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Europa Oil & Gas has struck a deal to buy a 42.9% stake in Antler Global, which has a licence offshore Equatorial Guinea.
Antler won a production-sharing contract (PSC) on EG-08 in May this year, where it holds an 80% stake. State-owned Gepetrol holds the remaining 20%.
Europa is paying $3 million to acquire the stake in Antler. The buyer said the funds would be used for first year costs, including the acquisition of existing 3D seismic, which it will reprocess.
Drill plans
The first two year term of the licence does not require the companies to drill. However, Europa said it believes there are already drill-ready prospects, with three independent targets.
Antler plans to farm down its stake in the block, bringing in a partner capable of funding drilling.
EG-08 is east of Bioko Island, to the north of Chevron’s Alen and Aseng fields, in Blocks O and I. According to a Europa presentation, Prospect A is 9 km from a wet gas processing platform on the Alen field. All three prospects are close to the Chevron fields.
A well has been drilled on EG-08 in the past but was found to be dry. Europa said this well had found some condensate and had proved existence of reservoir.
Europa put total Pmean mid case prospective resource at 1.386 trillion cubic feet of gas equivalent. It expects the overall chance that one of the three prospects is commercial to be 91%. All three prospects can be drilled from a single well with two sidetracks.
The cost of drilling such a well with a jack-up would be around $50 million.
Europa CEO Will Holland said the deal was potentially transformational for the company. It “adds another high-impact exploration prospect to our portfolio and ties with our strategic approach to replenishing the portfolio with potentially high impact but relatively low risk prospects”.
Europa will pay the $3mn to Antler in four tranches, with the last due in October 2024. Holland will sit on Antler’s board to represent Europa.
Block Energy’s Paul Haywood and Christopher Irons set up Antler, according to Europa. Companies House reports Simon Barry as a director, who was also on Block’s ESG committee, rather than Irons.
Chesh:
"The Company has upgraded its service rig to support the advancement of Project III with low-cost drilling and workover activities. Project III workover and retest candidates are being selected. An update will follow when operations commence."
1) Please could you tell me where the above Text came from??
2) Is that not the work the shows up on the program for 2024 / 2025??
Thank you for your email.
Not all of the crude oil produced by the Group belongs to the Group, because, according to the terms of the Production Sharing Contract for each licence block, the state of Georgia is entitled to a share of the produced oil. However, the crude oil inventory is 100% owned by the Group.
Regards
William
William McAvock
Chief Financial Officer
Block Energy plc
3rd Floor, Lansdowne House, 57 Berkeley Square, London W1J 6ER
Yiannakism45
I also strongly suspect they are diverting most of the income and resources on maintaining or upgrading existing wells but if so it is probably by way of necessity.
I also think they will get around to KRT-45 sometime in the new year but the problem is time is running out to generate enough revenue before they have to repay the $2m loan in just over 7 month time.
"Company production, including the contribution from the Company's interest in the Lauben field, is approximately 70 bopd which makes a material contribution towards operating costs and G&A."
Chesh
I am trying to have a serious debate and you resort to quoting Monty Python.
Madman Rob was correct - you are a stalker.
It is a shame you don't apply the same scrutiny to the BLOE BOD as you do the PRD BOD. IMO you have got it wrong in both camps.
What that means Chesh is when they got around to the November sale of oil they probably sold around 25 Mbbls of oil and they may have received $2m if they were lucky - but so what.
In H2 they managed to spend approx $5.5m and they did not even start any new wells in that half year.
Of course a Strategy can change but they have not issued an RNS to say that, and if they have changed the strategy as you suggest they need to be able to fund it.
TLH1 - I regret to say you are spot on.
Chesh - you are the one that keeps drifting onto Project 3 but as you mention it should be "funded by Oil", I agree, that is how it should be funded, but the problem is we are not producing anywhere near enough of it, flow rates are declining and we are not drilling any new wells - on Project 1.
Ok then - it does look as though it could be a ten minute argument after all, but not of my making.
ShortShrift - I am not debating whether they should have corrected the header text or not, but having reread the text in context I am happy with the general consensus here that the date referred to in the following paragraph is the correct version:
""An independent technical report for the Cory Moruga asset with indicative production profiles and near-term revenue projections is expected to be released before the end of 2023.""
If you wish to think otherwise that is your prerogative.
Extract from RNS dated 30th November, 2023:
""An independent technical report for the Cory Moruga asset with indicative production profiles and near-term revenue projections is expected to be released before the end of 2023.""
Where does the following statement posted by ShortShrift come from:
“ · Cory Moruga Independent Technical and Resources Report to be published in December 2024”