28th Oct 2024 14:34
(Alliance News) - Europa Oil & Gas Holdings PLC on Monday said 2025 will be an exciting period for the company as it reported a widened loss due to higher exploration costs.
Europa Oil shares fell 14% to 0.73 pence each on Monday afternoon in London.
The UK and Ireland-focused oil and gas exploration, development and production company said pretax loss widened to GBP6.8 million in the financial year ended July 31 from GBP884,000 a year ago.
Revenue fell 46% to GBP3.6 million from GBP6.7 million. Total cost of sales were virtually unchanged at GBP3.3 million.
Notably, impairment on exploration ballooned to GBP5.0 million from GBP1.7 million.
Chief Executive Officer William Holland said: "We continued to develop and produce from our core assets onshore UK, where we continue to invest in our flagship Wressle oilfield. Planning is ongoing to develop the gassy Penistone Flags reservoir with two back-to-back wells as soon as the necessary approvals have been received. We believe that these wells will boost oil production and enable the export of gas into the local network grid, thus eliminating the need for flaring."
Looking ahead, Chair Brian O'Cathain said: "2025 will be an exciting period for Europa with activity across many of our assets that has the potential to materially drive shareholder value. Wressle remains one of the UK's leading onshore oilfields and a key cash generator for Europa, and the proposed two well development would generate important revenues for the company. At Cloughton, appraisal drilling to test the reservoir productivity could result in the UK's largest onshore gas field, which, given its proximity to gas infrastructure, could be brought online quickly."
"In addition, we have exciting near-term gas exploration opportunities at our Equatorial Guinea licence, as well as our Ireland licence, and continue to search for ideal farm-inees for both assets. Both assets are close to gas infrastructure so, like Cloughton, both can be brought online quickly following a successful well."
By Tom Budszus, Alliance News slot editor
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