UK-focused junior Europa Oil & Gas saw production decline during its 2013 financial year in line with its expectations, it reported in an operations update Monday.
The firm's three producing assets – located in the East Midlands region of England – produced an average of 182 barrels of oil equivalent per day during the year to July 31 (2012: 200 boepd). Total oil volumes for the year declined 11 percent to 64,350 barrels (2012: 72,360 barrels).
Europe reported that it expects drilling to start at another onshore UK prospect, Wressle, during the second half of 2013.
As well as the Wressle prospect, the firm also has stakes in licenses offshore Ireland and at Bearn des Gaves, onshore France. In its South Porcupine Basin license in the Irish Atlantic Margin, Europa partner Kosmos Energy is currently engaged on a 3D seismic data acquisition program. However, Europa is still in discussions regarding the renewal of its French permit with the relevant French authorities.
Europa CEO Hugh Mackay commented in a company statement:
"Having produced an average of 182 boepd, our UK producing assets have hit our production target for the second consecutive year. The three producing assets are declining, in line with our expectations, and to have hit the target is testament to the excellent performance of our engineers on the ground as well as our in-house technical team who have been carrying out reservoir studies to optimize recovery rates.
"Thanks to revenues generated from production and the post-period receipt of GBP 300,000 from Kosmos Energy in respect of back costs on our Irish licenses, we can fully fund our share of drilling the Wressle prospect in the UK, which we rate as having a one in three chance of materially adding to our production.
"With drilling expected to commence at Wressle in the second half and a 3D seismic acquisition program currently being carried out by our joint venture partner Kosmos Energy offshore Ireland, this is an exciting period for the company and further updates will be provided in due course."
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