Shares in Europa Oil (LON:EOG) soared by a quarter as it announced the discovery of two new and large prospects off the west coast of Ireland.
The prospects are in two 100% owned licences in the South Porcupine basin in the deep water Irish Atlantic Margin.
Mullen in LO 11/07 and Kiernan in LO 11/08 were identified in the lower Cretaceous clastic play of the Irish Atlantic Margin - a play proven by the Burren oil discovery, Europa said.
Seismic mapping indicated the possibility of large stratigraphic closures of up to 120 sq km in size in the case of Mullen and 244 sq km in the case of Kiernan, the company added.
Discussions have already started with potential joint venture partners for both licences, Europa added.
Hugh MacKay, Europa’s chief executive, said Europa’s in initial technical work and prospect mapping exercise had exceeded its expectations.
“Combined with the presence of a functioning hydrocarbon system, as indicated by the Burren oil discovery, the size of these structures is tremendously exciting and warrants further priority investigation.
“We have embarked on a work programme that will provide volumetric estimates in due course and further mature the technical case of these prospects.”
He added Europa would present the prospects at the Ireland Atlantic 2012 Conference in Dublin on 12 November 2012.
Work is also continuing at Europa's other projects including Berenx Deep, the large gas appraisal project in onshore France, and in anticipation of drilling either the Wressle or Broughton prospects in the UK early next year.
“Each of which we rate as having a one in three chance of increasing our current production of 200 boepd,” MacKay added.
Shares rose 1.4p to 6.9p.