Europa Oil & Gas Makes Case for Exploration Offshore Ireland

Europa Oil & Gas reported that its three prospects on Frontier Exploration Licence 3/13 in the Porcupine Basin, offshore Ireland, could be valued between US$1.1 billion and US$7bn.

‘An independent assessment undertaken by ERC Equipoise (‘ERCE’) estimates a mean Un-risked Net Present Value ('NPV') of approximately US$7 billion to a 100% working interest (subject to government approval) in three prospects… On a Risked NPV basis the study estimates a 100% working interest (subject to government approval) at US$1.1 billion,’ reads a note released on Monday. 

The note is clearly intended to lure new investors to take a stake in explorations off Ireland, after Kosmos Energy Ireland announced its intention to withdraw from Ireland in September 2015.

“Our mission is to land a farm-in partner to share the costs of drilling and the target audience is major and mid- cap 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” CEO Hugh Mackay commented. 

Last week, the Irish Government announced the introduction of a new "petroleum production tax" which will increase the maximum tax take on an producing field from 40% to 55%.