Europa Oil & Gas (Holdings) has agreed to purchase offshore Ireland licence from DNO near Corrib gas field in the Slyne Basin.

The conditional deal includes the acquisition of a 100% stake in Frontier Exploration Licence (FEL) 3/19, offshore Ireland.

The acquisition of FEL 3/19 is said to add 1.2 tcfEdge prospect to the company’s inventory in Ireland. It is also comprised of around 1.5tcf Inishkea prospect on the company’s 100%-owned FEL4/19.

The deal, which is subject to regulatory sign-off, will offer the company a crucial strategic position in the  Slyne Basinandis gas play in line with the refocusing of its portfolio in Ireland towards gas.

Situated 18km east of the producing Corrib gas field, the FEL 3/19 was earlier the LO16/23 block that DNO purchased following the acquisition of Faroe Petroleum.

Europa is purchasing a 100% interest in the licence from DNOfor a nominal upfront fee, as well as granting of a 5% net profits interest (NPI) over future production of gas and liquids from any accumulation on FEL 3/19 to DNO.

Europa has classified FELs 3/19 and 4/19 as lower risk infrastructure-led exploration

Europa stated that it classifies FELs 3/19 and 4/19 as lower risk infrastructure-led exploration and the company’s forward plan include the relaunching of FEL 3/19 farm out to increase its strategic position.

Europa interim CEO and executive chairman Simon Oddie said: “Both Edge and Inishkea are viewed as being drill ready and our aim will be to secure a partner or partners to fund drilling activity on one or both licences at the earliest opportunity.

“Together with ongoing work on the ground to bring the Wressle field in Lincolnshire into production in H2 2020at an initial gross rate of 500bopd, which would more than double Europa’s existing UK onshore production to over 200bopd, we are well placed to advance our portfolio of licences up the development curve and in the process generate value for our shareholders.”

In September 2019, Europa secured an exploration permit for a large, under-explored area of Agadir Basin, offshore Morocco.