Europa Oil and Gas has signed a farm-out agreement with Vermilion Energy in relation to its 100% owned Tarbes Val d’Adour Permit in France.
The deal means Vermilion will acquire an 80% interest in and operatorship of Tarbes, with Europa holding the remaining 20% interest.
The area contains several oil accumulations which were previously licensed by Elf but were abandoned in 1985 due to a combination of technical issues and low oil prices.
Europa’s chief executive, Hugh Mackay, said: “Vermilion is the leading exploration and production company currently active in France with net production of approximately 11,000 boepd.
“They have an excellent technical and operational track record with specific experience of workovers, infill drilling, and secondary recovery opportunities.
“They are the ideal partner for us on this permit, and we look forward to working alongside them, as we progress Tarbes up the value curve.
“Following on from our announcement last week about testing oil at Wressle completing the first French farmout is another good start to the year.”
If Vermilion decides to proceed with exploration activities, they will assume 1005 of the cost of an optional work programme, which may include seismic acquisition and drilling operations up to a total of €4.65million.
Once cost levels are incurred, Europa will be responsible for its 20% share of future work programme costs.
