Europa Oil reports strongest first half yet

UK, Morocco and Ireland-focussed Europa Oil & Gas reported its strongest interim financial performance since the first half of 2014 on Wednesday, with “significant” revenue and profit as a result of asset performance and a strengthening oil price.

The AIM-traded firm reported revenue of £2.2m for the six months ended 31 January, up from £0.5m year-on-year.

Pre-tax profit came in at £0.7m for the period, swinging from a pre-tax loss of £0.7m a year ago.

Net cash from operating activities totalled £0.9m, compared to net cash used in operating activities of £0.2m.

Europa said it had an unrestricted cash balance at period end on 31 January of £0.6m, in line with what it reported at the end of the 2021 financial year.

“Europa's positive first half performance was driven by excellent production results at our Wressle oil field in North Lincolnshire, which saw our average daily production more than double compared to 2021 and coupled with elevated oil prices, which are now exceeding $100 a barrel,” said chief executive officer Simon Oddie.

“With the raising of £7.02 million and the proposed 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.”

At 1323 BST, shares in Europa Oil & Gas Holdings were up 1.05% at 2.68p.