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Europa Oil & Gas sees potential for major new discoveries near Ireland’s Corrib gas field

Corrib is Ireland’s largest producing offshore gas field, with significant infrastructure to shore. The nearby area is being assessed for new discoveries
oil and gas operations
The Foyle prospects account for around 2 TCF of gas potential

Europa Oil & Gas Holdings PLC (LON:EOG) saw its shares push higher today after the firm said it has identified the potential for more than 2.5 trillion cubic feet of gas in its exploration area, in the Slyne basin, adjacent to Ireland’s Corrib field.

In late morning trading, Europa O&G shares were nearly 7% higher at 5.75p.

WATCH: Europa Oil & Gas reckons there's 2.5 TCF potential in Slyne basin

Corrib is Ireland’s largest producing offshore gas field, with significant infrastructure to shore, and the AIM quoted explorer is assessing the nearby area for new discoveries.

Geological mapping work has now outlined a number of significant structures, Europa said, and whilst these structures are of a size to potentially host in excess of 2.5 TCF of gas the company is presently advancing work for formal estimates of prospective resources.

Europa’s mapping follows new technical work on past 3D seismic data, as well as newly available data from a Shell well drilled back in 2010 which suggested the presence of gas in the Corrib North target some 7 kilometres away from the Corrib field.

Giving specific details Europa highlighted that a group of three prospects, to be known as the Foyle prospects, could host 2 TCF alone.

Europa anticipates having resource estimates together in the first half of the new year, and at the same time it is committing to further technical work designed to upgrade the Foyle prospects to ‘drillable’ status.

Work validates early technical promise

“This work by Europa validates the early technical promise shown when we made our licence application,” said Hugh Mackay, Europa chief executive.

“The Foyle prospects in particular have stood up to detailed scrutiny and mapping indicates a gas in place in excess of 2 TCF.

“In addition, we are pleased to identify proven gas in Corrib North, which not only significantly de-risks this structure, but also the Foyle prospects. “

Mackay added: “Whilst there is a popular conception that Atlantic Ireland is deep water, high risk frontier exploration this is not true of the Slyne Basin where the multiple prospects we have identified in LO 16/20 are mostly in relatively shallow water (400-600m) and represent lower risk exploration and appraisal close to the producing Corrib gas field. LO16/20, along with LO16/21 which is also located in the Slyne Basin, are a key component of our industry-leading licence position offshore Ireland.”

Europa has an inventory of seven licences offshore Ireland, spanning 5,818 square kilometres and host to some 30 prospects (identified to date) which have been estimated at the desktop to contain some 4.7bn barrels of crude and 1.5 TCF of gas.

 -- Adds share price --

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