Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
27 March 2015
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Fourth Productive Interval Identified at Wressle-1 Well, Onshore UK
Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with a
combination of producing and exploration assets in Europe, is pleased to note
today's announcement from Egdon Resources (`Egdon') confirming the presence of
an oil column in the Penistone Flags interval, which has produced at a rate
equivalent to 77 barrels of oil per day (`bopd') during testing at the
Wressle-1 oil discovery (`Wressle') on Licence PEDL 180 in East Lincolnshire
(`PEDL 180'). This is the fourth tested interval at Wressle to produce
hydrocarbons and brings the total hydrocarbons recovered from all four test
intervals to 710 barrels of oil equivalent per day (`boepd'). Europa has a
33.3% working interest in PEDL 180, alongside Egdon (operator, 25%), Celtique
Energie Petroleum Ltd (33.3%), Union Jack Oil (8.3%).
* Second flow test of the Penistone Flags reservoir has identified a 7.5
metre oil column (referred to as Zone 3a) below the gas leg of the upper
part of the interval (Zone 3)
* Zone 3a was perforated and a total of 98.5 barrels of oil were recovered
during testing, 34.3 of which were induced by swabbing operations - this
equates to approximately 77 bopd
* The oil is of good quality with a gravity of 33o API
* Zone 3a is the fourth test to have produced hydrocarbons at Wressle during
testing operations:
*
+ the Ashover Grit - 80 bopd and 47 thousand cubic feet of gas per day
(`mcfd'), free flow;
+ the Wingfield Flags - up to 182 bopd and 0.456 million cubic feet of
gas per day (`mmcfd'), free flow;
+ Zone 3 of the Penistone Flags - up to 1.7 mmcfd and up to 12 bopd, free
flow;
+ Zone 3a of the Penistone Flags - 77 bopd, swabbed
* An aggregate 710 boepd has been recovered from all payzones during testing
operations
* Down-hole pressure data recorded during testing and oil sample data will be
interpreted and integrated with the data obtained from the previous three
flow tests
* The results will facilitate the design of the Extended Well Test (`EWT')
programme necessary to quantify the production levels that could be
attained from pumped production and inform field development options
*
+ EWT is expected to commence in May 2015 for a period of two months
* All data gathered from the test operations will be used to fully evaluate
the Wressle discovery which will allow an updated resource assessment to be
included in the Competent Person's Report covering Europa's portfolio of
assets in offshore Ireland, onshore France and onshore UK - this is due in
H1 2015
Europa's CEO, Hugh Mackay said, "The Wressle discovery has now flowed
hydrocarbons from all four intervals tested. This is an excellent result and we
are now working with Egdon to plan for an EWT later this year to optimise
production from the field. Thanks to our 33% interest in the well and the
production rates achieved so far in testing, Wressle has the potential to
materially increase Europa's existing UK production and revenues.
"In addition, the discovery has positive implications for the level of our
reserves and resources, which will be reflected in a Competent Person's Report
(`CPR') in H1 2015. This CPR will cover both our UK assets and our Irish
licences in the South Porcupine Basin where gross mean un-risked prospective
resources of up to 1.5 billion barrels of oil have already been identified by
our partner Kosmos Energy. I look forward to providing further updates on our
progress in due course."
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa + 44 (0) 20 7224 3770
Phil Greenhalgh Europa + 44 (0) 20 7224 3770
Matt Goode finnCap Ltd + 44 (0) 20 7220 0500
Simon Hicks finnCap Ltd + 44 (0) 20 7220 0500
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236 1177
Lottie Brocklehurst St Brides Partners Ltd + 44 (0) 20 7236 1177
Notes
Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets that includes production, exploration and development
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. The Company produced 165 boepd in the UK
during the 2013/2014 financial year, generating sufficient revenues to cover
corporate overheads and some exploration expenditure. Its highly prospective
exploration projects include the Wressle discovery (recently drilled and
undergoing testing) in the UK; 100% owned gas exploration prospect (107 bcf)
and appraisal project (CPR 277 bcf) in onshore France a joint venture with
Vermillion Energy also in onshore France; and a joint venture with leading
independent Kosmos to explore two licences in offshore Ireland with the
potential to host gross mean unrisked prospective resources of 1.5 billion
barrels.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 30 years' experience in petroleum exploration and
a member of the Petroleum Exploration Society of Great Britain, American
Association of Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information in this
release in the form and context in which it appears.