News

June 10, 2009

Island Oil & Gas Investigates Gas Storage Potential Of Its Celtic Sea Discoveries As Interest In Slyne Basin Acreage Looks Set To Rise Following Serica Energy’s Oil Discovery

It’s an interesting commentary on how energy security has grown as an issue to count how many E&Ps now have a potential gas storage project on their books. In the UK, there was Egdon Resources (which successfully IPOed its gas storage business, now trading on AIM as Portland Gas) and there is still EnCore Oil, which has ambitious plans in the North Sea. In Europe, Melrose Resources is converting its depleting Bulgarian gas field Galata into a storage facility, Po Valley Energy has bid for a gas storage concession in Italy and Northern Petroleum has already turned a profit on the gas storage rights to its Waalwijk field in the Netherlands, which were sold to Star Energy last summer for £7 million.

And in Ireland, Island Oil & Gas is investigating the gas storage potential of its discoveries in the Celtic Sea.  Only a few years ago, Celtic Sea explorers were keen to highlight the raging market for any indigenous gas finds: after all, the economy was booming and the country’s main domestic gas source, the Kinsale Head gas field, was in long term decline.  Now, of course, the Celtic Tiger is no longer roaring and the global financial meltdown has choked off credit for small...