Europa Oil & Gas (LON:EOG) remains committed to increasing its portfolio in Ireland and onshore UK. Oil exploration group Kosmos recently withdrew from a partnership with the company offshore Ireland, but Europa said it is determined to expand its position in the country. It is looking for a new partner to replace Kosmos, while multiple applications have been submitted in the 2015 Atlantic Margin licensing round, with the awards expected in the first half of next year. Europa has also made several applications in the current UK onshore licensing round with awards due by the end of the year. In addition to this, Hugh Mackay, chief executive, said that in the current year Europa hopes to bring onshore UK field prospect Wressle into production and issue a competent person's report (CPR) to boost reserves. Europa also plans to start the farm-out processes for the 5.6mln barrels of oil equivalent (mmboe) Holmwood prospect in Surrey, its Irish licences and to continue discussions with potential partners for Bearn des Gaves in France. Production for the year to end July averaged 141 barrels per day from four fields, compared to 165 barrels a year earlier. Revenues for the year fell to £2.2mln (2014: £3.9mln) as oil prices halved, while there was a pre-tax loss of £4.1mln after write-offs of £2.2mln in PEDL181 and £1.1mln against the West Firsby field. Net cash at the year end was £3.2mln. In a conference call, Mackay brushed off any suggestion that the firm would need to carry out a fundraise after the Kosmos withdrawal, saying it would not. "We are funded. We have £3.2mln in the bank and we have revenue from our production and we've got the possibility to increase our revnue by bringing the Wressle fields on." Shares added 16% to 3.625p.
Europa committed to Ireland and UK
Europa said it is determined to expand its position in Ireland.