Europa Gives Up 28.75% Interest in Romanian License
Friday, January 20, 2012
Europa Oil & Gas is relinquishing its 28.75-percent working interest in the Brodina concession in Romania in order to focus on the firm's other assets, including the Berenx gas appraisal project onshore France.
The firm also announced Friday that it had resumed production at its West Firsby 7 well in the East Midlands in the UK.
Europa said that, in keeping with its active management of its asset base, an extensive review of the EIII-1 Brodina concession in northern Romania was undertaken and this has led to its decision to notify partners of its intention to withdraw from the joint operating agreement it has with them in the Brodina license.
Europa added that exploration costs of $4.2 million (GBP 2.7 million), previously incurred by it on the Voitinel and Horodnic wells at Brodina, will be written off.
Europa's CEO Hugh Mackay said that the decision regarding the Brodina license "is an example of the disciplined approach we have applied to the management of our highly-prospective asset base". He added: "It is a mark of the quality of our asset base that Brodina is no longer a priority for Europa. The potential company maker that is Berenx, in onshore France, as well as our highly exciting exploration licenses in the UK and Ireland remain our focus and I look forward to providing the market with updates on our progress."
Meanwhile, after reporting in December that the West Firsby 7 well had been shut in due to a suspected hole in a section of tubing, Europa said that a workover program confirmed and recitified the problem and that production at the well restarted on Jan 18. 2012.
Prior to the shut in, Europa's average daily production had been running at approximately 200 barrels of oil per day. Following the unscheduled downtime, the firm confirmed that it remains on course to produce an average of approximately 185 bopd for the six months to Jan 31. 2012 – representing a 22-percent improvement on the 151 bopd achieved in the equivalent period of the previous year.
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