IRELAND OFFERS FRONTIER ACREAGE IN PORCUPINE BASIN

Ireland plans a frontier licensing round offering 173 full or partial blocks in the Atlantic Ocean's Porcupine basin.

Irish Energy Minister Noel Treacy said applications for exploration licenses must be lodged with the Department of Transport, Energy and Communications in Dublin by Dec. 15, 1994. A date for announcing winning bidders has not been set.

The Porcupine basin is a large north south Mesozoic to Cenozoic sedimentary basin about 100 250 km west of Ireland. Water depths range from 300 m in the north to 2,000 m in the south. The basin is bordered on three sides by shallow platforms. The Irish mainland shelf lies to the east, the Slyne Ridge and Porcupine Bank form the northern limit, and the Porcupine Ridge marks the western boundary.

LICENSE TERMS

Licenses will be for continuous areas covering two to eight blocks. They will be valid for 15 years split into four phases: Mar. 15, 1995-Mar. 14, 1997, Mar. 15, 1997 Mar. 14, 2001, Mar. 15, 2001 Mar. 14, 2005, and Mar. 15, 2005 Mar. 15, 2010.

Exploration obligations on each license entail:

A seismic survey of the license area during first phase of the license.
Submission by Dec. 14, 1996, of a work program for the second phase, to include at least one exploratory well.
Submission by Dec. 14, 2000, of a work program for the third phase.
Submission by Dec. 14, 2004, of a work program for the fourth phase.

If a second exploratory well has not been proposed or drilled by Dec. 14, 2000, the licensee is required to surrender 50% of the license. If a second well has not been drilled by Mar. 14, 2005, the license is forfeited.

If a third exploratory well has not been proposed or drilled by Dec. 14, 2004, half the license interest must be surrendered.

"A company that makes a discovery under a license granted in this round will, in accordance with the Finance Act of 1992, have until May 31, 2013, to apply for and be granted a petroleum lease enabling it to develop the discovery and still qualify for the special 25% rate of corporation tax on profits," Treacy said. Data on the Porcupine basin is available from the energy ministry, including a 1987 report covering geology and potential of the basin. A well correlation package due to be published soon by the ministry.

Blocks on offer are: 25/25, 25/30; 26/16 19, 26/21 27, part of 26/28, 26/29, 26/30; 34/4, 34/5, 34/9, 34/10, 34/14, 34/15, 34/18 20, 34/23 25, 34/28 30; 35/1 30; 36/1, 36/6, 36/11, 36/16, 36/21, 36/22, 36/26, 36/27; 43/3 5, 43/8 10, 43/12 15; 43/17 20, 43/22 25, 43/27 30; 44/1 30; 45/1, 45/2, 45/6, 45/7, 45/11, 45/12, 45/16, 45/17, 45/21 24, 45/26 30; 52/1-4, 52/6 8, 52/11, 52/12; 53/4, 53/5; and 54/1 10, 54/12 15, 54/17 20, 54/22 24, and 54/27 29.