Europa Oil & Gas Posts Pre-Tax Loss
Europa Oil & Gas, the company focusing on oil and gas exploration, development and production in the UK and Ireland, posted a £1.3 million ($1.6 million) pre-tax loss in the six months ending January 31, 2023.
This compares to the pre-tax profit of £0.7 million ($0.8 million) for the six months ending January 31, 2022. There was a 13 percent increase in average realized oil price to $88 per barrel (H1 2022: $77.84).
The company said it has delivered a strong H1 2023 financial performance, underpinned by the high levels of revenue generated from its UK onshore producing assets, particularly the Wressle oilfield.
“In addition to substantially increasing our revenues to £3.7 million (H1 2022: £2.2 million) and achieving a gross profit of £1.5 million (H1 2022: £0.9 million), we also considerably strengthened our balance sheet, resulting in net cash of £5.1 million at the end of the period,” said Europa Oil’s CEO Will Holland.
He further noted that Wressle, currently the second most productive onshore UK oilfield, continues to surpass all expectations, and added that the company remains committed to further enhancing the field’s efficiency and increasing production through gas monetization solutions, alongside advancing the development drilling to enable further production.
“In addition to building on our corporate ESG framework, the cornerstone of our long-term commitment to the global energy transition, we initiated a farm-out process for our Irish offshore license FEL 4/19. Within the license is the extensive Inishkea gas prospect containing an estimated 1.5 tcf of gas, and we recognize the significant potential of FEL 4/19 to help alleviate Ireland’s energy security concerns by providing the nation with a dependable source of gas produced with low carbon emissions,” Holland says.
Holland added that, bolstered by the UK Government’s continued commitment to investing in the exploration of North Sea hydrocarbons, the company continues to assess development options for the offshore UK Serenity oilfield alongside partner i3 Energy.
“With Serenity strategically located nearby existing infrastructure, one cost-effective solution we are exploring is to develop the discovered reserve via Repsol Sinopec’s Tain field. A potential unitized development could deliver significant benefits to Europa and our shareholders, with net production to Europa anticipated to be c.1,000 bopd,” he concluded.
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Published at Tue, 25 Apr 2023 13:00:00 -0700
