Europa Oil & Gas sees once-in-a-decade opportunity to drill offshore Ireland

Europa Oil & Gas believes there is a once in a decade opportunity to drill offshore Ireland thanks to the sharp drop in the prices for drilling equipment.

That comes after the oil exploration and production outfit’s partner in the FEL 3/13 license, Kosmos Energy Ireland, announced on 22 September its decision to pull out of the country.

“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,” said Europa chief Hugh McKay.

McKay also said he was encouraged by the high levels participation seen in the 2015 Atlantic Margin Licensing Round.

The company also announced the value of its 100% working interest in FEL 3/13 - after the decision taken by the subsidiary of Houston-based Kosmos to pull out of the area - had been estimated at a mean un-risked net present value of $7bn by an independent assessment from ERC Equipoise.

As of 09:32 shares in Europa,Oil&Gas were 18.52% higher at 4p.