Europa Oil & Gas, a UK and Ireland-focused exploration, development and production company, has taken over the operatorship of the PEDL343 exploration licence.
Industry regulator the North Sea Transition Authority approved the transfer of operatorship of the licence from Egdon Resources UK (Egdon) to Europa with effect from 27 July 2023.
Europa holds a 40% stake in the licence, with its partners Egdon and Petrichor holding 40% and 20% stakes, respectively.
PEDL343, which is situated onshore and north of Scarborough, contains the Cloughton gas discovery.
The Cloughton field, which was discovered in 1986, encountered gas across the Carboniferous section.
On natural flow, the Cloughton field tested at up to 40,000ft³ of gas per day. However, according to Europa’s estimates, it could produce as much as six million cubic feet of gas per day with proper completion and production optimisation procedures.
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The gas produced was ‘high quality”, including more than 98% methane and ethane, the company added.
An earlier drill test revealed a net sandstone reservoir with a depth of around 60m and high gas saturation.
Europa plans to drill an appraisal well at Cloughton.
It has identified a site for an appraisal well pad, and following testing operations the company plans to connect the field to the nearby gas grid to monetise operations.
Europa CEO Will Holland said: “We are very pleased to be assuming the operatorship of what we believe to be a material licence and plan to progress the asset to appraisal drilling operations as quickly as possible.
“This initially involves engaging with the various stakeholders to secure the necessary permits and approvals. The Europa technical team is now working through the subsurface data to calculate a range of probabilistic recoverable gas volumes and will produce a conceptual development plan for the field, which we believe will demonstrate the material potential value of the licence.
“There is undoubtedly a significant volume of gas within the structure, which could be brought online relatively quickly and would displace imported gas volumes.”