Europa Oil & Gas (Holdings) plc saw its operations continue to progress while the company minimised losses and controlled spending during the second half of 2020.
In its interim report for six months ended 31 January 2021, the company recorded a fall in revenue to £0.5 million compared with the first half ended 31 July 2020 of £0.8m.
Europa had a pre-tax loss of £0.6m (H1 2020: £3.5m including write-offs taken following relinquishment of Irish licences).
Net cash used in operating activities was £0.2m (H1 2020: £0.5m) and cash balance was recorded at £0.3m (H1 2020: £0.8m).
Board salaries and fees were reduced by 50% in response to the pandemic, and a director’s loan was drawn down in January 2021.
Simon Oddie was appointed permanent chief executive and senior independent non-executive director Brian O’Cathain was appointed non-executive chairman.
OPERATIONS REPORT
UK
Europa holds interests in exploration and production licences in Lincolnshire and North Yorkshire.
Oil flow began at Wressle-1 in North Lincolnshire and is currently on continuous 24-hour test production. Europa said that operations are projected to more than double Europa’s net production to over 200boepd.
A total of 86boepd was produced from the company’s three existing UK onshore fields during the period (H1 2020: 90boepd).
OFFSHORE MOROCCO
Europa is the operator of the large Inezgane licence (75%) in the Agadir Basin which is the equivalent to some 50 blocks in the UK Continental Shelf.
During H2 2020, the company mapped more than 20 prospects and leads which combined potentially hold in excess of one billion barrels of unrisked oil resources.
Work to de-risk prospects continue ahead of a farm-out launch to secure partner(s) to drill wells.
Europa was also granted a one-year extension to the initial phase of the licence to November 2022.
This allows for time lost during Covid-19 and enables a technical work programme to be completed.
OFFSHORE IRELAND
Europa is awaiting regulatory approval to acquire 100% interest in Frontier exploration licence FEL 3/19, which includes the 1.2 tcf Edge prospect and lies close to the ~1tcf producing Corrib gas field.
The company is also preparing to launch a farm-out of FELs 3/19 and 4/19, which is Europa’s strategic position in the Slyne Basin.
Non-executive chairman Brian O’Cathain said that Europa aimed to hold a balanced portfolio of projects covering the full oil and gas cycle.
“With a growing production base and an exploration model centred around first proving up the technical case before bringing in partners, our focus is to participate in potentially high reward activity without putting the company’s balance sheet at risk.”