SHARES in Aim-listed Europa Oil & Gas climbed by 9.3 per cent yesterday, after the firm announced it has farmed out an 80 per cent interest in its Tarbes Val d’Adour Permit in France to Vermilion Energy.
If Vermilion proceeds with exploration activities, it will assume all costs up to a total of €4.65m (£3.45m), after which Europa will take responsibility for a 20 per cent share of the costs. The Tarbes permit has previously produced oil from two fields.
Europa’s chief executive Hugh Mackay said Vermilion is the ideal partner for the company, with an “excellent technical and operational track record”, and added that 2015 “promises to be an exciting year”.
Meanwhile, analysts at Northland Capital Partners described yesterday’s announcement as “a nice surprise from Europa”, and said it might bode well for the firm’s other French permit, Bearn Des Gaves.
The broker added: “Vermilion is already active in France where it produces significant volumes and has the necessary firepower to mean the modest capex required to appraise this project should not be a major concern providing the technical merits stack up.”