A licence that will allow shallow drilling to a depth of 200m (650ft) and to carry out technical studies to ascertain whether gas is commercially viable has been granted in Sligo.

If initial studies prove successful, the companies will have first option on a more expensive exploration licence which would be a step closer to extracting gas.

Licences to explore an area in Lough Allen where it is thought there may be large reserves of natural gas have been granted to two companies.

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The Lough Allen Natural Gas Company (Langco) and Australian-based Tamboran Resources have been given onshore petroleum licences to explore the area which takes in parts of Sligo, Leitrim, Roscommon, Cavan and Fermanagh.

The area to be explored is known to geologists as the northwest carboniferous basin.

Langco believes there is 9.4 trillion cubic sq ft of gas or the energy equivalent of 1.5 billion barrels of oil in the area. This has a notional value of €94 billion at existing prices and could be considerably more by the time gas could be extracted from the ground.

(BMcC/GK)