Europa Oil & Gas abandons the extension of its Inezgane license

The oil and gas exploration, development and production company Europa Oil & Gas announced on Wednesday that the extension of the initial period of the Inezgane license offshore Morocco which dates back to October 21, 2020 has now arrived at its term.

In a statement released today, oil company Europa Oil & Gas said it has decided not to move to the first extension period, saying it is in the final stages of completing all of its obligations for its project at Inezgane and expects to complete the final waiver report shortly.

In particular, it specified that once its last obligation has been fulfilled, the bank guarantee of 315,000 dollars (3.37 MDH) will be released and reimbursed to the company.

In this sense, the CEO of the oil company, Simon Oddie, said that ” the decision not to proceed to the first extension period was difficult to make because Inezgane offers significant exploration potential. However, taking the next step would have required Europa to commit to drilling an exploration well, which we could not justify without securing another partner.”.

We worked tirelessly with advisors to find an operating partner, but the market appetite for deep-sea oil exploration is currently very low and we were ultimately unsuccessful.“, he added.

Oddie thus explains, in the press release, that at “During the initial period, the technical team has identified multiple exploration prospects and as such, we believe that Inezgane has significant potential”. He did not fail to thank “Office National des Hydrocarbures et des Mines (ONHYM), the Moroccan hydrocarbon and mining regulatory body, for the opportunity to work in the region and I wish them success in the future”.

Europa is committed to creating value for its shareholders by building a balanced portfolio of exploration, evaluation and production assets in the UK and Atlantic Ireland. Our balanced portfolio of assets at different stages of the development cycle, including production and evaluation, ensures that Europa remains well positioned to deliver affordable energy“, continues the CEO.

He then claims that his company will continue “to explore development and exploration opportunities to expand our portfolio as they become available, provided they can be acquired and developed on commercially acceptable terms and in the context of the transition. We have a healthy balance sheet that allows us to implement the strategy we have defined“.

Recall that the drilling project mainly covers an area of ​​11,228 km2 in the Agadir basin and is located in water depths of 600 m to 2,000 m. Europa Oil & Gas held, as operator, a 75% stake in the large Inezgane permit while the remaining 25% belonged to the Office National des Hydrocarbures et des Mines.

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