Page 11 - Euroil Week 04 2020

EurOil PROJECTS & COMPANIES EurOil
Europa suffers farm-in setback off Ireland
IRELAND
Europa’s priority is finding a partner for the Inishkea gas prospect.
SHARES in London-listed Europa Oil & Gas were down 27% at GBP0.0188 apiece early on January 23, after it reported that a “major oil company” had pulled out of talks to farm into three of its licences off Ireland.
Europa said in October last year it had been in discussions with the major for more than 12 months on a partnership at its 100%-owned frontier exploration licences 4/19, 1/17 and 3/13.
“The major has now informed the com- pany that, as part of a wider strategic review, the licences are no longer under consideration for farm-in,” Europa said in a statement last week. “Discussions with several other parties regarding the farm-out of the licences are continuing.”
Europa said its focus now was on securing a partner for drilling at the Inishkea prospect within licence 4/19. The company added it hoped to get permission to conduct a survey to select a well site in the summer of 2020, in order to launch drilling in 2021.
The Inishkea prospect is in close proximity to Ireland’s largest gas field Corrib, offering lower risk “infrastructure-led” exploration, accord- ing to Europa. The company estimates its gross unrisked prospective gas resources at 1.5tn cubic feet (42.5bn cubic metres).
“While we cannot comment on timings for the conclusion of ongoing discussions, we remain optimistic that we will secure a partner for Inishkea with whom we can drill what has the potential to be a transformational well for Europa,” the company’s interim CEO Simon Oddie explained.
Inishkea’s resource potential, a one-in-three chance of drilling success and its location in a proven hydrogen region close to Corrib, made the prospect a “compelling drill target,” Europa said, and “one that continues to attract
considerable interest from a number of potential partners.”
Europa’s search for a partner at its offshore licences was undermined late last year when the Irish government declared an end to all oil explo- ration off the country’s coast. The ban does not apply to gas production. But the move has made investors more reluctant to commit to gas-fo- cused projects, because of the risk of finding oil that could not be developed.
In better news for Europa, the company last week received a long-awaited green light to develop the Wressle oilfield, onshore UK. Planning consent was granted via appeal, fol- lowing a permit dispute with North Lincoln- shire Council.
Europa has a 30% stake in Wressle, operated by UK operator Egdon Resources. Discovered in 2014, the field is due to start up later this year, flowing at a rate of 500 barrels per day (bpd).™
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