REG - Europa Oil & Gas - Interim Results
13/04/2022 07:00
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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 £2.2 million (H1 2021: £0.5 million)
· Pre-tax profit of £0.7 million (H1 2021: pre-tax loss £0.7 million)
· Net cash from operating activities £0.9 million (H1 2021: net cash
used in operating activities £0.2 million)
· Unrestricted cash balance at 31 January 2022: £0.6 million (31 July
2021: £0.6 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 £7.02m, 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 £2.2 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 £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."
For further information please visit www.europaoil.com or contact:
Simon Oddie Europa mail@europaoil.com
Murray Johnson Europa
Christopher Raggett / Simon Hicks finnCap Ltd +44 (0) 20 7220 0500
Oonagh Reidy / Ana Ribeiro / Max Bennett St Brides Partners Ltd +44 (0) 20 7236 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 £7.02 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 £2.2
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 £2.2 million (H1 2021: £0.5 million)
· Net cash received from operating activities was £0.9 million (H1
2021: cash spent £0.2 million)
· The Group's unrestricted cash balance as at 31 January 2022 was £0.6
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 £0.7m to a profit of £0.7m,
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 £14 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 £15 million, of which the Company's interest will be
£6.94 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 North Europa 100% Exploration
Ireland
South Porcupine FEL 1/17 Ervine, Edgeworth, Egerton Europa 100% Exploration
UK East Midlands DL 003 West Firsby Europa 100% Production
DL 001 Crosby Warren Europa 100% Production
PL199/215 199/215 Whisby-4 BPEL 65% Production
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
6 months to 31 January 2022 6 months to 31 January 2021 Year to 31 July 2021
(audited)
£000 £000 £000
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 726 (570)
shareholders of the parent
(720)
======================== ======================== ========================
Pence per share Pence per share Pence per 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 January 2022 31 January 2021 31 July
2021
(audited)
£000 £000 £000
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 Total equity
capital premium reserve deficit
£000 £000 £000 £000 £000
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
6 months to 6 months to Year to
31 January 2022 31 January 2021 31 July
2021
(audited)
£000 £000 £000
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 (£), 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 Framework 1 January 2022
IAS 37 Onerous contracts 1 January 2022
IAS 16 Proceeds before intended use 1 January 2022
Annual improvements 2018-2020 Annual improvements 2018-2020 Cycle 1 January 2022
IAS 8 Accounting estimates 1 January 2023
IAS 1 Classification of Liabilities as Current or Non-Current 1 January 2023
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
£000 £000 £000
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 2022 31 January 2021 31 July 2021 (audited)
£000 £000 £000
Profit/(loss)
Profit/(loss) for the period attributable to the equity shareholders of the 743 (560) (718)
parent
================== ================== ==================
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
£000 £000 £000
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
£000 £000 £000
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 (Hardstoft) - 12 -
UK PEDL343 (Cloughton) 86 78 79
----------------------------- ----------------------------- --------------------------------
Total 2,960 5,391 6,438
============================ ================================ ================================
31 Jan 2022 31 Jan 2021 31 July 2021
£000 £000 £000
Transfer to Property, plant & equipment
UK PEDL180 (Wressle) 3,894 - -
----------------------------- ------------------------------- --------------------------------
Total 3,894 - -
============================ ================================ ================================
====== ====== =======
7 Tangible assets
Property, plant & equipment
Furniture & computers Producing Right of use assets Total
fields
£000 £000 £000 £000
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
£000 £000 £000
Loans repayable in less than 1 year
Director's loan - 225 -
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 loan - 4 -
----------------------------------- ----------------------------------- -----------------------------------
Total long term borrowings 35 44 40
================================== ================================== =================================
In June 2020 the Group received a Bounce Back loan for £50,000 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 £225,000 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
£000 £000 £000
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 £7.02m, 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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