Proactive Investors - Europa Oil & Gas Holdings (LON:EOG) reported on “an exciting first half to the financial year”, with the small-cap firm highlighting what it described as a ground-breaking deal in Equatorial Guinea in West Africa (announced in late December).
The acquisition – picking up a 42.9% stake in a ‘drill-ready’ joint venture with the state oil company - gives the company material exposure to highly prospective exploration acreage in a genuinely exciting geography, that’s according to chief executive Will Holland.
“I have always believed that Europa could extend its vast knowledge base into new territories and am very hopeful for the future that in our new licence provides,” Holland said in today’s interim results statement.
He added: “We continue to progress our activities offshore West Ireland and I am very pleased that the Irish Government granted us an extension to licence FEL 4/19 containing the 1.5TCF Inishkea West gas prospect, located only 18km from existing infrastructure and the European gas network.
“I remain very optimistic about our chances of farming this out to a credible industry partner who can then carry us through the exploration phase of the licence.”
Elsewhere, the company noted a reduction in revenue coming from the Wressle, its part-owned UK onshore field, due to temporary downtime as new equipment was installed in the reporting period.
“Despite the lower revenues … our balance sheet remains robust and we expect to continue generating meaningful cashflow from our UK assets,” Holland said.
“This sets Europa up well for the future and will allow us to work up our well balanced portfolio and deliver value for shareholders."
Europa generated £1.4 million of revenue for the half year, and reported a £1 million pre-tax loss for the year – improving of the £1.3 million loss in the same period last year.
The company ended the period with £3.8 million of cash.