Europa Oil and Gas is gearing up for production from its Wressle onshore UK oil field and is aiming to expand its acreage in Ireland’s Atlantic Margin.
The company, which published its interim results for the six months to January 31, reported a pre-tax loss of £600,000 as revenue dipped to £600,000 from £1.3million in 2014.
The firm ended the half with £1.8million of cash reserves.
Chief executive Hugh Mackay said: ““The six months under review highlight how well Europa is placed to not just weather the current oil price environment, but also to continue to advance its ever-growing multistage portfolio of licences, even with an oil price of $40 per barrel,”
He added: “Our existing UK onshore production is set to double in the second half of calendar year 2016 once the Wressle discovery comes online.
“As well as providing a significant boost to our revenues, we expect that Wressle will reduce our break-even oil price to approximately $30 per barrel.
“Combined with no debt and net cash as at 31 January 2016 of £1.8 million, this will provide us with an excellent cash flow generative platform with which to develop our portfolio.”
During the period, the group secured three new onshore licence awards in the UK, and last month the new award offshore Ireland was confirmed.
Europa’s Holmwood Well – located next to the highly prospective Horse Hill oil project – received a positive planning decision and preparations are now underway for an exploration well in the next 12 months.