Europa Oil & Gas plc stated that it will “implement cost saving initiatives” across its whole business in 2016, following a £3 million ($4.56 million) gross loss for the year ended July 31, which was significantly lower than the gross profit of £374,000 ($568,797) recorded during the same period last year.
In its full year results statement for 2015, Europa recorded a £2.2 million ($3.34 million) exploration cost write-off and increased its administrative expenses to £977,000 ($1.48 million) from £832,000 ($1.26 million) in 2014. The company’s revenue dropped to £2.2 million ($3.34 million), compared to £3.9 million ($5.92 million) last year, and its net cash balance as at July 31 stood at £3.2 million ($4.85 million), down from the figure of £4.5 million ($6.83 million) registered the year before.
Despite the announced cost saving measures, Europa’s CEO, Hugh Mackay, promised high impact activity in 2016 in the company’s full year results statement:
“The year ahead promises more high impact activity. We will look to bring the Wressle discovery into production and in the process increase our revenues, issue a CPR for Wressle which will significantly boost our reserves, advance plans to drill the 5.6 million barrels of oil equivalents Holmwood prospect, which we believe is one of the best undrilled conventional prospects onshore UK, commence the farm-out of Holmwood and our Irish licenses and continue ongoing discussions with potential partners for our Bearn des Gaves permit. We are also looking to add to our exploration portfolio having participated in the latest onshore UK and Irish Altantic Margin licensing rounds. We are working hard to generate value for shareholders and look forward to the year ahead.”
Europa announced on September 4 that the Wressle discovery could be larger than expected after an extended well test of the region.
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