15th Apr 2014 10:31
LONDON (Alliance News) - Europa Oil & Gas Holdings PLC Tuesday said its profits increased in its first-half, despite a slight drop in revenues due to lower production.
The oil and gas exploration and development company said that for the six months ended January 31, pretax profit increased to GBP0.45 million, up from GBP0.20 million the prior year.
Revenues for the first-half were in line with expectations at GBP2.1 million, slightly down from GBP2.2 million in the same period the previous year, as production volumes for the period we slightly lower.
It said that it produced an average 170 barrels of oil equivalent per day during the first-half, lower than the 177 barrels of oil equivalent per day it produced in the previous year, partly due to the end of an agreement which provided Europa with 6 barrels of oil per day on commission from December 2012.
Europe said that it is fully funded for its 2014 drilling and exploration programme, supported by GBP4 million in fundraising via a placing and open offer.
The company said that its cash balance at the end of January was GBP4.8 million, compared with only GBP0.8 million the prior year.
During the period, Europa also renewed its Béarn des Gaves permit onshore France and secured a 12 month extension on PEDL181, onshore UK.
Since the start of the first-half of the year, it has also extended its 100%-owned permit for Tarbes Val d'Adour in onshore France to January 18, 2015, and has started well permitting and planning for the Kiln Lane well.
"Onshore UK we expect two exploration wells, Wressle and Kiln Lane, will be spudded in 2014, and we have further drilling candidates to follow. This summer we expect a drilling decision for our offshore Ireland licences which if positive may lead to two exploration wells," said Chief Executive Hugh Mackay in a statement.
Europa said the costs for both these potential wells are already funded by farm-in, and the first well could be as early as 2015.
Shares in the company were down 3.4% at 7.85 pence per share Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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