LONDON (ShareCast) - (Sharecast News) - Europa Oil & Gas reported narrower losses in the 11 months ended 30 June on Monday, as the AIM-traded explorer and producer advanced its portfolio across the UK, Ireland and West Africa, while maintaining what it described as one of the lowest cost bases among its peers.
The company reported revenue of £2.6m, down from £3.2m in the prior comparable period, reflecting lower production and oil prices, although gross profit rose to £0.4m from £0.2m and the pre-tax loss was cut sharply to £1.2m from £6.6m.

Net cash used in operating activities was £0.1m against £0.4m previously, leaving a cash balance of £0.9m at period end, down from £1.5m in July 2024.

Administrative expenses of £1.3m were said to be among the lowest in its peer group.

Operationally, Europa said it made "steady progress" at its key assets.

In Equatorial Guinea, its 42.9%-owned Antler Global launched a farmout process for the EG-08 block, which contains an estimated 2.2 trillion cubic feet (TCF) of gross mean prospective gas resources.

Post period-end, Antler entered detailed talks and signed a non-binding heads of terms with a major energy company, with Europa aiming to finalise a farmout and drill the Barracuda prospect thereafter.

In Ireland, the company is seeking a farm-in partner for its 100%-owned Inishkea West prospect, which holds an estimated 1.5 TCF resource and is located near Corrib infrastructure.

Europa said the project offered strong economics and exceptionally low carbon intensity, and could potentially supply over two-thirds of Ireland's gas demand by 2030.

In the UK, Europa submitted a planning application in March for an appraisal well at the Cloughton gas field, where it holds a 40% stake, with a decision expected in the fourth quarter and appraisal drilling targeted for 2026.

Production from its onshore fields averaged 114 barrels of oil per day (bopd), down from 137 bopd, with Wressle contributing 82% of this.

Gross output from Wressle averaged 311 bopd, with Europa's share at 93 bopd.

The company said it continued to advance Wressle's development plan, including a new well to target the Penistone Flags reservoir alongside a gas monetisation scheme, and had addressed planning issues raised following a legal challenge.

It also noted a May revenue swap agreement under which it received $500,000 upfront for 4.5% of remaining gross revenues from Wressle-1.

The company said it was also assessing a workover at its 100%-owned Crosby Warren site.

Europa wrote off its royalty interest in the Whisby-4 well in December, resulting in a £170,000 balance sheet gain.

Board changes during the period included the appointment of Bo Krøll as chairman and the resignations of Brian O'Cathain and Alastair Stuart, with the latter remaining as chief operating officer.

The company has also shifted its financial year-end from July to December, aligning its reporting with industry norms.

"The past 11 months have been a period of steady progress and strategic positioning across our portfolio," said chief executive Will Holland.

In Equatorial Guinea, we have advanced our EG-08 licence, launching a farmout process and entering into commercial discussions with a major energy company. In the UK, we have made important strides at Cloughton.

"Meanwhile, at Wressle, we progressed the development plan and secured financing through a non-dilutive revenue swap agreement."

He added that Europa was "well-positioned to deliver on our strategic objectives in the year ahead".

At 1231 BST, shares in Europa Oil & Gas Holdings were down 3.6% at 0.74p.

Reporting by Josh White for Sharecast.com.

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