Mining, Oil & Gas News & Blog
17

With the acquisition come Shale’s equity interests in the PEDL299 and PEDL343 exploration licences awarded in the 14th UK Landward licensing round, thus doubling Europa’s stakes in those licences to 33.32% and 45.0% respectively.

Shale’s parent company has changed strategy in the wake of the precipitous decline in the oil price, and decided to remain focused on North America, where the company is domiciled, which is how Europa came to pick up the stakes so cheaply.

For Europa, the strategy is different. “We have an established exploration and production business here in the UK,” McKay told Proactive Investors. “For us, in times of capital constraint we prefer to focus on areas where we have expertise and a position,” McKay said.

“We already know there is gas ‘on structure’ [onPEDL343]; the question is: can we flow at a commercial rate?” McKay said. As for PEDL299, this was discovered in 1919 in the first ever exploration well in the UK, and the plan here is to use modern techniques to see if the company can achieve a commercial oil flow rate.

Europa will now have a 33.32% interest in the INEOS operated PEDL299 (up from 16.66%) which includes the Hardstoft oil field, meanwhile its stake in the Third Energy operated PEDL343 where the focus is the appraisal of the Cloughton gas discovery increases to 45% (from 22.5%).

“We are pleased to increase our equity in two 14th round licences and provide our investors with exposure to two high quality and low risk projects,” said Hugh Mackay, Europa chief executive.

“The Hardstoft oil field in the East Midlands Petroleum Province was discovered in 1919 by the UK’s first ever exploration well.”

“A competent person’s report on Hardstoft, issued by joint venture partner Upland Resources, identified gross 2C contingent resources of 3.1 million barrels oil (mmbo) and gross 3C contingent resources of 18.5 mmbo in PEDL299. PEDL343 is in the Cleveland basin and contains the Cloughton gas discovery made in 1986 and tested gas to surface from Carboniferous sandstone reservoir.”

Mackay added: “We are excited by the possibility of producing commercial quantities of gas from this reservoir interval.”

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