Europa Oil & Gas closes farm-in deal for Serenity discovery in UK North Sea
Europa Oil & Gas has closed the previously announced farm-in deal with i3Energy for a 25% stake in Block 13/23c in the UK North Sea, which contains the Serenity discovery.
According to the parties, all the preceding conditions needed to close the deal have been met.
The farm-in deal was announced in April 2022. It was subject to receipt of approval from the North Sea Transition Authority as well as other customary conditions, which have been satisfied.
Simon Oddie — CEO of Europa Oil & Gas said: “I’m pleased that we have now completed the final formalities of the Serenity Farm-in and look forward to updating the market as we progress, with i3 Energy as operator, towards starting drilling operations in early September.
“The Serenity appraisal well, an important near-term catalyst for Europa, has the potential to prove sufficient recoverable volumes to justify a standalone development and could deliver significant near-term value to our shareholders.”
As per the terms of the agreement, Europa Oil & Gas will cover 46.25% of the cost of the Serenity appraisal well with an upper limit of £15 million. Any well costs crossing £15 million will be covered by the two firms based on their respective working interests.
Following the farm-out deal, i3 Energy will hold a 75% working interest (WI) in Block 13/23c North (Licence P2358) and a 100% WI in Block 13/23c South (Licence P2358), which holds the Minos High prospect and Liberator discovery.
Majid Shafiq — i3 Energy CEO said: “We are delighted to have successfully completed the farm-out agreement for Serenity and to welcome Europa as our joint venture partner in the discovery. The next significant step is to drill the appraisal well, which is on track for spud in September.
“The well will help us delineate the size of the field and provide the critical information required to formulate an effective development plan for a potentially very large oil field. We look forward to updating the market on our progress at what is an exciting time for i3’s North Sea acreage.”