The competent persons report (CPR) carried out by Axis Well Technology identifies prospective resources of up to 479 billion cubic feet of gas across three prospects on the P2252 licence.
As a reminder prospective resources are undiscovered hydrocarbons which could be recovered through exploration drilling. As such there is still considerable uncertainty over whether or not these ‘resources’ can be successfully exploited.
And before the company can even drill the prospects on its acreage it needs to attract a partner with deeper pockets. Chairman and chief executive Algy Cluff says: ‘Our objective now is to complete the process of attracting the partners required to fully appraise the production potential of these exciting assets.’
House broker Panmure Gordon reiterates its 10p price target and ‘buy’ recommendation. It comments: ‘These licences lie to the north of proven prolific gas fairways and toward the edge of the basin, where recent Carboniferous discoveries notably at Pegasus and Crosgan have upgraded the potential of the area, while new field development at Breagh and Cygnus, to the south of the licences, improve potential access to infrastructure.’