Europa Achieves Farm-In Deal for Irish Licenses

UK and Ireland-focused Europa Oil & Gas reported Thursday that it has agreed a farm-in deal with a subsidiary of independent oil firm Kosmos Energy for its two licensing options in the South Porcupine Basin offshore Ireland.

The deal will see Kosmos acquire an 85-percent interest, and operatorship, of both the LO 11/7 and LO 11/8 licensing options in return for which Kosmos will fully fund the costs of a 3D seismic program on each license and pay 85 percent of the costs incurred by Europa to date.

In addition, if the companies agree to begin an exploration drilling phase on one or both of the blocks, Kosmos will also incur 100-percent of the costs of the first exploration well on each block. The first exploration wells on LO 11/7 and LO 11/8 have investment caps of $90 million and $110 million respectively. Europa said that costs in excess of this investment cap would see Kosmos fund just 85 percent of the additional amount, with Europa funding 15 percent.

Europa CEO Hugh Mackay commented in a statement:

"We are very pleased to have secured a respected leading independent such as Kosmos as a farm-in partner and operator for our Irish Licences. Kosmos are a highly experienced operator in frontier basins and pioneered the Cretaceous stratigraphic play that has resulted in significant exploration success in the Atlantic margin basins. We look forward to working with Kosmos and their involvement is a highly significant first step towards realising the potential value of our exciting prospects in a new hydrocarbon play located in an essentially undrilled basin offshore Ireland."

Mackay also noted that, with the Eirik Raude rig now in Irish waters and ready to drill Exxon's Dunquin well, "an exciting new chapter in the exploration of Ireland is starting and we are delighted to be part of it".

Oil sector analysts responded positively to the Europa/Kosmos deal. London-based finnCap commented that it was "a major milestone" for Europa. "Importantly, the deal not only provides funding, it also brings in a technically credible and experienced operator that helps validate the plays identified," a finnCap research noted stated Thursday.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Europa Achieves Farm-In Deal for Irish Licenses

UK and Ireland-focused Europa Oil & Gas reported Thursday that it has agreed a farm-in deal with a subsidiary of independent oil firm Kosmos Energy for its two licensing options in the South Porcupine Basin offshore Ireland.

The deal will see Kosmos acquire an 85-percent interest, and operatorship, of both the LO 11/7 and LO 11/8 licensing options in return for which Kosmos will fully fund the costs of a 3D seismic program on each license and pay 85 percent of the costs incurred by Europa to date.

In addition, if the companies agree to begin an exploration drilling phase on one or both of the blocks, Kosmos will also incur 100-percent of the costs of the first exploration well on each block. The first exploration wells on LO 11/7 and LO 11/8 have investment caps of $90 million and $110 million respectively. Europa said that costs in excess of this investment cap would see Kosmos fund just 85 percent of the additional amount, with Europa funding 15 percent.

Europa CEO Hugh Mackay commented in a statement:

"We are very pleased to have secured a respected leading independent such as Kosmos as a farm-in partner and operator for our Irish Licences. Kosmos are a highly experienced operator in frontier basins and pioneered the Cretaceous stratigraphic play that has resulted in significant exploration success in the Atlantic margin basins. We look forward to working with Kosmos and their involvement is a highly significant first step towards realising the potential value of our exciting prospects in a new hydrocarbon play located in an essentially undrilled basin offshore Ireland."

Mackay also noted that, with the Eirik Raude rig now in Irish waters and ready to drill Exxon's Dunquin well, "an exciting new chapter in the exploration of Ireland is starting and we are delighted to be part of it".

Oil sector analysts responded positively to the Europa/Kosmos deal. London-based finnCap commented that it was "a major milestone" for Europa. "Importantly, the deal not only provides funding, it also brings in a technically credible and experienced operator that helps validate the plays identified," a finnCap research noted stated Thursday.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Centrica Achieves First Gas from York Platform

Gas production has begun at Centrica Energy Upstream's York platform in the southern North Sea, the company announced Friday afternoon (UK time).

The field, which is 100-percent owned by Centrica, will produce around 120 million cubic feet of gas per day at its peak, the firm said.

Centrica highlighted that the York platform is the third significant greenfield project completed in as many years after Ensign, also located in the southern North Sea, and F3-FA, the first self-installing platform in the North Sea. The field also represents a successful collaboration between Centrica Energy and Centrica Storage, with gas from the field being exported via pipeline to Centrica Storage's terminal in Easington, in northeast England.

Drilling is now underway on York's second well which, at some 3.75 miles, is the longest well Centrica Energy has drilled and is one of the longest wells in the southern North Sea.

Greg McKenna, Centrica's regional director for the southern North Sea, commented in a company statement:

"The team is celebrating as first gas is achieved from York, which will produce enough gas to meet the demands of half a million households. We have taken this project from investment decision to production in just 24 months, which is testament to the hard work of the project teams in both Centrica Energy and Centrica Storage. We will continue to work closely in the coming weeks as we bring gas onshore to the upgraded Easington Terminal."

The York platform is located around 25 miles east of Humberside, England, in a water depth of 150 feet.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Centrica Achieves First Gas from York Platform

Gas production has begun at Centrica Energy Upstream's York platform in the southern North Sea, the company announced Friday afternoon (UK time).

The field, which is 100-percent owned by Centrica, will produce around 120 million cubic feet of gas per day at its peak, the firm said.

Centrica highlighted that the York platform is the third significant greenfield project completed in as many years after Ensign, also located in the southern North Sea, and F3-FA, the first self-installing platform in the North Sea. The field also represents a successful collaboration between Centrica Energy and Centrica Storage, with gas from the field being exported via pipeline to Centrica Storage's terminal in Easington, in northeast England.

Drilling is now underway on York's second well which, at some 3.75 miles, is the longest well Centrica Energy has drilled and is one of the longest wells in the southern North Sea.

Greg McKenna, Centrica's regional director for the southern North Sea, commented in a company statement:

"The team is celebrating as first gas is achieved from York, which will produce enough gas to meet the demands of half a million households. We have taken this project from investment decision to production in just 24 months, which is testament to the hard work of the project teams in both Centrica Energy and Centrica Storage. We will continue to work closely in the coming weeks as we bring gas onshore to the upgraded Easington Terminal."

The York platform is located around 25 miles east of Humberside, England, in a water depth of 150 feet.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Swiber Achieves Record Earnings on South American, Asian Contract Wins

Singapore-listed Swiber reported Wednesday that it has achieved a record for both revenue and profit for the financial year ended Dec. 31, 2012, the highest since its listing in 2006.

Net profit surged 48.3 percent from $42.2 million year-on-year, while revenue increased 45.5 percent to $952.2 million for the same period.

Offshore construction contract wins secured in the South American and Southeast Asian regions contributed significantly to the company’s topline, Swiber said in a statement.

"We continue to be bullish about Asia, in particular Southeast Asia, a region that Swiber has a deep knowledge of, coupled with a proven track record. As of February this year, Swiber's order book stands at around $1.35 billion, with a significant portion to be carried out in Asia," Swiber's CEO and President, Francis Wong, noted in the company’s earnings statement.

"For 2013, Swiber will continue to strategically bid for work in [Southeast Asia], in addition to other regions such as South Asia, South America and the Middle East," Wong added.

In a separate statement, Swiber revealed Wednesday its first offshore contract wins for this year. The contracts – which add up to $153 million – involve the transportation and installation of pipelines and offshore structures in Southeast Asia. 

Swiber made mention of the B-193 Field Development project, its first floatover operation successfully executed and completed with India’s state-backed Oil and Natural Gas Corporation.

"Capabilities wise, the completion of works on the B-193 Field Development project marks the first time that any company has used floatover methods for offshore field development in India. With its success, we are primed to further capabilities on the upswings in the offshore oil and gas industry in India and beyond," Wong said.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Moonta Well Achieves Highest Flow Rate in Permit PEL 218

Beach Energy reported that its Moonta-1 well has achieved the highest flow rate of its three unconventional gas exploration wells flow tested to-date in the PEL 218 Permian.

The Moonta-1 well reached a maximum controlled flow rate of 2.6 MMcf/d and is currently flowing at 1.6 MMcf/d through a 1.5-inch choke. Beach said that the well was the first to stimulate the full Patchawarra section. It is anticipated that as techniques are refined in successive wells of the program, improvements over the rates achieved to-date will be realized.

The initial two shale gas wells, Encounter-1 and Holdfast-1, both had peak gas flow rates of about 2.1 MMcf/d and were stimulated in the REM section, with a single stage in the uppermost Patchawarra formation.

Beach said in a statement that the Moonta-1 well was designed to prove up the basin centered gas play and was stimulated in nine stages through the Patchawarra formation, and a single stage in the Murteree Shale. The operator said that with gas now flowing through the well, it is clear that the BCG play exists and the company will continue to refine its understanding of the play with the upcoming program.

Moonta is located in the PEL 218 license, wholly owned and operated by Beach Energy, which is situated in the Cooper Basin.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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