AIM-listed oil and gas exploration and development company Europa Oil & Gas has announced a significant improvement in UK production and revenues generated during the six month period ending 31 January 2012.
The company has a combination of producing and exploration assets in Europe, including three producing assets in the UK, all located onshore in the East Midlands. It has a 100 per cent working interest in the West Firsby and Crosby Warren fields and a 65 per cent working interest in the Whisby 4 well.
The company’s revenues for the six months to the end of January rose by 61 per cent to £2.4 million, compared with £1.5 million for the same period a year earlier. The rise was accounted for by a 23 per cent increase in volumes to 187 barrels of oil per day (bopd) compared with 151 bopd during the equivalent period last year; and a 39 per cent increase in oil price to US$108.9 per barrel, compared with US$82.7 in 2011.
Europa said the increase in volumes was due to its West Firsby WF-9 well coming on stream and reduced downtime caused by breakdowns, drilling activities and weather conditions.
Europa's CEO, Hugh Mackay, commented: "I am highly encouraged by the performance of our producing UK assets during the first half of the year. Daily production has been consistently higher than that of the previous year despite the recent workover programme for West Firsby 7. I commend our operations team for their dedication and hard work in delivering this improvement and their ongoing efforts to improve operating efficiency.
"Our UK production continues to generate more than enough cashflow to cover our operating costs and provides a solid foundation from which we can develop our other highly exciting assets. Little or no value is being attached to our highly prospective portfolio of exploration and development assets that include the Berenx gas appraisal project and the Tarbes Val d'Adour re-development project, both of which are located in France.”
He concluded: “Management are committed to realising the inherent value of our portfolio and I look forward to updating the market on our progress in this regard in due course.”
Europa Oil & Gas has a diversified portfolio of multi-stage hydrocarbon assets that include production, exploration and development interests in countries that are politically stable with transparent licensing processes and offering attractive terms. The company currently produces approximately 200 barrels per day of oil in the UK, generating sufficient revenues to cover corporate overheads. In addition, it has highly prospective exploration projects in the UK, Ireland France and Romania, the most significant asset being the Berenx gas appraisal project in onshore France.
