Europa Oil & Gas (Holdings) PLC (AIM:EOG) told investors it has received approval from the Irish authorities to extend the first phase exploration period for the FEL 4/19 licence, which hosts the Inishkea gas targets.
The company said the extension gives time for further technical studies and allows it more time to secure a partner to advance the development of the licence.
"I am delighted that our application has been granted and that we can continue with further technical studies of the licence and seeking a project partner,” said Europa chief executive Simon Oddie in a statement. “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."
Oddie added: “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.
“Ireland will continue to require gas into the foreseeable future, having recently agreed plans to build new gas-powered electricity plants. Inishkea, if successful on drilling, could provide a highly secure source of indigenous gas for Ireland, and play a key role in the transition to renewable green power."