Europa Oil & Gas's (LON:EOG) proposed sale of a 3.34% working interest in PEDLs 180 and 182 in North Lincolnshire to Union Jack Oil for a cash consideration of £600,000 has been approved by the Oil and Gas Authority.
The licences cover the Wressle discovery (PEDL180) and the Broughton North prospect (PEDL182).
Following OGA approval of the transaction, Europa retains a 30.00% interest in the licences alongside Egdon Resources UK Limited (25.00%), Celtique Energie Petroleum Limited (33.33%) and UJO (11.67%).
Based on the terms of the transaction, Europa's 30.00% interest in the Licences has an implied mark to market valuation of £5.4 million.
The £600,000 cash consideration, which has been received by the Company, will help fund Europa's share of the costs associated with bringing the Wressle discovery into production in early 2017, expected to be at a gross rate of 500 bopd.
At this level, Europa's anticipated net share of 150 bopd will more than double the company's existing production.
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