Europa Oil & Gas to sell 10% of its stake in Lincolnshire licences

AIM-quoted Europa Oil and Gas is to sell 10% of its stake in two Lincolnshire licences to Upland Resources.

Europa has a 30% stake in licences PEDL180 and PEDL182, which include the Wressle discovery and the Broughton North prospect, along with Egdon Resources, the operator which owns 25%, Celtique Energie Petroleum with 33.33%, and AIM-listed Union Jack Oil with 11.67%.

Upon completion of the sale, which is subject to approval from the Oil & Gas Authority and approval of the Wressle Field Development Plan, Europa will retain a 20% stake in the licences.

The sale will be part satisfied through 23.07m Upland shares and cash.

On 7 February, the company said it decided, along with its joint venture partners, to appeal against the refusal by North Lincolnshire Council to grant planning consent to develope Wressle and to file a new planning application which will address the concerns of the council’s planning committee.

To allow time for the appeal and application process, Upland has agreed to extend the 'long stop' date which the conditions of the sale and purchase agreement of the 10% interest in the licences are to be met to 30 September, from the previous 31 March date.

Shares in Europa Oil & Gas were down 0.2% to 4.99p at 1409 GMT.