African oil & gas block’s farm-out one approval shy of completion

May 29, 2026, by Melisa Cavcic

UK-headquartered and AIM-listed oil and gas company Europa Oil & Gas has confirmed that one key go-ahead is still pending for a farm-out process related to a block off the coast of Equatorial Guinea.

Following a farm-out agreement (FOA) with Fuhai (Beijing) Energy in December 2025 for a 40% interest in EG-08, subject to relevant regulatory approvals, Europa Oil & Gas announced that its associated company, Antler Global, received the required approval from the Ministry for Mining and Hydrocarbons Department of Equatorial Guinea (MMHD) to wrap up the FOA.

However, the completion of the deal is subject to overseas direct investment (ODI) approval from the Shandong Provincial government. Europa has a 42.9% equity interest in Antler, which, on completion of the FOA, will hold a 40% working interest in the EG-08 PSC and remain as operator.

While Fuhai will have a 40% stake, the remaining 20% will be held by GEPetrol, the national oil company of Equatorial Guinea, representing the state’s interest. The EG-08 block is estimated to contain 2.196 trillion cubic feet (tcf) (Pmean), with the primary prospect being Barracuda, which has 878 billion cubic feet (bcf) (Pmean).

William Holland, Chief Executive Officer of Europa, commented: “I am pleased to have received approval from the ministry and I would like to thank the team at MMHD for their ongoing support as we progress this project to drilling.

“Alongside our partners at Fuhai, we have been working hard to assemble the drilling team needed to spud the Barracuda-1 well at the earliest opportunity. Once we have received ODI approval, we will then be able to secure a rig. I look forward to updating the market of our progress in due course.”

The AIM-listed player expects to drill the Barracuda-1 well at the earliest opportunity, which is expected to be during early 2027.