LONDON: Europa Oil & Gas, the UK and Ireland focused oil and gas exploration, development and production company, has announced that the Irish government approved the Company’s application to convert Licensing Option 16/20 in the Slyne basin in Atlantic Ireland to Frontier Exploration Licence 4/19.
The 100%-owned Licence includes the Company’s flagship Inishkea prospect which lies immediately to the north west of, and abuts, the producing Corrib gas field in the Corrib Field Petroleum Lease Area.
The Inishkea prospect has estimated gross mean un-risked prospective gas resources of 1.5 trillion cubic feet (TCF) and has been assigned a one in three chance of success.
The next steps for the Licence, which has a 15-year term commencing from 1 August 2019, include a site survey in preparation for drilling an exploration well, subject to funding and regulatory consent. An application to obtain a site survey on the Inishkea prospect is in process.
Europa’s CEO, Hugh Mackay, said: “The conversion of LO 16/20 into a 15-year FEL is an important milestone for the Company, as it allows our flagship Inishkea gas project to be drilled once funding and relevant regulatory permissions have been secured. With a one in three chance of holding gross mean un-risked prospective resources of 1.5tcf of gas, close proximity to the producing Corrib field, and the potential availability of spare capacity in the gas infrastructure, Inishkea represents a low risk opportunity to generate high exploration reward.
“As previously announced, we have negotiated farm-in agreements in respect of FEL 4/19, FEL 1/17 and FEL 3/13 with the NW Europe division of a major oil company. Europa is in regular contact with the Major and continues to await a final investment decision from the Major’s head office.
However, owing to the length of time it has taken to complete the farm-in agreement, we have continued to market the licences to other potential partners, resulting in a number of other major oil companies expressing an interest in farming in to FEL 4/19. We are focused on being in a position to drill Inishkea at the earliest opportunity and farmout discussions are ongoing with a number of parties, including the Major.
Together with the upcoming formal award of an offshore exploration permit on the Atlantic Margin of Morocco and positive news regarding the Wressle development, this is an exciting period for Europa and I look forward to providing further updates on our progress.”