Europa Gives up Irish Licence

London-listed Europa Oil & Gas said on February 5 it had relinquished its 30% stake in a licensing option (LO) in Ireland’s offshore South Porcupine basin, after lacklustre seismic results.

The agreed work programme at LO 16/19 has been completed, including a seismic survey in 2018, according to Europa. It has decided to give up its interest after concluding that the area’s prospects are “limited.”

Europa farmed out a 70% stake in LO 16/19 in 2017 to the UK’s Cairn Energy, which also received operatorship. The former said it would include a £94,000 ($122,000) write-off charge in the first quarter, covering its share of the seismic survey’s cost.

By exiting the project now, Europa will avoid £105,000 in full-year costs based on it taking a 100% position in the LO and converting it into a frontier exploration licence (FEL). Cairn has not confirmed its withdrawal from the licence.

Europa now has five remaining licences off Ireland, all 100%-owned. Last month it confirmed that a “major oil company” had walked away from talks to farm into three of these licences, stalling its development plans.