Europa Oil & Gas (LSE:EOG) said its associated company, Antler Global, has secured approval from Equatorial Guinea’s Ministry for Mining and Hydrocarbons to move forward with a farm-out agreement with Fuhai covering the EG-08 production sharing contract.
Once the remaining approval is obtained from authorities in Shandong province, the ownership structure will see Antler retain operatorship and a 40% working interest in the block, alongside Fuhai’s 40% stake and a 20% interest held by state-owned oil company GEPetrol.
Europa, which owns a 42.9% equity stake in Antler, said the Barracuda-1 exploration well on the EG-08 licence is expected to be drilled at the earliest opportunity, with current plans targeting early 2027. The latest regulatory clearance represents an important milestone for the project and allows preparations for rig contracting to progress once the final overseas investment approval is received.
The company’s outlook remains influenced by weaker financial performance, including declines in both revenue and profitability. However, recent corporate developments and supportive technical indicators provide some encouragement for future progress. While valuation measures continue to reflect the group’s current lack of profitability, management confidence and ongoing strategic initiatives offer a more positive longer-term perspective.
More about Europa Oil & Gas (Holdings)
Europa Oil & Gas (Holdings) plc is an AIM-listed oil and gas exploration, development and production company with interests spanning West Africa, the UK and Ireland. Through its direct and associated investments, the company pursues upstream opportunities across a range of licences and production-sharing contracts, with the aim of expanding reserves and increasing future production potential.
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