Europa Oil & Gas (Holdings), the AIM quoted West Africa, UK and Ireland focused oil and gas exploration, development and production company, has announced that its associated company, Antler Global, has entered into detailed commercial discussions and has signed a non-binding Heads of Terms with a major energy company to farm-out an interest in the EG08 production sharing contract ('PSC') in offshore Equatorial Guinea. Europa has a 42.9% equity interest in Antler which in turn holds an 80% working interest in the EG-08 PSC, with the remaining 20% held by GEPetrol (Guinea Equatorial de Petróleos), the national oil company of Equatorial Guinea, representing the State’s interest.
There is no guarantee that these commercial discussions will lead to a legally binding agreement(s) relating to the farm-out and any agreement(s) would be subject to approval from the Minister for Energy of Equatorial Guinea.
Europa will provide further updates on the progress of the commercial discussions in due course.
As announced on the 22 July 2024, the EG-08 block contains 2.116 TCF (Pmean), with the primary prospect being Barracuda which is estimated to be 798 BCF (Pmean).
William Holland, Chief Executive Officer of Europa, said: 'The signing of these heads of terms is a very positive step forward and comes after an extensive period of negotiations with what we believe is an excellent partner. Although there are no guarantees, I am confident that we will progress to signing a farm out agreement in the coming months and will then move to drilling the Barracuda well as soon as possible thereafter. I look forward to updating the market of our progress in due course.'
Source: Europa Oil & Gas
