The Wressle oil field in North Lincolnshire earned Europa Oil & Gas £5.3m in the past year, the company reported this week.

In accounts for the year to the end of July 2023, Europa said revenue from the field was up 9% on the previous year.

Wressle maintained the company’s “robust financial position”, Europa said, and supported plans for appraisal drilling at Cloughton, near Scarborough.

Europa’s chief executive, William Holland, said the company remained “focussed on realising the full potential of the [Wressle] field” with projects designed to increase oil production and gas monetisation, as well as drilling in the Penistone Flags formation.

Earlier this month, DrillOrDrop reported that the Wressle operator, Egdon Resources, had confirmed plans for two new wells at the site.

Wressle’s average total production for 2023 was 710 barrels of oil per day (bopd), the accounts said. Europa, which has a 30% stake in the field, had a net share of 213 bopd in 2023, up from 179 bopd in 2022.

Production from Wressle represented 80% of Europa’s total revenue in 2023. This was up from 74% of total revenue in 2022.

The remaining revenue came from production at three other nearby fields: West Firsby (7%), Crosby Warren (7%) and Whisby (6%).

Europa’s total revenue from production was stable in 2023 at £6.65m, compared with £6.58m in 2022.

Revenue at West Firsby (Lincolnshire) was up 39% to £489,000 but Whisby (Lincolnshire) was down 44% to £387,000 and Crosby Warren (North Lincolnshire) down 31% at £447,000.

Europa’s share of total oil production from the four fields was 265 bopd, up 8% on 2022 (254 bopd)

According to the accounts, the company’s gross profit increased 53% to £3.4m, up from £2.2m in 2022.

But there was a pre-tax loss of £0.9m after an exploration write off of £1.7m for an expired licence in Morocco. 2022 accounts recorded a pre-tax profit of £1.4m.

Europa also reported it had:

• Relinquished PEDL181 in Lincolnshire in September 2023. The company said: “The asset was not deemed to be adequately attractive.”
• Sold shares in UKOG for £29,000. The shares, worth £300,000 in 2019, were part of Europa’s sale of the Bury Hill Wood licence in Surrey, PEDL143, to UKOG.
• Revised down the decommissioning liability for Crosby Warren but this was offset by a greater impairment of West Firsby following the upward revision of its decommissioning liability.
• Identified a new revenue stream for Crosby Warren from handling water produced at Wressle.
• Plans for repurposing West Firsby for renewable energy.

Key figures

12 months to 31 July 2023

Revenue: £6.7m (2022 £6.6m)

Gross profit: £3.4m (2022 £2.2m)

Pre-tax loss after £1.7m non-cash impairment: £0.9m (2022 pre-tax profit of £1.4m)

Net cash generated in operating activities: £2.8m (2022 £2.5m)

Cash balance: £5.2m (2022 £8.3m)

Admin expenses: £1.872m (2022 £0.82m)

Total assets: £15.64m (2022 £17.01m)

Total liabilities: £5.161m (2022 £5.781m)

Payments to directors: £0.722m (2022 £0.383m)

Employees: 12 (2022 10)