Europa Oil & Gas Gets License Extension on Two North Sea Blocks

Europa Oil & Gas reports that the UK Department of Trade and Industry has confirmed that the conditions for the continuation of License P1131, covering UK North Sea Blocks 41/24 and 41/25, have been satisfied. License P1131, which is held 100 per cent. by Europa, contains two gas condensate discoveries with combined potential gas reserves of 93 billion cubic feet, located 9 km off the Yorkshire coast.

The continuation of the license, originally awarded as a Promote License, will enable Europa as Exploration Operator to proceed with the drilling of an appraisal well on the 41/24 gas condensate discovery. The well is planned to evaluate the long term performance of the reservoir, which in an earlier test, flowed at 35 million cubic feet per day. This flow rate is comparable to test results achieved by producing North Sea gasfields and equates to 6,000 barrels of oil equivalent per day. The well, if successful, will be retained as a future production well. Europa is currently in discussions with a number of potential partners to assist in the development of the field.

Paul Barrett, Managing Director of Europa, said "We look forward to drilling the appraisal well, so that we can proceed to develop the reserves. The economics of this project were assessed as favourable a year ago using a gas price of 25p per therm. Since then, prices have risen to 60p per therm, substantially improving the net present value of the project."