Europa Oil & Gas (Holdings) plc has broadened its portfolio with an interest in a production sharing contract, offshore Equatorial Guinea.
DRILL-READY
The company purchased 42.9% equity in explorer Antler Global Ltd via a US$3 million cash share subscription, payable in four instalments.
Antler holds an 80% working interest in the “highly prospective” EG-08 PSC and national oil company Guinea Ecuatorialde Petroleos owns 20%.
Co-founded by Block Energy chief executive officer Paul Haywood and Christopher Irons, Antler was established to acquire assets in Equatorial Guinea.
It was incorporated in September 2019 and acquired the PSC in May 2023.
Antler’s current directors are Mr Haywood and Simon Barry who is also a director of Pilgrim Exploration Ltd.
Europa said that the PSC had “enormous near-term, infrastructure-led, near-field exploration potential”.
The company’s subscription will fund the first-year work, including acquisition and reprocessing of existing 3D seismic data, drill preparations and all financial obligations with Equatorial Guinea.
Antler plans a farm-in process for a partner for drilling although drilling a well is not needed during the initial two years.
Europa added that the licence already had “drill-ready prospects” of three independent targets, with its own estimated total prospective resources of 1.4 trillion cubic feet of gas equivalent (tcfe).
“The resource prospectivity of EG-08 has only been examined at one stratigraphic horizon, which is analogous to discoveries made in the adjoining block operated by Chevron.
“However, further prospectivity exists in multiple horizons and these are yet to be evaluated.”
Equatorial Guinea has an established oil and gas industry with associated infrastructure and is one of the biggest hydrocarbons producers in sub-Saharan Africa.
Chief executive Will Holland described the deal as potentially transformational for Europa.
“Equatorial Guinea is an enormous opportunity for us and provides us with near-term drilling activity targeting over 1 tcfe of recoverable resource in an area with a well-developed upstream industry and a highly supportive government.
“I am also pleased to report that we have solid support from many of our institutional investors for this acquisition.”
ANTLER BOARD
Europa, Antler and its founding shareholders Mssrs Haywood and Irons have agreed that each company’s founding shareholders have the right to appoint one director to the board of Antler.
Mr Holland is Europa’s appointee to Antler’s board.