Europa Oil & Gasoline (Holdings) PLC has reported GBP 6.78 million ($8.79 million) in unfavourable revenue for the 12 months to July, in comparison with GBP 852,000 ($1.1 million) for the prior accounting yr, because it acknowledged hundreds of thousands of {dollars} in impairments.
The asset write-offs included GBP 4.97 million ($6.44 million) from exploration, which resulted from Europa’s resolution to permit its license for the Serenity discovery within the North Sea to lapse final September. “The latest change in authorities within the UK and the continued uncertainty of the home regulatory and monetary atmosphere has sharply elevated the potential for future fiscal adjustments for the oil and gasoline trade, which we consider might negatively impression the economics of the Serenity challenge”, the London-based firm reported on its web site.
The extension challenge for the Wressle discipline, the place Europa holds a 30 p.c stake, has additionally been derailed by a Supreme Court docket resolution that regulators should think about Scope III emissions in Environmental Influence Assessments. A authorized problem has been leveled in opposition to the challenge’s planning consent and the consortium determined they may not mount a protection, in keeping with an announcement from Europa October 18.
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In addition to impairments, decrease manufacturing and realized costs additionally weighed down on Europa’s monetary outcomes, with yearly income falling 46 p.c to GBP 3.57 million ($4.63 million). Wressle, positioned onshore North Lincolnshire and straddling Petroleum Exploration and Growth License (PEDL) 180 and PEDL 182, produced simply 357 barrels of oil a day after a three-month shut-in.
Wressle’s confirmed and possible reserves (2P) have been raised by 263 p.c to 2.37 billion barrels of oil equal (boe), Europa reported January 2. That was compared to a 2016 evaluation, which put 2P sources at 655 million boe.
The extension challenge, accredited September, goals to drill two further wells and construct pure gasoline processing services and an underground pipeline to attach the sphere to the native distribution community. The extension challenge was anticipated to begin manufacturing 2025.
“We’re dissatisfied that the planning permission is prone to be rescinded following a authorized problem in gentle of the latest Finch Supreme Court docket judgment which dominated that scope three emissions have to be thought of in planning functions for oil and gasoline developments”, Europa stated in its outcomes report. “The Wressle Joint Enterprise is now going to submit additional info that covers potential scope three emissions such {that a} future planning course of may very well be accredited”.
Europa can be getting ready to drill Cloughton, one other onshore discipline in the UK, in 2026 “to find out if industrial charges could be obtained utilizing trendy completion strategies in order that the 192 BCF (Pmean) GIIP potential could be monetized”, Europa stated.
“At Cloughton, appraisal drilling to check the reservoir productiveness might outcome within the UK’s largest onshore gasoline discipline, which, given its proximity to gasoline infrastructure, may very well be introduced on-line rapidly”, non-executive chair Brian O’Cathain stated.
“As well as, we have now thrilling near-term gasoline exploration alternatives at our Equatorial Guinea license, in addition to our Eire license, and proceed to seek for perfect farm-inees for each property. Each property are near gasoline infrastructure so, like Cloughton, each could be introduced on-line rapidly following a profitable nicely”.
Europa logged GBP 2.78 million ($3.6 million) in present property on the finish of July together with GBP 1.46 million ($1.89 million) in money and money equivalents. In the meantime its present liabilities stood at GBP 1.39 million ($1.8 million).
Europa stated it has now modified its accounting reference date from end-July to end-December. “Accordingly, its present accounting interval, which commenced on 1 August 2024, will now finish on 31 December 2025”, the corporate stated.
To contact the writer, e-mail jov.onsat@rigzone.com
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