Europa enters second term of East Midlands licence

Oil and gas exploration, development and production company Europa Oil & Gas announced on Monday that it has entered into the second term of licence PEDL181 in the East Midlands Petroleum Province, effective 1 July 2016 to 30 June 2019.

The AIM-traded firm is the operator and has a 50% interest in the licence alongside its joint venture partners, Egdon Resources and Celtique Energie Petroleum at 25% each.

Europa has retained a 160 square kilometre area in the south east of the licence area in North East Lincolnshire.

The retained area provides exposure to the conventional and unconventional hydrocarbon potential of the Humber Basin, the board said, and has “technical synergy” with the adjacent PEDL334 licence awarded to an Egdon-led group in the 14th round for the purpose of conventional and unconventional exploration.

Europa has relinquished the remaining 380 square kilometres of the licence following analysis of seismic and geological data, together with the results of the Kiln Lane well drilled in 2015.

“Our onshore UK portfolio is focused on conventional oil and gas but this retained area in PEDL 181 provides us with a ringside seat while we wait for the shale pioneers to demonstrate the technical and commercial viability of unconventional hydrocarbons in the UK,” said Europa CEO High Mackey.