Thursday 16 February 2017

Lansdowne Oil & Gas, the independent oil and gas company focused on offshore Ireland, has announced the relinquishment of Standard Exploration Licence (SEL) 4/07, with effect from December 31st 2016.

Lansdowne retained a 20% interest in the licence after farming out to Kinsale Energy, which acquired an 80% interest and operatorship and drilled the 49/11-3 well on the Midleton Prospect in 2015. The well found gas in the Greensand, the main reservoir target, but the volume is considered too small to be commercial.

Kinsale Energy conducted a comprehensive post-well evaluation of the other prospective structures on the acreage, but concluded that, based on the current data available, none of these were attractive enough in terms of risk and reward to offer drillable targets.

A final report has been submitted to the Department of Communications, Climate Action and Environment and the Licence has been relinquished with effect from 31 December 2016, the end of the First Phase.

Commenting on the news, Lansdowne CEO Steve Boldy said:

'Midleton was considered the prime prospect on SEL 4/07 and following the disappointing results of the 49/11-3 well, it is not surprising that the conclusion has been reached to relinquish the acreage. This further portfolio rationalisation will allow Lansdowne to focus all its resources upon the Barryroe Field where we have substantial 2C resources.'