Europa Oil & Gas Acquires Irish Exploration License FEL 3/19 (Edge Prospect)
AIM-listed E&P independent Europa Oil & Gas (Holdings) Plc has conditionally agreed to acquire Oslo-based DNO ASA’s 100% interest in frontier exploration license FEL 3/19 located in the Slyne basin, offshore Ireland.
Europa stated that apart from a nominal upfront fee, it will also grant DNO a 5% net profits interest over any future production from the license. DNO had acquired the license as part of its acquisition of Faroe Petroleum Plc, which closed in March last year.
FEL 3/19 is situated approximately 18 km east of the producing Corrib Gas Field, and contains the Edge prospect, estimated to contain gross prospective resources of 1.2 trillion cubic feet (Tcf) of gas. The license is also located close to Europa’s FEL 4/19 license, which contains the Inishkea prospect. Europa plans to look for one or more partners to fund drilling activities on both prospects.
“The acquisition, which is subject to regulatory sign-off, will provide Europa with a key strategic position in the proven gas play of the Slyne basin and is in line with the refocusing of the Company’s portfolio in Ireland towards gas,” the company said in a statement.
Simon Oddie, Europa’s Interim CEO & Executive Chairman added, “We are confident that by adding FEL 3/19 to our portfolio we have not only increased the quantum of gross prospective gas resources to 2.7 Tcf but have also increased the attractiveness of what was already a compelling investment proposition in the Slyne Basin.”