Europa Oil & Gas (Holdings) said it hoped to build on initial encouraging results from the Inezgane licence near Agadir, Morocco after the company was granted a one-year extension to its permit.
The hydrocarbon exploration, development and production company has so far mapped up to 10 billion barrels of unrisked oil resources.
Morocco’s National Office of Hydrocarbons and Mines (ONHYM), which has a 25% stake in the licence, granted the extension for the 11,228km2 site in the Agadir Basin.
Europa, with a 75% stake, now has until November 2022 to complete its technical work programme following delays caused by the Covid-19 pandemic.
It aims to de-risk 30 prospects and leads which it estimated could hold approximately 10 billion barrels of unrisked oil resources.
The company stated that of the 30 prospects and leads identified to date, 14 prospects were each estimated to have mean resources in excess of 150 mmboe.
The prospects have stacked reservoir potential and include a wide range of structural styles including such as 4-way dip closures in the case of the 827 mmboe Falcon and 204 mmboe Turtle prospects.
The geological chance of success to these prospects is 20-35%.
FARM-OUT
Europa aims to build a “robust prospect inventory” and secure one, or more than one, partner to drill wells.
The company will conduct a farm-out process after completing the technical work programme although Europa is already in talks with three interested parties.
Europa was granted the Inezgane licence in 2019 for three phases to be completed in eight years.
Following the extension, the initial phase will now run for three years and the Inezgane licence across the three exploration phases will last nine years.
After completing the first phase, Europa can choose to drill an oil exploration well in the second phase or relinquish the licence.
POTENTIAL
Europa also has interests in Wressle oil field, Lincolnshire and recently applied to relinquish four offshore oil licences in Ireland.
“The equivalent of approximately 50 UKCS North Sea blocks, Inezgane covers a large area in the Agadir basin,” said chief executive Simon Oddie.
“Inezgane is living up to the promise we identified when we first applied for the licence.
“With the extension granted, we are now focused on completing the technical work ahead of securing a partner or partners with whom we can work to realise the licence’s substantial potential.
“Together with ongoing work to bring the Wressle oil field in Lincolnshire online later this quarter, which will more than double our production to over 200 bopd, the months ahead promise to be an exciting period for Europa.”