ENTERPRISE Oil, an independent exploration and production company, has announced that it has started a £15 million drilling programme 35 miles off the west coast.
The 50 foot high, semi submersible Petrolia rig, with a 20 foot derrick, started drilling the well on Monday off the Mayo coast. This is the first of two back to back wells on the Slyne Erris Trough where the London based company is the largest net holder with 2,500 square kilometres in the area.
Mr John McGoldrick, area manager, said. "This is an important well both for ourselves and Ireland and we believe that considerable potential exists in the acreage we currently hold."
He said that the company had also been awarded a licence option on the Kish bank in Dublin Bay. "We have data on this area and we are seriously considering drilling there next year."
Mr McGoldrick said the company had resumed drilling off the Irish coast because the Government favoured drilling companies, the country was politically stable and the tax system was extremely competitive. There was also a "high prospectivity" of finding oil off the Irish coast.
He said the area off the west coast was geologically similar to that west of Shetland where a number of sizeable deposits have been found.
Enterprise Oil has been represented in the Republic for 12 years. Mr McGoldrick said the company had established a significant Irish portfolio. In January 1993, it was awarded a 60 per cent operating interest covering six blocks in the Slyne Trough. In addition, it has received a 100 per cent interest in four blocks in the Rockall Trough.
The option awarded in 1994 covers almost the entire Kish bank basin in Dublin Bay and, last year, the company extended the option for 12 months on five blocks.
Mr lain Robertson, drilling project manager, said that the company would be engaging 26 direct jobs offshore and local services at Foynes and Shannon would earn £1.5 million this year.
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