Europa Oil granted two-year extension to Cloughton licence

(Sharecast News) - Europa Oil & Gas announced on Friday that it has been granted a two-year extension to the first phase of its PEDL343 licence, which contains the Cloughton gas discovery in North Yorkshire, extending the deadline for appraisal work to March 2028. The AIM-traded oil and gas exploration, development and production company said the North Sea Transition Authority approved the extension, with the first phase of the licence now set to expire on 21 March 2028 and the second phase on 21 July 2030.

It said the PEDL343 licence hosts the Cloughton discovery, which Europa estimated to contain 137 billion cubic feet of gas.

Under the revised timetable, the first phase work programme would include the acquisition of 17 square kilometres of 3D seismic data and the drilling of an appraisal well to a depth of 6,500 feet true vertical depth subsea.

"I am very pleased that we have secured this extension which has provided us with the time needed to drill the appraisal well on the 137 billion cubic feet Cloughton gas field," said chief executive William Holland.

"This onshore field is close to the NTS and as such a successful appraisal well will allow the field to be brought online quickly."

He added that domestic gas production from Cloughton would "displace high GHG intensity imported LNG, generate well paid local jobs, provide gas to heat almost half of the homes in North Yorkshire and generate over £50m in taxes," while having minimal impact on the local community and delivering benefits to community groups, as seen at the company's other onshore UK production sites.

At 1232 GMT, shares in Europa Oil & Gas Holdings were up 9.1% at 1.99p.

Reporting by Josh White for Sharecast.com.