Kosmos has farmed into deepwater acreage in Ireland’s Porcupine Basin in two separate deals for the Atlantic Margin acreage offshore western Ireland.
The company executed farm-in agreements with Irish independent Antrim Energy Inc. for Licensing Option 11/5, and with Europa Oil & Gas (Holdings) for Licensing Options 11/7 and 11/8. Water depths in these blocks range from 500-2,000 m (1,640-6,560 ft).
Kosmos is acquiring a 75% participating interest and operatorship in Antrim’s approximately 1,410sq km licence 11/5 in exchange for carrying the full costs of a planned 3D seismic program. In addition, the company will reimburse Antrim for a portion of previously-incurred exploration costs.
It is also acquiring an 85% participating interest and operatorship in the 11/7 and 11/8 licences, an area covering 2,000sq km, in the separate agreement with Europa. According to terms of that agreement, Kosmos will fully fund a planned 3D seismic program on each block and reimburse Europa for a portion of its previously-incurred exploration costs.
Contingent upon an election by Kosmos and Europa to enter into a subsequent exploration drilling phase on one or both of the blocks, Kosmos will also fund 100% of the costs of the first exploration well on each block, subject to an investment cap. The per-well investment cap for the first well is $90m on licence 11/7 and $110m on licence 11/8.
Paul Dailly, Kosmos’s Senior Vice President and Chief Geoscientist, said, “The addition of these highly-prospective blocks offshore Ireland represents further opportunity to leverage our understanding of Cretaceous-age combination structural-stratigraphic plays in overlooked and underexplored basins. With a number of significant leads already identified on 2D, our plans are to commence 3D seismic acquisition over portions of these deepwater acreage positions later in 2013, subject to finalising the areas as Frontier Exploration Licenses.”
The completion of the farm-in agreements is subject to final Irish government approval and other customary closing conditions. Following approval, Kosmos and co-venturers will pursue converting the Licensing Options to Frontier Exploration Licenses and seek approval of a work program.
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