Europa Oil & Gas has said an independent assessment carried out on three prospects on frontier exploration licence (FEL) 3/13 in the Porcupine Basin, offshore Ireland, has estimated an unrisked net present value (NPV) of around $7bn.

The study undertaken by ERC Equipoise (ERCE) estimates a 100% working interest at $1.1bn on a risked NPV basis.

ERCE’s competent persons report (CPR) highlighted total gross mean unrisked prospective resources of 1.5 billion barrels of oil equivalent (bboe) across the prospects.

In June, Europa advised ERCE to assess the NPV of its previously held 15% interest in FEL 3/13.

"The next few years offer an opportunity to drill offshore Ireland at the lowest rig costs in over a decade.

The company instructed ERCE to revise the value to reflect a 100% working interest in the permit after Kosmos Energy announced on 22 September that it intends to withdraw from Ireland.

Europa Oil & Gas CEO Hugh Mackay said: "The CPR summary issued on 12 May 2015 identified significant potential volumes of hydrocarbons: gross mean un-risked prospective resources of approximately 1.5 billion barrels of oil equivalent across three prospects in FEL 3/13.

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"With the imminent departure of Kosmos from the licence our net interest will revert to 100%, subject to government approval, with a potential net mean un-risked NPV10 of approximately $7bn and a net mean risked NPV10 of $1.1bn estimated by ERCE.

"The next few years offer an opportunity to drill offshore Ireland at the lowest rig costs in over a decade."

According to Europa, the process related to transfer of Kosmos’ interest and operatorship of FEL 2/13 and 3/13 to Europa is ongoing and is subject to securing approval from the Irish Authorities.

Upon completion of the process, Europa plans to seek to farm-out some of its interests in both licences.