Construction BUSINESS

US explorer Kosmos Energy is set to attract fresh investment to its two Irish-based licences, via a farm-out process, later this year.
Drilling at the assets, located in waters off the south-west coast, is also now tipped to begin in 2017, as opposed to 2016 as previously thought.

The Dallas-headquartered company has an 85% holding in two licences — FEL 2/13 and FEL 3/13 — in the south Porcupine Basin off the Co Kerry coast; a comprehensive update on which was yesterday issued by junior partner, London-based explorer, Europa Oil & Gas, which holds the remaining 15% of the combined asset play.

Europa presented significant new resource figures, which show that a completed independent ‘competent persons report’ found gross prospective resources of 1.49 billion barrels of oil equivalent at the FEL 3/13 prospect, alone.

Previously, a 1.5bn barrel estimate had been presented for both licences, combined. The update didn’t offer a separate resource estimate for FEL 2/13 as its competent persons report is unfinished — but Europa has identified new prospects there, which it hopes to include in a fuller competent persons report on the asset before the end of 2015.

On FEL 3/13, it added that it has identified a prospect, which could be “a play-opening first well”.

The update also stated that Kosmos has suggested a commencement of drilling, at one of the two prospects, may take place in 2017.

The Texan firm has also confirmed to its partner that it will seek to farm-down some of its interest in the licences, with Europa understanding this process may begin after the closing in September of the Atlantic Margin licensing round.

Hugh Mackay, Europa’s chief executive, hailed the significance of yesterday’s announcement, particularly the competent persons report aspect, saying it provides “a strong endorsement to our long-held view that the Porcupine Basin has the potential to become a major new north Atlantic hydrocarbon province.”

“These are very significant volumes of hydrocarbons. Europa considers the prospects to be at drillable prospect status and we will update the markets when the operator, Kosmos, provides more clarity with respect to drilling plans,” he added.

“This isn’t us chasing some pipe dream, there is no smoke and mirrors here —these numbers are the real deal and stand up to scrutiny,” Mr Mackay said.

The competent persons report was partly conducted by international independent reservoir evaluation firm ERCE.

Meanwhile, Mr Mackay reiterated Europa’s plans to bid for blocks off the west coast in the recently opened Atlantic Margin licensing round.