(Alliance News) - Europa Oil & Gas (Holdings) PLC on Wednesday said UK government approval of the Wressle project located in east Lincolnshire will more than double the company's existing UK onshore production.
Europa Oil shares were up 1.3% at 1.98 pence each in London on Thursday morning, having risen sharply Wednesday.
"The results are expected post the UK general election on December 12 and if the ruling is favourable, Europa, along with its partners in the licence, will have a clear line of sight towards bringing Wressle into production in 2020," said Interim Chief Executive & Executive Chair Simon Oddie in his annual general meeting statement.
"This would have a dramatic effect on Europa's production profile. Under the proposed development plan, Wressle would commence production at an initial gross rate of 500 barrels of oil per day, which would more than double Europa's existing UK onshore production to around 240 barrels," Oddie added.
In Ireland, the company said progress has been slow in securing farm-in partners and completing site surveys due to Irish government's decision to phase out oil exploration and move towards a greener energy.
Europa, however, believes the Irish government's decision to be positive for Inishkea licence, which is located close to the producing Corrib gas field in the Slyne Basin.
Oddie said: "We believe Inishkea has the potential to play an important role in helping to satisfy Ireland's future energy needs. With farmout discussions continuing with a number of parties, it appears we are not alone."
Elsewhere in Morocco, the company is pleased with the award of the offshore Inezgane licence in September. Europa has acquired 3D seismic data over the acreage, which it intends to process during the initial two-year phase of the licence.
"Securing a new appraisal/development asset, completing a farm-out for Inishkea with a view to drilling a well within 12 to 18 months of signing, advancing and de-risking Inezgane, and, bringing Wressle into production, subject to a favourable ruling, are key objectives for the year ahead," Oddie said.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Europa Oil & Gas (EOG)