(Alliance News) - Shares in Europa Oil & Gas Holdings PLC fell on Thursday, after it reported that a "major oil company" pulled out of farm-out discussions at three of exploration firm's licences in Ireland.
The stock was trading 27% lower at 1.88 pence each in London on Thursday morning.
Europa, which has sole ownership of the offshore Frontier Exploration licences, in October said it was in talks with the north-western Europe division of an oil major. These talks were ongoing for more than 12 months, Europa said at the time.
The London-based firm said on Thursday, however: "The major has now informed the company that, as part of a wider strategic review, the licences are no longer under consideration for farm-in.
"Discussions with several other parties regarding the farm-out of the licences are continuing."
The licences include the 4/19, the 1/17, and the 3/13 concessions.
For the moment, Europa said it is prioritising securing a drilling partner at the Inishkea prospect, located inside licence 4/19.
The company added: "In tandem with ongoing farm-out discussions, the site survey process for a drilling location at Inishkea is being advanced. The company hopes to obtain permission for the survey to be conducted during summer 2020, which would enable drilling to occur during 2021."
By Eric Cunha; ericcunha@alliancenews.com
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Europa Oil & Gas (EOG)