DUBLIN, Ireland – Europa Oil & Gas is seeking to raise up to £7 million ($9.36 million) via a shares issue to fund a UK North Sea farm-in.
The company aims to participate in an appraisal well on the Serenity discovery which operator i3 Energy will likely drill later this year, at an estimated cost of £14 million ($18.73 million).
Serenity is close to existing infrastructure in the central UK North Sea, although the well could provide sufficient recoverable volumes for a standalone development, the company claimed.
According to i3 Energy, completion of the transaction remains subject to the approval of the UK Oil and Gas Authority (OGA) for the creation of the Serenity area of Block 13/23c as a new block of License P.2358; and the OGA’s consent to assignment of an interest in the license and New Serenity Block to Europa.
Further farm-outs could follow, i3 Energy added.
DNO North Sea (U.K.) has decided against selling to Europa a 100% interest in Frontier Exploration License 3/19 offshore western Ireland, following a provisional agreement announced last June.
United Oil & Gas has also terminated sale and purchase agreement (SPA) it had negotiated with Quattro Energy, under which the latter would acquire UK Central North Sea licenses P2480 and P2519 for a consideration of up to $4.4 million.
Completion of the sale was conditional on receipt of approval from the OGA and Quattro concluding a fundraising process. Last December United said the long stop date for satisfying the SPA conditions would be extended to February 28, 2022: however, Quattro did not complete its fundraising process by this date.
P2519 includes the Maria discovery (estimated at 6 MMboe mid-case recoverable) and the Jurassic discoveries, Brochel and Maol, the latter drilled by Shell in 1987.
P2480 includes the Zeta prospect. Both concessions are close to infrastructure and in a prospective area that includes the prospective Marigold/Yeoman developments.