Photo: Image for illustrative purposes. Source: Europa Oil & Gas

UK player seeking partners for assets offshore Morocco and Ireland

UK-headquartered and AIM-listed oil and gas company Europa Oil & Gas is continuing the farm-out processes of two licenses respectively located offshore Morocco and Ireland.

In Morocco, Europa said it is continuing the farm-out process of the Inezgane license in the Agadir Basin, which represents a “high-impact exploration opportunity in a highly underexplored area of the world”.

According to the UK company, recent evaluation identified a significant volume of unrisked recoverable resources, over 1 billion barrels (oil equivalent), in the top five ranked prospects alone, and the farm-out exercise has continued throughout the year.

Inezgane covers an area of 11,228 square kilometers and was awarded in November 2019. Europa is the operator of the license and holds a 75 per cent interest, with ONHYM holding the remaining 25 per cent.

A one-year extension to November 2022 has been granted to the initial phase of the license to allow for the time lost due to the Covid-19 pandemic.

The farm-out initiative of the 100 per cent-owned licence FEL 4/19 offshore Ireland is continuing, as well.

The license holds the 1.5 tcf Inishkea prospect adjacent to existing infrastructure at the producing Corrib gas field. All work commitments have been reported as completed for the first phase of the license.

Irish authorities have granted consent to extend the fist phase of license FEL 4/19 to 31 January 2024, set to further allow technical work and more time to secure a partner to advance development.

When it comes to Europa Oil & Gas’ recent activities elsewhere, it is worth noting that the UK firm, together with partner i3 Energy, completed drilling operations on the Serenity appraisal well in the North Sea in October, which was spud in September, using the Stena Don semi-submersible rig.

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Although the well did not encounter any oil-bearing sands, Europa said it had provided valuable technical data and furthered understanding of the field, thus development options are currently being assessed.

The net cost of the Serenity well is forecast to be £4.8 million, representing £2 million below budget net to Europa, expected to provide tax relief against the Energy Profits Levy (Windfall Tax) on the company’s profits generated from its ongoing onshore production.

“We will also continue to seek new appraisal opportunities to add to our portfolio. The Serenity appraisal well was disappointing, but the data that we have acquired will help optimise the development of the field and the funds spent on the appraisal well will now go to offset our exposure to the Energy Profits Levy,” said Simon Oddie, CEO of Europa.

“These are exciting times for Europa with plenty of operational activities that can all deliver additional shareholder value whilst we continue to build on our existing asset base.”