Europa Oil & Gas has extended the completion deadline for the farm-out of a 40% stake in the EG-08 production sharing contract offshore Equatorial Guinea to July 31, 2026, as the companies await final regulatory approval from China.
The AIM-listed company said the extension to the longstop date was agreed by Antler Global, its associated company, and Fuhai (Beijing) Energy, a subsidiary of privately owned Chinese energy group Fuhai Holding.
The transaction received approval from Equatorial Guinea's Ministry of Mines and Hydrocarbons in May and now only requires Overseas Direct Investment (ODI) approval from the Shandong provincial government in China.
Europa Oil & Gas said it understands that Chinese authorities are satisfied with the ODI application and expects to receive the final approval in the coming weeks.
Upon completion of the transaction, Antler will retain a 40% working interest in the EG-08 production sharing contract and continue as operator, while Fuhai will acquire a 40% stake. The remaining 20% interest is held by state oil company GEPetrol.
Europa Oil & Gas owns a 42.9% equity interest in Antler.
The companies are progressing preparations to drill the Barracuda-1 exploration well, which is expected to spud in early 2027.
The EG-08 block, located offshore Equatorial Guinea, is considered one of Europa Oil & Gas’ key growth projects and is expected to provide the company with exposure to high-impact exploration drilling in West Africa.
“The extension of the Longstop Date reflects the practical timing required to finalise the remaining approval and complete the legal procedures of the farm-out to Fuhai.
“Having secured MMHD approval in May, we remain confident that we will receive ODI approval in the coming weeks and continue to make good progress with our preparations for drilling,” said William Holland, Europa Oil and Gas’ Chief Executive.
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