**Summary**
Europa Oil & Gas (Holdings) plc announced the signing of a Farm-out Agreement (FOA) between its associated company, Antler Global Limited, and Fuhai (Beijing) Energy Limited, a subsidiary of Fuhai Group New Energy Holding Co., Ltd. The agreement pertains to the EG-08 production sharing contract (PSC) in offshore Equatorial Guinea. Under the FOA, Fuhai will acquire a 40% working interest in EG-08 by funding 95% of the costs for the Barracuda well, up to $53 million, while Antler retains operatorship and funds the remaining 5%. The deal is subject to approval from Equatorial Guineas Ministry for Mining and Hydrocarbons and Overseas Direct Investment approval from the Shandong Provincial government.
Key highlights include
Fuhais preferential recovery right for its carry upon commercial hydrocarbon sales.
Interest accrual on 45% of Fuhais carry, capped at 5% per annum, contingent on a commercial discovery.
Europa holds a 42.9% equity interest in Antler, resulting in a 17.2% net attributable interest in EG-08.
The EG-08 block is estimated to contain 2.213 TCF of prospective resources, with the Barracuda prospect accounting for 893 BCF.
Drilling of the Barracuda well is expected in 2026, pending approvals.
Europas CEO, William Holland, emphasized the significance of the agreement, highlighting Fuhai as an excellent partner aligned with Antlers ambitions. The deal is seen as a major milestone, offering a substantial carry ratio that reflects the assets high potential for success and resource size. The announcement was reviewed by Europas Chief Geologist, Jamie White, and complies with Market Abuse Regulation (MAR) disclosure requirements.