Europa Oil & Gas (Holdings) PLC (AIM:EOG) told investors that the Irish government has informed the company that its licence, FEL 4/19, will “remain live” until the company is notified otherwise.
Europa, in a statement, noted that in August 2019 it was issued a 15-year licence for the offshore asset and that the licence period was split into four phases, the first of which is slated to end on 31 July this year.
In March, the company applied to Ireland’s Department of the Environment, Climate and Communications (DECC) to extend the first phase of the licence in order to carry out further technical studies and allow more time to secure a farm out of the licence.
The licence extension application remains under review, Europa noted, and whilst it acknowledged that there can be no guarantee the extension will be granted, DECC has confirmed it is reviewing the application and that the licence will remain live, pending a decision on the application, regardless of how long it takes for DECC to make the decision.
Simon Oddie, Europa chief executive, said: "FEL 4/19 contains the large, low risk, Inishkea gas prospect and is a strategic asset that can potentially provide a reliable source of low emission energy for Ireland and play a key role in the transition to renewable green power.
“Gas from the Corrib field, adjacent to the Inishkea prospect, is one of the lowest carbon-intensity gases in Europe, much lower than long-distance pipeline gas from Norway, the UK or the Russian gas piped to Europe.”
“Given that Ireland will continue to require gas into the foreseeable future, having recently agreed plans to build new gas-powered electricity plants, it makes sense to keep this potentially valuable source of indigenous gas available.
“We therefore hope that the requested licence extension will be granted as soon as possible, which will allow the company to carry out further technical studies and seek a project partner."