Irish Government has approved Europa Oil & Gas’ application to convert Licensing Option 16/20 in the Slyne basin offshore Ireland to Frontier Exploration Licence 4/19 (FEL 4/19).
The 100 percent-owned license includes Europa’s flagship Inishkea prospect which lies northwest 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 tcf and has a one in three chance of success.
Europa said on Wednesday that the next steps for the license, which has a 15-year term starting from August 1, included a site survey in preparation for exploration well drilling, subject to funding and regulatory consent.
According to the company, an application to obtain a site survey on the Inishkea prospect is in process.
CEO, Hugh Mackay, said: “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 […] a major oil company. However, […] we have continued to market the licenses to other potential partners, resulting in a number of other major oil companies expressing an interest in farming into 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 […].”
It is worth noting that a drilling location for a first exploration well on Inishkea has already been identified.
The location benefits from seismic data for the Corrib Sandstone reservoir. Subject to regulatory consent, Europa plans to acquire a site survey as part of preparations to drill an exploration well once funding and regulatory permissions for drilling are in place.
If a gas discovery is made at Inishkea, there is the potential to fast track development utilizing the nearby Corrib gas field facilities.
In addition to Inishkea, the license holds the Corrib North structure containing the 18/20-7 gas discovery well drilled by Shell in 2010. Europa identified a wide range of gas initially in place in Corrib North and subject to a favorable outcome to engineering studies it may be possible to upgrade to contingent resources.
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