CPR estimate and I look forward to updating the market with the
updated reserves once the new production data has been incorporated into the
dynamic reservoir model. This will ensure that the second development well is
drilled in the optimal location and that the recovery rate is maximised."

 

* * 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. 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 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

2P                           Proven and Probable

3P                           Proven, Probable and
Possible

bbls                        barrels

MMstb                 million stock tank barrels

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