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(Sharecast News) - UK, Ireland and Morocco-focussed oil and gas exploration, development and production company Europa Oil & Gas announced the formal launch of a farmout initiative on its Inezgane Offshore Permit in Morocco's Agadir Basin on Tuesday, which it was awarded in 2019.
The AIM-traded firm said Inezgane represented a "high-impact" exploration opportunity in a "highly underexplored" area of the world, representing a farm-in opportunity for interested companies, complementing its existing strategy of seeking to develop a balanced portfolio of assets.
It said the licence is located on the same geological trend which led to major oil and gas discoveries along the west coast of Africa, with reservoirs and source rocks in common with the prolific West African play.
Europa's recent evaluation identified a "significant" volume of licence resource of more than two billion barrels of oil equivalent in the top five ranked prospects alone.
The company added that Morocco offered "excellent" fiscal terms, with a low tax take and several major and midcap companies holding acreage in the country, including ENI, Hunt, Genel and ConocoPhillips.
"We are delighted to announce the launch of the farmout initiative of the Inezgane Licence which represents not only a high-impact exploration opportunity for Europa but also sits comfortably within the company's strategy of creating a balanced portfolio of complementary assets," said chief executive officer Simon Oddie.
"Morocco is a welcoming jurisdiction in which to operate and has excellent environmental, social and governance (ESG) credentials in the fields of wind, solar and hydroelectric with ambitions to source 50% of its electrical energy from renewable sources by 2030 as well as becoming a net exporter to Europe."
In holding a 75% interest in, and operatorship of, the licence, Oddie said Europa controlled an area of 11,228 square kilometres, with Morocco's national oil company ONHYM holding the remaining 25%.
"The work completed thus far has focussed on the top five ranked prospects which each have mean resources in excess of 200 million barrels of oil equivalent at the Albian level, with total mean resources in excess of two billion barrels.
"These are extremely positive numbers for the Company and we hope to capitalise on the prospectivity demonstrated along this prolific geological trend."
At 1051 BST, shares in Europa Oil & Gas Holdings were up 3.08% at 1.34p.
12 Jan 2023 07:45
IN BRIEF: Europa Oil & Gas says oil field in UK Midlands outperforming
Europa Oil & Gas Holdings PLC - UK and Ireland focused oil and gas exploration, development and production - Wressle oilfield, located onshore in the UK's East Midlands, produces an average of 300 barrels of oil per day in December, prompting Europa to guide for group production net to Europa of 500 barrels of oil equivalent per day from the fourth quarter of 2023 onward. This will be after the Penistone horizon at Wressle comes online. Europa plans a development well for the Penistone horizon in the second half of the year and a second in 2024. This will come from a net committed capital expenditure budget of GBP5.1 million across the Europa asset base. The company has a net cash position of GBP4.6 million.
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