Europa Oil & Gas counts on Wressle as losses widen

Europa Oil and Gas saw pre tax losses rise markedly to £5.4m, its accounts for the year to July 2020 revealed today.

Wressle oil site. Photo: Used with the owner’s consent

The loss, which included £4m write-offs following the relinquishment of Irish licences, compared with £0.7m in 2019.

Revenues were down by £0.5m to £1.2m.

But the company predicted a “step-change” in its fortunes when production begins at the Wressle oil site, where it has a 30% stake:

“Our UK production, which is set to dramatically increase once Wressle comes online, provides us with a low risk cash flow generative platform.”

The Wressle site, near Scunthorpe, is due to begin producing oil late this year, after receiving planning permission in January 2020. The initial gross rate has been estimated at 500 barrels of oil per day (bopd).

The accounts said:

“At this rate, Wressle will more than double Europa’s existing UK onshore production to over 200 bopd.”

The break-even price for Wressle oil was US$17.6 per barrel, which is “well below current prices”, Europa said.

Europa’s other fields at West Firsby, Crosby Warren and Whisby-4 in the East Midlands averaged 92 boepd, slightly up on the previous year.

Net cash was up slightly at £0.8m, compared with £0.7m in 2019. Cash balances were down to £0.8m, from £2.9m in 2019. This was enough to fund Europa’s share of the Wressle development, the company said.

But it added:

“In the absence of incremental production from Wressle in 2020 additional funding for the Company would be required, either via the issuance of new shares, the addition of a layer of debt funding or the sale of assets.

“If additional funding were not able to be secured on satisfactory terms, there is a risk that commitments could not be fulfilled, or that assets may be relinquished.”

9 replies »

  1. Yes, quite familiar. Company expanding it’s operations on shore in UK and anticipating that might improve it’s revenue, and maybe, even a profit.

    Bit like a UK mini version of Tesla! Without the deforestation, or kids being forced to risk their health in DRC.

    (Glass half full version.)

    • “ Bit like a UK mini version of Tesla! Without the deforestation, or kids being forced to risk their health in DRC.” Or any of the other fossil fuel companies still to be held accountable for the continuing destruction of our planet in order, of course, to create Martin’s hallowed “profit”.

  2. Wrong again, laith. Not invested, but like YOU, a user.

    Perhaps try something factual instead of fabrication?

    Still using the plastic, to demonstrate your hypocrisy, I note.

    Fabrication and hypocrisy.

    Want some more facts? Nice arable scene shown in Wressle site photo. Red diesel and grain drying fuel comes to mind. Plus, no deforestation! (Good site to landfill turbine blades for others perhaps.)
    Destruction of the planet or feeding an ever expanding population? All going to be done by window boxes or controlling population? Not a chance.

    And, yes, I do like companies to make a profit. Then they pay taxes, and the NHS can have more money for things like medical devices utilising artificial rubber (wonder where that comes from.) Or, the alternative will continue like the next decade where the individual will pay more taxes to pay for the money borrowed during Covid to fund such things, whilst companies have reduced the tax they pay. Yes, I would like to see subsidies on UK oil into red diesel production for UK farmers rather than subsidise imported oil for the same purpose. I would even prefer UK oil was utilised for your next keyboard. Those who received the output would be gratified that some good was being provided to the wider community.

    Whilst the antis like to cost companies money to gratify their dogma and starve the NHS of funds it might have received, and to divert police from dealing with drug gangs. Like to be held accountable for that?

  3. Interesting [edited by moderator] but where’s the fabrication? Nothing wrong with a profit, Martin, if used judiciously and after taxes are paid.

  4. Sorry, I’ve put rather too much weight on the word ‘judiciously’. I should have added “with an eye to eradicating social inequality”. I find your argument a trifle incoherent. What on earth has the worship of the profit motive got to do with drug gangs or my supposedly hypocritical use of plastic. Try and stick to the point.

  5. Fabrication?

    Where is Martin’s hallowed profit? He has no investment in this company.
    So, no Martin’s hallowed profit, therefore fabrication.

    Look at the headline supplied by DoD. If losses are not something of relevance, why the headline? This company is attempting to reverse that situation. There will be a number of people who hope they do to maintain their employment and pay their taxes.

    Companies do try to make a profit, including Tesla. Including solar panel suppliers and wind farms-both of which have a number of examples of excess in that respect.

    Where did “worship of profit” come from? Is the imported oil, to be partially replaced, not making a profit for those exporting it?

    I like UK companies to make a profit and pay their tax. It means I pay less, but get more services. Unfortunately, the good people around Wressle may find the £400k penalty for being led up the garden path by the antis, means they pay more and get less. Accountability for that? None. Just collateral damage, so rinse and repeat.

    Companies pay tax upon PROFIT, the more PROFIT they make the more tax they pay-UNLESS they have large tax credits due to certain issues-INCLUDING what the antis believe is their “right” to impose. Therefore, less tax, less money for policing, NHS etc. Crowd funding not going to add to those, but will add to attempts to increase the imposition where police will be diverted to deal with the issue, instead of other issues.

    I stick to the point. You are not able to follow the point. Those are two different things.

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