Europa Oil & Gas (Holdings) plc said it expected an active coming year for its hydrocarbon assets offshore and onshore United Kingdom.
WRESSLE
In an operations report, the company looks to drilling during 2023 and preparations for 2024 at the joint venture (JV) onshore Wressle oil field in which it holds a 30% working interest.
Europa added that a firm development well was planned for the Penistone horizon in H2 2023, subject to approvals, at the East Yorkshire site.
The JV would also prepare to drill a second Penistone well and Broughton North exploration well during 2024.
“When the Penistone horizon comes online, expected in Q4 2023, the board forecasts group production net to Europa of over 500 boepd.
“The production is complemented by the gas monetisation solutions planned for Wressle via a ‘gas-to-wire’ system, forecast to be completed in Q2 2023, and a gas export pipeline, developed in parallel with the Penistone well, expected to be operational by Q4 2023.
“Both gas monetisation solutions will not only enhance production from the field and substantially increase revenues but will also eliminate routine flaring from the Wressle field.”
CROSBY WARREN & WEST FIRSBY
Europa also aims to optimise production at its Crosby Warren and West Firsby sites (100% working interest), where “stable production” continues of more than 40 bopd.
The company said its total UK net production in December 2022 averaged over 300 bopd.
OFFSHORE
Europa added it would continue to explore options with its JV partner i3 Energy plc to develop the Serenity oil field (25%) in the Outer Moray Firth of the North Sea.
The company said that it was likely that the discovered reserve would be developed as a subsea tie-back to Repsol Sinopec’s Tain field.
Should the field be a “unitised development”, net production to Europa would be circa 1,000 bopd.
Europa has also engaged advisors to assist with the farm-out for it offshore 100% licence FEL 4-19, containing the Inishkea gas prospect, offshore Ireland.
2023 BUDGET
The company will also seek other offshore and onshore opportunities, participate in the North Sea Transition Authority’s 33rd licensing round, and set “meaningful goals” to help contribute towards the 2050 net zero target.
Europa has approved a 2023 budget which includes net committed capex of £5.1 million across its asset base.
The company has a forecast net cash position of £4.6m at 31 January 2023.
In addition, Europa forecasts it will generate £4.2m in free cash flow during 2023 (pre-capex).
“The Europa board adopts a prudent approach, balancing the inherent risks associated with exploration, appraisal and development against the value creation of these upstream activities,” said chief executive Simon Oddie.
“The 2023 budget reflects this risk assessed value-driven approach.”