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Europa Oil & Gas Holdings PLC on Tuesday said it has agreed a farmout of a 40% interest in a project offshore Equatorial Guinea. Europe said associate company Antler Global Ltd will sell a 40% working interest in the EG-08 production sharing contract to Fuhai (Beijing) Energy Ltd, a wholly owned subsidiary privately owned Fuhai Group New Energy Holding Co Ltd. Fuhai will receive the 40% interest in return for funding 95% of the costs of drilling a well at the prospect, with Antler funding the other 5%. The agreement covers costs of drilling and testing the 893 BCF Barracuda well up to $53 million. Any cost over-run above $53 million will be share equally between Fuhai and Antler. The deal is subject to approval by the Mining & Hydrocarbons Department of Equatorial Guinea and overseas direct investment approval from the Shandong provincial government in China. This is expected in the coming months. Europa has a 42.9% equity interest in Antler. Following the completion of the farm-out, it will retain a 40% interest in the EG-08 production sharing contract, with 40% held by Fuhai and the remaining 20% by Guinea Equatorial de Petroleos, the national oil company of Equatorial Guinea. Fuhai is an integrated upstream and downstream oil and petrochemicals business in China. It is one of the top 500 businesses in China, Europa notes, with revenue of $12.7 billion in 2024. ‘This is a significant milestone for Europa, and I am delighted to have entered into this agreement with Fuhai, who are undoubtedly an excellent partner and completely aligned with Antler’s ambition to drill and develop the Barracuda prospect at pace,’ said Europa Chief Executive Officer William Holland. He added: ‘2026 is going to be a pivotal year for Europa, and I look forward to updating the market as we secure the necessary approvals to conclude the transaction and continue to make progress with our plans to spud the Barracuda well.’ Europa shares were up 2.5% at 1.85 pence in London on Wednesday morning. The stock closed down 10% on Tuesday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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