Europa Oil and Gas (LON: EOG) will carry out further analysis of two blocks off the coast of Ireland after being granted year-long extensions on the licences.
The AIM-listed exploration and production company said it hoped that uncovering additional resources would help it find a drilling partner.
It plans to carry out extra mapping of potential plays contained within its 100%-owned assets in the South Porcupine Basin, about 120 miles off the south-west tip of Ireland.
The two licences, FEL 2/13 and 3/13, are already thought to hold more than two billion barrels of oil equivalent between them.
Europa chief executive Hugh Mackay said there was clear potential for both licences to hold new exploration plays, in addition to those already identified.
Mr Mackay said: “Thanks to this 12 month extension, we can now investigate these further, with the aim of securing a farm out partner for drilling.”