Europa Oil & Gas announces final results for the year to 31 July 2017
Monday, Oct 30, 2017

Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration, development and production company focused on Europe, announces its final results for the 12 month period ended 31 July 2017.

The full Annual Report and Accounts will be available shortly on the Company’s website at and will be mailed to those shareholders who have requested a paper copy in November.
Financial highlights
  • Group revenue of £1.6m (2016: £1.3m)
  • Pre-tax loss of £0.7m (2016: loss £1.9m after £1.2m exploration write-off in Béarn des Gaves)
  • Post-tax loss for the year £0.5m (2016: loss £1.6m)
  • Cash used in operating activities £0.26m (2016: cash used £0.32m)
  • Net cash balance as at 31 July 2017 £3.6m (31 July 2016: £1.7m)
Operational highlights
Offshore Ireland

  • Farm-out of 70% interest in Licensing Option (“LO”) LO16/19 in the South Porcupine Basin to a subsidiary of Cairn Energy plc which will fully fund a US$6 million work programme including the acquisition of 3D seismic over the licence which started in July 2017.
  • Discussions ongoing with a number of large operators with regards to farming-out Europa’s leading offshore Ireland licence position, which includes seven licences exposed to six different play types in three basins.
  • Extension of phase 1 of Irish South Porcupine Basin Frontier Exploration Licence (“FEL”) FEL 2/13 and FEL 3/13 to July 2019 to enable completion of 3D seismic reprocessing and subsequent detailed mapping and maturation of prospects to drillable status.
  • Issued the results of an independent Competent Person’s Report (‘CPR’) prepared by ERC Equipoise Ltd (‘ERCE’), estimating gross mean un-risked Prospective Resources of 553 mmboe across two new pre-rift prospects, Ervine and Edgeworth, in LO 16/2.
  • Issued updated prospect inventory for FEL 2/13 based on in-house work identifying 9 oil prospects with 1.1 billion boe including 3 new prospects Kiely, Keane and Kilroy.
  • Converted LO 16/2 into a 15 year Frontier Exploration Licence FEL 1/17 effective from 1 July 2017
  • Commenced Pre-Stack Depth Migration (“PSDM”) reprocessing project over FEL 2/13 and FEL 1/17 with intent of improving mapping and interpretation of pre-rift prospects.
Onshore UK

  • Sale of 3.34% interest in PEDL180 & 182 (which includes the Wressle discovery) to Union Jack Oil plc (‘Union Jack’) for £0.6 million in cash
  • Agreed sale, conditional on planning approval, of 10% interest in PEDL180 & 182  to Upland Resources (UK Onshore) Limited (‘Upland’) for up to £1.85 million: £1.3 million in cash, £0.3 million in Upland shares and a contingent consideration of £0.25 million in Upland shares
  • Commencement of production at Wressle delayed pending appeal of planning decision – Planning Inspectorate appeal due in November 2017
  • Increase in Europa’s interest in PEDL299 (Hardstoft oil field) and PEDL343 (Cloughton gas discovery) to 25% and 35% respectively following acquisition of Shale Petroleum (UK) Limited (‘Shale Petroleum’)
  • Farm-out of 12.5% interest in PEDL143 (‘Holmwood’) to Angus Energy – Europa retains 20% interest and is carried on upcoming well costs up to a cap of £3.2 million

Post reporting date events

  • In September 2017 we announced an extension to the date by which the conditions of the Upland agreed sale of 10% interest in Wressle are to be satisfied to 28 February 2018.
  • In October 2017 Surrey County Council approved a security fence at the Holmwood site but deferred a decision on traffic conditions.

Europa’s CEO, Hugh Mackay said, “2016/17 was a record year for Europa in terms of the level of corporate activity seen across our licence base: the successful farm-out to Cairn of a 70% interest in one our South Porcupine licences; two separate sales of our interest in the Wressle oil field in the East Midlands; the acquisition of Shale Petroleum, which increased our equity in the Hardstoft oil field and Cloughton gas discovery in the UK; and the farm-out of a 12.5% stake in the upcoming Holmwood well in the Weald basin.  In our view, this activity is testament to the quality of the technical work we have carried out on our licences, the excellent location of our assets both offshore Ireland and onshore UK, and the major uptick in industry interest and activity in new plays across our areas of focus.
“The year ahead should see more of the same.  We remain focused on securing farm-outs for the remainder of our Irish licences with partners with whom we can advance our assets towards drilling.  At the same time, we are looking forward to commencing drilling activity at the conventional Holmwood prospect in the Weald, an area that is generating considerable excitement following the opening up of the Kimmeridge limestone play.  In addition, we remain confident that the green light will finally be given to bring the Wressle discovery on line.  By adding around 100bopd to our exisitng production, Wressle promises to bring our operational breakeven down to US$35 a barrel, a major milestone for the Company.  With so much activity on so many fronts in the months ahead, I look forward to providing further updates, as we continue with our strategy to monetise our asset base and generate value for our shareholders.”

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