I noticed EOG in Shares Magazine last week, and having done some research, think they may be a decent producer / exploration play.



Europa Oil & Gas (Holdings) plc, is involved in the exploration and production of hydrocarbons in Europe. The Company has a balanced portfolio of 12 European oil and gas exploration and production assets in the UK, Ukraine, Romania and Poland. The portfolio contains proven plus probable and development reserves of 7 million barrels oil equivalent (mmboe) net to Europa and exploration potential of a further 28 mmboe. Wellhead revenues are currently in excess of 200,000 per month from a volume of 340 barrels of oil equivalent per day (boepd). These figures are set to rise substantially by the year 2007 when projected production will be above 7000 boepd.


The Company has an active near term drilling programme with three wells scheduled to spud in the first quarter 2005. The drilling programme mimics the balanced portfolio with one appraisal well on the recent Bilca Gas discovery in Romania, one development well on the West Firsby Oilfield in the UK and one exploration well in Romania.



Europa is set to become a significant producer of hydrocarbons in the near future and intends to develop a substantial independent upstream oil & gas business. The management has a strong mainstream oil and gas background, which enables Europa to continue to identify, acquire and develop profit-making oil and gas assets.



Europa Oil & Gas (Holdings) plc was admitted to the London Stock Exchanges Alternative Investment Market on November 11, 2004 and trades under the symbol EOG.





Corporate website : Click HERE

They didn't explicitly say anything negative, just stuck a red triangle beside their summary of the co (which did mention forthcoming production increases, etc). Strange.

Nice article on Oilbarrel.com today.

YES! I'd like to read that nice article on oilbarrel.com

Warrants up 0.5p yesterday. (stop yawning at the back - this will get better!)

Barclay, and others,

I thought I'd revive Andy's thread since it has quite a lot of info on it already and things are getting fragmented on the other, shorter threads.

I wanted to address the SP's 11% rise that took place yesterday. I am convinced that the rise is due to the jump in the gas price that took place in the last couple of months. Henry Hub gas, which I am using as my datum (prices and charts available on oilbarrel.com) is up a little over $2.00 from its midsummer low of $5.55.


EOG offers one important advantage to its investors - the Romanian domestic gas market fixes the price on a year-by-year basis.

I quote from a recent RNS: "Currently, Romanian domestic gas production is sold at a 20% discount to the previous year's import price resulting in a 2006 price of $4.30 per thousand cubic feet (mcf). There are strong signals that the 20% discount will reduce substantially with Romanian entry into the European Union in 2007 resulting in an improved gas price."

Thus the domestic gas price equals 80% of the average price of imported gas for the previous calendar year. The figure of $4.30 for gas sold in the Romanian market is therefore a fixed quantity and won't change until the next calendar year.

WHY IS THIS EXCITING?

Two reasons:

1.) The gas price is up again this year. Looking at the chart of Henry Hub, the gas price for the first seven months of the year has been a little over $6.00. IT GETS BETTER! Temperatures in continental Europe have plummeted. From around 32 C a few weeks ago, we are now "enjoying" daytime temperatures as low as 14 C, with night lows of a mere 4 degrees! The five-day forecast gives highs of 8 - 19 C. Over in Bucharest things are still nice and summery, but the price of the gas they import (which in turn fixes the price of domestic gas for the following year) has increased in spite of the summer weather.

It seems likely that the gas price low of $5.55 is about as low as things will get this summer - and the good news is that the higher winter prices are on the way. Even if the average gas price for 2006 is only $6.00, 80% of that gives a Romanian domestic gas price of $4.80 for the year 2007. That's an 11.6% advance on this year's price of $4.30 (which itself was an improvement on the previous year. I think the average gas price for 2006 is likely to be much higher than $6.00. Already we have an average of $6.00 for the first half of the year. If we take the last half of last year as typical, the average gas price for those six months was approx $10!

I'd be happy to take a very conservative average gas price of $6.50 for 2006, translating to a Romanian domestic market price of $5.20 for 2007 - a 21% advance on the current year.

This gives us a rough idea of where EOG could be in terms of turnover, assuming we get confirmation of the second bit of good news:

2.) EOG is about to announce a large production hike at the Bilca field (EOG 28.75% interest). This has already been well-discussed and documented on this thread. Knowing roughly how much the gas will be worth next year, we can already get a fair idea of what EOG's turnover will be in 2007.

So there's good news on the way, we trust! In spite of this, EOG remains a smaller fish at the moment and is still in need of a real "company maker".

Price rise of 11% on Friday!

Looking at the chart of this year's gas prices, it seems clear that EOG will benefit from a domestic gas price in Romania of $5.20 or more in 2007 (current gas price there is $4.30).

Add this to the forthcoming production hikes and things are looking better than ever for EOG (and the warrants).

Aren't they going to change from a fixed price to our prices in 2007?
This would be better for us, as becuase of the discount we are losing potential revenues that other gas companies are making. This does not seem fair, as EOG
shares would be a lot higher already if there was no discount.

Why should we be happy with $4.50 per barrel when gas prices are at $7 plus and rising, that price will nearly double your revenue without any more gas reserves.

But having said that Europa warrants should at least double in time on what we already have because of the gearing effect, the shares only have to go up 25% or so to achieve this.

I think the price gap should narrow in 2007 due to EU entry, from my understanding of what I have read. When and whether it will finally "close" is a moot point, as I can't imagine there will be legislation forcing the domestic market to pay the same as the import market - it may be more a case of market forces evening things out gradually.

Up today: EOG Bid: 31.5p Offer: 33p Change: 0.75 Market Cap 19 mil.

The announcement of commercial production going online at Bilca/Fratauti should be made any day now.

AFX news release 28 september 2006: Bilca production has started - production is up 130%; the wells will be monitered for a 6 months period at this rate to see how well is performing, and then production will be increased.

Great news, but the warrants and shares have not responded, i think because of the lower gas price, due to the warm weather which should reverse over the coming winter.

Barclay, I don't think that the increase in production was as much as expected, adding to the factors you mentioned which have conspired to drag on the SP.

Call me impatient, but I have decided to sell my warrants as I think I have seen enough to realise that there won't be any surprises in the forthcoming financial results. For me there was a lot riding on the Bilca announcement which has not been fulfilled. I thought that short-term I might stand a chance of making more money with the awaited news of a licensing deal for Plethora Solutions (PLE), so that's where I've invested my cash today.

London presentation next week, FREE registration, click here

Do it now! Get out of sterling at $1.56 and into USD and/or gold

An extract from the diaries of infamous bear raider Evil Knievil

Today on UK-Analyst.com we bring you an exclusive extract from the diary of infamous bear raider Evil Knievil, taken from his popular thrice-weekly column (written via his idiot diarist Tom Winnifrith) only on t1ps.com

February 5th

A brief diary follows. Normal service resumes on Monday as I have just got back from the West End for lunch having spent an hour and half on physio.

I am still a gold bull and I think Quintain (QED) is a buy at 61p. In fact, I think QED is a slam dunk buy since it is at such a huge discount to net AV.

I have also bought Europa Oil & Gas (EOG) for the weekend's drilling results.

Tidal Bay is a bet at 8/1 for the World Hurdle, Cheltenham 18th March.

I have sold Provexis (PXS) short at 8.2p.

It's great seeing the EU fall apart. Slithering down the Greecy pole.

UK-Analyst.com

Europa Oil & gas has welcomed an update from Aurelian on the potential resource upgrade on the Brodina Block in Romania.

Europa - which has a 28.75% working interest - said the upgrade reaffirms the significant resource potential in the central part of the Brodina Block as initially indicated by Voitinel-1.

It said further testing work in April will go a long way to allowing these gas volumes to be booked as a significant contingent resource.
cyril

More info on the previous post.

MorAdditional information provided by Romgaz on recent drilling results at Paltinu
confirms that the gas fairway tested in Voitinel-1 extends at least 20km along
trend to the southeast from the well and encompasses the undrilled Solca
structure. As a consequence of these drilling results, Aurelian has upgraded
the potential gas-in-place along the Voitinel-Solca trend from previous
estimates of 50-100bcf to 400bcf on-block.


In Nov their was a brokers note that Votinel was worth 13p to EOG when the reservres were 50/100mbcf,now 4 to 8 times that amount(52p).
Trading around 18p.
cyril

And Hakenham (not sure about spelling)....testing underway....promising stock......sorry.... Hykeham...

Took out a position last week and glad i did.


Romanian Operations Update

The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a joint
venture announcement being made today by the Operator, Aurelian Oil & Gas plc,
regarding the Romanian operations:

`Ongoing Appraisal of Voitinel/Solca trend - Result of Flow Test of 1400 sand

The 1400 sand in the Voitinel-1 well, which accounts for approximately 12% of
total gas-in-place across the wider Voitinel/Solca trend, has been perforated
and flowed gas at 10,000 scf/d with no water production. Further appraisal is
likely in future appraisal wells where core can be obtained and fracture
stimulation undertaken to increase production rates. Aurelian believes that the
wider Voitinel/Solca structural trend could have gas-in-place volumes up to
400bcf and that it may be possible to recover up to 6bcf per well from the 1650
sand tested in May and, on the 1400 sand, up to 3bcf per well on the assumption
that fracture stimulation is successful.

The reprocessing of the available seismic to incorporate the results of the
Voitinel-1 well has been completed and the structure is currently being
remapped. The results of this should be available in July/August and will
enable the Company to provide a more accurate assessment of total gas-in-place
across the trend. In addition, seismic contractor Prospectiuni has been
appointed to acquire 60km of 2D seismic principally to detail the Solca trend
to allow a site to be selected for a possible well in Q4 2010.

Interests in the Brodina block are held by Aurelian Oil & Gas (Romania) SRL
(33.75%), S.N.G.N. Romgaz S.A. (37.50%) and Europa Oil & Gas SRL (28.75%).

Bacau 2D seismic survey commences targeting leads of 147bcf of gas-in-place

Work has commenced on a 70km, 2D seismic survey (44km on Bacau North and 26km
on Bacau/Lilieci) on three prospective areas within the northern and central
areas of the Block. As a result of reviewing the overthrust area of the block
for the first time, the Company has identified additional leads and therefore
the survey is now targeting gas-in-place leads of 147bcf, an increase of 119%
from the previously announced 67 bcf. In summary, two areas are prospective
for Sarmatian biogenic gas prospects in the north eastern area and one for
thermogenic gas/condensate in the overthrust area of the East Carpathians. This
survey will be interpreted by the end of August 2010 and it is hoped that it
will further define prospects for drilling in the future.

Interests in the Bacau North block are Aurelian Oil & Gas (Romania) SRL 41.0%,
S.N.G.N. Romgaz S.A. 40.0% and Europa Oil & Gas SRL 19.0%. Interests in the
Bacau Lilieci block are Aurelian Oil & Gas (Romania) SRL 60.0%, S.N.G.N. Romgaz
S.A. 40.0%.'


Paul Barrett, Managing Director of Europa, said `This test confirms free gas in
the 1400 sand at Voitinel which will be incorporated into the development plan
for the discovery, of which the main 1650 reservoir, successfully fracced in
May, currently holds the majority of potential reserves. We are looking forward
to the Operator's presentation to partners on revised reserve estimates in
early July and will inform shareholders in due course.

Despite our very strong acreage position in the play, we feel we have only
scratched the surface so far in assessing the prolific Oligo-Miocene oil
fairway of the Romanian Carpathians, which has produced 5 billion barrels to
date. Consequently, the seismic program this year across the Bacau and Cuejdiu
Blocks will go a long way to providing a strong exploration prospect flow for
the next few years. The first of our oil prospects, Barchiz, is expected to be
drilled in the Brates Block later this year.'
cyril

StockMarketWire.com
Minor oil shows and mud gas indications have been encountered while drilling the top-hole section of the exploration well at Barchiz in Romania, Europa Oil & Gas says.

The well was spudded in mid-October.

Europa said the well is drilling the top-hole section at 406m.

Minor oil shows and mud gas indications were encountered in sandstones over the interval 268 - 275m, providing evidence for an active petroleum system in the Barchiz area.

It is anticipated that the well will reach the target horizon at a depth of approximately 1,400m in 2-3 weeks time.

All going well, I am long here and hoping for some serious action on good news.



10th November 2010

Drilling Update - Barchiz-1

The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a
progress update on the drilling of the Barchiz-1 well in Romania. The well has
now been cased to a depth of 664m and preparations are being made to drill the
main 8" section of the well containing the target horizons.

From this point the well will be operated `tight hole' and no further
announcements will be made until reaching final total depth of approximately
1,400m.

Further information:

Europa Oil & Gas

Jumped in as well.....you never know...they might just get lucky here....possibility of 1 billion barrels plus ???....I find that hard to believe....I'd be happy with 50 million....the stock would go through the roof...