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Extension of Licence PEDL 181, East Lincolnshire

13th Jan 2014 07:00

EUROPA OIL & GAS (HOLDINGS) PLC - Extension of Licence PEDL 181, East Lincolnshire

EUROPA OIL & GAS (HOLDINGS) PLC - Extension of Licence PEDL 181, East Lincolnshire

PR Newswire

London, January 11

Europa Oil & Gas plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 13 January 2014 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Extension of Licence PEDL 181, East Lincolnshire Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,development and production company focused on Europe, is pleased to announce ithas received notification from the Department of Energy and Climate Change(`DECC') that phase 1 of the PEDL 181 Licence (`the Licence' or `PEDL 181') hasbeen extended by one year until 30 June 2015. This will enable Europa to drillthe 2.9 mmbo Kiln Lane-1 prospect in the second half of 2014. Europa holds a50% interest and is operator of PEDL 181 which covers 540 sq km in EastLincolnshire, a known oil producing region. Overview: * PEDL 181 is a large and previously undrilled licence located in a working hydrocarbon system where a number of other discoveries have been made in adjacent licences * Kiln Lane-1 is a drillable conventional oil and gas prospect on the PEDL 181 Licence area lying 28 km from Europa's producing Crosby Warren oil field and is a robust structural closure prospective for Carboniferous sandstone reservoirs * Kiln Lane-1 is estimated to hold gross mean un-risked resources of 2.9 mmbo with a 1 in 3 chance of success * Exploration success at Kiln Lane-1 would substantially de-risk a number of leads identified on the Licence * Well planning and permitting has commenced with a view to drilling in H2 2014 * Europa's share of drilling costs is fully funded following the recent placing Europa's CEO, Hugh Mackay commented, "Thanks to this licence extension and ourrecent placing, Europa is funded to drill two onshore UK prospects in 2014 withcombined gross prospective resources of 5 mmbo and each with a 1 in 3 chance ofsuccess. We are particularly excited about Kiln Lane-1. Not only does it have ahighly prospective address near to previous discoveries and existingproduction, but it is also a potential playmaker which, in the event ofsuccess, would substantially de-risk a number of additional leads and prospectswe have identified on the licence over the last 18 months. "With well planning and permitting already underway, we intend to drill KilnLane-1 in H2 2014. Ahead of Kiln Lane, Europa will be participating with a 33%interest in the drilling of the Wressle prospect in the East Midlands PetroleumProvince where the operator, Egdon Resources, expects to commence operations inQ1 2014. Combined with expected news flow at our projects in onshore France,where we recently launched a farm-out and commenced well permitting, andoffshore Ireland, where interpretation of the 3-D seismic recently acquired bythe operator Kosmos Energy may lead to a decision in summer 2014 to drill awell as early as 2015, the year ahead promises to be a highly exciting one forEuropa." PEDL-181 (Kiln Lane-1), East Lincolnshire Europa has a 50% interest in and is the operator of PEDL 181 in the HumberBasin, with Egdon Resources UK Limited and Celtique Energie Petroleum Ltd, eachholding a 25% interest. PEDL 181 is located in the Carboniferous petroleum playand covers an area of over 540 km2 in a working hydrocarbon system where anumber of other discoveries have been made in adjacent licences. Though PEDL181 itself has not been previously drilled, the Board considers that theLicence has good potential for conventional oil and gas and is also aware thatthe area may have potential as a shale gas resource. During the last 18 months, Europa has carried out considerable technical workon PEDL 181 including the acquisition of 78 km 2-D seismic in Q1 2013,reprocessing of an existing 150 km2 3-D dataset together with detailed regionalevaluation and prospect specific mapping. This work led to the identificationof a drillable conventional oil and gas prospect at the Kiln Lane location inthe east of the Licence, approximately 28 km from Europa's producing CrosbyWarren oil field. This previously unknown prospect is a robust structuralclosure prospective for Carboniferous sandstone reservoirs. Europa's researchindicates that the Kiln Lane prospect has gross mean un-risked resources of 2.9mmbo and a chance of success of 36 per cent. In the event of explorationsuccess Europa intends to conduct an extended well test for the purpose ofenabling a fast track development. Exploration success at this location wouldbe a significant milestone and would substantially de-risk a number of leadsfor possible follow-up drilling. The table below sets out the indicative gross and net un-risked resources ofKiln Lane Kiln Lane Un-risked Resources Gross Net to EOG P90 0.50 0.25 P50 1.80 0.90 P10 6.70 3.35 Mean 2.90 1.45 Europa, along with its partners, has commenced the site selection process andexpects to submit a planning application in March 2014 for the drilling of anexploration well. It is currently expected that this well will spud in thesecond half of 2014. The hydrocarbon play type being targeted is the classicEast Midlands play. Lower Westphalian and Upper Namurian aged sandstones arethe principal targets. Sourcing of the leads is expected from Bowland Shaleequivalents in the South Humber Basin located to the south and east of PEDL181. Intra Carboniferous shales will provide the seals. **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 Henrik Persson finnCap Ltd +44 (0) 20 7220 0500 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Notes Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stagehydrocarbon assets that includes production, exploration and developmentinterests, in countries that are politically stable, have transparent licensingprocesses, and offer attractive terms. The Company produced 182 boepd in the UKduring the 2012/2013 financial year, generating sufficient revenues to covercorporate overheads. Its highly prospective exploration projects include theWressle prospect in the UK where a well is due to be drilled later in the nearterm; 100% owned gas exploration prospect (416 bcf) and appraisal project (CPR277 bcf) in onshore France; and a joint venture with leading independent Kosmosto explore two licences in offshore Ireland in which Europa has identified twoprospects with estimated gross mean un-risked indicative resources of 482million barrels oil and 1.6 billion barrels oil respectively.

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