• UK

UK

Production

The Company operates three producing oilfields in the East Midlands - a 100% working interest in both the West Firsby and Crosby Warren fields and a 65% interest in Whisby. Overall daily production is stable at approximately 180 barrels of oil, all of which is transported by tanker to the refinery at Immingham in NE Lincolnshire. Current 2P producing reserves are estimated at 0.65 mmbo.

The West Firsby Field, which commenced production in 1991 and is 15km north of Lincoln, is the main operating base with two wells producing oil using a jet pump system. The Crosby Warren field started production in 1987 and is located in the grounds of the steelworks at Scunthorpe. Two production wells operate here on traditional beam pumps or 'nodding donkeys', producing between 35-50bopd. The Whisby well, which is just to the west of Lincoln at Whisby, was first drilled by Europa in early 2003 and produces between 85-90bopd gross via a beam pump (approximately 50bopd net to Europa).

Ongoing reservoir engineering studies are being undertaken on Europa's UK producing assets to determine future work programmes and investment levels.

Exploration

Europa operates a number of exploration licences in the UK involving both conventional and unconventional hydrocarbon prospects:

Conventional Oil and Gas

  • The Wressle prospect located in the East Midlands Petroleum Province has estimated mean gross unrisked recoverable resources of 2.41mmbo. Europa has an equal working interest share in the prospect with its partners Egdon Resources & Celtique. 49 sq km of 3D seismic acquisition is in the process of being processed and drilling on the site is targeted for H1 2013.
  • The Broughton prospect is located in the East Midlands Petroleum Province and was previously drilled by BP who found oil. Broughton has estimated mean gross unrisked recoverable resources of 1.85mmbo. Europa has an equal working interest share in the prospect with its partners Egdon Resources & Celtique. 49 sq km of 3D seismic acquisition is being processed and drilling on the site is targeted for 2013.
  • The Holmwood prospect located in the Weald Basin, Surrey, has mean gross recoverable resources of 5.64mmbo. The licence covers an area of 5 sq km and is a Jurassic carbonate and sandstone project with a relatively low geological risk profile. Europa has a 40% working interest in the licence, Egdon Resources 38.4%, Altwood Petroleum 1.6%, and Warwick Energy 20%. Holmwood is located in a conservation area and an unsuccessful planning application to construct a temporary exploration well on the site was made in 2011. An appeal against the refusal of planning was held in July 2012 and was dismissed by the Planning Inspector. Europa is challenging this decision at the High Court.

Unconventional

 

Shale

Europa holds licences covering an area of over 600 sq km in the Humber Basin that have the potential to hold significant shale gas resources held in Carboniferous basinal black marine shales known to be 120m thick in the region.

Shale is a fine-grained common sedimentary rock composed of mud that is in turn made up of flakes of clay and other minerals such as quartz and calcite. Black shales are as the name implies dark, largely as a result of being rich in unoxidized carbon. Shale gas is a natural gas held in shale rock formations. As shale rock has a low level of permeability, hydrocarbons are prevented from finding their way to well bores in commercial quantities. Fractures are therefore necessary for the gas to be released. These can occur naturally but technological advancements in hydraulic fracturing in recent years have meant that extensive artificial fractures around well bores can be created to access the gas.

Over the past decade, shale gas has become an increasingly important source of natural gas around the world, most notably in the United States. US shale gas production has increased dramatically in recent years and has in the process fundamentally transformed the country from being a net importer of hydrocarbon fuels to the cusp of becoming a net exporter.