Europa to Acquire Crosby Warren Field

Europa Oil & Gas says that terms have been agreed with Edinburgh Oil & Gas Limited for the acquisition of 100% of DL001, the UK onshore license containing the Crosby Warren Oilfield.

The Crosby Warren Oilfield is situated in the East Midlands Oil Province some 30km north of Europa's existing West Firsby production facility. Crosby Warren currently produces approximately 35 barrels of oil per day (bopd) and associated gas with less than 20% water cut from a single production well. Oil production is exported to the nearby Immingham refinery, whilst gas is sold to the adjacent Scunthorpe steelworks.

With only one part-time producer and multiple pay zones, the Directors believe Crosby Warren provides potential for production optimization and field redevelopment.

Over the last three years, Europa has built a solid production base in the East Midlands. With this acquisition, the company will own three producing assets and associated exploration acreage. Europa's investment at Whisby is a prime example of realizing the value of under-funded fields: producing less than 5 bopd, the production was transformed by Europa's Whisby-4 well, which has since produced over 200,000 bbls and continues to produce at c.150bopd.

Paul Barrett, Managing Director, said 'I am especially pleased that it is still possible to acquire proven producing reserves with upside potential for a reasonable price even in the current climate of sustained high oil prices. The synergies with our existing East Midlands production operations will inevitably lead to more efficient operations and cost savings in the short term and we will be looking at the potential for drilling further production wells in the medium term.'

Europa Oil & Gas (Holdings) plc focuses on the production and exploration of hydrocarbons in Europe and North Africa. Europa currently produces over 500 barrels of oil equivalent per day from its operations in the UK, Romania and the Ukraine. Operating a balanced portfolio, Europa also has field appraisal and exploration activity on a number of projects in the UK and Romania and a strong new ventures program across Europe and the North African region.