Europa Shuts in Well Due to Low Oil Price
UK onshore-focused junior producer Europa Oil & Gas reported Thursday that it has decided to keep its WF9 well on its West Firsby field in the East Midlands Petroleum Province shut in for the foreseeable future due to the current low oil price.
Europa said that production is continuing on the five of the six wells it operates across the Crosby Warren, Whisby and West Firsby fields and that it will reconsider whether to carry out a recompletion on WF9 – its lowest-producing well – should the oil price recover to a level at which the well would become economic.
As a result of WF9 remaining offline, Europa now expects average production for the 12-month financial period to July 31, 2015 will be approximately 144 barrels of oil equivalent per day – compared to the company's previous guidance of 150 boepd.
Meanwhile, Europa said that operations at Europa's 33-percent owned Wressle discovery on the PEDL 180 license and 50-percent-owned Kiln Lane prospect on the PEDL 181 license are continuing. Kiln Lane holds a potential 2.9 million barrels of oil equivalent.
Europa CEO Hugh Mackay commented in a company statement:
"The decision not to recomplete WF9 in light of current oil prices demonstrates our focus on ensuring capital is prioritized for developing projects that have the potential to generate significant value for shareholders. Thanks to having a portfolio of licences at various stages of development, we have a number of near term opportunities to transform Europa's production and revenues. I look forward to providing further updates on our progress during what promises to be an exciting year for Europa."
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