EUROPA OIL & GAS (HOLDINGS) PLC - Positive Update on Irish
Atlantic Margin Prospects
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
6 November 2012
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Technical Update on Irish Atlantic Margin Mullen Prospect
& Participation in the Atlantic Ireland 2012 Conference, Dublin
Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas
exploration, development and production company focused on
Europe, is pleased to provide a
technical update on its 100% owned Licensing Options (`LO') 11/7
and LO 11/8, located in the highly prospective South Porcupine
Basin, in the Irish Atlantic Margin, where two large, previously
unknown prospects, Mullen and Kiernan, were identified on Europa's
acreage in September 2012.
Highlights
* Europa believes the South Porcupine Basin has the potential to host a new
hydrocarbon province and is encouraged by the results of the initial
prospect evaluation
* Indicative resources at Mullen range from 66 million (P90) up to
potentially 1.1 billion (P10) barrels of oil
* P50 resources at Mullen are estimated at 318 million barrels of oil and are
supported on seismic data by an amplitude shut-off at a constant depth
* First pass seismic reprocessing over the Mullen prospect has been completed
and reprocessing over Kiernan is on-going
* Europa is seeking a joint venture partner to undertake further technical
work to de-risk the Mullen and Kiernan prospects and mature them to
drillable status
* The Company is presenting the Mullen prospect at the Atlantic Ireland 2012
Conference in Dublin on 12 November 2012
Hugh Mackay, CEO of Europa,
commented, "We believe the South Porcupine Basin has the potential
to host a new hydrocarbon province. First pass seismic reprocessing
over our Mullen prospect has proved positive. We are pleased to
note that the P50 resources of 318 million barrels of oil are
supported by an amplitude shut off, with indicative resources
ranging from 66 million (P90) up to over a billion (P10) barrels of
oil. Since our identification of these two large, previously
unknown prospects, significant progress has been made towards
uncovering the potential of these large structures. Whilst
reprocessing of seismic for Kiernan, the larger of the two
structures with stratigraphic closures of up to 244sq km, is still
on-going, the technical case of Mullen has been further matured and
will be presented at the Atlantic Ireland 2012 Conference in
Dublin on 12 November 2012. Additionally the prospectivity
of the South Porcupine basin will be further tested by the upcoming
ExxonMobil Dunquin well, which is expected to be drilled in Q1
2013. In order to maximise the potential of these prospects we
remain in search of a joint venture partner with whom to further
de-risk Mullen and Kiernan and mature them to a drillable
status."
The Mullen and Kiernan Prospects:
Europa has 100% equity in two licensing options in the South
Porcupine Basin in the Irish Atlantic Margin both approximately
1,000sq km in size. LO 11/7 is over blocks 43/9, 43/10, 43/14 and
43/15 whilst LO 11/8 is over blocks 54/1, 54/2, 54/6 and 54/7.
The option period is from 1 November
2011 to 30 October 2013.
Europa has implemented the technical work programme for this
initial period, which involves the integration and interpretation
of existing 2-D seismic and well data sets, and reprocessing of
selected 2-D seismic data. Subject to the fulfilment of this work
programme, government approval and a minimum 25% relinquishment, a
15 year Frontier Exploration licence may be obtained.
Within these Licensing Options, Europa has identified two
prospects: Mullen within 11/7 and Kiernan within 11/8. The play
configuration in both blocks involve the presence of Early
Cretaceous turbidite reservoirs derived from hinterland areas
characterised by the development of Devonian Old Red Sandstone.
These reservoirs are charged by mature Late Jurassic and Early
Cretaceous organic-rich marine shales. Both of these prospects are
stratigraphic traps, reliant upon updip pinch-out of the turbidite
reservoir on to a mud-dominated slope succession. The trapping
configurations are analogous to the Jubilee and Mahogany fields in
the equatorial Atlantic Margin province.
This Early Cretaceous play is proven in the North Porcupine
Basin by the Burren oil discovery made by Phillips in 1978 which
flowed circa 700 barrels of oil per day of 34 API oil. The South
Porcupine Basin is essentially undrilled and technical success at
the upcoming ExxonMobil Dunquin well, which is expected to be
drilled in Q1 2013, may help de-risk some source rock elements of
the Lower Cretaceous clastic play.
First pass seismic reprocessing over the Mullen prospect has
been completed and reprocessing over Kiernan is on-going and this
prospect will be presented at a later date.
Base seal at Mullen is considered to be Barremian shales. Top
seal is provided by Late Aptian-Early Albian marine mudstones. The
Mid-Late Aptian turbidite reservoir was derived from the Porcupine
High and both lateral and updip stratigraphic pinchout of the
reservoir package can be observed on dip and strike seismic
lines.
Upper Jurassic source rocks are proven in the North Porcupine
basin, both by drilling and analysis of produced hydrocarbons.
There is only one well, 43/ 13-1, in the South Porcupine Basin. The
well is located on the flanks of the Basin and contained thermally
immature Upper Jurassic source rocks. It is also possible that
Lower Cretaceous oil prone source rocks might be present in the
South Porcupine Basin. Lack of drilling means these are not proven,
although the presence of parallel continuous seismic facies
characteristics, observed on seismic, may provide some support to
the development of potentially organic-rich mudstone dominated
successions within this stratigraphic interval.
The water depth at the Mullen prospect location is approximately
1,000m, and is therefore feasible for a fixed platform development.
Depth to top reservoir is approximately 3,840m below the mudline.
Indicative resources at Mullen are estimated to be between 66 (P90)
mmbo and 1092 mmbo (P10). P50 resources are 318 mmbo and are
supported by an amplitude shut-off at a constant depth.
Atlantic Ireland Conference 2012, Dublin
Europa will be participating in the Atlantic Ireland Conference
2012 (`the Conference') on Monday 12
November 2012 at the Burlington Hotel, Upper Leeson Street,
Co. Dublin, Ireland, a one-day
conference and exhibition on Ireland's offshore hydrocarbon potential.
Hugh Mackay, CEO of Europa, will
make a technical presentation regarding the Company's Mullen
prospect in the `Prospects 2 Go' session of the Conference
programme. The Company's technical staff will also be available for
discussion throughout the day at Europa's booth in the exhibition
area. For further information on the Conference, please click on
the following link:
http://www.pip.ie/atlantic_ireland_conference_2012.PAGE336.html.
* * ENDS * *
For further information please visit www.europaoil.com or
contact:
Hugh Mackay Europa + 44 (0) 20 7224 3770
Phil Greenhalgh
Matt Goode finnCap Ltd +44 (0) 20 7220 0500
Henrik Persson
Frank Buhagiar St Brides Media
and Finance Ltd +44 (0) 20 7236 1177 Lottie
Brocklehurst
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 currently produces approximately 200
boepd in the UK, generating sufficient revenues to cover corporate
overheads. In addition, it has highly prospective exploration
projects in the UK, Ireland,
France and Romania.
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.