|Europa interest||100% operator|
|Play||Triassic sandstone (gas)|
|Term||15 year Frontier Exploration Licence|
We consider the Inishkea prospect in FEL 4/19 in the Slyne basin and near the Corrib gas field our flagship project in Ireland. The Triassic gas hydrocarbon play is well understood and proven to work both technically and commercially in the Slyne basin by the Corrib gas field. Therefore, play risk is lower than in other Atlantic Ireland basins where play risk remains to be conclusively proven by a commercially successful exploration discovery. Europa therefore views the Licence as low risk exploration in a proven gas play.
Following the completion of a comprehensive work programme encompassing all available data including 3D seismic covering the Inishkea prospect and the Corrib gas field, Europa published updated prospective resource estimates for Inishkea in February 2019, the results of which are included in the table below:
|Licence||Prospect||Play||Gross un-risked prospective resources (billion cubic feet)|
|FEL 4/19||Inishkea||Triasic gas||244||968||3,606||1,528|
Inishkea is a large fault bounded Triassic structure. It lies to the northwest of the Corrib gas field and is 11 km from Corrib at its nearest point. The reservoir is Triassic age Corrib sandstone sourced from the underlying Carboniferous. The trap is provided by a combination of Triassic Uilleann Halite top seal and fault seal. Engineering studies demonstrate strong positive economics for a range of porosity outcomes, including outcomes significantly poorer than Corrib. Europa’s view of porosity at Inishkea is supported by velocity data from new PSDM data. Given the Company’s confidence in trap and reservoir quality and the nearby producing Corrib gas field, prospect risk is regarded as low based on in-house technical work.
Water depths are comparatively shallow (400-600m) and do not require harsh environment sixth generation drillships therefore drill costs are lower. We have recently conducted a drill cost estimate for a well on the Inishkea prospect and dry hole cost including mob and demob is £37 million.
Gas infrastructure is already present nearby at Corrib therefore a fast track path to commercialisation is potentially available, subject to negotiation and cooperation with the infrastructure owners.
Gas is likely to be a significant component of Ireland’s future energy needs both for electricity generation and domestic and industrial heating.
In addition to Inishkea, the Licence holds the Corrib North structure containing the 18/20-7 gas discovery well drilled by Shell in 2010. Europa has currently identified a wide range of gas initially in place (GIIP) in the Corrib North discovery and subject to a favourable outcome to engineering studies it may be possible to upgrade to contingent resources. Whilst poroperm at Corrib North is towards the tighter end of the spectrum and the GIIP is comparatively low we believe it is possible that it could nevertheless represent a commercially viable reserve.
The Corrib field was discovered by Enterprise Oil in 1996. Europa has access to a number of former Enterprise staff responsible for this project including: the geophysicist who first mapped the Corrib prospect, the Dublin exploration manager responsible for the first four exploration and appraisal wells and the Dublin general manager responsible for taking the field through to consent for plan of development. Europa therefore has significant and relevant technical, commercial and project management expertise to apply to gas exploration in FEL 4/19.