Europa Oil & Gas (LON:EOG) said there is unlocked potential across its assets in Europe, as it released its annual financial report.
The firm said there was a “conveyor belt” of exploration work for it to undertake in coming years and highlighted oil exploration in the UK and Romania as well as the potential for large gas developments in the Aquitaine area of France and the Romanian Carpathians.
The company also said today that managing director Paul Barrett has resigned from the board with effect from today, having notified the company of his resignation in April this year.
For the 12 months to July 31 this year, the company posted revenue of £3.8 million compared to £3.1 million last year.
Pre-tax profit from continuing operations came in at £0.3 million – an improvement on a loss of £1.7 million last year.
Meanwhile, net cash and equivalents at year-end stood at £1.9 million compared to a debt of £0.5 mln in 2010.
Running through the post-period highlights, the firm said that Hugh Mackay had been hired as chief executive on October 10.
The firm spudded the Horodnic-1 well the next day (October 11) to evaluate the Voitinel gas discovery in Romania, looking to prove up the minimum gas volume for commercial development. The well followed up the Voitinel-1 discovery well, which flowed 3 million cubic feet per day in 2009.
Most recently, Europa was awarded two new exploration licensing options over prospective acreage in the porcupine basin, off the west coast of Ireland.
These licence options each comprise two four-block parcels. In total the area covers 2,000 square kilometres. The exploration area is situated on the margins of the Porcupine Basin, in water depths between 700 and 2,000 metres.
Previous drilling in the basin led to the discovery of the Connemara, Spanish Point and Burren oil and gas fields, thus proving a viable petroleum system.
“The focus is now on the potential for large stratigraphic traps similar to those that have been highly successful elsewhere along the Atlantic Margins. Consequently, we are excited by this award and are looking forward to developing drillable prospects in these areas.” the firm said today.
The firm also highlighted today that the firm’s portfolio had been built up over many years on the basis of conventional oil and gas potential, although it was clear that areas prone to conventional hydrocarbons generally have potential for unconventionals too.
“Europa’s solid portfolio has much to offer – continued production, undeveloped discoveries, quality exploration prospects and the prospect of unconventional hydrocarbons,” it added.