UK-based Europa Oil & Gas has agreed to acquire a 100% interest in Frontier Exploration License (FEL) 3/19, offshore north-west Ireland, from Norwegian oil and gas operator DNO.
The concession FEL 3/19, which is 18km east of the producing Corrib gas field in the Slyne basin, comprises the approximately 1.2 trillion cubic feet (tcf) Edge prospect and is close to Europa’s FEL 4/19, which includes Inishkea, potentially a larger gas structure.
The new asset will provide Europa with a key position in the Slyne Basin. The acquisition aligns with Europa’s plan to refocus its portfolio in Ireland towards gas.
Europa Oil & Gas interim CEO and executive chairman Simon Oddie said: “Subject to regulatory approval, our position in the Slyne Basin gas play will soon include the 1.2 tcf Edge prospect on FEL 3/19, as well as our own 1.5 tcf Inishkea prospect on FEL 4/19.
“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 licences 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 500bopd, which would more than double Europa’s existing UK onshore production to over 200bopd, we are well placed to advance our portfolio of licences up the development curve and in the process generate value for our shareholders.”
The acquisition is, however, subject to the approval of Irish regulatory authorities.
In September last year, Europa Oil & Gas secured a new exploration permit, covering an area of 11,228km² in the Agadir Basin, offshore Morocco.