Europa Sees Significant Increase in 1H Production and Revenues

UK-based Europa Oil & Gas announced Wednesday a significant improvement in UK production and revenues generated during the six-month period ending Jan. 31 2012 compared with 1H 2011.

Europa has three producing assets in the UK, all located onshore in the East Midlands of England. It has a 100-percent working interest in the West Firsby and Crosby Warren fields and a 65-percent working interest in the Whisby 4 well.
Highlights of 1H 2012 included:
  • a 61-percent increase in 1H 2012 revenues to £2.4 million, compared with (£1.5 million) in 1H 2011.
  • a 23-percent increase in volumes to 187 barrels of oil per day (1H 2011: 151 bopd) due to the West Firsby WF-9 well coming on stream, as well as reduced downtime caused by breakdowns, drilling activities and weather conditions.
  • a 39-percent increase in oil price to $108.90 per barrel compared with $82.70 in 1H 2011.
  • foreign exchange movements negatively affected revenues by one percent.
"I am highly encouraged by the performance of our producing UK assets during the first half of the year. Daily production has been consistently higher than that of the previous year despite the recent workover program for West Firsby 7. I commend our operations team for their dedication and hard work in delivering this improvement and their ongoing efforts to improve operating efficiency," said Europa CEO Hugh Mackay.
"Our UK production continues to generate more than enough cash flow to cover our operating costs and provides a solid foundation from which we can develop our other highly exciting assets. Little or no value is being attached to our highly prospective portfolio of exploration and development assets that include the Berenx gas appraisal project and the Tarbes Val d'Adour re-development project, both of which are located in France. Management [is] committed to realizing the inherent value of our portfolio and I look forward to updating the market on our progress in this regard in due course."