About Onshore Europe

Europe is a net importer of both oil and gas. New indigenous hydrocarbon discoveries, therefore, contribute not only to improving supply security but also reduce dependence on imports and benefit the economy.

Many of the countries where Celtique explores have seen little exploration for a long period. This is the result of the International Majors pursuing larger targets offshore and in the FSU, and after forced relinquishment by State Companies that had held acreage with little activity for long periods. This situation provided a long term business opportunity for Celtique to build-up a high quality portfolio onshore in Europe. We believe that exploration prospectivity remains high in this area with large prospects waiting to be drilled and material discoveries to be developed.

Europe is politically stable and gas and electricity markets are opening up progressively within the EU. High growth in the demand for natural gas results in gas prices in the range $US6-10/mscf. Supply is underpinned by long-term contracts from Russia, Norway, North Africa and LNG imports. Security of gas supply has become a major concern in Europe, particularly with respect to disruptions to supply from Russia during the winter for gas transiting the Ukraine.

Established and extensive gas infrastructure, with full third party access being imposed by the EU, will help ensure that stranded discoveries are developed. Within the countries Celtique operates, gas can also usually be sold onto the open market or for local electricity generation.

Onshore Europe also offers some of the best fiscal terms among hydrocarbon bearing basins of the world. Taxes are profit based, with marginal tax takes for new fields, including royalties, local taxes and corporate taxes ranging between 19 – 62% dependent on field size and production rate. All are royalty/tax arrangements and no PSCs exist. 

State equity participation is imposed in very few areas (Holland has an EBN back-in) and there are no signature or production bonuses. Licence terms are long and flexible with reasonable work obligations. The landowner costs are low when compared to North America.

Compared to the North Sea environment, onshore Europe drilling costs are low, and the potential exists for rapid phased development providing early cashflow for some self funding in the development phase. In most areas there is access to a widespread and extensive heritage database that has been under-evaluated, and this data can be enhanced at low cost using modern analysis methods, like advanced seismic reprocessing.

Similarly, older undeveloped discoveries and producing fields, abandoned in the past when hydrocarbon prices were much lower, are now able to be rejuvenated through a combination of new technology such as horizontal drilling, fracture techniques and new pumps. Extensive infrastructure exists in many areas allowing gas tie in to existing pipelines or low cost oil transportation to nearby refineries.

Celtique Energie
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Celtique Energie Ltd
Celtique Energie Petroleum Ltd
76-78 Charlotte Street
London W1T 4QS
United Kingdom
Tel: +44 20 7255 6100
Fax: +44 20 7255 6110
[email protected]