EUROPA OIL & GAS (HOLDINGS) PLC: Commencement of 3D Seismic, Offshore Ireland

EUROPA OIL & GAS (HOLDINGS) PLC: Commencement of 3D Seismic, Offshore Ireland
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas   
15 July 2013 
      Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')           
Award of Frontier Exploration Licences and Commencement of 3D Seismic in South  
                   Porcupine Basin, Offshore Ireland                        
Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration and
development company with a combination of producing and exploration assets in
Europe, is pleased to announce the commencement of a 3D seismic acquisition
programme in the South Porcupine Basin, offshore Ireland, following the award
by the Irish Government of Frontier Exploration Licences (`FELs') 2/13 and 3/13
to Kosmos Energy Ireland Ltd (`Kosmos') and Europa. 
Kosmos, as operator, undertook to accelerate the conversion of Licensing
Options (`LO') 11/07 and 11/08 into FELs in order to bring forward the
acquisition of 3D seismic into the summer of 2013. Accordingly, Kosmos have
secured from Polarcus, a seismic contractor, the use of the `M/V Polarcus
Amani' vessel with which to acquire the 3D seismic. In tandem with this, Kosmos
has also obtained the appropriate permits for this programme from the relevant
departments of the Irish Government. 
FELs 2/13 and 3/13 are located over 75% of the area formerly held under LO 11/
07 and 11/08 respectively, and combined cover approximately 1,500 sq km in the
highly prospective South Porcupine Basin in the Irish Atlantic Margin. The FELs
have been granted by the Minister of State at the Department of Communications,
Energy and Natural Resources and are effective from 5 July 2013 and were
notified to the operator on 11 July 2013. Each FEL lasts for a period of 15
years and is broken down into a maximum of four phases. The first phase of
three years includes a commitment to acquire 740 sq km of 3D seismic on each
licence. The second phase lasts four years and has a commitment to drill an
exploration well on each licence. As with the original LOs, the FELs will be
operated by Kosmos, who hold an 85% interest with Europa holding the remainder. 
Europa's CEO Hugh Mackay said: "Out of all the Licensing Options awarded in the
2011 Atlantic Margin Licensing Round, the three operated by Kosmos, two of
which Europa has a 15% interest in, are the first to be converted into FELs.
The early award of the full Licences, along with the immediate commencement of
the 3D seismic acquisition programme, clearly demonstrate Kosmos' intent to
actively pursue in the South Porcupine basin similar Cretaceous plays to those
that it pioneered in the Atlantic Margin basins offshore West Africa. 
"The recent entry of Cairn Energy and Woodside Petroleum into the South
Porcupine basin, together with the on-going drilling by ExxonMobil at the
nearby Dunquin prospect, not only highlight the prospectivity of the basin but
also the scale of the interest shown by leading names in the oil and gas
industry. As a result of all this activity and with much more to come, the
exploration vision of the early movers who participated in the 2011 licensing
round has been endorsed. This is a hugely significant first step on the path
towards realising the hydrocarbon potential of the Cretaceous stratigraphic
play and we have done it a year early. I look forward to providing further
updates on our progress 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 area
of approximately 750 sq km 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 FEL 2/13 and Kiernan in FEL 3/13, which the Company estimates to have
gross mean un-risked indicative resources of 482 million barrels of oil and
1.612 billion barrels of oil equivalent respectively. Information about the
Mullen and Kiernan prospects were provided to the markets in previous RNS
releases dated 6 November 2012 and 16 January 2013 respectively. 
As announced on 18 April 2013, under the terms of the farm-in Kosmos will fully
fund the costs of a 3D seismic programme in the first phase of each Frontier
Exploration License and pay 85% of costs incurred by Europa to date. Contingent
upon an election of the companies to enter into the second phase of the FEL
which carries a drilling commitment, Kosmos will incur 100% of the costs of the
first exploration well on each FEL. The first exploration wells on FEL 2/13 and
FEL 3/13 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%). 
                               **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-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 in 2013; 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 un-risked indicative
resources of 482 million barrels oil and 1.6 billion barrels oil respectively. 
END 
-0- Jul/15/2013 06:00 GMT
 
 
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