Europa Oil & Gas, a company that owns an offshore block in Ireland containing what it says is the 'significant' Inishkea gas prospect, has hired advisors to help it find a partner to drill at the prospect.
Europa has engaged Llamas and Bannister Energy Advisors Ltd to assist with a farm-out process of a portion of the FEL 4-19 block, containing the Inishkea. Europa expects the farm-out process to start shortly. According to Europa, Inishkea could hold 1.5 tcf of gas.
"In the event of a successful discovery at Inishkea, Europa believes that the field alone has the potential to supply at least two-thirds of the gas required for the 2 gigawatts of new gas-fired power generation committed to in the Irish Government's updated Climate Action Plan," Europa said.
"The adjacent producing Corrib gas field is one of the lowest carbon-intensity gases in Europe, much lower than UK imported gas, with a carbon emission intensity of 4.5 kilograms per boe, compared to 22 kilograms per boe for UK imported gas. The Board considers it to be probable that gas from Inishkea would be of similarly low carbon intensity," Europa added.
A few years back, Europa had been in talks with an unnamed oil major for the Inishkea gas prospect, but the major told the company in January 2020 that "as part of a wider strategic review, the licenses are no longer under consideration for farm-in."
According to info on Europa's website, water depths at the Inishkea site are comparatively shallow (400-600m) and "do not require harsh environment sixth generation drillships, therefore, drill costs are lower."
Undated website info shows that Europa has conducted a drill cost estimate for a well on the Inishkea prospect, and the dry hole cost, including mobilization and demobilization, is £37 million.
Europa has also stressed that the gas infrastructure is already present nearby at Corrib and, therefore, "a fast track path to commercialization is potentially available, subject to negotiation and cooperation with the infrastructure owners."
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