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Europa Oil & Gas Provides EG-08 Farm-out Update

20/08/2025

Commercial negotiations advance with signing of Head of Terms

Map source: KeyFacts Energy

Europa Oil & Gas (Holdings) plc, the AIM quoted West Africa, UK and Ireland focused oil and gas exploration, development and production company, is pleased to announce that its associated company, Antler Global Limited ("Antler"), has entered into detailed commercial discussions and has signed a non-binding Heads of Terms with a major energy company to farm-out an interest in the EG-08 production sharing contract ("PSC") in offshore 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 Petróleos), the national oil company of Equatorial Guinea, representing the State's interest.

There is no guarantee that these commercial discussions will lead to a legally binding agreement(s) relating to the farm-out and any agreement(s) would be subject to approval from the Minister for Energy of Equatorial Guinea.

As announced on the 22 July 2024, 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."

Background

In December 2023, Europa Oil & Gas acquired a 42.9% equity interest in Antler Global Limited ("Antler") via a US$3 million cash subscription for new ordinary shares in Antler. Antler holds an 80% working interest in the recently acquired and highly prospective EG-08 production sharing contract ("PSC"), offshore Equatorial Guinea, with Guinea Ecuatorialde Petroleos ("GEPetrol"), the National oil company, holding the remaining 20%.

This Subscription adds an additional geographical location to the Company's existing portfolio of assets, and one which the Board believes has enormous near-term, infrastructure-led, near-field exploration potential. The Subscription monies received by Antler will fund the first-year work programme costs, including the acquisition of existing 3D seismic data, which will be reprocessed alongside preparations to drill, whilst ensuring all financial obligations under the EG-08 PSC with the Republic of Equatorial Guinea and GEPetrol, are met. 

Block EG-08 offshore in the Douala Basin of Equatorial Guinea is held by Antler Global Ltd, a company that was set up specifically to acquire the EG-08 block which is effective from October 2023, with 100% equity. Europa acquired a 42.9% interest in Antler in December 2023.

EG-08 has three high-graded prospects which Europa assess to have similar AVO characteristics to the Alen and Aseng fields and other discoveries in Chevron’s Blocks O and I immediately to the south.

The AVO story is very compelling and, accordingly, Europa estimate the chance of success is estimated at 60-70% for the three prospects. Volumes across the three identified prospects are estimated at mean prospective resources of 1.3 TCFE (this figure includes the gas and liquids). Together, these three prospects when combined provide over a 90% chance of finding a commercial discovery and, as such, this is a high quality, low risk and high reward asset in shallow water with modest well costs.

A successful discovery in EG-08 could be developed quickly with possible offtake to Chevron’s nearby Alen platform (9km), where hydrocarbons will be processed, transhipped, and exported through the Chevron infrastructure to an FPSO to export liquids with gas going via the Chevron pipeline to the Alba gas plant facility on Bioko Island.

The initial phase of the licence is a two-year drill or drop. During this period, Antler intends to refine the existing 3D seismic data and begin a farm out process. There then follows a two-year second period, two one-year extension periods and a development phase. The PSC is typical for Equatorial Guinea whereby the state has a carried 20% interest and a royalty and profits share depending on production.

KeyFacts Energy: Europa Oil & Gas Equatorial Guinea country profile 

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