Europa Oil & Gas has narrowed its losses, according to its interim results.
The firm, which reported the six month period ending January 31, recorded a pre-tax loss of £200,000 down from the previous period’s £600,000.
Europa also reduced its administrative expenses by more than £100,000 – from £355,000 to £218,000.
Europa’s chief executive, Hugh Mackay said, the firm was the cusp of some major wins.
He said: “Since the beginning of the financial year, a number of farm-outs and sales have been signed across our licence base raising non-dilutive capital for Europa. The remainder of 2017 will see Europa participate in high impact development and exploration projects for which our share of the costs is now funded.
“Offshore Ireland, following our farm-out, 3D seismic will be acquired and funded by Cairn on LO 16/19 in the Irish Atlantic Margin. With drilling set to commence in the region this summer, we are well placed to benefit from any positive results due to a potential de-risking of 4 billon boe of prospective resources in Europa’s licences in the Porcupine. We have landed one farm-out in Ireland and I am confident we will close out more in our other six licences offshore Ireland, as we look to maintain the momentum behind our strategy to monetise our asset base, manage risk and generate value for our shareholders.
“In the UK, we are carried on a potentially transformational well targeting the conventional Holmwood prospect, which neighbours the Horse Hill discovery and Brockham oil field in the Weald Basin. With a 20% interest, we are materially exposed to considerable upside without having to put any of the Company’s capital at risk drilling the well. Still in the UK and, subject to planning consent being granted, we expect our existing production to almost double to around 220 bopd if the Wressle discovery is brought online following our planning appeal.”
The firm has a cash balance of £1.4million.
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