Europa Agrees Farm-Out Deal for Onshore France Permit
Junior energy firm Europa Oil & Gas announced Monday that it has signed a farm-out agreement with Vermillion REP SAS in relation to its Tarbes Val d'Adour Permit in the Aquitaine basin, onshore France.
The deal will see Vermillion acquire an 80-percent interest in, and operatorship of, Tarbes with Europa retaining the remaining 20 percent. Vermillion will assume 100-percent of the cost of an optional work program – including seismic data acquisition and processing as well as drilling operations – up to a total cost of $5.3 million. The farm-out agreement is subject to relevant approvals being granted by the French authorities, Europa added.
Europa is also involved in a farm-out process for its other French permit: Bearn des Gaves.
Europa CEO Hugh Mackay commented in a company statement:
"Vermilion is the leading exploration and production company currently active in France with net production of approximately 11,000 boepd. They have an excellent technical and operational track record with specific experience of workovers, infill drilling, and secondary recovery opportunities. They are the ideal partner for us on this permit, and we look forward to working alongside them, as we progress Tarbes up the value curve.
"2015 promises to be an exciting year with operations at Wressle and Kiln Lane continuing as previously announced. We will provide further updates with respect to progress when appropriate. We also anticipate the possibility of expanding our UK portfolio via the 14th onshore licensing round and most importantly a drill decision by Kosmos on our Irish licenses. Following on from our announcement last week about testing oil at Wressle completing the first French farm out is another good start to the year."
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