12th Apr 2019 10:52
LONDON (Alliance News) - Europa Oil & Gas Holdings PLC on Friday said its loss narrowed in the first half of its current financial year on higher revenue and lower costs.
The AIM-listed exploration, development and production company reported a pretax loss of GBP437,000 in the six months to the end of January compared to GBP497,000 a year prior, as revenue rose by 10% to GBP859,000 from GBP778,000.
Administrative expenses came in 13% lower at GBP375,000 from GBP429,000 year-on-year.
Meanwhile, UK production assets in the East Midlands continued to generate a valuable
revenue stream for the company, it said, with first half production averaging 90 barrels of oil equivalent a day.
Europa holds six licences in the Irish Atlantic which, in aggregate, cover over 4,985 square kilometres. To-date, six prospects have been de-risked to drill-ready status, the company noted.
Activity during the half year period has been centred on securing farm-out partners to fund drilling activity at LO 16/20 in the Slyne Basin, Kiely East in FEL 1/17, and Edgeworth in FEL 3/13, all in the South Porcupine basin.
Drilling activity in the region is due to recommence in summer 2019 with a well targeting the Iolar prospect in FEL 3/18 operated by CNOOC International, together with its partner ExxonMobil.
"The last six months have been a highly active period for Europa," said Chief Executive Hugh Mackay.
"I look forward to providing further updates on our progress during the second half, a period which will see the resumption of drilling activity in the South Porcupine basin at CNOOC International's Iolar prospect. Success here would be a value trigger event for Europa, as it would significantly de-risk our drill-ready prospects in the basin," added Mackay.
Europa Oil & Gas shares were trading 3.4% lower on Friday at 2.85 pence each.
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