Europa Oil & Gas reported Wednesday that it has achieved a major increase in its full-year production and revenues in its UK operations.
Revenue for the 12 months to July 31 increased by 34 percent to $8 million (GBP 5.1 million) compared to the previous year, while the firm saw a 19-percent growth in oil volumes to 72,360 barrels.
The company currently has three producing assets in the UK, all located onshore in the East Midlands.
Europa said that it expects to begin drilling at either its Wressle or Broughton prospects, also located in the East Midlands petroleum province, in the first quarter of 2013.
"I am delighted with the full year performance of our UK producing assets which, having produced an average of 200 boepd [barrels of oil per day], has hit our production target," Europa CEO Hugh Mackay said in a company statement.
"The 19-percent increase in full year volumes to 72,360 barrels compared to the previous year is partly a result of the WF-9 well at West Firsby coming on stream. In addition, our operations team has implemented a series of initiatives aimed at improving operational efficiency that have contributed to a reduction in downtime and in turn, a significant increase in the number of barrels recovered during the year. The higher average oil price over the period has also undoubtedly been a positive factor in the 34-percent increase in our revenues."
Europa has had to refocus its efforts after withdrawing from two key licenses in Romania last year. The firm is now concerned mainly with its core business in the UK, while also targeting gas developments in France.
According to London-based investment bank Northland Capital Partners, Europa's French licenses – located in the Aquitaine basin of southern France – are potentially "high impact". Northland pointed out in a recent research note that the firm's Berenx asset has resources estimated at between 277 billion cubic feet and 500 billion cubic feet.
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