Europa Oil & Gas powered up by £1bn valuation
EUROPA Oil & Gas’ share price was given a boost yesterday after the firm announced that its 15 per cent stake in three assets off the coast of Ireland have been valued at $1.6bn (£1.02bn).
The Aim-listed oil and gas explorer said it had commissioned ERC Equipoise to complete an independent assessment of its interests in the Porcupine Basin, off the coast of west Ireland.
The prospects are all at the pre-drill stage and require the drilling of exploration wells.
Shares rose around eight per cent in early trading, before settling to close 3.1 per cent higher at 8.38p.
“This valuation gives a good indication of the potential size of the prize and the importance of the Irish acreage in the portfolio,” said Dougie Youngson, analyst at finnCap. “We view this as very positive news.”
Europa said its downside risk is mitigated by a farm-out agreement, whereby Kosmos will incur all costs of the first exploration well up to $110m (£70.35m).
“Europa…has exposure to a very significant potential upside in the event of exploration success,” said chief executive Hugh Mackay.