Europa celebrates busy year, expects ‘more of the same’ in 2017/18

Europa Oil & Gas chief executive Hugh Mackay
Europa Oil & Gas chief executive Hugh Mackay

Europa Oil and Gas narrowed its losses during a 2016/17 financial year marked by “record levels” of corporate activity at the AIM-listed company.

Ireland-focused Europa posted pre-tax losses of £700,000 for the year to July 31, compared to a deficit of £1.9million a year earlier. Revenues increased by £300,000 to £1.6million.

During the period under review, Europa farmed out a 70% stake in Licensing Option 16/19 in the South Porcupine Basin, off the south-west tip of Ireland, to Cairn Energy subsidiary Capricorn Ireland.

In May, the firm said two of its prospects off Ireland contained prospective resources of more than 500million barrels of oil.

Europa said ERC Equipoise had assigned gross mean un-risked prospective resources of 251million barrels of oil equivalent (boe) to Edgeworth and 302million boe to Ervine.

Both prospects are in Licensing Option 16/2 in the South Porcupine Basin off the south-west of Ireland.

Today, Europa said talks were on-going with “a number of large operators” to farm out seven licences offshore Ireland.

Europa chief executive Hugh Mackay said: “This activity is testament to the quality of the technical work we have carried out on our licences, the excellent location of our assets both offshore Ireland and onshore UK, and the major uptick in industry interest and activity in new plays across our areas of focus.

“The year ahead should see more of the same.  We remain focused on securing farm-outs for the remainder of our Irish licences with partners with whom we can advance our assets towards drilling.”