(Alliance News) - Europa Oil & Gas Holdings PLC on Wednesday announced an extension to its PEDL 343 licence in the East Midlands of England, which contains the Cloughton gas discovery.
The UK and Ireland-focused oil and gas exploration, development and production company is operator of the licence and has a 40% interest.
Europa O&G said the UK North Sea Transition Authority notified the company that it agreed a two-year extension of the initial term to July 20, 2026, alongside a two-year extension of the second term to July 20, 2028 for PEDL 343.
The extension will enable the company to continue its ongoing work on the licence, Europa O&G said where it estimates Cloughton to have a Pmean gross gas initially in place volumes of 192 billion cubic feet.
Europa O&G said the discovery well at PEDL 343 flowed "good quality" sweet gas at rates of up to 40,000 standard cubic feet per day on natural flow. It believes that a well could flow at 6 million standard cubic feet per day, using the "correct" completion techniques.
It said it will continue to engage with its various stakeholders required to obtain the necessary permits and consents needed to drill an appraisal well in order to demonstrate the productivity of the field.
"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. We will update the market as we reach further milestones," said Europa O&G Chief Executive Officer Will Holland.
Shares in Europa O&G were down 2.4% to 1.00 penny each in London on Wednesday late morning.
By Greg Rosenvinge, Alliance News senior reporter
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Europa Oil & Gas (EOG)