DNO North Sea aborts sale of Edge prospect offshore Ireland
London-listed Europa Oil & Gas said March 2 that its deal to buy a 100% interest in the Frontier Exploration Licence 3/19 offshore Ireland had been cancelled by the seller, DNO North Sea.
In a regulatory filing, Europa said the agreement was terminated with effect from March 1. Norwegian explorer DNO North Sea had agreed to a conditional sale of 3/19 to Europa for a nominal fee in June 2020, subject to certain regulatory conditions. It was unclear what led to the deal breaking down.
The 3/19 licence area, situated off the Slyne basin off northwest Ireland, contains the Edge gas prospect with an estimated 1.2 trillion ft3 of unproven reserves. It forms a potential gas play with the Europa-owned 1.5 trillion ft3 Inishkea prospect in FEL 4/19.
The Slyne basin also comprises the Corrib gas field, brought online by Shell in 2015. The major later sold its stake to the Canada Pension Plan Investment Board for up to $1.2bn in 2018, with the operatorship passing to 20% stakeholder Vermilion Energy.