EUROPA OIL & GAS (HOLDINGS) PLC: Kosmos Energy to Farm-in to Europa’s Irish Licences

EUROPA OIL & GAS (HOLDINGS) PLC: Kosmos Energy to Farm-in to Europa’s Irish 
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas   
18 April 2013 

          Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')          
              Kosmos Energy to farm-in to Europa's Irish licences              
                            Analyst Conference Call                            

Europa is pleased to announce a farm-in agreement with a subsidiary of the
independent oil and gas exploration and production company Kosmos Energy Ltd
(NYSE:KOS) (`Kosmos') for its two Licencing Options LO 11/7 and LO 11/8 in the
South Porcupine Basin offshore Ireland (`Licences').

Under the terms of the agreement, Kosmos will:

  * acquire an 85% interest and be appointed as operator of both Licences
      * fully fund the costs of a 3D seismic programme on each Licence
      * pay 85% of costs incurred by Europa to date

Contingent upon an election of the companies to enter into a subsequent
exploration drilling phase on one or both of the blocks, Kosmos will also incur
100 percent of the costs of the first exploration well on each block. The first
exploration wells on LO 11/7 and LO 11/8 have investment caps of US$90 million
and US$110 million respectively. Costs in excess of the investment cap would be
shared between Kosmos (85%) and Europa (15%). 
As set out in the Company's technical update announcement dated 16 January 2013
in respect of these Licences, Europa commenced the farm-out process with the
objective of finding a partner with the technical and financial resources and
the strategic intent to pioneer a new hydrocarbon play in a deepwater frontier
basin. The transaction with Kosmos represents the successful conclusion of this
The completion of the farm-in agreement remains subject to Irish governmental
approval. Further announcements will be made as and when necessary. 
Europa's CEO Hugh Mackay said: "We are very pleased to have secured a respected
leading independent such as Kosmos as a farm-in partner and operator for our
Irish Licences. Kosmos are a highly experienced operator in frontier basins and
pioneered the Cretaceous stratigraphic play that has resulted in significant
exploration success in the Atlantic margin basins. We look forward to working
with Kosmos and their involvement is a highly significant first step towards
realising the potential value of our exciting prospects in a new hydrocarbon
play located in an essentially undrilled basin offshore Ireland. 
"The farm-in provides recognition of the substantial potential value lying in
our Irish exploration prospects. The work programme associated with the farm-in
has the potential to deliver significant value realisation. Europa's retained
15% interest exposes the Company to substantial upside in the event of drilling
success at either or both of these prospects at a much reduced risk and cost to
our shareholders. 
"We understand that the Eirik Raude rig is in Irish waters to drill Exxon's
Dunquin well. An exciting new chapter in the exploration of Ireland is starting
and we are delighted to be part of it." 
About LO 11/7 and LO 11/8, offshore Ireland 
LO 11/7 and LO 11/8 each cover an area of approximately 1,000km2 in the highly
prospective South Porcupine basin, offshore Ireland. The Licences have been
mapped using existing 2D seismic data and are undrilled. Europa's technical
work to date has identified two, previously unknown, prospects in the Lower
Cretaceous stratigraphic play: Mullen in LO 11/7 and Kiernan in LO 11/8.
Information about the Mullen and Kiernan prospects were provided to the markets
in previous RNS releases dated 6 November 2012 and 16 January 2013
Further information in respect of LO 11/7 and LO 11/8, as well as the farm-in
by Kosmos, will be posted on Europa's website at 
Analyst Conference Call 
Europa is pleased to announce that it will be holding a conference call for
analysts on Monday 22 April 2013 at 11.00 BST. Please email if
you wish to join the call. 
Europa CEO Hugh Mackay will be hosting the call and will provide an update on
the Company's operations in Ireland. 
For further information please visit 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     
Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets that includes production, exploration and development
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. The Company currently produces
approximately 180 boepd in the UK, generating sufficient revenues to cover
corporate overheads. Its highly prospective exploration projects include the
Wressle prospect in the UK where a well is due to be drilled later this year; a
100% owned deep gas appraisal project with a CPR assigned contingent resource
of 277bcf in onshore France; and a joint venture with leading independent
Kosmos to explore two licences in offshore Ireland in which Europa has
identified two prospects with estimated gross mean unrisked indicative
resources of 482 million barrels oil and 1.6 billion barrels oil respectively. 
-0- Apr/18/2013 06:00 GMT
Press spacebar to pause and continue. Press esc to stop.