Europa Oil & Gas (Holdings) plc, the UK and Ireland focussed oil and gas exploration, development and production company, announces its final results for the 12 month period ended 31 July 2018.
The full Annual Report and Accounts will be available shortly on the Company’s website at www.europaoil.com.
Operational highlights
Offshore Ireland
- Six prospects with combined potential of 2.5 trillion cubic feet (‘tcf’) of Gas Initially In Place (‘GIIP’) mapped on LO 16/20 in the Slyne basin.
- Completed Pre-Stack Depth Migration (‘PSDM’) reprocessing of 1,548km2 3D seismic covering FEL 1/17 and FEL 3/13, in the South Porcupine. Prospect inventory upgraded to 3.5 billion boe gross mean unrisked prospective resources (‘GMUPR’) in six prospects.
- Completed PSDM reprocessing of 950 km2 3D seismic over FEL 2/13. Prospect inventory identified 817mmboe GMUPR in three top ranked prospects.
- Porcupine virtual data room (‘VDR’) and farmout process opened.
- Commenced PSDM reprocessing of 770 km2 3D seismic data over LO 16/20 and preliminary drilling planning for a possible 2019 exploration well on the Inishkea prospect.
- Completed 976 km2 3D seismic acquisition over Cairn Energy operated LO 16/19.
UK
- PEDL180 (Wressle) the Planning Inspectorate rejected an appeal against North Lincolnshire County Council Planning Committee’s decision to reject a planning application for the Wressle oil development. A new planning application for the Wressle oil development has been submitted to North Lincolnshire County Council and is in the review process.
- The application to extend planning permission at the Wressle site was refused by the planning committee; an appeal against this decision has been submitted to the Planning Inspectorate.
Financial
- Group revenue of £1.6m (2017: £1.6m)
- Exploration write-off £1.3m (2017: nil)
- Pre-tax loss of £2.3m (2017: loss £0.7m)
- Post-tax loss for the year £2.6m (2017: loss £0.5m)
- Cash used in operating activities £0.48m (2017: cash used £0.26m)
- Net cash balance as at 31 July 2018 £1.8m (31 July 2017: £3.6m)
Post reporting date events
- PEDL143 (Holmwood) the Secretary of State for Environment, Food and Rural Affairs, decided not to renew the lease at Bury Hill Wood, Coldharbour Lane leading to a withdrawal of the planning application to drill from the site.
Europa’s CEO, Hugh Mackay, said “Europa has made a large technical and financial investment across virtually its whole Atlantic Ireland portfolio. This has involved three substantial 3D PSDM seismic reprocessing projects that started in January 2017 and will complete in October 2018.
“Two South Porcupine reprocessing projects have been completed and have resulted in new prospect inventories for our three operated Porcupine licences, 4.3 billion barrels GMUPR and six drill ready prospects. Our farmout process commenced in July 2018 and the target market of supermajors, majors and large independents are in the virtual and physical datarooms (VDR and PDR). We are encouraged by the recent farm-in of ExxonMobil to Nexen in FEL 3/18 and note that their 2019 Iolar well has the potential to de-risk 1 billion boe in five Europa pre-rift prospects in the basin.
“Our Inishkea reprocessing project is nearing completion and the new prospect inventory will be issued in December, at which point the new VDR and PDR will be opened to potential farminees. We are looking to drill as early as 2019, subject to industry or financial partnering and we have been sufficiently encouraged by the positive results to commence both the well planning and site survey preparation necessary for a 2019 spud. With the Corrib gas field going into decline and Ireland’s demand for both gas and electricity forecast to increase in response to its vibrant economy we believe there is a window of opportunity for gas that we must seize at Inishkea.
“Elsewhere, our existing UK onshore production continues to generate meaningful revenues which at current oil prices more than cover our operational expenses. We are hopeful these are set for a major boost in the year ahead should the planning application to develop the Wressle oil discovery in the East Midlands be approved. At an estimated gross rate of 500bopd, Wressle would more than double our net output to around 240 bopd which, at today’s oil prices, would provide us with a highly cash generative platform with which to invest in other projects. This could include new ventures which we are actively pursuing. Together with ongoing discussions with potential partners for our Atlantic Ireland licences, there is much activity taking place focused on generating significant value for our shareholders.” europa-oilgas