US independent Kosmos Energy is to farm into two exploration prospects in the frontier South Porcupine basin offshore Ireland after getting the go-ahead from the Irish government.
London-listed Europa Oil & Gas said consent had been given by the government to transfer an 85% stake and the operatorship of its two licensing options LO 11/7 and LO 11/8 to Kosmos. Europa will retain a 15% interest in each licence.
Kosmos will fully fund the costs of a 3D seismic programme on each licence, as well as pay 85% of costs that were incurred by Europa to date. If the pair elect to enter a subsequent exploration drilling phase, Kosmos will also fully fund the costs of the first exploration well on each licence.
Costs in excess of the investment cap, which is US $90m on LO 11/7 and $110m on LO 11/8, would be shared 85/15 by Kosmos and Europa, respectively.
Europa added that the joint venture would now submit an application to the government to convert each licence into a 15-year frontier exploration licence.
Each covers about 1,000sq km in the Irish Atlantic Margin and neither has had a well drilled. 2D seismic data has identified the Mullen and Kiernan prospects.
Europa chief executive Hugh Mackay said Kosmos was an ideal partner to lead the exploration of the licences as it is pursuing the same Cretaceous stratigraphic play in the Atlantic Margin basins offshore West Africa.
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