REG - Europa Oil & Gas - Interim Results
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RNS Number : 2263Z Europa Oil & Gas (Holdings) PLC 15 September 2025
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil
& Gas
15 September 2025
Europa Oil & Gas (Holdings) plc
("Europa" or the "Company")
Interim Results
Europa Oil & Gas (Holdings) plc, the AIM quoted UK, Ireland and West
Africa focused oil and gas exploration, development and production company,
announces its unaudited interim results for the eleven-month period ended 30
June 2025.
Financial Performance
• Revenue £2.6 million (11 months to 30 June 2024:
£3.2 million)
• Gross profit £0.4 million (11 months to 30 June
2024: £0.2 million)
• Pre-tax loss of £1.2 million (11 months to 30
June 2024: pre-tax loss £6.6 million)
• Net cash used in operating activities £0.1
million (11 months to 30 June 2024: £0.4 million)
• Cash balance at 30 June 2025: £0.9 million (31
July 2024: £1.5 million)
Operational Highlights
Equatorial Guinea
· In Q4 2024, the Company, through its 42.9% stake in Antler Global
("Antler"), launched a farmout process for its EG-08 asset, which holds an
internally estimated 2.2 TCF Pmean of gross prospective resources.
· The EG-08 licence is highly prospective, with three drill-ready
prospects which contain an estimated Mean Prospective resource of 1.48 TCF of
gas equivalent. A further six leads and prospects contribute an estimated 0.72
TCF, bringing the total mean prospective resource to 2.2 TCF of gas
equivalent. The chance of success is high (estimated at 80% for Barracuda),
due to direct hydrocarbon indications on the seismic.
· Post period end in August 2025, the Company announced that Antler had
entered detailed commercial discussions and signed a non-binding Heads of
Terms with a major energy company regarding the farm-out of an interest in the
EG-08 production sharing contract (PSC). Although there are no guarantees that
discussions will conclude successfully, Europa has made significant progress
on the farmout agreement and is working towards signing in the coming months
and drilling of the Barracuda well will commence as soon as possible
thereafter.
Offshore Ireland
· Europa holds a 100% interest in Licence FEL 4-19, which contains the
Inishkea West gas prospect, with an estimated Pmean prospective resource of
1.5 TCF. The project offers strong economics, with an estimated post-tax NPV10
of US$2.0 billion. It also features an exceptionally low carbon intensity of
2.8 kg CO₂/boe, compared to 36 kg CO₂/boe for UK-imported gas in 2022.
· The Company is actively seeking a farm-in partner to drill an
exploration well on the prospect. Given its scale, low emissions, and robust
economics, the Company believes that the prospect presents a highly attractive
risk-reward opportunity for potential farminees.
· Inishkea West is strategically located near the producing Corrib gas
field, enabling potential use of existing infrastructure and offering low
carbon-intensity gas-significantly lower than imported UK gas. Europa believes
a successful discovery could potentially supply over two-thirds of Ireland's
gas demand by 2030.
· The Irish government has signalled concern over energy security,
raising hopes for increased support for domestic gas development.
Onshore UK
· Cloughton gas field appraisal
o Progress on the Cloughton asset (Europa interest: 40%) has been steady
during the year, with the planning application for the Cloughton appraisal
well submitted to North Yorkshire Council in March 2025 and a planning
decision expected in Q4 2025
o Thirteen independent reports commissioned in support of the planning
application confirm that the selected pad location is well-suited for this
well and for potential development of the 137 BCF GIIP, pending confirmation
of commercial flow rates from the appraisal well. Europa expects to shoot a
seismic programme towards the end of 2025, with appraisal drilling anticipated
in 2026.
o Due to the field's high-quality natural gas and close proximity to the UK
gas network, a successful appraisal well could be brought into production
quickly, which would displace LNG imports and thus lowering global emissions.
o Europa was pleased to launch a dedicated community engagement website on
its Cloughton gas field appraisal project to provide local residents and
stakeholders with information on the project and how the project partners
intend to work with local communities. This site, which can be found at
https://cloughton-community.co.uk/ (https://cloughton-community.co.uk/) , is
also intended to help prevent misinformation and address frequently asked
questions about Europa's planned operations.
· Total average net production of 114 bopd was produced from Europa's
UK onshore fields during the 11-month period with Wressle contributing roughly
82% of this and the remainder coming from the two older fields. Lower
production levels and the lower average oil price of US$73 (11 months to 30
June 2024 average was US$82) resulted in the reduction in revenues compared to
the prior period
· Wressle production
o Gross production averaged 311 bopd throughout the period (11 months to 30
June 2024: 354 bopd), with Europa's net share equating to 93 bopd (11 months
to 30 June 2024: 106 bopd)
· The Wressle field development plan continues to be progressed. This
includes a development well to target the Penistone Flags reservoir in 2026.
The existing Wressle production is complemented by a gas monetisation solution
that will be developed in parallel with the Penistone well. The gas
monetisation solution is expected to enhance oil and gas production from the
field and substantially increase revenues, as well as eliminate routine
flaring. Planning consent was received for the project in September 2024,
however North Lincolnshire Council's ("NLC") decision to grant planning
permission was subsequently rescinded following a third-party challenge in
light of the Finch Supreme Court judgement. The Wressle Joint Venture
subsequently completed and submitted the newly required Scope 1, 2 and 3
(Category 11) greenhouse gas emissions assessments such that the planning
application could be redetermined by NLC. The wells will be drilled at the
earliest opportunity, once the necessary regulatory consents and approvals
have been received.
· In May 2025, Europa announced that it had entered into a Revenue Swap
Agreement ("RSA") with a Canadian investment company. Under the terms of the
RSA, Europa received an upfront payment of US$500,000 in exchange for 4.5% of
the remaining gross revenues generated from oil production at the Wressle 1
well.
· The Company is also looking at optimising production operations at
its Crosby Warren site (Europa working interest: 100%), where the existing
production could be significantly increased through a simple workover
programme that is currently being considered.
· Termination of the Whisby 4 net profits agreement
o The royalty agreement (the "Agreement") related to the Whisby-4 well, held
with BritNRG, the operator and licence holder of the Whisby Field, was
terminated, as announced in December 2024. The Agreement had not recently
generated income for Europa, and further investment would have been required
to potentially restore it to a revenue-generating position. Due to the
technical risks involved, the Company determined that its capital was better
directed toward other assets within its portfolio.
o The Agreement had already been fully written down in Europa's accounts,
with a carrying value of nil. Following its termination, all associated
liabilities have been written off by the parties, resulting in a net gain of
£170,000 to the Company.
· Administrative expenses for the period is £1.3 million, which is one
of the lowest in its peer group where the average based on most recent annual
financial statements is £2.35 million (adjusted to reflect the 11-month
reporting period).
Board changes
· Bo Krøll was appointed to the Board as Non-Executive Director on 12
December 2024 and was subsequently appointed Chairman on 11 February 2025
· Alastair Stuart resigned from the Board on 12 December 2024 but
continues to perform the role of Chief Operating Officer
· Brian O'Cathain resigned from the Board on 11 February 2025
Change of accounting reference date
Last year, Europa announced a change to its accounting reference date from 31
July to 31 December. This change aligns the Company's financial reporting
period with the calendar year and allows for enhanced comparability with peer
companies in the oil and gas industry. It also aligns more closely with
industry standard timeframes for project work programmes and budgets. As a
result, Europa's next full annual report will be for the 17-month period
ending 31 December 2025. In accordance with Rule 18 of the AIM Rules,
therefore, the Company has prepared these unaudited results for the 11-months
to 30 June 2025, with the comparative period re-presented to reflect the
equivalent 11-month period to 30 June 2024.
Will Holland, CEO of Europa, said:
"The past 11 months have been a period of steady progress and strategic
positioning across our portfolio. In Equatorial Guinea, we have advanced our
EG-08 licence, launching a farmout process and entering into commercial
discussions with a major energy company - clear recognition of the asset's
scale and potential. In Ireland, our 100%-owned Inishkea West gas prospect
continues to attract some interest, offering a compelling combination of
scale, low emissions, and proximity to infrastructure.
In the UK, we have made important strides at Cloughton, submitting the
planning application for appraisal drilling and engaging proactively with the
local community. Meanwhile, at Wressle, we progressed the development plan and
secured financing through a non-dilutive revenue swap agreement. Across our UK
assets, we remain focused on steadily progressing our assets and managing
capital with discipline, including the termination of the Whisby 4 agreement,
which delivered a considerable balance sheet gain. We continue to be very cost
conscious, which is reflected in the fact that Europa has one of the lowest
G&A expenses of its peer group, whilst still offering excellent value
upside to its shareholders from numerous potential catalysts across the asset
portfolio.
With a reshaped board, progressing farmout discussions in Equatorial Guinea,
and steady progress in the UK and Ireland, we remain well-positioned to
deliver on our strategic objectives in the year ahead."
* * ENDS * *
For further information, please visit www.europaoil.com
(http://www.europaoil.com/) or contact:
William Holland Europa Oil & Gas (Holdings) plc mail@europaoil.com (mailto:mail@europaoil.com)
Samantha Harrison / Ciara Donnelly / Elliot Peters Grant Thornton UK LLP - Nominated Advisor +44 (0) 20 7383 5100
Peter Krens Tennyson Securities +44 (0) 20 7186 9033
Patrick d'Ancona / Anna Stacey Vigo Consulting + 44 (0) 20 7390 0230
Chairman's Statement
When I joined the Board in December 2024, it was because I believed that the
business had significant potential. Nine months on, this belief in Europa's
prospects is still strong, and I am impressed by our team's technical
expertise and dedication to developing our asset base. Against a backdrop of
continued volatility in global energy markets and increasing emphasis on
security of supply and low-carbon solutions, Europa has remained committed to
advancing its portfolio of gas-led assets across the UK, Ireland, and
Equatorial Guinea. We have taken decisive steps to position the Company for
future growth, progressing our assets, maintaining capital discipline, and
strengthening stakeholder engagement.
The last 11 months have been a period of steady progress for Europa. In March
2025, we submitted a planning application for the Cloughton appraisal well to
North Yorkshire Council. The Cloughton appraisal well is highly prospective
for Europa; thanks to the size of the discovered resource, the high-quality
natural gas and proximity to the UK gas network, as such a successful
appraisal well could be brought into production quickly. The community
engagement programme in North Yorkshire regarding the Cloughton appraisal well
has been vital in garnering support for our planned programme. On top of
direct community engagement through townhalls and one-on-one meetings, we
launched the Cloughton community website to provide local residents and
stakeholders with information on the project, answering frequently asked
questions and reducing misinformation. The site can be found at
https://cloughton-community.co.uk/ (https://cloughton-community.co.uk/) .
Progress at Wressle continues, and in May 2025, we entered into a RSA with a
Canadian investment company, in which we received an upfront payment of
US$500,000 in exchange for 4.5% of the remaining gross revenues generated from
oil production at the Wressle 1 well. This deal brings forward a modest part
of future cash flow from the Wressle 1 well without diluting shareholder value
or affecting our capacity to secure broader project financing and provided
liquidity to the Company.
Post-period end, we were particularly pleased to announce that we have engaged
in detailed commercial negotiations and executed a non-binding Heads of Terms
with a leading energy company concerning the farm-out of an interest in the
EG-08 asset in Equatorial Guinea. We remain confident that a formal farm-out
agreement will be finalised in the coming months as EG-08 is a word-class
asset, paving the way for the drilling of the Barracuda well to begin shortly
thereafter, which will test the 878 BCFe prospect and carries an 80% COS.
In the period, we achieved revenue of £2.6 million (11 months to 30 June
2024: £3.2 million), driven primarily by Wressle's ongoing production.
Compared to 31 December 2024, net unrestricted cash decreased only slightly to
£0.9 million in the most recent six months of the financial period
(unrestricted cash at 31 July 2024: £1.5 million), whilst the average
realised oil price decreased by 11% to US$73 per barrel compared to the 11
months to 30 June 2024.
Our portfolio is underpinned by steady UK production, providing a stable base
from which to pursue the considerable potential of our other assets. Each of
our assets has a clear work programme ahead, offering meaningful opportunities
to enhance shareholder value in the near term. I would like to thank the
entire Europa team for their continued commitment and dedication over the
period. We remain focused on maintaining transparent and timely communication
with our shareholders and look forward to what we hope will be a highly active
and impactful period for the Company.
Bo Krøll (Non-Executive Chairman)
12 September 2025
Operational Review
Financials
Average daily production for the 11-month period to 30 June 2025 was 114 boepd
compared to 128 boepd during the 11-month period to 30 June 2024,
predominantly due to the natural decline of the Wressle-1 well. This decrease
in volume was compounded by a lower average realised oil price of US$73 (11
months to 30 June 2024: average realized oil price of US$82) and a weaker US
dollar which traded at an average rate of US$1.30 to Sterling (11 months to 30
June 2024: average rate of US$1.26 to Sterling).
· Revenue was £2.6 million (11 months to 30 June 2024: £3.2 million)
· Net cash used in operating activities was £0.1 million (11 months to
30 June 2024: £0.4 million)
· Net current assets was £1.0 million (31 July 2024: £1.4m)
· The Group's unrestricted cash balance at 30 June 2025 was £0.9
million (31 July 2024: £1.5 million)
During the interim period the Company has focussed its financial activities
on:
· Maximising revenues
· Reducing operating costs on our operated licences
· Reducing administrative expenses which reduced to £1.3 million for
the 11-month period to 30 June 2025 compared to £1.7 million for the 11-month
period ending 30 June 2024. £1.3 million is nearly half of the pro rata
average administrative expenses of our peer group.
· Terminating the unprofitable Whisby 4 net profits agreement, which
results in an accounting gain of £0.2 million
In October 2024, the Company paid the final cash consideration instalment of
£0.3 million related to its investment in Antler Global Limited. Total
consideration paid was £2.4 million. The money invested has funded the full
exploration work programme on EG-08 for 2024, and according to the 2025 Antler
budget and year-to-date activity we still expect that it will also be
sufficient to fund the full 2025 work programme.
In May 2025 the Group received cash consideration of £370,000 ($500,000) in
respect of a Revenue Swap Agreement (note 10) in return for an obligation to
pay the counterparty 4.5% of gross revenues from the Wressle 1 well for a
specified period of time.
The farmout of EG-08, further development of Wressle, progressing the
Cloughton gas field appraisal well and the Inishkea farm-out are the Company's
key strategic priorities, and we remain focused on accelerating progress
across these assets. However, we are in a position to maintain flexibility
around the timing of expenditures related to these strategic priorities and
remain focused on aligning new investment commitments with our existing
resources.
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 to the financial statements below.
Conclusion and Outlook
Looking ahead, Europa is well positioned to make meaningful progress across
its portfolio. In Equatorial Guinea, we are optimistic that the ongoing
commercial discussions will culminate in a successful farm-out agreement,
unlocking the pathway to drilling the Barracuda prospect in 2026. In offshore
Ireland, we continue to market Inishkea West to potential partners, hopeful
that the project's compelling technical qualities, strong economic case,
strategic location, and low-carbon credentials will result in securing a
partner to drill the prospect.
In the UK, the Cloughton appraisal project continues to move forward, with
planning having been submitted and community engagement ongoing. At Wressle,
the development programme is progressing, with preparations for new wells and
a gas monetisation solution that will enhance production and eliminate routine
flaring. In parallel with this, the Wressle site surface facilities have been
upgraded to optimise current and future production efficiencies. We are also
assessing opportunities to improve performance at existing sites such as
Crosby Warren, while maintaining a disciplined approach to cost management and
capital allocation.
Gas remains central to Europa's strategy. It is a transition fuel that offers
a pragmatic pathway to energy security, emissions reduction, and economic
resilience. Our focus remains on advancing assets that support these goals,
while delivering value to shareholders in a responsible and sustainable
manner. Europa will also continue to evaluate new opportunities, similar to
the Equatorial Guinea asset, where we can apply our technical expertise to
generate long-term growth.
Will Holland
CEO
12 September 2025
Qualified Person Review
This release has been reviewed by Alastair Stuart, Chief Operating Officer,
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/Prospect Operator Working interest Area (km2) Status Expiry
Equatorial Douala Sub EG-08 Arrowhead, Antler 1 (#_ftn1) 34.32% 2 (#_ftn2) 731.0 Exploration 2027 3 (#_ftn3)
Guinea Basin, Gulf Barracuda,
of Guinea Cardinal
UK East Midlands DL 003 West Firsby Europa 100% 4.0 Production 2025 4 (#_ftn4)
DL 001 Crosby Warren Europa 100% 9.0 Production 2026
PEDL180 Wressle Egdon 30% 16.0 Production 2039
PEDL182 Broughton North Egdon 30% 10.6 Exploration 2039
PEDL343 Cloughton Europa 40% 110.3 Exploration 2046 5 (#_ftn5)
Ireland Slyne Basin FEL 4/19 Inishkea, Corrib North Europa 100% 945.1 Exploration 2034 6 (#_ftn6)
Financials
Unaudited condensed consolidated statement of comprehensive income
11 months to 11 months to Year to 31 July 2024
30 June 30 June (audited)
2025 2024 7 (#_ftn7)
£000 £000 £000
Continuing operations
Revenue 2,643 3,176 3,566
Cost of sales (2,145) (2,765) (3,117)
Impairment of producing fields (70) (189) (189)
Total cost of sales (2,215) (2,954) (3,306)
------------------------------------- ------------------------------------- ------------------------------
Gross profit 428 222 260
Exploration impairment - (4,968) (4,968)
Profit on termination of net profits agreement 170 - -
Administrative expenses (1,323) (1,724) (1,855)
Share of loss from associate (4) (2) (2)
Finance income 8 242 223
Finance expense (498) (403) (439)
------------------------------------- ------------------------------------- ------------------------------
Loss before taxation (1,219) (6,633) (6,781)
Taxation (note 4) - - -
------------------------------------- ------------------------------------- ------------------------------
Loss for the period (1,219) (6,633) (6,781)
Other comprehensive income /(loss)
Items that will not be reclassified to profit or loss, net of tax
Exchange differences on translation of foreign operations (146) (17) (17)
------------------------------------- ------------------------------------- -------------------------------------
Total comprehensive loss for the period attributed to the equity shareholders (1,365) (6,650)
of the parent
(6,798)
======================== ======================== ========================
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 3) (0.13)p (0.69)p (0.71p)
Diluted EPS (note 3) (0.13)p (0.69)p (0.71p)
Unaudited condensed consolidated statement of financial position
30 June 30 June 31 July
2025 2024 2024
(audited)
£000 £000 £000
Assets
Non-current assets
Intangible assets (note 5) 2,940 2,649 2,664
Property, plant and equipment (note 6) 1,512 1,986 1,928
Investment in joint venture (note 8) 2,256 2,406 2,406
------------------------------------- ------------------------------------- -------------------------------------
Total non-current assets 6,708 7,041 6,998
------------------------------------- ------------------------------------- -------------------------------------
Current assets
Inventories 6 20 9
Trade and other receivables (note 7) 952 1,187 1,309
Cash and cash equivalents 923 1,954 1,463
------------------------------------- ------------------------------------- -------------------------------------
Total current assets 1,881 3,161 2,781
------------------------------------- ------------------------------------- -------------------------------------
Total assets 8,589 10,202 9,779
==================== ==================== ========================
Liabilities
Current liabilities
Trade and other payables (note 9) (626) (1,711) (1,387)
Financial liabilities designated at fair value (note 10) (200) - -
------------------------------------- ------------------------------------- -------------------------------------
Total current liabilities (826) (1,711) (1,387)
------------------------------------- ------------------------------------- -------------------------------------
Non-current liabilities
Trade and other payables (1) (6) (6)
Long-term provisions (note 11) (5,030) (4,570) (4,607)
Financial liabilities designated at fair value (note 10) (196) - -
---------------------------------- ---------------------------------- -------------------------------------
Total non-current liabilities (5,227) (4,576) (4,613)
---------------------------------- ---------------------------------- -------------------------------------
Total liabilities (6,053) (6,287) (6,000)
----------------------------------- ----------------------------------- -------------------------------------
Net assets 2,536 3,915 3,779
==================== ==================== ========================
Capital and reserves attributable to equity holders of the parent
Share capital 9,592 9,592 9,592
Share premium 23,682 23,682 23,682
Merger reserve 2,868 2,868 2,868
Foreign currency translation reserve (163) (17) (17)
Retained deficit (33,443) (32,210) (32,346)
---------------------------------- ---------------------------------- -------------------------------------
Total equity 2,536 3,915 3,779
===================== ======================== = ======================
Unaudited condensed consolidated statement of changes in equity
Share Share Merger FCTR Retained Total equity
capital premium reserve deficit
£000 £000 £000 £000 £000 £000
Unaudited
Balance at 1 August 2024 9,592 23,682 2,868 (17) (32,346) 3,779
Comprehensive loss for the period
Loss for the period attributable to the equity shareholders of the parent - - - - (1,219) (1,219)
Other comprehensive loss attributable to the equity shareholders of the parent - - - (146) - (146)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ ------------------------------ -------------------------------
Total comprehensive loss for the period - - - (146) (1,219) (1,365)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ ------------------------------ -------------------------------
Contributions by and distributions to owners
Share-based payments - - - - 122 122
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- --------------------------------- ------------------------------
Total transactions with owners - - - - 122 122
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Balance at 30 June 2025 9,592 23,682 2,868 (163) (33,443) 2,536
======================= ======================= ======================= ======================= ======================= =======================
Unaudited
Balance at 1 August 2023 9,592 23,682 2,868 - (25,663) 10,479
Comprehensive loss for the period
Loss for the period attributable to the equity shareholders of the parent - - - - (6,633) (6,633)
Other comprehensive loss attributable to the equity shareholders of the parent - - - (17) - (17)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ ------------------------------ -------------------------------
Total comprehensive loss for the period - - - (17) (6,633) (6,650)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ ------------------------------ -------------------------------
Contributions by and distributions to owners
Share-based payments - - - - 86 86
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- --------------------------------- ------------------------------
Total transactions with owners - - - - 86 86
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Balance at 30 June 2024 9,592 23,682 2,868 (17) (32,210) 3,915
======================= ======================= ======================= ======================= ======================= =======================
Unaudited condensed consolidated statement of changes in equity (continued)
Share Share Merger FCTR Retained Total equity
capital premium reserve deficit
£000 £000 £000 £000 £000 £000
Audited
Balance at 1 August 2023 9,592 23,682 2,868 - (25,663) 10,479
Comprehensive loss for the period
Loss for the year attributable to the equity shareholders of the parent - - - - (6,781) (6,781)
Other comprehensive loss attributable to the equity shareholders of the parent - - - (17) - (17)
---------------------------------- ---------------------------------- --------------------------------- ------------------------------ ------------------------------ -------------------------------
Total comprehensive loss for the year - - - (17) (6,781) (6,798)
--------------------------------- --------------------------------- -------------------------------- ------------------------------ ------------------------------ -------------------------------
Contributions by and distributions to owners
Share-based payments - - - - 98 98
---------------------------------- ---------------------------------- ---------------------------------- --------------------------------- --------------------------------- ------------------------------
Total contributions by and distributions to owners - - - - 98 98
---------------------------------- ---------------------------------- --------------------------------- ----------------------------------- ------------------------------ -------------------------------
Balance at 31 July 2024 9,592 23,682 2,868 (17) (32,346) 3,779
=================== =================== ================== =================== =================== ===================
Unaudited condensed consolidated statement of cash flows
11 months to 11 months to Year to
30 June 2025 30 June 2024 31 July
2024
(audited)
£000 £000 £000
Cash flows used in operating activities
Loss after taxation (1,219) (6,633) (6,781)
Adjustments for:
Share-based payments 122 86 98
Depreciation (note 6) 612 710 781
Impairment of producing fields (note 6) 70 189 189
Exploration impairment - 4,968 4,968
Share of loss from joint venture (note 8) 4 2 2
Profit on termination of net profits agreement (170) - -
Finance income (8) (242) (223)
Finance expense 498 403 439
Decrease/(increase) in trade and other receivables 26 (294) (416)
Decrease/(increase) in inventories 3 (1) 10
(Decrease)/increase in trade and other payables (2) 388 320
----------------------------------- ----------------------------------- -------------------------------
Net cash used in operations (64) (424) (613)
Income taxes paid - - -
----------------------------------- ----------------------------------- -------------------------------------
Net cash used in operating activities (64) (424) (613)
======================== ======================== ========================
Cash flows used in investing activities
Purchase of property, plant & equipment (266) (666) (679)
Purchase of intangibles (276) (471) (486)
Investment in joint venture (note 8) (287) (1,882) (2,138)
Proceeds from termination of net profits agreement 28 - -
------------------------------------- ------------------------------------- -------------------------------
Net cash used in investing activities (801) (3,019) (3,303)
======================== ======================== ========================
Cash flows (used in) / from financing activities
Proceeds from Revenue Swap Agreement (note 10) 370 - -
Lease liability payments (3) (7) (7)
Lease liability interest payments - (1) (1)
Finance costs (3) (2) (1)
------------------------------------- ------------------------------------- -----------------------------------
Net cash generated from /(used in) financing activities 364 (10) (9)
======================== ======================== ========================
Net decrease in cash and cash equivalents (501) (3,453) (3,925)
Exchange (loss)/gain on cash and cash equivalents (39) 242 223
Cash and cash equivalents at beginning of period 1,463 5,165 5,165
------------------------------------- ------------------------------------- -------------------------------
Cash and cash equivalents at end of period 923 1,954 1,463
======================== ======================== ========================
Notes to the consolidated interim statement
1 Nature of operations and general information
Europa Oil & Gas (Holdings) plc ("Europa Oil & Gas") and its
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 54 Charlotte Street, London,
England, W1T 2NS. Europa Oil & Gas's shares are admitted to trading on the
AIM market of the London Stock Exchange.
Basis of preparation
The Group's condensed consolidated interim financial information is presented
in Pounds Sterling (£), which is also the functional currency of Europa Oil
& Gas.
The condensed consolidated interim financial information has been approved for
issue by the Board of Directors on 12 September 2025.
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 eleven-month
period 1 August 2024 to 30 June 2025 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 eleven-month
interim period 1 August 2023 to 30 June 2024 and the audited financial year to
31 July 2024. The comparative period has been re-presented to reflect the
equivalent eleven-month period to 30 June 2024.
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 2024.
The comparatives for the full year ended 31 July 2024 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 30
September 2026 (the "going concern period"), which considers the continuing
and forecast cash inflow from the Group's producing assets, the cash held by
the Group at September 2025, less administrative expenses and planned capital
expenditure.
For the going concern period the Group has forecast expenditure, including
general working capital requirements and potential capital expenditure, in
excess of its currently available cash resources and cash inflows from its
producing assets. For the Group to meet its general working capital
requirements and pursue all of its capital projects in a timely and efficient
manner it is likely to require additional funding during the going concern
period to enable it to meet its obligations as they fall due. Having
considered the prepared cashflow forecasts, likely availability of investor
support and asset-backed debt, the directors consider that they will have
access to adequate resources during the going concern period. As a result,
they consider it appropriate to continue adopting the going concern basis in
the preparation of the financial statements.
There can be no assurance that the cash received from fund raises and debt
issuance will match the directors' expectations, and this may affect the
Group's ability to carry out its work programmes as expected.
Should the Group be unable to continue trading as a going concern, adjustments
would have to be made to reduce the value of the assets to their recoverable
amounts, to provide for further liabilities which might arise and to classify
non-current assets as current. The financial statements have been prepared on
the going concern basis and do not include the adjustments that would result
if the Group and Company were unable to continue as a going concern.
The directors have concluded, as at the date of approval of these condensed
consolidated interim financial statements, that there is a reasonable
expectation that the Group will still have sufficient cash resources to be
able to continue as a going concern and meet its obligations as and when they
fall due over the going concern period.
Critical accounting judgements and estimates
The preparation of condensed consolidated interim financial information
requires management to make judgements and estimates that affect the reported
amounts of assets and liabilities at the end of the reporting period.
Significant items subject to such judgements and estimates are set out in Note
1 of the Group's 2024 Annual Report and Financial Statements. Developments in
relation to significant judgements during the interim period are set out
below.
Accounting for the Revenue Swap Agreement ("RSA")
During the interim period the Group entered into a Revenue Swap Agreement
(note 10) whereby it became liable to pay an amount equating to 4.5% of the
gross revenues resulting from the oil production of the Wressle 1 well to the
counterparty in consideration for US$500,000, which was paid upfront. The RSA
is unsecured, and the payments became payable with effect from 1 May 2025 and
depend on the actual production achieved from the well and actual realised
cash revenues, which are dependent on the actual oil price. In assessing the
categorisation of this payment liability as a financial liability measured at
fair value through profit and loss ("FVTPL"), management applies judgements in
relation to the nature of the payment obligation. Management have concluded
that it is appropriate to classify the obligation as FVTPL because the
variable nature of the repayments, being linked to both production volumes and
oil price, could lead to a significant accounting mismatch between the value
of the liability at amortised cost and its fair value. In determining the fair
value of the RSA on the reporting date the Group considered a production
profile based on the latest in-house simulations incorporating latest well
performance, oil prices based on a published forward curve with an average of
approximately $68 per barrel and a discount rate of 10%.
Carrying value of intangible assets (note 5)
FEL 4/19: The expiry date of the current phase of this licence is 31 January
2026 and it has a carrying value of £2.5 million at the reporting date.
During the interim period the Group completed the agreed work programme for
this extension period and continued working towards securing a partner to
advance to the next phase of the licence. The Group is currently in the
process of preparing an application for a further extension of the current
phase this licence. It is the judgement of the directors that the Group has a
reasonable chance of being granted an extension and therefore no impairment
charge in relation to this licence has been recognised.
PEDL 343: The expiry date of the current term of this licence is 31 March 2026
and it has a carrying value of £0.4 million at the reporting date.
Significant work was performed during the interim period and a planning
application for a seismic campaign has been submitted. The Group has also
applied to extend the current term of licence beyond its current expiry date
to allow sufficient time to conduct seismic operation. It is the judgement of
the directors that it is likely that an extension will be granted and
therefore no impairment charge in relation to this licence has been
recognised.
Carrying value of investment in joint venture (note 8)
The directors have applied judgement in considering whether the investment in
Antler Global Limited may be impaired with consideration of the principles in
IAS28 and IAS36. In making this assessment the directors considered the expiry
of the initial 2-year sub-period licence phase in October 2025 including the
progress made with the of the farm out process, considerations in respect of
potentially seeking an extension to the initial 2-year sub-period phase 1 term
and commitments that would be required to progress to the additional 1 year
sub-period of the initial phase of the licence. In the judgement of the
directors the investment in Antler Global Limited is not impaired.
The nature and amounts of other 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 for an
extension to the accounting policy in relation to financial liabilities
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 2024.
(a) Financial liabilities designated at fair value
The Group recognises certain financial liabilities at fair value through
profit or loss ("FVTPL") in accordance with IFRS 9 Financial Instruments.
Financial liabilities designated at FVTPL are initially recognised at fair
value, which typically corresponds to the fair value of the proceeds received.
Transaction costs incurred on such liabilities are recognised immediately in
profit or loss. Subsequent to initial recognition, these liabilities are
remeasured to fair value at each reporting date, with changes in the fair
presented within finance costs or finance income in the statement of
comprehensive income.
(b) Accounting developments during 2025
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 30 June 2025 but did not result in any material changes to the financial
statements of the Group.
(c) New standards, amendments and interpretations in issue but not yet
effective
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods that the Group has decided not to adopt early. The Group is evaluating
the impact of the new and amended standards which are not expected to have a
material impact on the Group's results or shareholders' funds.
3 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.
As the Group made a loss from continuing operations during the interim period
ending 30 June 2025, any potentially dilutive instruments were considered to
be anti-dilutive. Therefore, the diluted EPS is equal to the basic EPS.
The calculation of the basic and diluted earnings per share is based on the
following:
11 months to 11 months to Year to
30 June 30 June 31 July 2024 (audited)
2025 2024
£000 £000 £000
Loss
Loss for the period attributable to the equity shareholders of the parent (1,219) (6,633) (6,781)
================== ================== ==================
Number of shares
Weighted average number of ordinary shares for the purposes of basic EPS 959,184,178 959,184,178 959,184,178
==== ===== ===== ==================== ==== ===== ===== ==================== ==== ===== ===== ====================
Number of shares
Weighted average number of ordinary shares for the purposes of diluted EPS 959,184,178 959,184,178 959,184,178
==== ===== ===== ==================== ======= === ======================== ============ =========== ========== =
4 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. The rate at which
the Energy Profits Levy ("EPL") is levied increased from 35% to 38% and the
investment allowance of 29% on general investment expenditure was abolished on
1 November 2024. Due to existence of qualifying carried forward tax losses,
the Group did not generate profits subject to the Energy Profits Levy,
Corporation Tax or Supplementary Charge tax during the interim period.
5 Intangible assets
30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
At 1 August 2,664 7,146 7,146
Additions 276 471 486
Exploration impairment - (4,968) (4,968)
----------------------------------- ----------------------------------- -------------
At period end 2,940 2,649 2,664
=================================== =================================== ===================================
Intangible assets comprise the Group's pre-production expenditure on licence
interests as follows:
30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
Ireland FEL 4/19 (Inishkea) 2,502 2,444 2,444
UK PEDL182 (Broughton North) 35 35 35
UK PEDL343 (Cloughton) 403 170 185
----------------------------------- ----------------------------------- -----------------------------------
Total 2,940 2,649 2,664
============================ ================================ ================================
6 Tangible assets
Property, plant & equipment
Furniture & computers Producing Right of use assets Total
fields
£000 £000 £000 £000
Cost
At 1 August 2023 56 16,004 91 16,151
Additions 21 460 - 481
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 July 2024 (audited) 77 16,464 91 16,632
Additions 5 261 - 266
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 30 June 2025 82 16,725 91 16,898
==================== ==================== ================= ======================
Depreciation, depletion and impairment
At 1 August 2023 28 13,636 70 13,734
Charge for year 20 753 8 781
Impairment - 189 - 189
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 31 July 2024 (audited) 48 14,578 78 14,704
Charge for period 19 587 6 612
Impairment - 70 - 70
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 30 June 2025 67 15,235 84 15,386
=================== ====================== ================= ====================
Net Book Value
At 30 June 2025 15 1,490 7 1,512
=============================== =============================== =============================== ===============================
At 31 July 2024 (audited) 29 1,886 13 1,928
=============================== =============================== =============================== ===============================
Cost
At 1 August 2023 56 16,004 91 16,151
Additions 21 447 - 468
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 30 June 2024 77 16,451 91 16,619
=================== ====================== ================= ====================
Depreciation, depletion and impairment
At 1 August 2023 28 13,636 70 13,734
Charge for period 18 684 8 710
Impairment - 189 - 189
------------------------------- ------------------------------- ------------------------------- -------------------------------
At 30 June 2024 46 14,509 78 14,633
=================== ====================== ================= ====================
Net Book Value
At 30 June 2024 31 1,942 13 1,986
=============================== =============================== =============================== ===============================
7 Trade and other receivables
Current trade and other receivables 30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
Trade receivables 796 829 1,002
Other receivables 29 101 33
Corporation tax receivable - 50 50
Prepayments 127 207 224
-------------------------------------- --------------------------------------- --------------------------------------
952 1,187 1,309
=================== ==================== ===================
8 Investments in joint ventures
30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
Investment in Antler Global Limited 2,256 2,406 2,406
On 20 December 2023, the Company completed the acquisition of an interest of
42.9% in Antler Global Limited ("Antler") for a total cash consideration of
US$3,000,000 (£2,353,000). The full consideration was payable to Antler in
instalments, and the final instalment was paid in October 2024.
The investment was initially recognised at the value of the purchase price and
direct incremental transaction costs of £72,000 for a total investment value
of £2,425,000. Subsequent to the Company's investment, Antler has been
engaged in exploration activities, the costs of which have been capitalised as
intangible assets resulting in an immaterial charge to its statement of
comprehensive income.
Summarised financial information for Antler is included below:
30 June 2025 30 June 2024 31 July 2024
(audited)
Summarised balance sheet £000 £000 £000
Current assets 207 981 981
Non-current assets 5,053 4,623 4,623
Current liabilities (165) (158) (158)
Net assets 5,095 5,446 5,446
Company % interest in Antler 42.857% 42.857% 42.857%
----------------------------------- ----------------------------------- -----------------------------------
Company share of net assets in £000 2,184 2,334 2,334
Capitalised transaction costs in £000 72 72 72
----------------------------------- ----------------------------------- -----------------------------------
Investment in Antler Global Limited in £000 2,256 2,406 2,406
=============================== =============================== ===============================
11 months to 11 months to Year to
30 June 2025 30 June 2024 31 July 2024 (audited)
Summarised statement of comprehensive income £000 £000 £000
Revenue - - -
Loss from continuing operations (10) (5) (5)
Company % interest in Antler 42.857% 42.857% 42.857%
----------------------------------- ----------------------------------- -----------------------------------
Company share of loss from continuing operations (4) (2) (2)
=============================== =============================== ===============================
9 Trade and other payables
Current trade and other payables 30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
Trade payables 277 298 140
Lease liabilities 6 7 6
Other payables 343 1,406 1,241
------------- --------------------------------------- --------------------------------------
626 1,711 1,387
======================= ==================== ===================
Non-current trade and other payables
Lease liabilities 1 6 6
The decrease in current trade and other payables since 31 July 2024 comprises
predominantly the payment of the final instalment of the Antler consideration,
the derecognition of payables related to the Whisby 4 net profits agreement
and the final settlement of residual payables relating to the Serenity
appraisal well.
10 Financial liabilities designated at fair value
Current Financial liabilities designated at fair value 30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
Revenue swap liability 200 - -
======================= ==================== ===================
Non-current Financial liabilities designated at fair value
Revenue swap liability 196 - -
During the interim period, the Group entered into an arrangement under which
it received an upfront payment of £370,000 ($500,000) in exchange for
granting the counterparty the right to receive a fixed percentage of 4.5% of
the gross revenues of the Wressle 1 well for a specified period. The
obligation requires the Group to make variable cash payments based on actual
oil production levels and prevailing oil prices. Payments to the counterparty
commenced in August 2025 and no payments were made during the interim period.
The Group remeasured the liability at the reporting date of 30 June 2025 with
reference to estimated future production and oil prices which resulted in a
fair value loss of £26,000, inclusive of the effects of changes in exchange
rates, which is included in finance expense.
11 Long term provisions
30 June 2025 30 June 2024 31 July 2024
(audited)
£000 £000 £000
At 1 August 4,607 4,368 4,368
Change in estimated phasing of cash flows - (198) (198)
Charged to the statement of comprehensive income 423 400 437
----------------------------------- ----------------------------------- -----------------------------------
At period end 5,030 4,570 4,607
=================================== =================================== ===================================
Long term provisions relate exclusively to decommissioning obligations related
the Group's UK licences.
12 Post reporting date
On 4 August 2025 the Company announced that its associated company, Antler
Global Limited ("Antler"), has entered into detailed commercial discussions
and has signed a non-binding Heads of Terms with a major energy company to
farm-out an interest in the EG08 production sharing contract ("PSC") in
offshore Equatorial Guinea. There is no guarantee that these commercial
discussions will lead to a legally binding agreement(s) relating to the
farm-out and any agreement(s) would be subject to approval from the Minister
for Energy of Equatorial Guinea.
1 (#_ftnref1) Europa is a 42.9% shareholder in Antler and has one of the two
seats on the Antler board of directors
2 (#_ftnref2) Antler holds an 80% interest in EG08, as a result Europa holds
a 34.32% net interest in the licence
3 (#_ftnref3) Initial 2-year term expiring in October 2025 with optional 1
year extension followed by 2-year second term, which is subject to a well
commitment, after which further extension is subject to well results and term
negotiation with host government
4 (#_ftnref4) Production period expiry is in December 2025 and a further
extension has been applied for during 2025. Last extension was granted in 2022
5 (#_ftnref5) Progression to next phase by March 2026. An application to
extend the current phase has been submitted to the NSTA
6 (#_ftnref6) Progression to next phase by January 2026. Preparatory work
for an extension application is in progress
7 (#_ftnref7) The comparative period has been re-presented to reflect the
equivalent eleven-month period to 30 June 2024
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