Europa Oil & Gas (Holdings) PLC has received a 12-month extension to the initial two-year term of the EG-08 exploration block from Equatorial Guinea’s hydrocarbons and mining development minister.
The block spans 731 square kilometers (282.24 square miles) in the Douala Basin in the waters of the Central African country, according to Europa. EG-08 lies adjacent to the north of Chevron Corp’s Alen and Anseng fields.
“The formalities to finalize the extension are ongoing and are expected to be completed in the coming days”, London-based Europa said in a statement on its website.
“As a result of the extension, the first sub-period of phase I of the PSC will expire on 4 October 2026”.
The extension “will provide plenty of time to finalize the farm-out process for EG-08, where we continue to make good progress”, said Europa chief executive William Holland.
“Concurrently, the technical team are working on detailed engineering plans for drilling the Barracuda prospect, which we hope to spud in 2026”.
On August 4, Europa said it had “executed a non-binding heads of terms with a leading energy company concerning the farm-out of an interest in the EG-08 asset”.
EG-08 has mean prospective resources of 2.2 trillion cubic feet, with 878 billion cubic feet identified from the primary prospect, Barracuda, according to Europa.
“EG-08 has three high-graded prospects which we assess to have similar AVO [amplitude variation with offset] characteristics to the Alen and Aseng fields and other discoveries in Chevron’s Blocks O and I immediately to the south”, Europa says on its website.
“The AVO story is very compelling and, accordingly, we estimate the chance of success is estimated at 60-70 percent for the three prospects.
“Volumes across the three identified prospects are estimated at mean prospective resources of 1.3 TCFE (this figure includes the gas and liquids).
“Together, these three prospects when combined provide over a 90 percent chance of finding a commercial discovery and, as such, this is a high-quality, low-risk and high-reward asset in shallow water with modest well costs.
“A successful discovery in EG-08 could be developed quickly with possible offtake to Chevron’s nearby Alen platform (nine kilometers), where hydrocarbons will be processed, transshipped and exported through the Chevron infrastructure to an FPSO [floating production, storage and offloading vessel] to export liquids with gas going via the Chevron pipeline to the Alba gas plant facility on Bioko Island”.
Europa owns a 34.32 percent stake in EG-08 via its 42.9 percent ownership in Antley Global Ltd, which holds an 80 percent operating interest in the block, according to Europa. National oil and gas company GEPetrol has the remaining 20 percent.
Source: by Jov Onsat, Rigzone Staff