Europa expands into Equatorial Guinea

Europa Oil & Gas (Holdings) plc has broadened its portfolio with an interest in a production sharing contract, offshore Equatorial Guinea.

DRILL-READY

The company purchased 42.9% equity in explorer Antler Global Ltd via a US$3 million cash share subscription, payable in four instalments.

Antler holds an 80% working interest in the “highly prospective” EG-08 PSC and national oil company Guinea Ecuatorialde Petroleos owns 20%.

Co-founded by Block Energy chief executive officer Paul Haywood and Christopher Irons, Antler focuses on acquiring assets in Equatorial Guinea.

The company was incorporated in September 2019 and acquired the EG-08 PSC in May 2023.

Antler’s current directors are Mr Haywood and Europa CEO William Holland.

Europa said that the PSC had “enormous near-term, infrastructure-led, near-field exploration potential”.

The company’s subscription will fund the first year’s work, including acquisition and reprocessing of existing 3D seismic data, drill preparations and all payments due to Equatorial Guinea.

Antler plans a farm-in process for a partner for drilling, although a well is not needed during the initial two years.

Europa added that the licence already had “drill-ready prospects” of three independent targets, with its own estimated total prospective resources of 1.4 trillion cubic feet of gas equivalent (tcfe).

“The resource prospectivity of EG-08 has only been examined at one stratigraphic horizon, which is analogous to discoveries made in the adjoining block operated by Chevron.

“However, further prospectivity exists in multiple horizons and these are yet to be evaluated.” 

The company noted that Equatorial Guinea had an established oil and gas industry with infrastructure and is one of the biggest hydrocarbons producers in sub-Saharan Africa.

Mr Holland described the acquisition as potentially transformational for Europa.

“Equatorial Guinea is an enormous opportunity for us and provides us with near-term drilling activity targeting over 1 tcfe of recoverable resource in an area with a well-developed upstream industry and a highly supportive government.

“I am also pleased to report that we have solid support from many of our institutional investors for this acquisition.”