Europa Oil & Gas: Sale of Block 41/24 (P2304)
Europa Oil & Gas (Holdings) has sold its 50% interest in Promote Licence P2304 (UKCS Block 41/24) to Egdon Resources. Europa’s joint venture partner Arenite Petroleum has also sold its 50% interest to Egdon as part of the same transaction.
P2304 is located to the immediate south of Egdon’s 100% owned licence P1929 (UKCS Blocks 41/18 and 41/19) offshore North Yorkshire.
The consideration comprises the immediate reimbursement of the 2017 licence rental, OGA Levy and vendors’ legal costs (c. £15,000 in total) and future staged payments that have the potential to total £1.45m gross contingent consideration on the successful completion of various potential exploration activities and/or on reaching certain production milestones.
Europa chief executive Hugh Mackay said: ‘The sale of our interest in P2304 eliminates our exposure to ongoing costs whilst retaining our exposure to future drilling success. ‘Furthermore, combining P2304 with Egdon’s licence is anticipated to enhance the possibility of delivering farmout success to the benefit of all parties to the transaction. ‘Today’s disposal is in line with our strategy to optimise the risk / reward trade off across our onshore UK and offshore Ireland exploration portfolio. ‘We continue to focus on securing farm outs, specifically within our industry leading portfolio of offshore Ireland licences, and I look forward to providing further updates in due course.’