- Europa Oil & Gas has signed a farm-out agreement on its 40% interest in the PEDL143 licence in the Weald Basin with Union Jack Oil and Gas.

PEDL143 contains the conventional Holmwood prospect which has estimated gross mean unrisked prospective resources of 5.6 mmbo in Portlandian and Corallian sandstones and a P90 P10 range of resources of 1 to 11 mmbo.

Planning permission is in place for a deviated exploration well to be drilled at Holmwood and drilling operations are anticipated to commence in late 2016 / H1 2017.

UJO will acquire a 7.5% working interest in PEDL143 from Europa.

UJO will pay 15%, and Europa 25% of the costs to drill an exploration well at Holmwood up to a gross well cost of GBP3.2 million.

For gross well costs above the GBP3.2 million cap, UJO will pay 7.5% and Europa 32.5% In the event of a discovery of petroleum on the licence UJO has agreed to make a deferred payment to Europa of GBP159,375 covering back costs plus a 25% uplift.

At 9:28am: [LON:EOG] Europa Oil Gas Holdings PLC share price was +0.25p at 4.38p

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