Europa associate to farm out interest offshore Equatorial Guinea

Europa Oil & Gas' associated company, Antler Global Limited, will be farming out an interest in the EG08 production sharing contract (PSC) offshore Equatorial Guinea by a non-binding Heads of Terms with a major energy company 

Both partners have entered into detailed commercial discussions to advance the farm out agreement, which will become official once approved by the Minister for Energy of Equatorial Guinea. 

Europa has a 42.9% equity interest in Antler which in turn holds an 80% working interest in the EG-08 PSC, with the remaining 20% held by GEPetrol (Guinea Equatorial de Petroleos), the national oil company of Equatorial Guinea, representing the State’s interest.

The EG-08 block contains 2.116 TCF (Pmean), with the primary prospect being Barracuda which is estimated to be 798 BCF (Pmean).

William Holland, chief executive officer of Europa, said, “The signing of these heads of terms is a very positive step forward and comes after an extensive period of negotiations with what we believe is an excellent partner. Although there are no guarantees, I am confident that we will progress to signing a farm out agreement in the coming months and will then move to drilling the Barracuda well as soon as possible thereafter. I look forward to updating the market of our progress in due course.”