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(Alliance News) - Europa Oil & Gas Holdings PLC on Wednesday said it has decided not to progress its Moroccan licence, Inezgane, after failing to secure a partner to aid with the drilling of an exploration well.
The London-based, UK and Ireland-focused oil and gas exploration and development company said that it would not progressing to the first extension period, after the initial period extension announced on October 21 came to an end.
Europa said that while Inezgane offered "significant exploration potential", it could not commit to drilling a well without obtaining another partner.
Despite efforts to secure a farm-in partner, the company found market appetite for offshore deep water oil exploration to be "very low", and was ultimately unsuccessful.
Europa is in the final stages of completing all its obligations for Inezgane and expects to complete the final relinquishment report shortly.
Once this final obligation has been satisfied, the bank guarantee of USD315,000 will be released and repaid to Europa, following which the company will have no further interests associated with Inezgane.
"It has been a difficult decision not to progress to the first extension period," said Chief Executive Officer Simon Oddie.
"We will continue to explore potential development and exploration opportunities to expand our portfolio wherever they become available, provided that these can be acquired and developed on acceptable commercial terms and within the transition context. We have a healthy balance sheet on which to execute on our stated strategy."
Europa Oil & Gas shares were trading 4.4% lower at 1.10 pence each in London on Wednesday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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