REG - Europa Oil & Gas - EG-08 Farm-out Agreement Signed

Europa Oil & Gas (Holdings)Announcement

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RNS Number : 0366N  Europa Oil & Gas (Holdings) PLC  30 December 2025

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

 

30 December 2025

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

EG-08 Farm-out Agreement Signed

 

Europa Oil & Gas (Holdings) plc, the AIM quoted West Africa, UK and
Ireland focused oil and gas exploration, development and production company,
is pleased to announce that its associated company, Antler Global Limited
("Antler"), has signed a binding Farm-out Agreement ("FOA") with Fuhai
(Beijing) Energy Limited ("Fuhai"), a wholly owned subsidiary company of the
privately owned Fuhai Group New Energy Holding Co., Ltd ("Fuhai Holding") to
farm-out a 40% interest in the EG-08 production sharing contract ("PSC") in
offshore Equatorial Guinea.

 

The key features of the FOA include:

·    Fuhai will acquire 40% working interest in EG-08 in return for
funding 95% of the costs (the "Fuhai Carry") of the Barracuda well, up to a
cap of $53 million for the total well cost ("Total Well Cost"). Antler shall
fund the remaining 5% of the Total Well Cost

·    Well costs include drilling and testing of the 893 BCF Barracuda
prospect

·    Antler will retain operatorship of EG-08

·    Any cost over-runs above the $53 million cap will be shared equally
between Fuhai and Antler

·    Upon commercial hydrocarbon sales Fuhai will have a preferential
recovery right to recover the Fuhai Carry

·    45% of the Fuhai Carry will accrue interest, capped at 5% per annum,
which will accrue from funding until full recovery from asset cashflows.
Interest will be cancelled if the Barracuda prospect does not result in a
commercial discovery

 

The deal remains subject to approval from the Ministry for Mining and
Hydrocarbons Department of Equatorial Guinea ("MMHD") and Overseas Direct
Investment ("ODI") approval from the Shandong Provincial government.

 

Europa has a 42.9% equity interest in Antler which, as a result of the FOA,
holds a 40% working interest in the EG-08 PSC, with 40% held by Fuhai and the
remaining 20% held by GEPetrol (Guinea Equatorial de Petróleos), the national
oil company of Equatorial Guinea, representing the State's interest.

 

Fuhai Holding (www.fuhaikonggu.com (http://www.fuhaikonggu.com) ) is a
large-scale energy and chemical business that integrates petrochemicals,
logistics and distribution and ranks as one of the top 500 businesses in
China. Its operations include:

·    Crude oil processing capacity of 10 MT/A

·    2,000 hazardous chemical transportation vehicles with a capacity of
20 MT/A

·    800 petrol stations

·    PX production of 1.5 MT/A

·    PTA production of 2.5 MT/A

·    Oil production from the Kenli Block in Bohai Bay, China

·    2024 Revenue of US$12.7 billion

 

Following further geophysical analysis of the EG-08 block the prospective
volumes have remained broadly in line with previous iterations whereby Antler
now believes that the block contains 2.213 TCF (Pmean), with the primary
prospect being Barracuda which is estimated to be 893 BCF (Pmean), as detailed
in the following table:

 

The net attributable percentage to Europa is 17.2%(1)

 

As a result of the FOA Antler intends to drill Barracuda at the earliest
opportunity, which is expected to be during 2026.

 

As EG-08 PSC is pre-production, Europa recognised a loss of £2,000 in its
2024 Annual Report relating to its interest in Antler, reflecting minor
pre-operational costs.

 

William Holland, Chief Executive Officer of Europa, said:

"This is a significant milestone for Europa and I am delighted to have entered
into this agreement with Fuhai, who are undoubtedly an excellent partner and
completely aligned with Antler's ambition to drill and develop the Barracuda
prospect at pace. Although the deal is still subject to MMHD and ODI approval,
we are confident that this will be secured within the coming months and as
such have now entered a period of detailed engineering and procurement in
order to spud the well as soon as possible.

 

The signing of the Farm-Out Agreement with Fuhai is the culmination of three
years of hard work to first identify the opportunity at EG08 and then, working
as one team with Antler, to work up the prospectivity of the EG08 block then
to secure an excellent partner to carry us through drilling. The farm-in is
without question a great result for Europa and equates to a 2.38 for 1 carry
which reflects the quality of the asset, namely the high chance of success and
the size of the resource potential.

 

2026 is going to be a pivotal year for Europa and I look forward to updating
the market as we secure the necessary approvals to conclude the transaction
and continue to make progress with our plans to spud the Barracuda well."

 

Qualified Person Review

 

This release has been reviewed by Jamie White, Chief Geologist at Europa, who
is a geologist with 28 years' experience, is a member of the GESGB and has
consented to the inclusion of the technical information in this release in the
form and context in which it appears.

 

Market Abuse Regulation (MAR) Disclosure

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

 

* * 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 / Anna Sutton                      Vigo Consulting                            +44 (0) 20 7390 0230

 

 

(1) Europa hold 42.9% of the shares in Anter and Antler now has a 40% interest
in EG-08 (0.429 x 0.4 = 17.2%)

 

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