(Sharecast News) - Europa Oil & Gas announced a significant extension to its PEDL 343 licence on Wednesday, housing the Cloughton gas discovery in the East Midlands.
The AIM-traded firm said that as the operator with a 40% interest, it could confirm that the North Sea Transition Authority (NSTA) had granted a two-year extension to both the initial term, now extended to 20 July 2026, and the second term, extended to 20 July 2028.
It said the extension would allow it to further its endeavours, given the Cloughton discovery was estimated to hold Pmean gross gas initially in place (GIIP) volumes of 192 billion cubic feet.
Notably, the discovery well at Cloughton had demonstrated promising results, flowing good quality sweet gas at rates of up to 40,000 standard cubic feet per day at natural flow.
Europa's projections suggested that, with appropriate completion techniques, a well could flow at six million standard cubic feet per day.
The company said it was committed to engaging with stakeholders to secure the necessary permits and consents required for drilling an appraisal well.
It said the step was crucial in demonstrating the field's productivity and unlocking its potential.
"We are delighted that the NSTA has granted a two-year extension to PEDL 343 as it allows us to continue to progress the material Cloughton gas discovery towards commercialisation," said chief executive officer Will Holland.
"We will update the market as we reach further milestones."
At 1210 GMT, shares in Europa Oil & Gas Holdings were down 1.17% at 1.01p.
Reporting by Josh White for Sharecast.com.
Europa Oil & Gas (EOG)