Business
Half-yearly Report
Half-yearly Report.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nInterim Report\n\nEUROPA OIL & GAS (HOLDINGS) plc\n\nFor the six months ended 31 January 2009\n\n\nChairman's Statement\n\nThe six months from 1 August 2008 to 31 January 2009 saw an extraordinary\nunravelling of the commodity and equity markets, exacerbated by a stagnation of\nthe debt markets. Oil prices finished the period back at 2004 levels, whilst\nthe AIM oil and gas sector lost 63% of its value over the six months. In\ngeneral, a dose of reality was injected into over-valued pure exploration\nstocks.\n\nIn the six months to 31 January 2009, Europa's turnover was £1.7 million \n(H1 2008: £1.8 million) from an average realized oil price of $69.78/bbl, \nresulting in a pre-tax profit from continuing operations of £0.6 million \n(H1 2008: £0.9 million). A strengthening of the US dollar against Sterling \nover this period reduced the impact of falling $-denominated oil prices. \nProduction for the period averaged 228 bopd (H1 2008: 236 bopd) from Europa's \nthree oil-producing assets in the UK East Midlands.\n\nDuring the period, Europa participated in the drilling of the Lilieci-1 gas\ndiscovery, onshore Romania, which flowed 4.6mmscfpd on test. The well is\ncurrently shut-in for further testing before a decision can be made on\nparticipation in any subsequent appraisal and development. Site preparation was\ncompleted on the Hykeham-1 well, Lincolnshire, and the top-hole section has\nbeen drilled to prepare for the drilling of the main section of the well later\nin 2009. In the coming months, Europa also expects to participate in the\ndrilling of the Voitinel Prospect, in Romania, where the quality and size of\nthis prospect makes it a potential company-maker.\n\nEuropa is working on funding and implementing a significant programme of\nproduction-enhancing work for its two operated East Midlands oilfields with a\ntarget of 500 bopd production from the East Midlands assets by the end of 2009.\nThis work includes a workover and possible frac stimulation treatment at Crosby\nWarren and a new production well combined with facilities upgrades at West\nFirsby. With these programme accomplished, Europa will be perfectly positioned\nto benefit from the generally expected upturn in the oil price in 2010.\n\nEuropa is active in four main jurisdictions - UK, Romania, France and Egypt.\nDuring the period, work to mature the...