Europa Oil & Gas signs deal with UJO

Europa Oil & Gas signs deal with UJO

Oil and Gas exploration, development and production company Europa Oil & Gas (Holdings) plc (LSE:EOG) has signed a Farm-Out Agreement (FOA) in the PEDL143 license, found in the Weald Basin, with Union Jack Oil and Gas plc (LSE:UJO).

The agreement, which is still subject to approval from the O&G Authority will allow Europa to retain a 32.5 per cent interest in, and operatorship of, PEDL143 alongside; Egdon Resources (LSE:EDR) – 18.4 per cent stake, Altwood Petroleum – 1.6 per cent stake, Warwick Energy – 10 per cent interest, UKOG (LSE:UKOG) – 30 per cent interest and UJO – 7.5 per cent interest.

“The farm-out of an interest in Holmwood is in line with our strategy to advance our multistage portfolio of licences while at the same time managing risk,” said Hugh Mackay, CEO of Europa.

“We rate Holmwood as one of the best undrilled conventional prospects in the UK: gross mean unrisked prospective resources of 5.6 mmbo; the presence of multiple payzones; and located in a prolific hydrocarbon producing region close to the Brockham oil field and Horse Hill discovery.”

PEDL142 contains the conventional Holmwood prospect which has prospective resources of 5.6 million barrels of oil in Portlandian and Corallian sandstones.

UJO will pay 15 per cent and Europa 25 per cent of the costs to drill an exploration well at Holmwood with costs expected to be US$4.6 million.

Planning permission is currently in place for a well to be drilled at Holmwood. Operations are expected to being late 2016, early 2017.