Europa Oil & Gas (Holdings) PLC (AIM:EOG) has highlighted a quadrupling of revenue and a sharp rise in profits as it continues to benefit from the stronger-than-originally-predicted performance at the Wressle field and higher oil prices.
The UK onshore oil company, in its final results statement for the year ended 31 July 2022, it reported £6.6mln of revenue, up from £1.4mln in 2021, and a £1.4mln pre-tax profit improved from £850,000.
Net cash generated from operations amounted to £2.5mln and the company said it ended the financial period with £8.3mln of cash.
It comes as Europa’s 30%-owned Wressle field output rose to over 750 barrels of oil per day gross by the end of the period – averaging 597 bopd for the year, which equates to 176 bopd net to Europa.
Europa’s overall net production rate was reported at 245 bopd, with the remainder coming from interests in three older oil operations.
"The 2021/2022 period has seen significant change at Europa and this is clearly demonstrated in our numbers,” said Simon Oddie, Europa chief executive.
“Wressle continues to perform above expectations and further development activities to increase production through implementing a gas solution and drilling the Penistone horizon within the Wressle field are planned over the next 12-18 months.
“In addition, we plan to drill the Broughton North prospect, which is a Wressle lookalike and can be produced through the existing infrastructure at Wressle.”
Oddie added: “We will also continue to seek new appraisal opportunities to add to our portfolio.”
In March, Europa farmed into the Serenity gas project in the North Sea – an appraisal well would later prove unsuccessful, nevertheless it is expected that the project can still be viable on the originally discovered volumes and Europa will retain a 25% in the whole project.
Elsewhere, in Morocco, Europa has continued efforts towards the farm-out of a stake in the Inezgane gas project which is described by the company as “a high-impact exploration opportunity in a highly underexplored area of the world”.
The company, meanwhile, describes its Irish project which is also the subject of a farm-out process to bring in a partner as “a lower risk/very high reward infrastructure-led exploration in proven gas play.”
The opportunity is a package of prospects, referred to as the Inishkea project, which have been estimated to host some 1.5 trillion cubic feet of gas in the vicinity of the Corrib gas field (which is Ireland’s largest hydrocarbons operation). Europa recently extended the deadline for the first exploration phase of the Inishkea licence out to January 2024.