Europa Oil & Gas Holdings Plc (LON:EOG) has reported on what chief executive Hugh Mackay has described as a strong performance in the face of difficult market conditions.
“We have reduced costs by one third, our UK production is set to double, we are preparing to drill a high impact well onshore UK at Holmwood, we have delivered three deals, landed seven new licences in the UK and Ireland and perhaps most importantly built a leading position in Atlantic Ireland,” Mackay said.
Reporting on the twelve months to July 31, Europa said group revenue amounted to £1.3mln compared to £2.2mln. Cost of sales was cut by 33% and administrative expenses were 39% lower, the company added.
Production from Europa’s UK onshore assets amounted to 123 barrels oil equivalent per day for the year.
A pre-tax loss of £1.9mln included a £1.2mln write off against the Béarn des Gaves exploration project. Excluding the exploration write off a £0.7mln loss narrowed compared to a corresponding figure of £0.8mln a year ago. Overall, Europa made a £1.6mln loss after tax.
It ended the year with a £1.7mln net cash balance.
Europa’s focus in the year were its growing portfolio offshore Ireland, the advancing Wressle discovery and the preparations for the upcoming Holmwood exploration well which is a follow on to the breakthrough Horse Hill well near Gatwick airport.
The Irish portfolio features a number of “company making” assets, Mackay highlights.
“The tide is turning in Atlantic Ireland: the 2015 Licensing Round was the most successful licensing round ever in Ireland. Major oil companies are back and have already begun substantive work programmes.
“This is a remarkable outcome given sub $50 oil prices and in due course we expect that this activity will likely result in exploration drilling.
“We will continue to mature our Irish portfolio with the intention of delivering half a dozen drill-ready prospects – any one of which has the potential to be a company maker for Europa.”