Europa Oil & Gas Regulatory News (EOG)

13 Oct 2005 07:00

Europa Oil & Gas (Holdings) PLC13 October 2005 Europa Oil & Gas (Holdings) plc Farm-in agreement with Valhalla Oil & Gas The Directors of Europa Oil & Gas (Holdings) plc ("Europa") are pleased toannounce that they have entered into a farm-in agreement with Valhalla Oil & GasLimited ("Valhalla") in connection with UK onshore licence PEDL 150, which iscurrently wholly owned by Europa. PEDL 150 covers an area to the south and west of Lincoln and surrounds theproducing Whisby Oilfield, in which Europa also has a significant interest. Under the farm-in agreement, Valhalla will undertake the reprocessing of theexisting seismic database on the licence and fund the acquisition of 40 km ofnew 2D seismic data, which is likely to take place in early 2006. Byundertaking this work, Valhalla will earn a 25 per cent. interest in the licencewith an option to earn a further 25 per cent. by funding 50 per cent. of thecost of an exploration well. Europa and Valhalla both recognise the exploration potential of the licence,primarily based on a prospecting model developed from the results of theproduction well drilled on the Whisby Oilfield in 2003. A geochemical survey,acquired by Europa earlier this year, has high-graded areas of prospectivity onthe licence which will be the focus of the 2006 seismic programme. Europa will remain Operator of the licence. The transaction is subject to DTIconsent. Paul Barrett, Europa's Managing Director said "We believe this is a compellingdeal for both parties: Valhalla gains an entry into quality exploration in aproven oil province whilst Europa can participate in an exciting explorationprogramme at a much reduced cost." Editor's note: Valhalla Oil & Gas Limited is a wholly-owned subsidiary of Valhalla Oil & GasAS, a private Norwegian oil and gas exploration and production company. Itcurrently has interests in the UK North Sea and offshore West of Ireland. This information is provided by RNS The company news service from the London Stock Exchange