Europa Oil & Gas (Holdings) plc, the AIM quoted UK, West Africa and Ireland focused oil and gas
exploration, development and production company, provides an operational update on its current
activities and outlook for 2025.
Equatorial Guinea
In Q4 2024, the Company, through its 42.9% shareholding in Antler Global (“Antler”), initiated a
farmout process for its EG-08 asset which has an internally estimated 2.2 TCF Pmean of gross
prospective resources1
. Since beginning the farmout process, there has been significant interest in the
asset and discussions continue with a number of potential farminees. Europa is aiming to receive
offers to provide Antler with a full carry on an exploration well targeting the c.900BCF Barracuda
prospect in H1 2025.
Ireland
Europa has a 100% interest in licence FEL 4-19, which contains the 1.5 TCF Pmean2
Inishkea West gas
prospect. The Company continues to look for a partner to drill an exploration well on the prospect,
where Europa believes that a successful discovery has the potential to supply at least two thirds of
Ireland’s gas demand in 2030. The asset is adjacent to the producing Corrib gas field, which is one of
the lowest carbon-intensity gases in Europe, much lower than UK imported gas. With compelling
economics, which Europa believes will result in a post-tax NPV10 of US$2.0 billion3
, and a carbon
emission intensity of 2.8 kilograms per boe, compared to 36 kilograms per boe for UK imported gas
during 20224
, the prospect provides a farminee with a very attractive risk reward proposition. The
newly elected Irish government appears to be concerned about security of energy supply and as such
it is hoped that they will be supportive of the domestic upstream sector.
UK
Cloughton Appraisal
Progress on Cloughton (Europa interest 40%) has been steady during the year and the Company
intends to submit a planning application for the Cloughton appraisal well during Q1 2025. The
multitude of independent reports that have been commissioned to support the planning application
highlight that the chosen pad location is ideal for this well and for a potential development of the 192
BCF GIIP,should the appraisal well prove that commercial rates are achievable. Europa expectsto shoot
a seismic programme towards the end of 2025 with appraisal drilling forecast to commence early 2026.
A dedicated website is currently under construction that will provide all stakeholders with information
about the well, including planning reports, well data, G&G information, impact on traffic, emissions,
and much more. A further announcement will be made when this site is launched.
Onshore Production
Europa continues to benefit from the strong performance of the Company’s onshore UK producing
assets, particularly the Wressle oilfield in the East Midlands (Europa working interest: 30%) which
continues to produce at the top end of the CPR production forecast. The Company’s total UK net
production in December 2024 averaged over 124bopd and Europa anticipates an active year for
Wressle, with a development well planned to be drilled for the Penistone horizon in H2 2025 (subject
to necessary permits and consents) and preparation for a second Penistone well and Broughton North
exploration well to be drilled in 2026.
The Wressle production is complemented by a gas monetisation solution that will be developed in
parallel with the Penistone well. The gas monetisation solution is expected to enhance production
from the field and substantially increase revenues, as well as eliminate routine flaring from the Wressle
field.
The Company is also looking at optimising production operations at its Crosby Warren site (Europa
working interest: 100%), where the existing production could be significantly increased through a
simple workover programme that is currently being considered. The workover will likely be conducted
during 2025.
New Business
The Company continues to assess new opportunities, particularly in West Africa where projects
provide significant value-accretion that are within the Company’s financial capability.
2025 Budget
The Europa 2025 calendar year budget shows an unrestricted5
cash position of £0.96m as of 31
December 2024 and forecast G&A of £1.68m (reduced from £2.23m budgeted for 2024). The majority
of capex for the year is forecast to be spent on Wressle with the balance being spent on Cloughton,
Crosby Warren and FEL 4/19.
Project finance discussions to fund the Wressle capex are underway, although there is no guarantee
that this will be secured. Should Wressle project financing be secured, or if Wressle operations are
delayed beyond 2025, then the Company forecasts that it has sufficient funds, from existing cash and
forecast profits from existing operations, to cover all costs and other capex. Operations for Equatorial
Guinea are fully funded for 2025 with the funds already held in the Antler subsidiary.
Will Holland, Chief Executive Officer of Europa, said:
“2025 will undoubtedly be an active year for Europa as we progress with multiple projects that have
the potential to deliver significant value to shareholders.
I am encouraged by the response that we have had to our EG-08 farm out process. The compelling
technical merits of a material gas resource with a 70-80% chance of success located 9km from existing
infrastructure in a stable region with a favourable fiscal and operating environment is understandably
attracting significant interest from multiple parties. I look forward to updating the market on this
exciting asset as we progress associated workstreams.
In Ireland, I hope that the new administration continues to build on its support for improving Ireland’s
security of supply and that this will manifest itself as support for our Inishkea West prospect, which is
ideally placed to be quickly brought online via the existing infrastructure.
Progress on Cloughton has been steady during 2024 and we expect to continue with this momentum
during 2025 as we secure the necessary approval to drill the appraisal well in 2026. With 192 BCF GIIP
located onshore close to existing infrastructure it can be brought online quickly, with minimal disruption
to the local community, and could be a vital source of domestic low emission gas displacing high
emission LNG imports.
We are optimistic that all necessary approvals and permits will be obtained for the Wressle
development programme to start around mid-2025. The programme will not only develop the
Penistone horizon of the field but also monetise the gas by connecting to the local gas network which
we believe will result in a material increase in production and cashflows.
The Europa Board adopts a prudent approach, balancing the inherent risks associated with exploration,
appraisal and development against the value creation of these upstream activities. Our 2025 budget
reflects this risk assessed value-driven approach and I look forward to updating the market on our
progress throughout the year.”
Qualified Person Review
This release has been reviewed by Alastair Stuart, Europa's Chief Operating Officer, who is a petroleum
engineer with over 35 years' experience and a member of the Society of Petroleum Engineers and has
consented to the inclusion of the technical information in this release in the form and context in which
it appears.