Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 24 October 2013 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Completion of 3D Seismic in South Porcupine Basin, Offshore Ireland Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration anddevelopment company with a combination of producing and exploration assets inEurope, is pleased to announce the completion of a 1,500 sq km 3-D seismicacquisition programme on Frontier Exploration Licences (`FELs') 2/13 and 3/13in the South Porcupine Basin, offshore Ireland. Kosmos Energy Ireland Ltd(`Kosmos') is operator and holder of an 85% interest in both licences withEuropa holding the remaining 15%. Processing of the newly acquired seismic data has already commenced anddelivery of the processed data is expected in Q1 2014. This state of the artdataset should enable detailed prospect mapping with the intention ofsignificantly de-risking the previously identified prospectivity on bothlicences. Subject to the results of the interpretation of the data, thepartnership should have sufficient technical and commercial information to makea drilling decision during the second half of 2014. If a positive drillingdecision is taken, Europa anticipates that drill planning would then commencewith the likely timing for drilling a well being 2015/16. FELs 2/13 and 3/13 together cover approximately 1,500 sq km in the highlyprospective South Porcupine Basin in the Irish Atlantic Margin. The FELs weregranted on 5 July 2013 and last for a period of 15 years broken down into amaximum of four phases. The first phase of three years included a commitment toacquire 740 sq km of 3-D seismic on each licence. Following the completion ofthe 3-D seismic acquisition programme using the MV Polarcus Amani, therespective acquisition commitments for the first phase have been completed foreach licence, well in advance of the end of the three year period. Europa's CEO Hugh Mackay said: "The 3-D seismic commitment of 740 sq km on eachlicence has been fulfilled within just four and a half months of the start dateof FEL. This is fast track exploration as we, led by Kosmos, target similarCretaceous plays in the South Porcupine basin to those that Kosmos successfullypioneered in the Atlantic Margin basins offshore West Africa. It is testamentto the calibre of the operations teams at both Kosmos and Polarcus that we havesuccessfully completed the seismic acquisition over both licences, andeffectively a year ahead of schedule. Subject to the results of theinterpretation of the newly acquired data, we could be in a position tocommence well planning in the second half of 2014, as we look to prove up thecompany-making prospectivity on both our Irish blocks. "Combined with the drilling of the Wressle prospect onshore UK later this year,and the recent renewal of the Bearn des Gaves permit, onshore France, where werecently identified a 416 bcf shallow gas play, this is an exciting period forEuropa and I look forward to providing further updates in due course." Further Information on FEL 2/13 and FEL 3/13, offshore Ireland FEL 2/13 (formerly LO 11/7) and FEL 3/13 (formerly LO 11/8) each cover an areaof approximately 750 sq km in the highly prospective South Porcupine Basin,offshore Ireland. The Licences were mapped using 2-D seismic data and areundrilled. Europa's technical work identified two prospects in the LowerCretaceous stratigraphic play: Mullen in FEL 2/13 and Kiernan in FEL 3/13,which the Company estimates to have gross mean un-risked indicative resourcesof 482 million barrels of oil and 1.612 billion barrels of oil equivalentrespectively. Information about the Mullen and Kiernan prospects were providedto the markets in previous RNS releases dated 6 November 2012 and 16 January2013 respectively. As announced on 18 April 2013, under the terms of the farm-in Kosmos will fullyfund the costs of the 3D seismic programme and has paid 85% of the pre-farm-incosts incurred by Europa. Contingent upon an election of the companies to enterinto the second phase of the FEL which carries a drilling commitment, Kosmoswill incur 100% of the costs of the first exploration well on each FEL. Thefirst exploration wells on FEL 2/13 and FEL 3/13 have investment caps of US$90million and US$110 million respectively. Costs in excess of the investment capwould be shared between Kosmos (85%) and Europa (15%). **ENDS** For further information please visit www.europaoil.com or contact: Hugh Mackay Europa + 44 (0) 20 7224 3770 Phil Greenhalgh Europa + 44 (0) 20 7224 3770 Matt Goode finnCap Ltd +44 (0) 20 7220 0500 Henrik Persson finnCap Ltd +44 (0) 20 7220 0500 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Notes Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stagehydrocarbon assets that includes production, exploration and developmentinterests, in countries that are politically stable, have transparent licensingprocesses, and offer attractive terms. The Company currently producesapproximately 180 boepd in the UK, generating sufficient revenues to covercorporate overheads. Its highly prospective exploration projects include theWressle prospect in the UK where a well is due to be drilled later in 2013;100% owned gas exploration prospect (416 bcf) and appraisal project (CPR 277bcf) in onshore France; and a joint venture with leading independent Kosmos toexplore two licences in offshore Ireland in which Europa has identified twoprospects with estimated gross mean un-risked indicative resources of 482million barrels oil and 1.6 billion barrels oil respectively.