Europa Oil & Gas has signed a binding farm-out agreement with Fuhai (Beijing) Energy, a subsidiary of Fuhai Group New Energy Holding, advancing plans to drill the Barracuda gas prospect offshore Equatorial Guinea.

Prospect Details and Location

The Barracuda prospect is located within the EG-08 production sharing contract, which is described as a high-quality, low-risk, and high-reward gas opportunity. It is situated in shallow water near existing infrastructure, with Chevron's Alen and Aseng fields located immediately to the south. The prospect has a pre-drill resource potential of nearly 900 billion cubic feet of gas and an estimated 80% chance of success, with drilling targeted for the second half of 2026.

Farm-Out Agreement Terms

Under the agreement, Fuhai will acquire a 40% interest in the PSC. The key financial term is that Fuhai will fund 95% of the costs for the Barracuda well, up to a cap of $53 million for the total well cost. If a commercial discovery is made, Fuhai holds a preferential right to recover its carried investment.

Post-Deal Ownership and Next Steps

Following the farm-out, the ownership of the EG-08 PSC will be:

• Antler Global (Europa's associated company and operator): 40%
• Fuhai (Beijing) Energy: 40%
• GEPetrol (the national oil company): 20%

The agreement is seen as a significant milestone, aligning with the operator's ambition to rapidly drill and develop the prospect. The company has now entered a period of detailed engineering and procurement to spud the well as soon as possible, marking the culmination of three years of work to identify the opportunity and secure a partner. The transaction is pending necessary approvals, with 2026 anticipated to be a pivotal year.