Thursday 21 April 2022

Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, announces the signature of the Serenity farm-in agreement with i3Energy North Sea Limited (“i3E”) in respect of UK Seaward Production Licence P.2358, Block 13/23c (“Serenity”).

Highlights

• Europa is acquiring a 25% interest in Serenity by paying 46.25% of the appraisal well cost, equating to a 1.85 to 1 carry (the “Carry”).

• The farm-in is in line with Europa’s previously stated strategy to acquire an appraisal asset, adding to its existing producing and high impact exploration assets, and thereby creating a more balanced asset portfolio for its investors.

• The Serenity appraisal well is scheduled to be drilled and formation tested in late Q3 2022 at a gross cost of £14 million.

• The Carry is capped at a gross well cost of £15 million, of which Europa’s interest will be £6.94 million. Thereafter, each party will fund its interests proportionally.

• Serenity is strategically located near existing infrastructure in the North Sea, however the appraisal well could provide sufficient recoverable volumes for a standalone

development.

• There are no material conditions for Europa to satisfy to complete the farm-in,

• Europa will fund an escrow account with its paying interest obligation.

• Completion is subject to approval of the North Sea Transition Authority (“NSTA”) to the creation of a new block within Licence P.2358 (the “New Serenity Block”) and to assignment of an interest in the Licence and New Serenity Block to Europa.

Simon Oddie, CEO said:

“I’m delighted to announce the signature of this farm-in which fulfils our promised goal of adding an appraisal asset to the Europa portfolio. Serenity is a late-stage appraisal and development asset that provides our shareholders with exposure to a very exciting asset that could deliver significant near-term value to our shareholders with the drilling of the Serenity appraisal well expected in late Q3 of 2022. The objective of the well is to prove up additional volumes of hydrocarbons beyond those encountered in the original discovery well, which alone are considered commercially viable. It is a welcome addition to our existing producing and high impact exploration assets and part of our long-term strategy to create a balanced portfolio of high-quality assets with the view of creating long-term value for our shareholders.”