LONDON (Alliance News) - Europa Oil & Gas Holdings Wednesday said it is "highly confident" that its move up the AIM oil and gas sector rankings remains on track, in a statement ahead of the company's annual general meeting.
The company has an objective of becoming an upper quartile oil and gas company in the AIM index, and cited a reduced cost base and its Wressel prospect, onshore UK, potentially coming on to stream at up to 500 barrels of oil per day gross in the second half of 2016 as bolstering its confidence.
Wressle, in East Lincolnshire, is the most advanced of Europa's assets, it said. Reservoir engineering analysis indicates up to 500 bopd gross could be recovered from one of four productive payzones at Wressle, and with a 33% interest in the project, this could potentially more than double the company's existing production.
"Wressle therefore has the potential to provide us with a cash generative platform from which to grow and prove up our prospect inventory," said Chief Executive Officer Hugh Mackay in the statement.
Shares in Europa were down 7.7% at 3.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Europa Oil & Gas (EOG)