UK-headquartered and AIM-listed oil and gas company Europa Oil & Gas has confirmed that the final details are being ironed out for an extension of a production sharing contract (PSC), covering a block off the coast of Equatorial Guinea.
Europa Oil & Gas has confirmed progress in the extension of the EG-08 PSC Phase 1, as the Minister of Hydrocarbons and Mining Development for Equatorial Guinea has granted a 12-month extension to the initial two-year period of the production sharing contract.
The company holds a 42.9% equity interest in Antler Global, which has an 80% working interest in the EG-08 PSC, with the remaining 20% held by GEPetrol, the national oil and gas company of Equatorial Guinea, representing the state’s interest.
According to Europa, the formalities to finalize the extension, which are ongoing, are expected to be completed in the coming days. This will enable the first sub-period of Phase 1 of the PSC to expire on October 4, 2026.
William Holland , Chief Executive Officer of Europa, remarked: “I am pleased to have secured the ministers approval for this extension which will provide plenty of time to finalise the farm out process for EG-08, where we continue to make good progress.
“Concurrently, the technical team are working on detailed engineering plans for drilling the Barracuda prospect, which we hope to spud in 2026.”
The EG-08 block contains 2.196 trillion cubic feet (TCF) (Pmean), with the primary prospect being Barracuda , which is estimated to be 878 billion cubic feet (BCF) (Pmean).
The PSC extension follows the government’s plans to launch an oil and gas licensing round to step up the offshore exploration and production game.