Europa Oil & Gas has announced that the Office National des Hydrocarbures et des Mines (ONHYM), the Moroccan regulatory body, has granted the Company a one-year extension to the initial phase of the Inezgane Exploration Permit to November 2022. The one-year extension was granted for the time lost as a result of the COVID-19 global pandemic and will enable Europa to complete its ongoing technical work program. This is focused on further de-risking 30 prospects and leads which the Company estimates have the potential to hold in aggregate close to 10 billion barrels of unrisked oil resources.
Europa holds a 75% interest in, and operatorship of, the License, which covers an area of 11,228 sq km in the Agadir Basin, with ONHYM holding the remaining 25% interest. Since the award of the License in November 2019, activity has centered on interpreting extensive 3D seismic legacy data to de-risk large prospects in the Lower Cretaceous play. Of the 30 prospects and leads identified to date, 14 are prospects, each, Europa estimates, with mean resources in excess of 150 mmboe. These prospects have stacked reservoir potential and include a wide range of structural styles including, for example, 4-way dip closures in the case of the 827 mmboe Falcon and 204 mmboe Turtle prospects. Europa has assigned a geological chance of success to these prospects of 20-35%.
Ongoing work is focused on seismic reprocessing and further de-risking the prospects and leads which have been mapped to date. The forward plan is to build a robust prospect inventory and, subject to the results, secure partner(s) to drill wells. A farm-out process will be formally launched following completion of the technical work program, however the Company continues to maintain dialogue with three companies, all of whom have expressed interest in Inezgane.
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