• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 10 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 19 hours Putin blocks Ukraine access to Black Sea after Joe blinks
  • 12 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 2 days U.S. Presidential Elections Status - Electoral Votes
  • 2 hours Fukushima
  • 1 day So. Who's for Universal Basic Income?
  • 2 days Biden about to face first real test. Russia building up military on Ukraine border.
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Irish Oil And Gas Licensing Round Dominated By Juniors

I wrote over the weekend about how an unfolding offshore licensing round in Cyprus could be a great opportunity for junior firms. And the past few days, it’s emerged that junior E&Ps are thriving in another high-profile offshore play.

Ireland.

The Irish government Friday announced winners in the second tranche of its 2015 Atlantic Margin Licensing Round. This includes licenses in the Porcupine Basin — a play that has been getting a lot of attention as the next big thing in offshore exploration. And this time around, the Irish licensing was dominated by junior players.

A total of 14 licenses were awarded as part of this tranche, with these projects going to a slate of juniors including AzEire Petroleum, Capricorn Ireland, Europa Oil and Gas, Faroe Petroleum, Petrel Resources, Predator Oil and Gas, Providence Resources, Ratio Petroleum and Scotia Oil and Gas. Related: Permian Springs To Life With $50 Oil

On the face of it, that’s a bit of a disappointing outcome — given that the first tranche of licenses in this round attracted a slate of majors including BP, ExxonMobil, Eni, Statoil and Nexen. But the lack of major participation in this tranche could end up giving the juniors room for big gains here.

The thing is, we already know that the world’s largest E&P companies are interested in this part of the world. As the bidding in tranche one shows, even at lower oil and gas prices the majors were still moving to secure acreage here.

Those big players likely grabbed the “low hanging fruit” in terms of prospects, using their financial and business clout to take up the licenses that had the best data and most obvious potential. The second tranche licenses awarded this week probably need a little more work to demonstrate their potential. But such potential could well materialize with some good geological and geophysical work by the junior operators. Related: Saudi Cabinet Green Lights $141B Oil Diversification Plan

These licenses will almost certainly be candidates for farm-outs with majors, an outcome that could see the juniors get a free ride on test drilling — with potential for world-class discoveries.

That’s a recipe for success in the junior E&P world. Watch for announcements over the coming months from this week’s license winners on progress across these projects — and for potential farm-out deals coming down the road.

Here’s to the little guys,

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News