Europa Oil & Gas (Holdings) plc’s associated company, focused on Equatorial Guinea, has signed a tentative farm-out agreement for the offshore EG-08 block production sharing contract.
BARRACUDA
The investor holds a 42.9% equity in explorer Antler Global Ltd which in turn owns an 80% working interest in the EG-08 PSC.
National company Guinea Ecuatorialde Petroleos owns 20%.
Antler has started “detailed commercial discussions” and signed a non-binding heads of terms with a “major energy company” for the farm-out.
Europa said that there was no guarantee that the discussions would lead to a binding deal.
The EG-08 block contains 2.116 trillion cubic feet (Pmean), with main prospect Barracuda estimated to hold 798 billion cubic feet (Pmean).
“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,” added chief executive officer William Holland.
“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.”
Co-founded by Block Energy plc’s CEO Paul Haywood and Christopher Irons, Antler was established to acquire assets in Equatorial Guinea.
Europa’s other interests are onshore UK, including the Wressle joint venture, and FEL 4/19, containing the Inishkea prospect in the Slyne Basin, offshore Ireland.