TIDMEOG
RNS Number : 1741I
Europa Oil & Gas (Holdings) PLC
13 April 2022
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG /
Sector: Oil & Gas
13 April 2022
Europa Oil & Gas (Holdings) plc
("Europa" or "the Company")
Interim Results
Europa Oil & Gas (Holdings) plc, the AIM traded UK, Morocco
and Ireland focused oil and gas exploration, development, and
production company, announces its interim results for the six-month
period ending 31 January 2022.
Financial performance
-- Strongest interim financial performance since H1 2014 with
significant revenue and profit as a result of asset performance and
a strengthening oil price
-- Revenue GBP2.2 million (H1 2021: GBP0.5 million)
-- Pre-tax profit of GBP0.7 million (H1 2021: pre-tax loss GBP0.7 million)
-- Net cash from operating activities GBP0.9 million (H1 2021:
net cash used in operating activities GBP0.2 million)
-- Unrestricted cash balance at 31 January 2022: GBP0.6 million (31 July 2021: GBP0.6 million)
Operational Highlights
Onshore UK - Wressle oilfield moving from strength to strength
and new possibilities for West Firsby
Wressle Oil Field
-- Wressle exceeded initial gross projections of 500 barrels of
oil per day ("bopd") in August, which increased to instantaneous
flow rates in excess of 884 bopd and 480,000 cubic feet ("Mcf") of
gas by September following successful proppant squeeze and coiled
tubing operations. This more than doubled Europa's total net oil
production to 208 bopd during H1 and provided a major boost to
revenues against a backdrop of rising oil prices.
-- ERCE Equipoise Ltd ("ERCE"), an independent energy consulting
group, concluded from analysis of downhole pressure data that
higher rates of up to 1,543 bopd can be realised if the facilities
constraints on gas production can be alleviated.
-- Further resources in the Wingfield Flags and Penistone Flags
reservoirs are being reviewed for development and have the
potential to increase net reserves.
West Firsby Oil Field
-- CausewayGT and geothermal project partner Baker Hughes
identified Europa's West Firsby oil field in the Midlands as a
suitable candidate for developing a closed-loop geothermal
system.
-- Future potential for West Firsby to continue delivering
revenue and for additional well stock to be repurposed to generate
emission-free geothermal energy is in line with the Company's ESG
strategy.
Offshore Morocco - high-impact exploration opportunity
-- The farm out initiative of the Inzegane Offshore permit
located in the Agadir Basin was formally launched in August. Europa
has a 75% interest in Inzegane and operatorship of the License
covering an area of 11,228 sq. km
o Inzegane represents a high-impact exploration opportunity in a
highly underexplored area of the world - complementing Europa's
strategy of building a balanced portfolio of assets.
o Recent evaluation identified a significant volume of unrisked
recoverable resources, in excess of 1 billion barrels (oil
equivalent), in the top five ranked prospects alone.
o Morocco offers a highly attractive investment opportunity with
excellent fiscal terms. Several major and mid-cap companies already
hold acreage there, including ENI, Hunt, Genel and
ConocoPhillips.
Offshore Ireland - Low risk / high reward infrastructure-led
exploration in the proven Slyne Basin gas play
o Farmout initiative is continuing on Licence FEL 4/19 which
holds the flagship 1.5 tcf Inishkea prospect adjacent to existing
infrastructure at the producing Corrib gas field.
Post period
-- Exercise of rights by DNO North Sea (UK) Limited to terminate
the Sale and Purchase Agreement for acquisition by Europa of Irish
exploration licence FEL 3/19.
-- Successfully raised gross proceeds of GBP7.02m, approved by
shareholders at the General Meeting on 25 March.
-- Proposed acquisition of a 25% interest in the Serenity
discovery in the North Sea as part of the Company's strategy to
build a balanced portfolio of assets.
Simon Oddie, CEO said :
"We are delighted to bring you our outstanding financial results
for the first half, which saw revenue quadruple to GBP2.2 million
and a swing back to profitability from recent years.
Europa's positive H1 performance was driven by excellent
production result at our Wressle oil field in North Lincolnshire,
which saw our average daily production more than double compared to
H1 2021 and coupled with elevated oil prices, which are now
exceeding US$100 a barrel.
With the raising of GBP7.02 million and the p roposed
acquisition of a 25% interest in the Serenity discovery in the UK
North Sea post reporting period, we have now also put in place the
third leg of the business, the acquisition of a near-term appraisal
and development opportunity. The year is shaping up to be
transformational for both our diversified energy portfolio and our
financial position."
For further information please visit www.europaoil.com or
contact:
Simon Oddie Europa mail@europaoil.com
Murray Johnson Europa
Christopher Raggett / +44 (0) 20 7220
Simon Hicks finnCap Ltd 0500
Oonagh Reidy / Ana Ribeiro St Brides Partners +44 (0) 20 7236
/ Max Bennett Ltd 1177
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Chairman's Statement
"It has been a very eventful and truly game changing time for
Europa. Our standout performer in the UK portfolio - Wressle -
delivered and exceeded all expectations and the period also saw our
ESG strategy gain momentum with the West Frisby oil field
identified as a possible site for a closed loop geothermal project.
The most material and transformational event came post period end
with the raising of GBP7.02 million to fund the farm-in for 25% of
North Sea block 13/23c which includes the Serenity oil discovery.
This has the combined benefits of balancing our portfolio and
offering the potential for significant short term value upside to
Europa. We are now delivering on our stated strategy of developing
a balanced portfolio of multi-stage hydrocarbon assets encompassing
production, development, and exploration.
Wressle's outstanding production performance during H1 saw
average daily output more than double to over 200 bopd (net) -
quadrupling revenues to GBP2.2 million, compared to H1 2021, amid a
surging oil price environment. The average realised oil price
increased by 75%, -compared to H1 2021, to US$77.84 per barrel
during the first half. Our net cash figure was also positive versus
a year ago. Also, there is further upside potential available for
our standout asset as flagged by a report conducted by ERCE
Equipoise Ltd ("ERCE"), an independent energy consulting group,
which highlighted significant upside potential in production to
1,543bopd - provided certain conditions are met. The operator is
currently working on satisfying these conditions to enable further
increased production.
The farm out initiative of our Inezgane Offshore permit in
offshore Morocco launched during the period also paves the way for
additional growth vis a vis a high-impact exploration opportunity
in a highly underexplored area. This is a high potential
exploration licence where we have already mapped unrisked
prospective oil resources in excess of 1 billion barrels.
Finally, on behalf of the Board I would like to thank the
management, employees and consultants for their hard work over the
course of the reporting period and beyond. I also want to thank our
shareholders for their continued support during the period and look
forward to updating the market on further developments during this
exciting period for the Company."
Mr Brian O'Cathain (non-executive Chairman)
13 April 2022
Operational review
Financials
Average daily H1 2022 production was 208 boepd compared to 86
boepd in H1 2021. There was a 75% increase in average realised oil
price to US$77.84 per barrel (H1 2021: US$44.45). Foreign exchange
movements had a negligible impact on revenues as US Dollar sales
converted to Sterling at US$1.35 (H1 2020: US$1.34).
-- Revenue was GBP2.2 million (H1 2021: GBP0.5 million)
-- Net cash received from operating activities was GBP0.9
million (H1 2021: cash spent GBP0.2 million)
-- The Group's unrestricted cash balance as at 31 January 2022 was GBP0.6 million
Based upon the Group cashflow forecasts, the Directors have
concluded that there is a reasonable expectation that the Group
will be able to continue in operational existence for the
foreseeable future, which is deemed to be at least 12 months from
the date of signing the consolidated financial information. Further
comments on going concern are included in note 1.
Conclusion and Outlook
Our first half financial performance was solid owing to
outstanding operations in the period. A quadrupling of revenue
compared to H1 2021, a dramatic turnaround in our profitability
from a loss of GBP0.7m to a profit of GBP0.7m, our net cash
position closing higher compared to that as at January 2021-
thanks, in the main, to our 30% interest in Wressle oil field in
North Lincolnshire. The asset has delivered beyond our expectations
with still further upside potential ahead.
Elsewhere, we have advanced our ESG strategy with the West
Firsby legacy oilfield in the West Midlands, which is being
assessed as a suitable site for closed loop geothermal energy by
Baker Hughes and CausewayGT. If successful, this could have
positive implications for our other ageing oil wells and the
renewable energy sector more broadly. We expect further momentum as
studies progress in H2.
In offshore Ireland, we are continuing our technical studies and
farmout initiative on our flagship Irish project - FEL 4/19, which
holds the 1.5 tcf Inishkea prospect located in the Corrib Basin. We
remain enthusiastic for this asset given Ireland's heavy dependence
on the Corrib gas field for its gas supply and rising concerns
around energy security. This, coupled with increasing gas prices,
means the market fundamentals are becoming even more
favourable.
We continue to advance our activity in offshore Morocco and look
forward to reporting on progress ahead. With oil prices currently
over US$100 a barrel, as a result of the recent geopolitical
situation and the banning of Russian oil and gas by several
countries - the focus for UK and European governments is now on
sourcing alternative sources of fossil fuels, including a strong
preference to increase domestic supply across EU and the UK.
The post period acquisition of a 25% interest in Serenity is in
line with Europa's previously stated intention to acquire an
appraisal asset, adding to its existing producing and high impact
exploration assets and thus creating a more balanced asset
portfolio for investors. Serenity is expected to be drilled during
2022 at a gross cost of GBP14 million. Europa will pay 46.25% of
the appraisal well cost, equating to a 1.85 to 1 carry. The carry
is capped at a gross well cost of GBP15 million, of which the
Company's interest will be GBP6.94 million. Thereafter, each party
will fund its interests proportionally. It is strategically located
near existing infrastructure in the North Sea, however the
appraisal well could provide sufficient recoverable volumes for a
standalone development.
Europa is now well positioned to capitalise on its diversified
and high potential energy portfolio which is an effective balance
of exploration, appraisal and production with substantial
additional development potential.
Simon Oddie
CEO
13 April 2022
Qualified Person Review
This release has been reviewed by Alastair Stuart, engineering
advisor to Europa, who is a petroleum engineer with over 35 years'
experience and a member of the Society of Petroleum Engineers and
has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
Licence Interests Table
Country Area Licence Field/ Operator Equity Status
Prospect
Slyne Basin FEL 4/19 Inishkea, Corrib Europa 100% Exploration
North
---------------- ---------- ------------------- ------------- ------- ------------
South Porcupine FEL 1/17 Ervine, Edgeworth, Europa 100% Exploration
Ireland Egerton
---------------- ---------- ------------------- ------------- ------- ------------
UK East Midlands DL 003 West Firsby Europa 100% Production
---------------- ---------- ------------------- ------------- ------- ------------
DL 001 Crosby Warren Europa 100% Production
---------------- ---------- ------------------- ------------- ------- ------------
PL199/215 Whisby-4 BPEL 65% Production
199/215
---------- ------------------- ------------- ------- ------------
PEDL180 Wressle Egdon 30% Development
---------- ------------------- ------------- ------- ------------
PEDL181 Europa 50% Exploration
---------- ------------------- ------------- ------- ------------
PEDL182 Broughton North Egdon 30% Exploration
---------- ------------------- ------------- ------- ------------
PEDL299 Hardstoft Ineos 25% Appraisal
---------- ------------------- ------------- ------- ------------
PEDL343 Cloughton Third Energy 35% Appraisal
---------------- ---------- ------------------- ------------- ------- ------------
Morocco Agadir Basin Inezgane Falcon & Turtle Europa 75% Exploration
-------- ---------------- ---------- ------------------- ------------- ------- ------------
Financials
Unaudited condensed consolidated statement of comprehensive
income
Year to
31 July
2021
6 months 6 months
to 31 January to 31 January
2022 2021 (audited)
GBP000 GBP000 GBP000
Continuing
operations
Revenue 2,191 516 1,372
----------------- --------------------------------------------- --------------------------------------------- ------------------------------------------
Cost of sales (1,246) (607) (1,249)
Impairment of
producing fields - (51) -
----------------- --------------------------------------------- --------------------------------------------- ------------------------------------------
Total cost of
sales (1,246) (658) (1,249)
------------------------------------- ------------------------------------- -------------------------------------
Gross
profit/(loss) 945 (142) 123
Exploration write
back/(write off)
(note 3) 360 - (12)
Administrative
expenses (463) (417) (717)
Finance income 20 3 3
Finance expense (119) (131) (242)
------------------------------------- ------------------------------------- -------------------------------------
Profit/(loss)
before taxation 743 (687) (845)
Taxation (note 5) - 127 127
------------------------------------- ------------------------------------- -------------------------------------
Profit/(loss) for
the period 743 (560) (718)
Other
comprehensive
income
Items that will
not be
reclassified
to profit/(loss),
net of tax
Loss on
investment
revaluation (17) (10) (2)
------------------------------------- ------------------------------------- -------------------------------------
Total
comprehensive
income/(loss)
for the period
attributed to
the
equity
shareholders of
the parent 726 (570) (720)
======================== ======================== ========================
Pence per Pence per Pence per
share share share
Earnings per
share (EPS)
attributable
to the equity
shareholders of
the
parent
Attributable to
the equity
shareholders
of the
Basic EPS (note
4) 0.13p (0.13)p (0.15)p
Diluted EPS (note
4) 0.13p - -
Unaudited condensed consolidated statement of financial
position
31 July
2021
31 January 31 January
2022 2021 (audited)
GBP000 GBP000 GBP000
Assets
Non-current assets
Intangible assets (note 6) 2,960 5,391 6,438
Property, plant and
equipment (note
7) 4,006 358 369
Restricted cash - 233 -
------------------------------------- ------------------------------------- -------------------------------------
Total non-current assets 6,966 5,982 6,807
------------------------------------- ------------------------------------- -------------------------------------
Current assets
Investments 25 35 42
Inventories 50 29 23
Trade and other receivables 822 480 522
Restricted cash 238 - 230
Cash and cash equivalents 624 269 641
------------------------------------- ------------------------------------- -------------------------------------
1,759 813 1,458
------------------------------------- ------------------------------------- -------------------------------------
Total assets 8,725 6,795 8,265
==================== ==================== ========================
Liabilities
Current liabilities
Borrowing (note 8) (10) (231) (10)
Trade and other payables (1,177) (1,218) (1,556)
------------------------------------- ------------------------------------- -------------------------------------
Total current liabilities (1,187) (1,449) (1,566)
------------------------------------- ------------------------------------- -------------------------------------
Non-current liabilities
Borrowings (note 8) (35) (44) (40)
Trade and other payables (11) (23) (17)
Long-term provisions (note
9) (3,510) (3,278) (3,393)
---------------------------------- ---------------------------------- -------------------------------------
Total non-current
liabilities (3,556) (3,345) (3,450)
---------------------------------- ---------------------------------- -------------------------------------
Total liabilities (4,743) (4,794) (5,016)
----------------------------------- ----------------------------------- -------------------------------------
Net assets 3,982 2,001 3,249
==================== ==================== ========================
Capital and reserves
attributable
to equity holders of the
parent
Share capital 5,665 4,447 5,665
Share premium 21,157 21,010 21,157
Merger reserve 2,868 2,868 2,868
Retained deficit (25,708) (26,324) (26,441)
---------------------------------- ---------------------------------- -------------------------------------
Total equity 3,982 2,001 3,249
===================== ======================== =======================
Unaudited condensed consolidated statement of changes in
equity
Share Share Merger Retained
capital premium reserve deficit Total equity
GBP000 GBP000 GBP000 GBP000 GBP000
Unaudited
Balance at 1
August
2021 5,665 21,157 2,868 (26,441) 3,249
Comprehensive
income
for the period
Profit for the
period
attributable
to the
equity
shareholders
of the parent - - - 743 743
Other
comprehensive
loss
attributable
to the equity
shareholders
of the parent - - - (17) (17)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Total
comprehensive
income for
the period - - - 726 726
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Contributions
by
and
distributions
to owners
Share-based
payments - - - 7 7
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- ------------------------------
Total
transactions
with owners - - - 7 7
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Balance at 31
January
2022 5,665 21,157 2,868 (25,708) 3,982
======================= ======================= ======================= ======================= =======================
Unaudited
Balance at 1
August
2020 4,447 21,010 2,868 (25,838) 2,487
Loss for the
period
attributable
to the
equity
shareholders
of the parent - - - (560) (560)
Other
comprehensive
loss
attributable
to the equity
shareholders
of the parent - - - (10) (10)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Total
comprehensive
loss for the
period - - - (570) (570)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Contributions
by
and
distributions
to owners
Share-based
payments - - - 84 84
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- ------------------------------
Total
transactions
with owners - - - 84 84
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Balance at 31
January
2021 4,447 21,010 2,868 (26,324) 2,001
======================= ======================= ======================= ======================= =======================
Audited
Balance at 1
August
2020 4,447 21,010 2,868 (25,838) 2,487
Loss for the
year
attributable
to the
equity
shareholders
of the parent - - - (718) (718)
Other
comprehensive
loss
attributable
to the equity
shareholders
of the parent - - - (2) (2)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Total
comprehensive
loss for the
year - - - (720) (720)
--------------------------------- --------------------------------- -------------------------------- ------------------------------ -------------------------------
Contributions
by
and
distributions
to owners
Issue of share
capital 1,218 225 - - 1,443
Issue of share
warrants - (78) - 78 -
Share-based
payments - - - 39 39
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- ------------------------------
Total
transactions
with owners 1,218 147 - 117 1,482
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ -------------------------------
Balance at 31
July
2021 5,665 21,157 2,868 (26,441) 3,249
================================== ================================== ================================== =============================== ==============================
Unaudited condensed consolidated statement of cash flows
Year to
31 July
6 months 6 months
to to 2021
31 January 31 January
2022 2021 (audited)
GBP000 GBP000 GBP000
Cash flows
generated/(used in)
operating
activities
Profit/(loss) after
taxation 743 (560) (718)
Adjustments for:
Share-based payments 7 84 39
Depreciation 627 67 107
Taxation credit
recognised in
profit
and loss - (127) (127)
Impairment of
producing fields - 51 -
Exploration write
off - - 12
Reversal of cost
accrual on
relinquishment
of licences (360) - -
Finance income (20) (3) (3)
Finance expense 119 131 242
(Increase)/decrease
in trade and
other receivables (300) 24 (288)
Increase in
inventories (27) (17) (11)
Decrease/(increase)
in trade and
other payables 90 (5) 85
----------------------------------- ----------------------------------- -------------------------------------
Net cash generated
from/(used in)
operations 879 (355) (662)
Income taxes repayment
received - 127 127
----------------------------------- ----------------------------------- -------------------------------------
Net cash generated
from/(used in)
operating activities 879 (228) (535)
======================== ======================== ========================
Cash flows used in
investing activities
Purchase of property,
plant & equipment (406) - -
Purchase of intangibles (487) (470) (985)
Cash guarantee re Morocco - (3) (4)
Interest received - 3 3
------------------------------------- ------------------------------------- -----------------------------------------------
Net cash used in
investing activities (893) (470) (986)
======================== ======================== ========================
Cash flows (used in)/from
financing
activities
Gross proceeds from issue
of share
capital - - 1,583
Costs incurred on issue
of share
capital - - (140)
Proceeds from borrowings - 225 225
Repayment of borrowings (5) - (225)
Lease liability payments (7) (25) (35)
Lease liability interest
payments (1) (2) (2)
Finance costs (2) (3) (7)
------------------------------------- ------------------------------------- --------------------------------------
Net cash (used in)/from
financing
activities (15) 195 1,399
======================== ======================== ========================
Net decrease in cash and
cash equivalents (29) (503) (122)
Exchange gain/(loss) on
cash and
cash equivalents 12 4 (5)
Cash and cash equivalents
at beginning
of period 641 768 768
------------------------------------- ------------------------------------- -------------------------------------
Cash and cash equivalents
at end
of period 624 269 641
======================== ======================== ========================
Notes to the consolidated interim statement
1 Nature of operations and general information
Europa Oil & Gas (Holdings) plc ("Europa Oil & Gas") and
subsidiaries' ("the Group") principal activities consist of
investment in oil and gas exploration, development and
production.
Europa Oil & Gas is the Group's ultimate parent Company. It
is incorporated and domiciled in England and Wales. The address of
Europa Oil & Gas's registered office head office is 55 Baker
Street, London W1U 7EU. Europa Oil & Gas's shares are listed on
the London Stock Exchange AIM market.
Basis of preparation
The Group's condensed consolidated interim financial information
is presented in Pounds Sterling (GBP), which is also the functional
currency of the Parent Company.
The condensed consolidated interim financial information has
been approved for issue by the Board of Directors on 13April
2022.
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Group has chosen not to adopt IAS
34 "Interim Financial Statements" in preparing this interim
financial information.
The condensed consolidated interim financial information for the
period 1 August 2021 to 31 January 2022 is unaudited. In the
opinion of the Directors the condensed consolidated interim
financial information for the period presents fairly the financial
position, and results from operations and cash flows for the period
in conformity with the generally accepted accounting principles
consistently applied. The condensed consolidated interim financial
information incorporates unaudited comparative figures for the
interim period 1 August 2020 to 31 January 2021 and the audited
financial year to 31 July 2021.
The financial information contained in this interim report does
not constitute statutory accounts as defined by section 435 of the
Companies Act 2006. The report should be read in conjunction with
the consolidated financial statements of the Group for the year
ended 31 July 2021.
The comparatives for the full year ended 31 July 2021 are not
the Group's full statutory accounts for that year. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain a statement under section 498 (2) -
(3) of the Companies Act 2006.
Going concern
The Directors have prepared a cash flow forecast for the period
ending 31 December 2022, which considers the continuing and
forecast cash inflow from the Group's producing assets, the cash
held by the Group at the half year end, less administrative
expenses and planned capital expenditure. The Directors have
concluded, at the time of approving the financial statements, that
there is a reasonable expectation, based on the Group's cash flow
forecasts, that the forecasts are achievable and accordingly the
Group will be able to continue as a going concern and meet its
obligations as and when they fall due. Accordingly, they continue
to adopt the going concern basis in preparing the condensed
consolidated interim financial information.
Critical accounting estimates
The preparation of condensed consolidated interim financial
information requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the
end of the reporting period. Significant items subject to such
estimates are set out in Note 1 of the Group's 2021 Annual Report
and Financial Statements. The nature and amounts of such estimates
have not changed significantly during the interim period.
2 Summary of significant accounting policies
The condensed consolidated financial information has been
prepared using policies based on UK adopted international
accounting standards. Except as described below, the condensed
consolidated financial information has been prepared using the
accounting policies which were applied in the Group's statutory
financial information for the year ended 31 July 2021.
(a) Accounting developments during 2021
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 31 January 2022 but
did not result in any material changes to the financial statements
of the Group.
(b) New standards, amendments and interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standard Description Effective date
-------------------- ------------------------- ---------------
IFRS 3 Reference to Conceptual 1 January 2022
Framework
IAS 37 Onerous contracts 1 January 2022
IAS 16 Proceeds before intended 1 January 2022
use
Annual improvements Annual improvements 1 January 2022
2018-2020 2018-2020 Cycle
IAS 8 Accounting estimates 1 January 2023
IAS 1 Classification of 1 January 2023
Liabilities as Current
or Non-Current
The Group is evaluating the impact of the new and amended
standards above which are not expected to have a material impact on
the Group's results or shareholders' funds.
3 Exploration write back/(write off)
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
Release of cost
accrual on
relinquishment
of licences 360 - -
Exploration
write-off -
PEDL 299
Hardstoft - - (12)
----------------------------------- ----------------------------------- -----------------------------------
360 - (12)
=================================== =================================== ===================================
4 Earnings per share (EPS)
Basic EPS has been calculated on the loss after taxation divided
by the weighted average number of shares in issue during the
period. Diluted EPS uses an average number of shares adjusted to
allow for the issue of shares, on the assumed conversion of all
in-the-money options.
The Company's average share price for the period was 1.43p which
resulted in dilution of 3,286,966 shares. The weighted number of
shares for the diluted earnings per share is 569,753,951. There are
a further 5,180,000 options that were non-dilutive.(H1 2020: 2.30p
which was below the exercise price of all 23,453,458 outstanding
share options).
The calculation of the basic and diluted earnings per share is
based on the following:
6 months to 6 months to Year to
31 January 31 January 31 July 2021
2022 2021 (audited)
GBP000 GBP000 GBP000
Profit/(loss)
Profit/(loss) for the period attributable
to the equity shareholders of the
parent 743 (560) (718)
================== ================== ==================
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
EPS 566,466,985 444,691,599 494,420,476
==== ===== ======= === ============
===== ==================== ======================== ===========
==========
=
Number of shares
Weighted average number of ordinary
shares for the purposes of diluted
EPS 569,753,951 444,691,599 494,420,476
==== ===== ======= === ============
===== ==================== ======================== ===========
==========
=
5 Taxation
Consistent with the year-end treatment, current and deferred tax
assets and liabilities have been calculated at tax rates which were
expected to apply to their respective period of realisation at the
period end.
6 Intangible assets
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
At 1 August 6,438 4,965 4,965
Additions 416 426 1,485
Transfer to
property,
plant &
equipment (3,894)
Exploration
write-off - - (12)
----------------------------------- ----------------------------------- -----------------------------------
At period
end 2,960 5,391 6,438
=================================== =================================== ===================================
Intangible assets comprise the Group's pre-production
expenditure on licence interests as follows:
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
Ireland FEL 4/19
(Inishkea) 1,698 1,606 1,662
Morocco Inezgane 1,037 314 657
UK PEDL180
(Wressle) - 3,234 3,893
UK PEDL181 105 118 113
UK PEDL182
(Broughton North) 34 29 34
UK PEDL299 - 12 -
(Hardstoft)
UK PEDL343
(Cloughton) 86 78 79
----------------------------- ----------------------------- --------------------------------
Total 2,960 5,391 6,438
============================ ================================ ================================
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
Transfer to
Property, plant &
equipment
UK PEDL180 3,894 - -
(Wressle)
----------------------------- ------------------------------- --------------------------------
Total 3,894 - -
============================ ================================ ================================
====== ====== =======
7 Tangible assets
Property, plant & equipment
Furniture Producing Right of Total
& computers fields use assets
GBP000 GBP000 GBP000 GBP000
Cost
At 1 August 2020 6 10,887 147 11,040
Disposals (1) - (80) (81)
------------------------------- ------------------------------- ------------------------------- -------------------------------
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 July 2021 5 10,887 67 10,959
Transfer from
intangible
assets - 3,894 - 3,894
Additions - 370 - 370
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 January
2022 5 15,151 67 15,223
==================== ==================== ================= ======================
Depreciation,
depletion and
impairment
At 1 August 2020 3 10,488 73 10,564
Charge for year 1 64 42 107
Disposal (1) - (80) (81)
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 July 2021 3 10,552 35 10,590
Charge for
period 1 617 9 627
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 January
2022 4 11,169 44 11,217
=================== ====================== ================= ====================
Net Book Value
At 31 January
2022 1 3,982 23 4,006
=============================== =============================== =============================== ===============================
At 31 July 2021 2 335 32 369
=============================== =============================== =============================== ===============================
Cost
At 1 August 2020 6 10,887 147 11,040
Disposal - - (80) (80)
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 January
2021 6 10,887 67 10,960
=================== ====================== ================= ====================
Depreciation,
depletion and
impairment
At 1 August 2020 3 10,488 73 10,564
Charge for
period 1 34 32 67
Impairment - 51 - 51
Disposal - - (80) (80)
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 January
2021 4 10,573 25 10,602
Net Book Value
At 31 January
2021 2 314 42 358
=============================== =============================== =============================== ===============================
8 Borrowings
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
Loans
repayable
in less
than
1 year
Director's - 225 -
loan
Bounce back
loan 10 6 10
----------------------------------- ----------------------------------- -----------------------------------
Total short
term
borrowings 10 231 10
================================== ================================== =================================
Loans
repayable
in 1 to 2
years
Bounce back
loan 10 10 10
Loans
repayable
in 2 to 5
years
Bounce back
loan 25 30 30
Loans
repayable
in over 5
years
Bounce back - 4 -
loan
----------------------------------- ----------------------------------- -----------------------------------
Total long
term
borrowings 35 44 40
================================== ================================== =================================
In June 2020 the Group received a Bounce Back loan for GBP50,000
under the Government's Covid 19 policies. The loan is to be repaid
within 6 years of drawdown but with a 12 month holiday so
repayments started July 2021 and the loan will be repaid over the
following 5 years. The annual rate of interest is 2.5%.
On 19th January 2021 Europa entered into a related party loan
agreement with CW Ahlefeldt-Laurvig (a Group Non-Executive director
and shareholder). Under this agreement, Europa Oil & Gas drew
funds of GBP225,000 on 20(th) January 2021 for a term of 4 months
(with the option of early repayment). The loan was unsecured and
interest accrued on a daily basis at an effective interest rate of
12.57% per annum. The loan and accrued interest was fully repaid in
March 2021.
9 Long term provisions
31 Jan 2022 31 Jan 2021 31 July 2021
GBP000 GBP000 GBP000
At 1 August 3,393 3,163 3,163
Charged to the
statement of
comprehensive
income 117 115 230
----------------------------------- ----------------------------------- -----------------------------------
At period end 3,510 3,278 3,393
=================================== =================================== ===================================
10 Post reporting date
-- Termination of License Sale and Purchase Agreement with DNO
North Sea the Frontier Exploration Licence ("FEL") located in
offshore Ireland.
-- Successfully raised gross proceeds of GBP7.02m, approved by
shareholders at the General Meeting on 25 March.
-- Proposed acquisition of a 25% interest in the Serenity
discovery in the North Sea as part of Company strategy to build a
more balanced portfolio.
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END
IR BKBBPPBKDAQD
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April 13, 2022 02:00 ET (06:00 GMT)
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