Europa Oil & Gas results mark "Significant milestones"

PUBLISHED: 14 Oct 2013 @ 07:46 | Comments (0) |

Final Results for the year to 31 July 2013

Europa Oil & Gas (LSE:EOG), an AIM listed oil and gas exploration, development and production company focused on Europe, has announced its final results for the 12 month period ended 31 July 2013.

Operational highlights:

•Farm-in secured with Kosmos Energy Ireland (‘Kosmos’) for two blocks offshore Ireland
•Converted two Irish Licence Options to Frontier Exploration Licences (‘FEL’)
•Commenced 3D seismic acquisition programme offshore Ireland
•Identified large shallow gas prospects on Béarn des Gaves permit onshore France
•Wrote down the Tarbes val d’Adour intangible asset onshore France
•Acquired 77 km of 2D seismic and identified four new conventional hydrocarbon leads in North East Lincolnshire (PEDL181)
•Favourable judgment at High Court for UK Holmwood planning appeal
•182 boepd recovered from three UK onshore fields – ahead of forecast

Financial performance:

•Group revenue £4.5 million (2012: £5.1 million)
•Pre tax profit £0.4 million (2012: loss £12.1 million)
•Pre tax profit excluding exploration write-off and impairment £0.6 million (2012: £1.2 million)
•Cash generated from operations £1.6 million (2012: £2.1 million)
•Net cash balances as at 31 July 2013 £0.7 million (31 July 2012: £0.2 million)

Post reporting date events:

•Renewed Béarn des Gaves permit until 23 March 2017
•Received £0.3 million from Kosmos in respect of costs on the two Irish licence options
•3D seismic acquisition in Ireland on-going, FEL 3/13 is completed
•Two new subsidiary companies established for Irish licence interests
•Leith Hill Action Group announced its intention to appeal against Europa’s successful High Court challenge regarding the Holmwood prospect
•Underground Coal Gasification licences allowed to lapse

Europa’s CEO, Hugh Mackay said, “Significant milestones have been met at two of our most highly prospective projects, each of which has company-making potential. In Ireland, not only did Kosmos agree to farm-in to our two offshore licences, but has effectively brought forward the 3D seismic acquisition programme by a year to July 2013. This demonstrates both their ambition and resources and ensures the momentum generated will continue into the winter, as the new data is processed and interpreted. Meanwhile in France, the identification of a large shallow gas prospect at Béarn des Gaves with mean un-risked resources of 416 bcf and the recent renewal of the permit, allows us to press ahead with well permitting and to reopen the data room for potential farm-in partners.

“In the UK, the final quarter of the year will see us participate in the drilling of the Wressle prospect which we rate as having a 1 in 3 chance of materially adding to our existing production. While on the nearby licence PEDL181, we will be completing technical work on both newly acquired and existing seismic data, and delivering drillable prospects. We are also evaluating a number of new ventures where we can apply our expertise and add value. This is an exciting period for Europa and in particular I look forward to providing updates as we advance our two company-making projects in Ireland and France.”

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