Europa to focus on Irish oil prospects

British exploration firm Europa Oil and Gas is to focus on adding prospects in Irish waters as part of its expansion, its management stated yesterday.

As part of its full-yearfinancial results presentation, Europa said that while a discovery at one of its UK assets would result in a significant increase in its production-generated revenues, “our offshore Ireland and onshore France licences are the potential company-makers in our portfolio, due to the size of the prospectivity identified.”

Chief executive, Hugh Mackay said that the next six months will be “very exciting” for the company, with drilling activity planned for its UK portfolio and a new prospect inventory, due from its development partner, US explorer Kosmos Energy, regarding its prospects off the Co Kerry coast in the south Porcupine Basin.

“In parallel, we are working to add new prospects and projects to the portfolio through corporate activity and participation in licensing rounds including the 14th UK onshore, the Irish Atlantic and others around Europe,” he said.

“In due course we will get greater clarity on Irish drilling plans,” he added.

Last month, Mr Mackay said that his company was looking forward to participating in the Irish Government’s new licensing round for prospects located off the west coast of the country.

Europa’s full-year results — covering the 12 months to the end of July — showed a 13% drop in group revenue to £3.9 million (€4.9m), but a post-tax profit of £600,000, following an after-tax loss of £100,000 in the preceding year.

The past year saw a pre-tax loss of £700,000 generated from continuing operations, driven by a £1.2m impairment charge against one of the company’s UK assets.

Cash generated from continuing operations amounted to £1.4m, at year-end, marginally down on the £1.7m total at the end of the previous year and Europa’s net cash balance — as of the end of July — stood at £4.5m.