Europa Oil & Gas highlights busy half with progress in UK and Equatorial Guinea

Europa Oil & Gas (Holdings) Plc (AIM:EOG) chief executive Will Holland described a busy period, in the firm’s interim results statement, highlighting material progress for its Cloughton project in UK and its exploration assets in Equatorial Guinea.

Claughton is being advanced through  the UK planning approval process, whilst in Equatorial Guinea the focus in on a farm-out process to bring in a partner.

“The independent reports submitted as part of the planning application for the Cloughton appraisal well highlight that the chosen site is ideal for the well and I look forward to updating the market on the progress with the planning application,” Will Holland said.

“In EG, our work has highlighted the quality of the asset and this is understandably generating interest from potential farminees.”

Wressle, Europa’s lead asset, continues to produce as a single-well field, though the project’s JV partners are currently working through the (often arduous) administrative and legal process of securing UK planning approval to further develop the asset.

Holland described a recent decision to retrospectively rescinded Wressle’s development application as “disappointing, although not surprising” and, added that Europa is confident that an additional independent emissions report will satisfy the new planning requirements.

“We expect to continue generating meaningful cashflow from our UK assets,” Holland said.

“This, and the planned activities for the year, sets Europa up well for the future and will allow us to work up our well-balanced portfolio and deliver value for shareholders.”

Results

In terms of financials, Europa reported £1.2 million of revenue for the half year, up from £1 million a year ago.

Revenue for the period was £1.20 million, up from £1.00 million in the prior year’s equivalent period. Pre-tax losses were marked at £300,000, and the company ended the period (31 December) with £1 million of cash.

Operations

Europa’s efforts In Equatorial Guinea are focussed on securing a farmout for the EG-08 licence, which currently has three drill-ready prospects, with prospective resources of around 2.2 trillion cubic feet of gas equivalent.

In Ireland, Europa has also re-opened a farm-out process for licence FEL 4/19, which includes the Inishkea West gas exploration prospect, host to 1.5 tcf of potential resources in the vicinity of existing infrastructure.

Onshore in the UK, the company has submitted a planning application for an appraisal well at the Cloughton gas field.  

Net production from its UK assets increased 18% to 116 barrels per day – with Wressle accounting for around 97 of those barrels.