Europa Oil and Gas’ farm out of interests in two licences in Lincolnshire has been approved, the company said yesterday.
AIM-listed Europa said the Oil and Gas Authority had given permission for the £600,000 sale of a 3.34% interest in the Wressle and Broughton North prospects to Union Jack Oil to go ahead.
The London-based firm retains a 30% interest in the licences alongside Egdon Resources UK, which has 25%, Celtique Energie Petroleum on 33.33% and UJO on 11.67%.
Europa said the money would help cover the costs associated with bringing Wressle on stream in 2017.
Europa boss Hugh Mackay said: “With a mark to market valuation of £5.4 million implied by this transaction, the value of our remaining 30% interest in PEDLs 180 and 182 accounts for half our current market capitalisation.
“We also hold within our portfolio: seven exploration licences offshore Ireland, which have the potential to host gross mean un-risked prospective and indicative resources of more than 4 billion barrels oil equivalent and 1.5 tcf gas; three producing fields onshore UK, which in the last year produced 123 boepd net to Europa; and a number of exploration projects onshore UK including Holmwood in PEDL143 in the Weald Basin, which we rate as one of the best undrilled conventional prospects onshore UK. We continue to actively manage our portfolio and will not hesitate to act when opportunities to add shareholder value arise.”