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Europa Oil & Gas signs farm-out deal with Angus

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Staff Writer | February 6, 2017
UK and Ireland-focussed exploration, development and production company Europa Oil & Gas announced that its wholly owned subsidiary has signed a farm-out agreement in relation to a 12.5% interest in the PEDL 143 licence in the Weald Basin with a wholly owned subsidiary of Angus Energy.
Europa Oil & Gas
Exploration   The 5.6 mmbo conventional Holmwood prospect
The AIM-traded firm said it will retain a 20% interest in PEDL 143, where a well targeting the 5.6 mmbo conventional Holmwood prospect is anticipated to be drilled in 2017.

It said Angus will pay 25% of the costs to drill an exploration well at Holmwood up to a gross well cost of £3.2m, and will pay 12.5% of all non-well costs and gross well costs above the cap.

Europa will pay 20% of all non-well costs and gross well costs above the cap, and said it is now fully carried on well costs up to £3.2m.

In the event of a discovery and subsequent development on the licence, Angus agreed to make a deferred payment to Europa of £265,625, covering back costs plus a 25% uplift.

The farm-out agreement remained subject to regulatory approval by the Oil and Gas Authority.