UK-based offshore Ireland explorer Europa Oil & Gas says an independent review of Frontier Exploration License 3/13 estimates it contains nearly 1.5 billion boe prospective resources and the potential for a “play-opening” first well.
The estimate, based on three prospects, Shaw, Beckett and Wilde, was made in a competent persons report by ERC Equipoise. FEL 3/13 is in the Porcupine Basin, offshore West Ireland.
The CPR picks out the Shaw prospect alone as having potential to have gross mean un-risked Prospective Resources of 315 MMboe. It also identifies new prospects and leads. Europa says it is now working with operator Kosmos Energy on a potentially “play-opening” first well no FEL 3/13.
The CPR comes as focus sharpens on the Irish offshore, a basin which has been under focus for some time, but has seen activity increase in recent years. This year, the 2015 Atlantic Margin Licensing Round will close September 2015, leading to awards in H1 2016, which will add further interest to the basin.
Europa holds a 15% interest in FEL 3/13, with Kosmos holding the remaining 85%.
Europa’s CEO, Hugh Mackay said: “The new CPR identifies gross mean un-risked Prospective Resources of approximately 1.5 billion boe across three prospects in FEL 3/13, with Europa’s 15% equity interest equating to net mean Prospective Resources of 225 MMboe. These are very significant volumes of hydrocarbons. Europa considers the prospects to be at drillable prospect status and we will update the markets when the operator Kosmos provides more clarity with respect to drilling plans. This CPR provides a strong endorsement to our long held view that the Porcupine Basin has the potential to become a major new North Atlantic hydrocarbon province.”
The three prospects Beckett, Wilde and Shaw have Cretaceous submarine fan sandstone reservoirs and are part of the Cretaceous submarine fan hydrocarbon play.
Under the terms of the farm-out agreement announced April 2013, Kosmos will incur 100% of the costs of the first exploration well on FEL 3/13, subject to an investment cap of US$110 million. Costs in excess of the investment cap would be shared between Kosmos (85%) and Europa (15%).
Europa says Kosmos has suggested drilling on a prospect in either FEL 2/13 or FEL 3/13 may take place in 2017, and has also confirmed that it will seek to farm down some of its interest in the licenses. Europa understands that the farm-out process may start after the Atlantic Margin Licensing Round closes.