United Kingdom-based exploration and production company Europa Oil & Gas (EOG) has been awarded a 15-year frontier exploration licence for an area in the Slyne Basin, offshore Ireland.
The area includes Europa’s flagship Inishkea prospect, which lies immediately to the north-west of 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."
Mackay added: "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."
FEL 4/19 contains the Inishkea gas exploration prospect and the 18/20-7 Corrib North gas discovery and is located next to the producing Corrib gas field in the Slyne Basin. The Directors therefore view the Licence as low risk exploration in a proven gas play. The Inishkea prospect is the company’s flagship prospect and is the priority near-term target.
A drilling location for a first exploration well on Inishkea (18/20-H) has been identified. The location benefits from a robust, low risk tie on seismic data for the Corrib Sandstone reservoir back to the Corrib gas field.
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.