Profits rose more than 50% during a year of “significant” operational and financial progress for Europa Oil & Gas (Holdings) plc.
WRESSLE
Results ended 31 July 2023 show stable revenue of £6.7 million “despite a lower oil price and weaker pound” (2022: £6.6m).
Gross profit increased by 53% to £3.4m (2022: £2.2m) with pre-tax loss recorded of £900,000 after a non-cash impairment loss of £1.7m (2022: pre-tax profit £1.4m)
Net cash generated in operating activities amounted to £2.8m (2022: £2.5m) and the company ended the year with a cash balance of £5.2m (2022: £8.3m).
Total onshore UK net production rose to 265 barrels of oil per day (2022: 245 bopd) due to “excellent” performance at the Wressle joint venture contributing some 81% with the remainder from the three older fields.
Wressle gross production rose to an average 710 bopd (2022: 597 bopd), with the company’s net share equating to 213 bopd (2022: 179 bopd).
Europa also began multiple projects to increase oil production and gas monetisation from the Wressle field as well as the initial phase of the gas utilisation project leading to a c. 10% increase in oil production.
“We remain focused on realising the full potential of the field, with the completion of these additional projects and drilling the Penistone horizon being one of Europa’s priority medium-to-long-term projects,” added the company.
During the year, Europa also established a new London office, increased its in-house technical and managerial staff and expanded business development activity.
OPTIMISTIC
Chief executive officer William Holland said the company had demonstrated “financial resilience” and maintained its “strong track record of positive cash generation”.
“We are continually assessing opportunities to further diversify our asset portfolio.
“We are encouraged by the reaffirmation of UK Government support for offshore and onshore hydrocarbon exploration and production and remain optimistic about our future growth prospects.”