Cambridge

Europa Oil & Gas Holdings says Wressle will “transform” revenue profile

Europa Oil & Gas (Holdings) Plc (LON:EOG) boss Simon Oddie told investors that the pending start-up of the Wressle field will transform the companys production and revenue profile.

“Together with measures we have taken to reduce our already low cost base and, following the repositioning of our portfolio towards gas, we believe Europa will be well placed to withstand a sustained period of oil price volatility and weakness,” said Oddie, Europas chairman and interim chief executive.

Oddie, in Wednesdays interim results statement, described the granting of planning permission at Wressle as the “standout” event during the six period under review, along with the award of the Inezgane permit offshore Morocco.

The company, meanwhile, updated investors on measures put in place to protect the business during the coronavirus crisis.

READ: Europa launches review and cost cutting amid coronavirus

In the UK the company noted that all directors, London-based staff and consultants have been working from home since 16 March, and, agreed a temporary 20% pay cut since 1 April. Operations continue at all three of the groups production sites.

Significantly, recently, a new assessment of the Wressle field confirmed the asset as “robust” in the current economic environment, with the necessary break-even oil price estimated at US$17.62 per barrel.

Elsewhere, the company retains ambitions to progress new farm-outs for its high-impact projects, in Ireland and Morocco.

“While the ongoing COVID-19 pandemic may impact activity on the ground, there is much we are still able to get on with, notably working towards the farm-out of our strategic position in the Slyne Basin and continuing desktop work and launching the farm-out of our licence offshore Morocco,” Oddie said.

“With gas set to play a key role in Irelands energy mix and our licences located in a gas play proven by the producing Corrib field, Inishkea represents a compelling investment opportunity with an attractive risk / reward profile.

“While offshore Morocco is at an earlier stage, we are already talking to a number of parties who expressed an interest in our Inezgane licence, even before we had iRead More – Source