Kosmos Energy and Europa to decide on Irish drilling plans by summer

A decision is due before the end of June on whether highly anticipated drilling activity on Irish exploration assets jointly held by US company Kosmos Energy and UK player Europa Oil and Gas will begin in the next year.

Kosmos has three licences in Irish waters, two of which have Europa as junior partner. However, the US player also has interests in Africa and it remains to be seen what takes precedence in its plans for 2016.

While it has drilling activity pending in the UK, Europa sees its onshore French and offshore Irish interests as holding its real potential for transformation.

Drilling activity at its prospects off the Co Kerry coast in the south Porcupine Basin is expected to get underway in 2016 and is seen as one of the next big drill campaigns in Irish waters.

Europa has received seismic survey results and a new prospect inventory from Kosmos regarding its shared acreage off the Kerry coast; but still awaits final timelines from its US partner.

Europa yesterday announced a farm-out agreement for one of its onshore French gas assets. Speaking about what an exciting year 2015 could be for the company, chief executive Hugh Mackay cited its various drilling plans for UK waters, its expansion of UK assets and “most importantly, a drill decision by Kosmos on our Irish licences” as potential highlights.

Europa said it expects Kosmos to make a formal decision on its 2016 drilling plans, and a call on its Irish moves, before the end of the first half of this year.

“Our offshore Ireland and onshore France licences are the potential company-makers in our portfolio, due to the size of the prospectivity identified,” Europa said before Christmas.