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Pin to quick picksEuropa Oil & Gas Share News (EOG)

Share Price Information for Europa Oil & Gas (EOG)

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UPDATE 1-U.S. oil production on brink, say oil execs

Tue, 06th Oct 2015 15:49

* World prices seen too low to support U.S. shale oil output

* Lack of bank financing seen for new shale developments

* Risk low production levels may cause price spike

* U.S. oil sector productivity improvements seen near limit (Adds prices in paragraph 9)

By Dmitry Zhdannikov and Ron Bousso

LONDON, Oct 6 (Reuters) - U.S. oil production will start todecline soon unless oil prices rise substantially, oilexecutives said on Tuesday, saying lower production could pavethe way for a spike in the market in future if fuel demandincreased.

Delegates at the Oil and Money conference in London, anannual gathering of senior industry officials, said world oilprices were now too low to support U.S. shale oil output, thebiggest addition to world production over the last decade.

"We are about to see a pretty dramatic decline in U.S.production growth," the former head of oil firm EOG Resources Mark Papa, told the conference.

Papa, now a partner at U.S. energy investment firmRiverstone Holdings LLC, said U.S. oil production would stallthis month and begin to decline from early next year.

He said the main reason for the decline would be a lack ofbank financing for new shale developments.

U.S. oil production has been growing by around 1 millionbarrels per day (bpd) year-on-year since mid 2012, thanks to theintroduction of new drilling techniques that have released oiland gas from shale formations.

But output in North America has started to slow in recentmonths as prices have fallen sharply.

Oil prices have almost halved in the last year on oversupplyin a drop that deepened after the Organization of the PetroleumExporting Countries in 2014 changed strategy to protect marketshare against higher-cost producers, rather than cut output toprop up prices as it had done in the past.

Benchmark Brent crude was up 5 percent or $2.50 abarrel at $51.75 on Tuesday as investors digested news from theLondon conference. It peaked above $115 a barrel in June 2014.

SPIKE

The chief executive of Royal Dutch Shell Plc agreed, saying U.S. oil producers would struggle to refinancewhile prices remained so low, leading to lower output in future:

"Producers are now looking for new cash to survive and theywill probably struggle to get it," van Beurden said.

Longer-term, there was a risk that low levels of globalproduction could bring a spike in oil prices, he said.

If prices remained low for a long time and oil productionoutside OPEC and the United States declined due to cuts tocapital expenditure, there was not likely to be any significantspare capacity left in the system, he said.

"This could cause prices to spike upwards, starting a newcycle of strong production growth in U.S. shale oil andsubsequent volatility," van Beurden said.

Adam Sieminski, administrator at the U.S. Energy InformationAdministration, told reporters on the sidelines of theconference the U.S. oil industry had reacted to lower prices byimproving its productivity.

But this process could not continue forever.

"Now we are seeing the limits at least in the near term andit is beginning to impact production," Sieminski said. "We see(U.S. oil production declines) continuing into next summer."

The Secretary-General of OPEC, Abdullah al-Badri, said oilsupply growth from non-OPEC producers might be zero or negativein 2016 because of lower upstream investment.

But Papa said if U.S. light crude oil prices wentback up to $75 a barrel, U.S. oil production would resume growthat around 500,000 barrels per day - or around half the recordgrowth rates observed in the past few years.

"I see the United States as a long-term growth producer," hesaid. "If low oil prices prevail - then the correction in oilprices will be much more severe." (Writing by Christopher Johnson; Editing by David Evans)

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IN BRIEF: Europa Oil & Gas names largest shareholder as new chair

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18 Dec 2024 09:49

Europa Oil terminates royalty agreement for Whisby 4 well

(Sharecast News) - Europa Oil & Gas, an exploration and production company with assets in the UK, West Africa and Ireland, announced the termination of its royalty agreement for the Whisby 4 well with BritNRG, the field operator and licence holder, on Wednesday.

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Europa Oil shares dive as loss widens amid big exploration costs

(Alliance News) - Europa Oil & Gas Holdings PLC on Monday said 2025 will be an exciting period for the company as it reported a widened loss due to higher exploration costs.

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28 Oct 2024 10:51

Europa Oil reports challenging financial performance

(Sharecast News) - Europa Oil & Gas reported a challenging financial performance for the year ended 31 July on Monday, as revenue declined 46% to £3.6m, reflecting reduced oil production, including a three-month shutdown at its Wressle site, and lower realised oil prices.

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18 Oct 2024 10:30

Approval for more development of Lincolnshire oil field to be revoked

(Alliance News) - Europa Oil & Gas Holdings PLC and Union Jack Oil PLC said on Friday they expect planning consent for further development of the Wressle field in Lincolnshire to be quashed, following a legal challenge to their application.

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13 Sep 2024 12:49

IN BRIEF: Europa Oil & Gas opts not to extend Serenity licence

Europa Oil & Gas Holdings PLC - UK and Ireland-focused oil and gas exploration, development and production company - Says that it does not intend to apply to the North Sea Transition Authority for an extension to the Serenity licence, which is due to expire on September 30 of this year. As a result, the incurred costs associated the licence that Europa Oil & Gas has capitalised on its balance sheet will be written off.

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13 Sep 2024 11:23

Europa Oil opts not to extend Serenity licence

(Sharecast News) - Europa Oil & Gas, an company focussed on oil and gas exploration, development, and production in the UK, Ireland and West Africa, announced on Friday that it would not apply for an extension of the Serenity licence, P2358.

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3 May 2024 20:29

IN BRIEF: Europa Oil & Gas withdraws from UK offshore licensing round

Europa Oil & Gas (Holdings) PLC - UK and Ireland-focused oil and gas exploration, development and production company - Updates on the company's application for a licence as part of the 33rd UK Offshore Licensing Round that closed in January. Says the North Sea Transition Authority proposes a marriage between Europa and another party for the Licence. But, Europa decides not to accept the proposed marriage and also notifies the NSTA that, if the NSTA subsequently decide to award the Licence, in its entirety to the company as the sole owner, Europa would decline the offer. Europa explains that since its original application various aspects of the operating conditions and the fiscal environment have changed and remain uncertain. This reduces the economic and strategic attractiveness of the licence. As such, Europa believes that its resources are better deployed on its existing assets and looking for new opportunities within its core areas of focus.

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Europa Oil to decline any North Sea licence offer

(Sharecast News) - Europa Oil & Gas said in an update on Friday that it received communication from the North Sea Transition Authority (NSTA) regarding its application for a licence as part of the 33rd UK Offshore Licensing Round.

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Europa Oil & Gas Holdings PLC - UK and Ireland-focused oil and gas exploration, development and production company - Pretax loss narrows 20% to GBP1.0 million in the six months to GBP1.0 million from GBP1.3 million a year prior. Revenue dives to GBP1.4 million from GBP3.7 million, which it says was due to the three-month shut-in period at Wressle in the East Midlands. Total cost of sales decrease 28% to GBP1.6 million from GBP2.2 million. Notably, reports no exploration write off cost, compared to GBP1.7 million a year prior. Looking ahead, Chief Executive Officer Will Holland says: "As we have alluded to in the past, we are always looking for additional geographies where we can reallocate our inhouse expertise. Such an opportunity arose in Equatorial Guinea towards the end of last year, where we are investing in a very high-quality licence with three drill-ready and potentially transformational prospects."

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Europa Oil & Gas confirms extension to Cloughton licence

(Sharecast News) - Europa Oil & Gas announced a significant extension to its PEDL 343 licence on Wednesday, housing the Cloughton gas discovery in the East Midlands.

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