Europa Oil & Gas Holdings Plc (LON:EOG) told investors that it intends to fast-track ongoing technical work on the Licensing Option 16/20, an exploration area in the vicinity of the Corrib gas field, offshore Ireland.
It is picking up the pace because of positive findings in the work carried out to date.The company said it now considers the area, referred to as ‘the Inishkea prospects’, to be the group’s “flagship project”.
Europa highlighted that, via its technical work, it intends to complete a prospect inventory in the first half of 2019 and it would subsequently look to deliver an exploration well in 2020.
It said that all of the group’s assets offshore are seen as “company making”, but, it intends to focus most on the Inishkea area for a number of technical and commercial reasons – it is seen to be lower risk as the gas play is well understood because of Corrib, the resource potential is significant at an estimated 2.5 trillion cubic feet, it is comparatively shallow water (between 400 and 600 metres), and gas infrastructure is already in place.
Europa highlighted that gas is seen to be a significant component of Ireland’s future energy mix for both electricity and heating, and as such the company sees positive economic demand factors.
Europa added that it remains “very motivated and encouraged” by its oil exploration prospects, located further offshore in the South Porcupine basin and it is “working very hard to complete a farm-in” for those assets.
“The South Porcupine is dominated by major and supermajors and we believe that exploration drilling will be led by them and at their pace. We will be part of this evolving exploration story,” the company said in a statement.
“Our portfolio exposes our investors to the full range of South Porcupine hydrocarbon plays and we will benefit from exploration success in the basin in whichever play it is found. We believe that in due course oil will be found in our prospects.”