Europa Oil & Gas says 2025 will “undoubtedly” be an active year

Europa Oil & Gas (Holdings) Plc (AIM:EOG) chief executive Will Holland has told investors “2025 will undoubtedly be an active year”, as the small-cap explorer updated on its activities and outlook for the year.

He highlighted that the firm is progressing multiple projects that ‘have the potential to deliver significant value to shareholders’.

“The Europa board adopts a prudent approach, balancing the inherent risks associated with exploration, appraisal and development against the value creation of these upstream activities,” Holland said in the statement.

“Our 2025 budget reflects this risk-assessed value-driven approach and I look forward to updating the market on our progress throughout the year."

Europa, in Equatorial Guinea, has a 42.9% shareholding in Antler Global, which has been advancing a farm-out process for its EG-08 asset – estimated to have 2.2 TCF of prospective resources – and the company is seeing strong industry interest.

The explorer said it expects farm-out offers in the first half of 2025.

In Ireland, meanwhile, Europa, continues its partnering process for its plan to drill an exploration well at its Inishkea West gas project – estimated at 1.5 TCF – where the company believes a successful discovery could meet two-thirds of Ireland’s gas demand in 2030.

Europa’s UK business includes the Cloughton appraisal project, where it holds a 40% interest, and a planning application for an appraisal well is expected to be submitted in the first quarter of 2025 – if approved seismic work is planned for late 2025 and drilling is slated for early 2026.

Europa also retains a 30% interest in the producing Wressle oilfield, and it told investors that production remains strong.

A development well targeting the Penistone horizon is planned for the second half of 2025, subject to permits. The company is also implementing a gas monetisation strategy to increase production and eliminate routine flaring.

At the wholly-owned Crosby Warren site, Europa is considering a workover programme to enhance production in 2025.

Europa told investors it had £0.96 million of unrestricted cash at the end  2024, and it is in talks to secure financing for Wressle-related capital expenditure.