Europa Oil & Gas PLC (LON:EOG) said it has entered a Memorandum of Understanding with Causeway Geothermal to assess the potential of the West Firsby oilfield as a geothermal test and commercial deployment site.
The agreement is to utilise existing infrastructure and wells for testing of geothermal solutions at West Firsby with the objective of developing, evaluating and refining elements of Causeways technology while also assessing the potential delivery of sources of heat from West Frisby.
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The AIM-listed company said it is in line with its objective to participate actively in the national energy transition.
Located in the East Midlands, West Firsby is late in its productive life with nine wellbores and seven wellheads.
Over an expected two-year period, Causeway and Europa will further analyse the West Firsby dataset, including rock properties, temperature data and well data.
Causeway will also assess West Firsby 's potential for commercial deployment of geothermal at the site.
“Teaming up with Causeway to evaluate the conversion of onshore legacy oilfields, such as West Firsby, into 100% clean, reliable, and cheap sources of electricity and heat by harnessing geothermal energy demonstrates our ambition to make a positive contribution to the ongoing energy transition,” said Europa’s chief executive Simon Oddie.
“Not only do we believe that the geology, dataset, and infrastructure at West Firsby make the field an ideal candidate for testing, but also that the expertise and skillset the Europa team have built up over decades of operating UK onshore fields are easily transferable to exploiting this clean source of energy.”
Shares rose 4% to 1.28p on Wednesday at the opening bell.