Europa Oil and Gas to sell 80% stake in onshore French permit

Europa Oil and Gas has agreed to sell its a 80% stake and operatorship of the Tarbes Val d’Adour permit in France to Vermilion Energy.

Europa will own the remaining 20% interest in the permit, which is located in the Aquitaine basin near the Lacq – Meillon gas fields.

If Vermilion decides to go ahead with exploration activities, it will assume 100% of the cost of an optional work programme, which is expected to include seismic acquisition and drilling operations for €4.65m.

Tarbes features various oil accumulations that were earlier licensed by Elf but were abandoned in 1985 due to technical issues and low oil prices.

Europa Oil and Gas CEO Hugh Mackay said, "Vermilion is the leading exploration and production company currently active in France with net production of approximately 11,000 boepd.

"They are the ideal partner for us on this permit, and we look forward to working alongside them, as we progress Tarbes up the value curve.

The farm-out process for Europa’s other French permit Bearn des Gaves is on-going in parallel with planning and permitting for a Berenx shallow well to identify the 107 bcf gross mean un-risked contingent resources.

The company has secured a lease for the drill site and drilling permit documentation is presently being exchanged with the French authorities.

Europa Oil and Gas plans to expand its UK portfolio through the 14th onshore licensing round and take a drill decision by Kosmos on its Irish licenses.