Page 13 - EurOil Week 24

EurOil INVESTMENT EurOil

Europa expands off Ireland

IRELAND LONDON-LISTED Europa Oil & Gas has had “increased the attractiveness of what was
added another gas block to its offshore Irish port- already a compelling investment proposition in
Europa wants to folio, hoping to improve its chances of attracting the Slyne Basin.”
improve its odds of a farm-in partner. “With gas set to play a key role in Ireland’s
securing a farm-in The company said on June 11 it had acquired energy mix and our licences located near Corrib
partner. a 100% stake in frontier exploration licence and its processing infrastructure, our position
(FEL) 3/19 in the offshore Slyne Basin from Nor- benefits from having a highly attractive risk/
wegian player DNO. The block contains the Edge reward profile,” Oddie continued.
prospect, assessed by former operator Faroe Europa has focused its strategy in Ireland to
Petroleum to hold 1.2 trillion cubic feet (340bn gas-only development after the Irish government
cubic metres) of gas. announced in September it would phase out oil
FEL 3/19 lies 18 km east of Corrib, a large exploration because of climate concerns. But the
deposit that has supplied much of Ireland’s gas search for gas will continue because it is a “tran-
supply for decades. It is also near Europa’s exist- sition fuel,” the government says.
ing licence FEL 4/19, where the 425 bcm Inish- Europa will pay for FEL 3/19 with a nominal
kea prospect is found. upfront fee to DNO, while also granting the seller
Europa has been seeking a farm-in partner at a 5% stake in net profits from future production.
FEL 4/19 and two of its other Irish licences, in The company currently has five other licences off
order to fund exploration drilling. But a “major Ireland, all 100%-owned. It relinquished a 30%
oil company” pulled out of talks in January. stake in a sixth in the offshore South Porcupine
By adding FEL 3/19 to Europa’s portfolio, Basin after lacklustre seismic results.
interim CEO Simon Oddie said the company Europa also works in Morocco and the UK. ™

London-based investor eyes UK

oil and gas assets

UK A London-based natural resources investment concession, under a deal it began negotiating in
vehicle called MetalNRG has agreed heads of November. It said back in March that it wanted
MetalNRG does not terms to acquire onshore oil and gas assets in the to reopen talks with the unnamed seller follow-
list any active oil and UK, it announced on July 11. ing the oil price crash.
gas investments on its The company said it intended to set up a 50:50 “The revised terms are substantially different
website. joint venture with other private investors to buy from the previous terms and therefore the ven-
100% of a “small portfolio of onshore, conven- dor is considering its position,” MetalNRG said.
tional, oil and gas producing licences,” from an It added that it was “screening other potential
unnamed local operator. The assets are cash gen- opportunities in the UK and Romania, to “cre-
erative and cover their operating costs at current ate a balanced portfolio of low-risk oil and gas
prices. producing assets.”
MetalNRG aims to close the acquisition The oil price collapse has driven down asset
within three months, subject to due diligence values significantly, presenting opportunities
and the completion of a sale and purchase agree- to investors that do not currently rely on oil
ment (SPA). The company and its partners have and gas sales for their revenues to enter the
exclusive negotiating rights. sector.
MetalNRG said it had spent more than two MetalNRG does not list any active oil and gas
months appraising the assets and negotiating investments on its website. But it is involved in
terms, having undertaken site visits, reviewed projects to exploit gold in Arizona, cobalt in Aus-
technical, financial and operational data and tralia and uranium in Kyrgyzstan, all of which
prepared initial operation and development are at the early stage of development. It also has
plans. indirect interests in gold and copper exploration
The company added that it had revised its ventures in Australia through a London-listed
offer for a 75% stake in a Romanian oil and gas firm called Cobra Resources. ™

Week 24 18•June•2020 www. NEWSBASE .com P13