Romania: Europa Withdraws From Brodina

Europa Oil & Gas has announced that it is withdrawing from its interest in a joint venture in the Brodina concession in Romania. It comes two months after partner Aurelian Oil & Gas said it was abandoning its Horodnic-1 well in the concession.

Europa said it would write off the cost of its investment in the concession after notifying partners Aurelian and Romanian Romgaz. Europa's total exploration costs in the project, which includes the Horodnic-1 well and the Voitinel wells, amounts to £2.7 million.

"Today's news regarding the Brodina licence in Romania is an example of the disciplined approach we have applied to the management of our highly prospective asset base," chief executive of Europa Hugh Mackay said.

"We continually evaluate the risk/reward trade-off on all our licences and are committed to taking action, whether this involves progressing an individual project along the development curve or, in the case of Brodina, choosing to exit.

"It is a mark of the quality of our asset base, that Brodina is no longer a priority for Europa. "The potential company maker that is Berenx, in onshore France, as well as our highly exciting exploration licences in the UK and Ireland remain our focus and I look forward to providing the market with updates on our progress."

Europa currently holds a 28.75 per cent interest in the Brodina concession. Romgaz holds a 37.5 per cent stake in the project and Aurelian holds a 33.75 per cent stake.