Europa Oil & Gas CEO Hugh Mackay says now is a perfect chance to drill on the firm’s offshore Irish prospects thanks to rig rates being at their lowest in a decade.
The CEO, whose firm is targeting 1.5 billion boe, unrisked, in three prospects in Frontier Exploration License 3/13 in Porcupine Basin, made his comments after revealing an assessment of the acreage put its potential net mean un-risked net present value at US$7 billion.
The independent assessment was performed by ERC Equipoise, which earlier this year assessed Europa’s 15% ownership in the license. Following partner Kosmos Energy’s decision to withdraw from FEL 3/13, leaving Europa as sole owner, the firm asked for an updated assessment, taking into account an updated oil price assumption and cost deck.
Mackay said: “To realize this potential we need to drill exploration wells and find oil. Our mission is to land a farm-in partner to share the costs of drilling and the target audience is major and midcap oil companies. As a consequence of the drop in oil prices day rates for state of the art harsh-environment deepwater drilling rigs have halved. The next few years offer an opportunity to drill offshore Ireland at the lowest rig costs in over a decade.
“We are encouraged by the high levels of participation in the 2015 Atlantic Margin Licensing Round, particularly given the low oil price. It would appear that many other companies share our belief in the technical and commercial case for exploration offshore Ireland.”
Ireland’s 2015 Atlantic Margin Licensing Round closed 16 September 2015. The Irish Authorities have reported they have received 43 applications from major, mid cap and small companies, the largest number of applications ever received in any Irish offshore licensing round.
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