Europa Oil & Gas Acquires Offshore Ireland License
Europa Oil & Gas plc plans to acquire a 100% interest in Frontier Exploration License 3/19, offshore Ireland, from DNO, according to a press statement. The acquisition, which is close to the Corrib gas field in the Slyne basin, will add the 1.2 Tcf Edge prospect to Europa’s inventory in Ireland. This includes the nearby 1.5 Tcf Inishkea prospect on Europa’s 100%-owned FEL 4/19.
The new asset will provide Europa with a key position in the Slyne Basin and is in line with the company’s plan to refocus its portfolio in Ireland towards gas.
FEL 3/19, which is 18km east of the Corrib gas field, was formerly the LO 16/23 block which DNO acquired following the acquisition of Faroe Petroleum. Europa is acquiring the license from DNO for a nominal upfront fee and will grant a 5% Net Profits Interest over future production of gas and liquids from any accumulation on FEL 3/19 to DNO.
All work commitments on FEL 3/19 have been fulfilled and Europa’s forward plan will be to include FEL 3/19 in a relaunch of the farmout of its Slyne Basin position.
Simon Oddie, Interim CEO and Executive Chairman of Europa, said: “We are confident that by adding FEL 3/19 to our portfolio we have not only increased the quantum of gross prospective gas resources to 2.7 Tcf but have also increased the attractiveness of what was already a compelling investment proposition in the Slyne Basin. With gas set to play a key role in Ireland’s energy mix and our licenses located near Corrib and its processing infrastructure, our position benefits from having a highly attractive risk / reward profile. With this in mind, we look forward to showcasing our new position to prospective partners, a number of whom we have been talking to for some time.”
“Both Edge and Inishkea are viewed as being drill ready and our aim will be to secure a partner or partners to fund drilling activity on one or both licenses at the earliest opportunity. Together with ongoing work on the ground to bring the Wressle field in Lincolnshire into production in H2 2020 at an initial gross rate of 500 bopd, which would more than double Europa’s existing UK onshore production to over 200 bopd, we are well placed to advance our portfolio of licenses up the development curve….”
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