Europa Oil & Gas (Holdings) an West Africa focused oil and gas exploration, development and production company, has disclosed acquisition of a 42.9% equity interest in Antler Global Limited (“Antler”) via a US$3 million cash subscription for new ordinary shares in Antler. Antler holds an 80% working interest in the recently acquired and highly prospective EG-08 production sharing contract (“PSC”), offshore Equatorial Guinea, with Guinea Ecuatorialde Petroleos (“GEPetrol”), the National oil company, holding the remaining 20%.
This Subscription adds an additional geographical location to the Company’s existing portfolio of assets, and one which the Board believes has enormous near-term, infrastructure-led, near-field exploration potential. The Subscription monies received by Antler will fund the first-year work programme costs, including the acquisition of existing 3D seismic data, which will be reprocessed alongside preparations to drill, whilst ensuring all financial obligations under the EG-08 PSC with the Republic of Equatorial Guinea and GEPetrol, are met.
Whilst the initial two-year term of the licence does not require the drilling of a well, the Company believes it already has drill-ready prospects, which consist of three independent targets, with estimated total prospective resources of 1.4 trillion cubic feet of gas equivalent (TCFE), based on Company estimates. Antler will commence a farm-down process with a view to bringing in a partner for drilling. 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 (“EG”) has an established oil and gas industry with associated infrastructure and is one of the biggest hydrocarbons producers in sub-Saharan Africa. There have been multiple sizable oil and gas discoveries made offshore Equatorial Guinea over the years, although there has been limited exploration drilling in the past decade. However, there has been a significant uptick in upstream exploration and development activity throughout 2023 with further planned for 2024-25.
Will Holland, Chief Executive Officer of Europa, said:
“We are very excited about this potentially transformational deal for Europa, which adds another high-impact exploration prospect to our portfolio and ties with our strategic approach to replenishing the portfolio with potentially high impact but relatively low risk prospects. 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.”
