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EUROPA OIL & GAS (HOLDINGS) PLC - Update on Irish Atlantic Margin ProspectsEUROPA OIL & GAS (HOLDINGS) PLC - Update on Irish Atlantic Margin Prospects
PR Newswire
London, January 15
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
16 January 2013
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Technical Update Including Unrisked Indicative Resources for Kiernan Prospect
in the Irish Atlantic MarginEuropa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,development and production company focused on Europe, is pleased to provide atechnical update on its 100% owned Licensing Options ('LO') 11/7 and LO 11/8,covering a total area of approximately 2,000 sq km and located in the highlyprospective South Porcupine Basin in the Irish Atlantic Margin ('IAM'), wheretwo large, previously unknown prospects, Mullen and Kiernan, were identified onEuropa's acreage in September 2012.
Highlights
- First pass seismic mapping over the Kiernan prospect has been completed withpositive results
- Primary focus has been on the Cretaceous clastic section where stratigraphictraps have been identified in three reservoirs: Barremian, Valanginian A andValanginian B
- Barremian - Mean unrisked indicative resources estimated at 355 million barrelsof oil (mmbo) in the oil case or 2.3 tcf in the gas case (oil is considered tobe the most likely hydrocarbon type)
- Valanginian A - Mean unrisked indicative resources estimated at 5.8 tcf in thegas case or 977 mmbo in the oil case (gas is considered to be the most likelyhydrocarbon type)
- Valanginian B - Mean unrisked indicative resources estimated at 1.9 tcf in thegas case or 280 mmbo in the oil case (gas is considered to be the most likelyhydrocarbon type)
- Total mean unrisked indicative resources for the three reservoirs is estimatedat 1.612 billion barrels in the oil case or 10 tcf (1.667 billion barrels of oil equivalent) in the gas case
- Technical work is continuing on additional prospectivity identified elsewherein the Licence area in the Paleocene section and pre-rift Jurassic and Triassicsections
- Europa believes the South Porcupine Basin has the potential to host a newhydrocarbon province and is encouraged by the results of the initial prospectevaluation
- Europa is seeking a joint venture partner or partners to undertake furthertechnical work to de-risk the Mullen and Kiernan prospects and mature them todrillable status
Hugh Mackay, CEO of Europa, commented, "First pass seismic interpretation overKiernan has proved positive and we are pleased to announce potentially largestratigraphic traps at three levels in the Cretaceous clastic section.Elsewhere in the LO 11/8 area there is potential for additional prospectivityin the Paleocene section and pre-rift Jurassic and Triassic sections whichwarrant further investigation. Whilst these initial results are highlyencouraging, more work, including a 3D seismic survey is required to furtherde-risk the Kiernan prospect and mature it to drillable status.
"We recently estimated mean unrisked indicative resources of 482 millionbarrels of oil for our Mullen prospect on LO 11/7. Exploration success ateither of our Irish prospects would therefore be transformative for Europa. We will now be opening a data room for both our Irish Licences, with a view tosecuring a joint venture partner or partners with whom we can further matureboth Mullen and Kiernan. We are not alone in believing the South PorcupineBasin could host a new hydrocarbon province and a carbonate prospect in thebasin located just 65kms away from Kiernan will be tested by ExxonMobil'sDunquin well later this year. This is an exciting time for Europa, as we lookto advance our balanced portfolio of assets, which also includes onshore UKproduction and exploration as well as a large onshore France gas appraisalproject, and in the process build substantial value for all our shareholders."
The Mullen and Kiernan Prospects:
Europa has 100% equity in two licensing options in the South Porcupine Basin inthe Irish Atlantic Margin both approximately 1,000sq km in size. LO 11/7 isover blocks 43/9, 43/10, 43/14 and 43/15 whilst LO 11/8 is over blocks 54/1, 54/2, 54/6 and 54/7. Within these Licensing Options, Europa has identified twoprospects: Mullen within 11/7 and Kiernan within 11/8. First pass seismicinterpretation over both the Mullen and Kiernan prospects has been completed. Europa announced the results for Mullen on 6 November 2012.
Licence option 11/8 is located on the east flank of the South Porcupine basinsome 145 km offshore southwest Ireland. The licence contains the CretaceousKiernan prospect as well as additional prospectivity elsewhere in the licencearea in the Paleocene and in the pre-rift Jurassic and Triassic.
The Kiernan prospect is a stack of three stratigraphic traps at various levelswithin the Cretaceous section: Barremian, Valanginian A and Valanginian B.Reservoir at the Barremian and Valanginian A levels are interpreted to bedeepwater turbidite sandstones. The Barremian is the shallowest with a depth tocrest of 3,700 metres below the mudline ('mbml') followed by the Valanginian Aat 4,475mbml. Reservoir in the Valanginian B is considered to be a moreproximal Brae-type fan sandstone with depth to crest estimated at 4,775mbml.The sandstones are considered to be derived from Devonian Old Red Sandstone inthe Munster basin on the Irish mainland. Hydrocarbon type in the MiddleCretaceous reservoir is predicted to be most likely oil. Hydrocarbon type inthe Valanginian A and B reservoirs is predicted to be most likely gas.
Oil prone marine source rocks are anticipated in the Late Jurassic andCretaceous intervals. The Late Jurassic source is regarded as well proven inthe region and is likely to be in the gas window present day if developed atthe prospect. Absence of relevant drilling means that the Cretaceous source isnot proven in the region, if present at the prospect it is predicted to be inthe oil window present day. Trap size at all three levels is potentiallylarge. Containment for top seal and bottom seal is provided by Cretaceousmudstones.
Unrisked indicative resources for the three Cretaceous reservoirs are tabulatedbelow: Gas Water Depth to Oil case (mmbo) Gas case (tcf) case Reservoir depth crest mbml (mmboe) (m) (m) P90 P50 P10 Mean P90 P50 P10 Mean Mean Barremian 1800 3700 78 269 746 355 0.6 1.8 4.6 2.3 383 Valanginian 1925 4475 189 712 2063 977 1.5 4.7 11.5 5.8 967A Valanginian 1925 4775 29 130 710 280 0.2 0.9 4.7 1.9 317B Total 1612 10.0 1667Geological risk is considered to be high and further technical work is requiredto de-risk the prospect and mature it to drillable status. A key step is toacquire 3D seismic over the prospect.
The primary play in the Mullen prospect in 11/7 on the west flank of the southPorcupine basin comprises Early Cretaceous turbidite sandstone reservoirs.These reservoirs are charged by mature Late Jurassic and Early Cretaceousorganic-rich marine shales. Mullen is a stratigraphic trap, reliant upon updippinch-out of the turbidite reservoir on to a mud-dominated slope succession.The trapping configurations are analogous to the Jubilee and Mahogany fieldsin the equatorial Atlantic Margin province.
The Early Cretaceous play is proven in the North Porcupine Basin by the Burrenoil discovery made by Phillips in 1978 which flowed circa 700 barrels of oilper day of 34 API oil. The South Porcupine Basin is essentially undrilled andtechnical success at the upcoming ExxonMobil Dunquin well, which is expected tobe drilled in 2013, may help de-risk some source rock elements of the LowerCretaceous clastic play.
The option period for both licences is from 1 November 2011 to 30 October 2013.Europa has implemented the technical work programme required for the licenceoption period, which involves the integration and interpretation of existing2-D seismic and well data sets, and reprocessing of selected 2-D seismic data.Subject to the fulfilment of this work programme, government approval and aminimum 25% relinquishment, a 15 year Frontier Exploration licence may beobtained.
* * ENDS * *For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa +44 (0) 20 7224 3770 Phil Greenhalgh Matt Goode finnCap Ltd +44 (0) 20 7220 0500 Henrik Persson Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst NotesEuropa 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. In addition, it has highly prospective explorationprojects in the UK, Ireland and France.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, whois a petroleum geologist with 30 years' experience in petroleum exploration anda member of the Petroleum Exploration Society of Great Britain, AmericanAssociation of Petroleum Geologists and Fellow of the Geological Society. MrMackay has consented to the inclusion of the technical information in thisrelease in the form and context in which it appears.