Hugh Mackay Stated They Would Continue with the Maturation of Their Irish Assets So They Might Deliver Six Drill-Ready Options, Believing That Irish Offshore Exploration Could Make the Company
CEO of Europa Oil & Gas Holdings Plc (LON:EOG), Hugh Mackay, stated the company’s performance was strong for the year considering the harsh market conditions.
Mackay explained the company had achieved cost reductions of a third, doubled their UK production and are in preparations to drill an on-shore, high-impact well at Holmwood in the UK. Furthermore, the company has completed three deals, gained seven new permits in the UK and Ireland, and has also achieved what Mackay feels is one of the most important things, namely a position of leader in the Irish Atlantic.
Europa posted group revenues of £1.3 million for the year up to the 31st of July, compared to the previous £2.2 million the company achieved. Sales costs were reduced by 33%, while admin expenditure dropped by 39%.
Europa’s onshore wells in the UK generated an average daily production of 123 barrels of oil equivalent for the year.
The company posted a loss before taxes of £1.9 million, which also featured a £1.2 million write off of the Béarn des Gaves exploration project. Thus, the actual loss of £0.7 million was lower than the £0.8 million the company lost during the same time frame of the previous year.
Europa closed out the financial year with a positive net cash balance of £1.7 million.
Throughout the year, Europa concentrated on their growing portfolio in offshore Ireland, preparations for their exploration at Holmwood and the advancement of the Wressle discovery.
Mackay pointed out that their asset portfolio in Ireland includes a number of interests that could make the company.
He explained that things were changing in Atlantic Ireland considering that the 2015 Licensing Round was the most successful ever in the country with major oil firms returning to the area and starting up important work programs. He feels this is quite a significant result considering that oil prices are still below $50. He expects that exploration drilling isn’t far behind all this activity. For this reason, Mackay stated Europa will keep maturing their portfolio in the region so that they can deliver six drill-ready opportunities, any of which could put Europa on the map.