Europa posts £700,000 profit

London-listed Europa Oil & Gas said April 13 it had booked a £700,000 ($916,700) profit before taxes in the second half of last year, in its strongest performance since 2014.

The junior explorer, which posted a £700,000 pre-tax loss in the first six months of 2021, attributed the result to the strengthening oil price and favourable performances across its oil production assets.

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Half-year revenues more than quadrupled to hit £2.2mn, from $0.5mn from January to June, thanks in part to rising output at Europa's Wressle oil project in North Lincolnshire. Better market conditions came as Europa increased Wressle's net output by more than two-fold to over 200 barrels of oil equivalent (boe)/day, generating better returns at oil prices of around $77.84/barrel, which was 75% up from January to June.

Net cash from Europa's operating activities amounted to £900,000, up from £200,000 in the first half, and the company's cash balance remained unchanged at $600,000 of January 31, 2022.

Europa's upstream activities also include the Inzegane permit offshore Morocco, estimated to contain more than 1bn boe in unrisked recoverable resources.  Having acquired 6,200 km of 3D seismic data in the area, Europa believes it has identified multiple drilling prospects.

Europa owns a 75% operated stake in Inzegane and says operating in Morocco is a "highly attractive" investment opportunity with fiscal terms that are "excellent." The remaining 25% stake is held by Morocco's state-owned ONHYM.

Europa is looking to seal a farm out agreement to cover a portion of Inzegane's E&P expenditure. It has also been searching for a farm out partner for its Irish gas prospect, Inishkea, which is estimated to contain 1.5 trillion ft³ of prospective gas resources.

"We remain enthusiastic for this asset given Ireland's dependence on the Corrib gas field for its gas supply and rising concerns around energy security," the company said. "This, coupled with increasing gas prices, means the market fundamentals are becoming even more favourable."