Europa Oil & Gas Holdings plc (LON:EOG) has highlighted a new prospect inventory for its priority exploration area in the Slyne Basin, off Ireland’s west coast.
The Inishkea gas targets remain the company’s primary focus, and the new inventory confirms some 1.5 trillion cubic feet in prospective resources. It also detailed that the prospects have a 1-in-3 chance of success. A site survey is planned for this year which makes 2020 drilling possible, subject to funding and regulatory approval.
Inishkea is one of three exploration projects that are currently the subject of farm-out processes, to bring in new partners. Talks are ongoing with a major oil and gas company, Europa said.
“Since opening the farmout dataroom in December 2018 we have had several large oil companies review the prospect and we are updating them with this new information,” said Hugh Mackay, Europa chief executive.
“Separately, our ongoing farm-in negotiations with a major international oil and gas company for three of our licences, FEL 1/17, FEL 3/13, and LO 16/20 which holds Inishkea are progressing.
“Subject to successful completion, Europa will have a clear line of sight to the drilling of a series of wells offshore Ireland, each of which has company-making potential.”
Inishkea is of particular interest because of its proximity to the Corrib field, Ireland’s main domestic source of gas, which would allow any discovery to be advanced to production relatively rapidly.
Mackay added: “Our very detailed and thorough technical work confirms Inishkea to be a large, robust, low risk, gas prospect. The early promise we identified has been validated and the prospect has now been de-risked significantly.
“Inishkea’s location in a proven play and close proximity to the nearby Corrib gas field and facilities informed our decision to elevate the prospect to flagship status.
“With 1.5 TCF of gross mean un-risked prospective gas resources and a 33% chance of success, the prospect has exceeded our expectations.”