Oil giants seek Europa Oil & Gas assets off Co Kerry coast

A number of companies are understood to be interested in investing in on- the-market licences of Europa Oil & Gas off Co Kerry.

The British exploration firm’s core interest lies in Irish waters.

It said yesterday that the “data room” regarding its Irish assets is almost fully booked for the first two months of 2016.

Europa is in the process of retrieving 100% ownership of its two licences in the South Porcupine Basin, following the decision by the 85% shareholder Kos-mos Energy to pull out of Ireland in favour of focusing on its African assets.

Ultimately, Europa is aiming to farm-out up to that 85% to another development partner during the first half of 2016 and will open the data room to prospective partners on January 11.

“The response we are getting from major and mid-cap companies is highly encouraging,” said Europa’s chief executive, Hugh Mackay, at the company’s AGM yesterday.

“We intend to secure a new partner for our Irish licences to fund what could be a play-making well at the earliest possible date and to take advantage of dramatically lower rig rates, which have halved over the past year,” he said.

“Combined with the record number of applications in the latest Irish Atlantic Margin Licensing Round, in which Europa lodged multiple applications, we clearly are not alone in recognising the enormous potential of the South Porcupine Basin,” he said.

Mr Mackay also told shareholders that management intends to boost Europa into “an upper quartile” oil and gas company on London’s AIM market.