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Kosmos Farm-in to Europa’s Irish Licences App...
Kosmos Farm-in to Europa’s Irish Licences App....
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas \n\n13 May 2013\n\n Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') \n\n Kosmos farm-in to Europa's Irish licences approved by Irish Government \n\nEuropa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration and\ndevelopment company with a combination of producing and exploration assets in\nEurope, is pleased to announce Irish Government consent has been received for\nthe transfer of interest and operatorship (`Transfer') for its two Licensing\nOptions LO 11/7 and LO 11/8 (`Licences'), which cover approximately 2,000 sq km\nin the highly prospective South Porcupine Basin in the Irish Atlantic Margin,\nto a subsidiary of the independent oil and gas exploration and production\ncompany Kosmos Energy Ltd (`Kosmos').\n\nThe Transfer was approved by the Minister of State at the Department of\nCommunications, Energy and Natural Resources on 8 May 2013 and as a result,\nKosmos now holds an 85% interest in, and has assumed operatorship of, both\nLicences with Europa holding the remaining 15%. As announced on 18 April 2013,\nunder the terms of the farm-in Kosmos will fully fund the costs of a 3-D\nseismic programme on each Licence and pay 85% of costs incurred by Europa to\ndate.\n\nContingent upon an election of the companies to enter into a subsequent\nexploration drilling phase on one or both of the Licensing Option areas, Kosmos\nwill also incur 100% of the costs of the first exploration well on each\nLicensing Option. The first exploration wells on LO 11/7 and LO 11/8 have\ninvestment caps of US$90 million and US$110 million respectively. Costs in\nexcess of the investment cap would be shared between Kosmos (85%) and Europa\n(15%).\n\nKosmos, in conjunction with Europa, will now submit an application to the Irish\nGovernment to convert each Licence into a 15 year Frontier Exploration Licence.\n\nEuropa's CEO Hugh Mackay said: \"Subject to government approval for converting\nthe Licensing Options into full exploration licences, the next steps will\ninvolve acquiring 3-D seismic over both blocks. We are pursuing the same\nCretaceous stratigraphic play that Kosmos pioneered in the Atlantic Margin\nbasins offshore West Africa. Kosmos have outstanding technical and operational\nexperience of exploring this play and ar...