StockMarketWire.com - Europa Oil & Gas (Holdings) posts a pre-tax loss of GBP577,000 for the six months to the end of January - down from GBP1.4m a year ago.

The group said revenues fell to GBP624,000 from GBP1.3m last time due to the weakening oil price and the natural decline in its production.

During the first half of 2016 an average of 124 boepd were recovered from its three UK onshore fields.

Administrative expenses of GBP355,000 were significantly reduced in the period (H1 2015: GBP612,000 included non-recurring expenditure on 14th Round licence applications and legal expenses related to the Tarbes farmout). Europa said stringent cost controls will continue to be applied in the second half of the year.

Chief executive Hugh Mackay said: "The six months under review highlight how well Europa is placed to not just weather the current oil price environment, but also to continue to advance its ever-growing multistage portfolio of licences, even with an oil price of US$40 per barrel. Our existing UK onshore production is set to double in the second half of calendar year 2016 once the Wressle discovery comes online.

"As well as providing a significant boost to our revenues, we expect that Wressle will reduce our break-even oil price to approximately US$30 per barrel. Combined with no debt and net cash as at 31 January 2016 of £1.8 million, this will provide us with an excellent cash flow generative platform with which to develop our portfolio.

"This includes our 100% interest in FEL 2/13, FEL 3/13 and LO 16/2 offshore Ireland, which have combined gross mean un-risked prospective resources of approximately 3 billion boe; the Holmwood prospect located close to the Horse Hill discovery in the Weald Basin, which we are planning to drill within the next twelve months; as well as the three new highly prospective UK onshore licences, two of which have already been proven to hold hydrocarbons."






At 9:34am: [LON:EOG] Europa Oil Gas Holdings PLC share price was +0.13p at 6.25p



Story provided by StockMarketWire.com