Europa Oil & Gas secures extension of license in UK’s Weald basin

LONDON -- Europa Oil & Gas has received notification from the UK’s Oil & Gas Authority that the PEDL 143 license in the Weald basin, Surrey, has been extended by two years until Oct. 1, 2018.

This will enable Europa to drill the conventional Holmwood prospect, which has estimated gross mean unrisked prospective resources of 5.6 MMbbl of oil in Portlandian and Corallian sandstones and a P90–P10 range of resources of 1 to 11 MMbbl of oil in late 2016/first-half 2017, subject to funding.

PEDL 143 is located in an area of the Weald basin where 30 MMbbl have been produced to date from 14 oil and gas fields. The Holmwood prospect is located 5 km to the south of Brockham oil field, which was discovered by BP in 1987 and today produces oil from Portlandian sandstone reservoirs.

Holmwood is also 12 km to the west of the Horse Hill-1 well in PEDL 137 where UK Oil & Gas Investments has reported production at a combined average stable rate of over 1,688 bopd from Upper and Lower Kimmeridge Limestone reservoirs and Upper Portland sandstone reservoir during flow tests.

Planning permission is in place for a deviated exploration well to be drilled at Holmwood which will penetrate similar stratigraphy to Horse Hill, targeting oil in Upper and Lower Kimmeridge Limestones in addition to Corallian and Portlandian sandstones. The 5.6 MMbbl gross mean unrisked prospective resources at Holmwood do not include any estimate for the Jurassic limestones which have been found to be producing in Horse Hill.

Subject to approval from the Oil & Gas Authority for the farm out to Union Jack Oil, Europa will have a 32.5% interest in, and operatorship of, PEDL 143 alongside Egdon Resources (18.4%), Altwood Petroleum (1.6%), Warwick Energy (10%), UKOG (30%), and UJO (7.5%).