Kosmos Gets Go-Ahead for Irish Farm-In

Europa Oil & Gas reported Monday that it has received government consent for the farming out of its Irish licensing options to independent oil and gas firm Kosmos Energy.

Europa reported that the Irish government has approved the transfer from Europa to Kosmos of 85 percent of Europa’s Licensing Option 11/7 and LO 11/8, which together cover approximately 770 square miles in the South Porcupine Basin in the Irish Atlantic Margin. Kosmos also assumes operatorship of the licensing options, while Europa will retain 15 percent of both options.

The proposed farm-in deal was previously announced April 18.

Europa CEO Hugh Mackay commented in a company statement Monday:

"Subject to government approval for converting the Licensing Options into full exploration licences, the next steps will involve acquiring 3-D seismic over both blocks. We are pursuing the same Cretaceous stratigraphic play that Kosmos pioneered in the Atlantic Margin basins offshore West Africa. Kosmos have outstanding technical and operational experience of exploring this play and are the ideal partner to lead our exploration programme in the South Porcupine basin.

"The recent announcements by ExxonMobil on 23 April of the commencement of drilling on the nearby Dunquin prospect and by Cairn Energy on 7 May regarding their farm-in to three licences in the North Porcupine basin indicate that we are entering an important period in offshore Ireland oil and gas exploration, in which Europa will be playing a key role."

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Cairn Strikes Spanish Point Farm-In Deal

UK independent Cairn Energy announced Tuesday that it is farming into the Spanish Point Area licenses offshore Ireland. The firm has struck a deal with Chrysaor and Sosina to farm into Frontier Exploration Licence 2/04, FEL 4/08 and Licensing Option 11/2, which are all located in Quad 35 in the Porcupine Basin off the west coast of Ireland.

Under the terms of the deal agreed, Cairn will earn a 38-percent stake in the licenses, and assume the operator role, by paying 63.33 percent of future exploration and appraisal costs for up to two wells.

Another partner in the licenses, Providence Resources, issued a statement of its own Tuesday stating that its stakes in the licenses would remain at 32 percent. Chrysaor and Sosina retain 26-percent and four-percent interests in Spanish Point. 

Providence said that the latest rig scheduling information from Cairn and Chrysaor indicates that the partners now plan to drill the appraisal well at Spanish Point in the second quarter of 2014, with a follow-on well to be drilled at another target at a later date. The partners also expect to carry out extensive 3D seismic work on Licensing Option 11/2.

Commenting on the farm-in, Providence Chief Executive Tony O'Reilly said in a statement:

"We are delighted to welcome Cairn into our partnership in the Porcupine Basin. The arrival of a major independent operator like Cairn, with their deep water experience and their technical and financial strengths, provides further validation of the real potential of the Irish offshore and we look forward to working with them in the upcoming appraisal drilling at Spanish Point in 2014 and subsequent drilling and exploration activities within Quad 35."

Oil sector analysts at London-based Liberum Capital noted that the transaction adds Ireland to Cairn's existing Atlantic Margin interests offshore Greenland and Morocco.

"[Cairn's] deep water experience and technical and financial strengths provider further validation of the potential of Providence's acreage and the Irish offshore," a brief research note from Liberum stated.

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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New World in Danish Farm-In Discussions

New World Oil & Gas reported Friday that discussions are ongoing with potential farm-in partners for its Danica Jutland project on license 1/09, onshore Denmark.

The firm said that interpretation of its 3D seismic acquisition program on the project's Jensen prospect is now complete. Independent consultant RPS Energy has assigned the Jensen prospect prospective resources of 48 million barrels of oil, and an updated competent person’s report will be released by the mid-2013.

On New World's Danica Resources project, a 2D seismic acquisition program has now been completed. This revealed high grading data on large Zechstein Zn-2, Zn-3 and Zn-4 leads that total 13,485 acres. Interpretation of the data is now underway with a view to deciding which leads are to undergo a 3D seismic acquisition program.

New World says that P50 volume estimates for the Als Prospect within the Danica Resources project remain at 97 million barrels of oil and 1.4 trillion cubic feet of gas.

New World has a 25-percent working interest in both projects, with an option to earn up to 80 percent in each of them.

New World CEO William Kelleher commented in a statement:

"Whilst drilling is underway in Belize, progress continues to be made across the Atlantic at our Danish assets. We have completed the initial interpretation of the 3D seismic data on our Jensen prospect on block 1/09, and RPS Energy are now compiling the data into an updated CPR which will be available before the end of the second quarter 2013.

"Meanwhile, our recent 2D program on block 1/08 has just been completed. We are eager to receive the results of this program as the data will reveal which of several large structures already identified we will further de-risk with a 3-D program."

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New World in Danish Farm-In Discussions

New World Oil & Gas reported Friday that discussions are ongoing with potential farm-in partners for its Danica Jutland project on license 1/09, onshore Denmark.

The firm said that interpretation of its 3D seismic acquisition program on the project's Jensen prospect is now complete. Independent consultant RPS Energy has assigned the Jensen prospect prospective resources of 48 million barrels of oil, and an updated competent person’s report will be released by the mid-2013.

On New World's Danica Resources project, a 2D seismic acquisition program has now been completed. This revealed high grading data on large Zechstein Zn-2, Zn-3 and Zn-4 leads that total 13,485 acres. Interpretation of the data is now underway with a view to deciding which leads are to undergo a 3D seismic acquisition program.

New World says that P50 volume estimates for the Als Prospect within the Danica Resources project remain at 97 million barrels of oil and 1.4 trillion cubic feet of gas.

New World has a 25-percent working interest in both projects, with an option to earn up to 80 percent in each of them.

New World CEO William Kelleher commented in a statement:

"Whilst drilling is underway in Belize, progress continues to be made across the Atlantic at our Danish assets. We have completed the initial interpretation of the 3D seismic data on our Jensen prospect on block 1/09, and RPS Energy are now compiling the data into an updated CPR which will be available before the end of the second quarter 2013.

"Meanwhile, our recent 2D program on block 1/08 has just been completed. We are eager to receive the results of this program as the data will reveal which of several large structures already identified we will further de-risk with a 3-D program."

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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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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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InterOil Finalizes PNG Farm-In Deal with Pacific Rubiales

InterOil Corporation announced that it has completed the farm-in transaction with Pacific Rubiales Energy Corp. relating to its acquisition of a 10% net (12.9% gross) participating interest in Petroleum Prospecting License 237 (PPL 237) onshore Papua New Guinea, including the Triceratops structure and exploration acreage located within that license. This announcement is made to confirm completion of the Farm-In Agreement with PRE announced July 30, 2012.

On March 23, 2013, PRE funded the final payment of approximately $55 million under the Farm-In Agreement. Together with previous payments PRE has funded the full $116 million cash payment due under the Farm-in Agreement. Additional payments of PRE's drilling costs for the Triceratops-2 well are scheduled to be paid in the coming months.

"InterOil is pleased to have completed the Farm-In Transaction with Pacific Rubiales, a company with a track record of successful exploration and production development," stated Phil Mulacek, Chief Executive Officer of InterOil. "We look forward to appraisal and development of the Triceratops gas and condensate field with our partners."

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Fastnet Secures Deep Kinsale Farm-In Option

Fastnet Oil & Gas announced Thursday that it has secured an option to farm into the Deep Kinsale prospect offshore Ireland in the North Celtic Sea Basin. The deal has been struck with Kinsale Energy - a wholly-owned subsidiary of Petronas.

Fastnet, which is focused on offshore opportunities both in Ireland and Morocco, said the move is means its strategy to build a "material portfolio" of Purbecko-Wealden prospective structures is now complete. As well as Deep Kinsale, the company holds interests in the nearby Mizzen, Shanagarry and block 49/13 prospects.

The farm-in deal will see Fastnet acquire a minimum of 190 square miles of 3D seismic data over the Deep Kinsale area by the end of this year. The firm will then have an exclusive option to farm into the prospect before Sep. 30, 2014 by drilling a well to test the Purbecko-Wealden reservoirs there. Upon completion and testing, Fastnet will earn a 60-percent working interest in the Deep Kinsale Sub-Area by funding 100 percent of all drilling and testing costs.

The Deep Kinsale prospect is located beneath the producing Kinsale Head gas field, which came on stream in 1978.

"We are delighted to have added an exclusive option to farm into and potentially drill the Deep Kinsale Prospect in 2014. It represents an attractive addition to our Irish portfolio as we have long held a belief that Deep Kinsale offers the potential to yield up another significant hydrocarbon discovery offshore Ireland," Fastnet Chairman Cathal Friel commented in a company statement.

Friel noted that the company's belief in Deep Kinsale's potential was reinforced last year by Providence Resources' successful appraisal of the nearby Barryroe discovery – which has been estimated to hold more than a billion barrels of oil on a P50 basis. Barryroe is geologically analogous to Deep Kinsale.

Will Arnstein, an oil sector analyst at London-based investment bank FinnCap, commented in a brief research note Thursday:

"Our view is this is an exciting opportunity that, while early stage, has considerable hydrocarbon potential and enhances the attraction of Fastnet's Celtic Sea acreage."

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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Raisama Withdraws from Farm-In Agreement Offshore New Zealand

New Zealand Oil & Gas (NZOG) revealed Wednesday that Raisama Energy is withdrawing from its farm-in agreement to participate in drilling the Kakapo structure in PEP 51311, offshore Taranaki Basin.

NZOG noted in its statement that Raisama acquired the opportunity to earn a ten percent interest in the prospect by paying 20 percent of drilling costs up to $3.1 million (AUD 3 million) and 10 percent after that.

"As the well has not yet been drilled, Raisama's withdrawal means it will not incur these costs," NZOG said in its disclosure.

NZOG is at present, seeking further farm-in partners and a drilling rig on suitable terms.

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