Europa Oil & Gas (Holdings) announced a pre-tax loss of £5.4 million compared with £0.7m in 2019 including write-offs taken following the company’s relinquishment of its Irish licences.
In its final results for the 12 months ended 31 July 2020, the hydrocarbon company with interests in the UK, Ireland and Morocco also announced pre-tax loss before exploration write-off / write-back of £1.2m (2019: £0.9m).
Revenue decreased to £1.2m compared with £1.7m in 2019.
Net cash used in operating activities was reported at £0.8m (2019: £0.7m) and the company’s cash balance was £0.8m (31 July 2019: £2.9m).
PRODUCTION
Europa has a 30% interest in the onshore Wressle oil project in Selby, East Riding where the company said first oil was expected at an estimated gross rate of 500bopd during late 2020 for a break-even price of $17.6 per barrel.
The operator Egdon Resources also has a 30% interest and Union Jack Oil holds 40%.
Europa reported that 92boepd were produced from its three existing UK onshore fields in the East Midlands during the year, which matched output during 2019.
These include a 100% working interest in the West Firsby and Crosby Warren fields and a 65% non-operated interest in Whisby.
In offshore Ireland, Europa acquired a 100% interest in Frontier Exploration licence (‘FEL’) in the Slyne basin (gas) and applied to relinquish four offshore oil licences, leading to a total non-cash write-off of £4m.
In Morocco, Europa was awarded in 2019 the 11,228 km2 Inezgane licence in the Agadir Basin, which is equivalent to some 50 UKCS North Sea blocks.
The site includes 14 prospects and 16 leads with the potential to hold in total close to 10 billion barrels of unrisked oil resources.
Europa said that the licence was “attracting interest from a number of operators looking to farm-in.”
The company also reported that Hugh Mackay stepped down as CEO and has been replaced by Simon Oddie, and that since 1 August 2020 the board had “increased the reduction in their salary and fees to 50%.”
Mr Oddie said that “much progress” had been made with the award of the Inezgane permit offshore Morocco, planning approval for the Wressle oil field, and the refocus of the offshore Ireland portfolio onto the proven gas play of the Slyne Basin.
“Our UK production, which is set to dramatically increase once Wressle comes online, provides us with a low risk cash flow generative platform.
“Our offshore Ireland and offshore Morocco assets, which hold company-making
volumetrics, provide us with multiple opportunities to generate significant value.
“We also intend to resume our efforts to add a third leg to our business by securing a late stage appraisal project, once market conditions improve.”