Europa Oil & Gas plc saw a near halving of oil production at its onshore sites, according to the latest annual report.

The company’s net production dropped to 137 barrels of oil per day (bopd) in the twelve months to July 2024, down 48% from 265 bopd in the same period in 2023.

This was caused mainly by a three-month shut-down at Wressle, currently the UK’s second highest producing onshore oil field. The installation of a jet pump interrupted production between mid-August and early November 2023, Europa said.

Wressle’s gross production averaged 357 bopd in 2024, down from 710 bopd in 2023. Europa’s share in 2024 was 107 bopd, down from 213 bopd in 2023.

Wressle represents 78% of Europa’s onshore oil production.  The remainder is from three older fields: Crosby Warren, West Firsby and an interest in the Whisby W4 well.

The company’s chief executive, William Holland, said the Wressle shut-down was “further exacerbated by lower oil prices during the period, resulting in the reduced revenue for the year”.

Europa’s revenue for the year to 31 July 2024 was down 46% to £3.6m, compared with £6.7m in 2023.

The company made a pre-tax loss of £6.8 after a non-cash exploration impairment loss of £4.96m. In 2023, the pre-tax loss was £0.9m after a non-cash impairment of £1.68m.

Planning permission granted in September 2024 for two new wells at Wressle and a 600m underground gas pipeline is likely to be quashed after a legal challenge.

DrillOrDrop reported earlier this month that North Lincolnshire Council would not defend its decision to approve the planning application.

The Wressle permission is one of several casualties of a landmark judgement by the Supreme Court in the challenge by campaigner Sarah Finch.

The court ruled that hydrocarbon production applications should include an environmental impact assessment (EIA) that took into account the carbon emissions from burning any extracted oil or gas.  In the Wressle case, the council had argued that an EIA was unnecessary.

Europa said the Wressle partners would submit more information to the council on the potential combustion emissions, known as indirect, downstream or scope three emissions.

The company also reported that the estimated recoverable value of the Wressle producing field had been “adversely impacted” by a reduction in forecast UK gas prices.

But it said revenues from Wressle could rise if the gas pipeline was approved. This would allow gas, extracted along with the oil, to be sold to the national grid, rather than being burned in a flare on the site.

The accounts also reported that the expected value of the Crosby Warren oil field had fallen in 2024. This was because predicted revenues from handling produced water from Wressle had dropped.

Europa announced that it had changed its accounting period to end on 31 December. The current period, which began on 1 August 2024, will now end on 31 December 2025.

Key figures

Year to 31 July 2024

Revenue: £3.56m (2023 £6.65m)

Gross profit: £0.26m (2023 £3.38m)

Pre-tax loss: £6.78m (2023 pre tax loss of £0.88m)

Loss for the year: £6.78m (2023 £0.85m)

Total assets: £9.77m (2023 £15.64m)

Total liabilities: £6m (2023 £5.16m)

Net cash used in operating activities: £0.6m (2023 £2.8m)

Cash balance at year end: £1.5m (2023 £5.2m)

Deferred tax asset: £0.83m (2023 £2.93m)

Europa’s onshore net production: 137 bopd (2023 265 bopd)

Directors’ payments: £0.68m (2023 £0.88m)

Average employees and directors: 12 (2023 12)

Staff costs: £1.14m (2023 £1.07m)

• Europa online investor presentation on Monday 2 December 2024. To register

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