Europa Oil & Gas recorded a pre-tax loss of £1.9million for its financial year.
The firm managed to slash administration expenses by 39% and reduce its cost of sales by 33%, however, that failed to keep it in the black.
Despite the loss, chief executive Hugh Mackay said the firm will forge ahead with its strategy to deliver six drill-ready prospects.
He said: “In the face of difficult market conditions for the oil and gas sector we have delivered strong performance.
“We have reduced costs by one third, our UK production is set to double, we are preparing to drill a high impact well onshore UK at Holmwood, we have delivered three deals, landed seven new licences in the UK and Ireland and perhaps most importantly built a leading position in Atlantic Ireland.
“The tide is turning in Atlantic Ireland: the 2015 Licensing Round was the most successful licensing round ever in Ireland. Major oil companies are back and have already begun substantive work programmes.
“This is a remarkable outcome given sub $50 oil prices and in due course we expect that this activity will likely result in exploration drilling. We will continue to mature our Irish portfolio with the intention of delivering half a dozen drill-ready prospects – any one of which has the potential to be a company maker for Europa.”
Europa estimates there to 2.1 billion barrels of oil equivalent (‘boe’) and 1.5 tcf gas gross mean unrisked prospective and indicative resources on new Irish licensing options.
It is also proceeding with the development of Wressle discovery in North Lincolnshire with production expected to start in early 2017.
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