Interim Results
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector:
Oil & Gas
19 April 2012
Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')
Interim Results
Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas
exploration and development company with a combination of producing and
exploration assets in Europe, announces its interim results for the six month
period ended 31 January 2012.
Highlights
- Significant increase in production and revenues
- Cash generated from operations in H1 2012 higher than full year 2011
- Identified new shallow gas play in the Béarn des Gaves permit, France
- Acquired two Irish Atlantic Margin licences
- Acquired seismic over Wressle and Broughton prospects -
processing and interpretation ongoing
- Appointed new CEO with incentive package to grow the Company
- Undertaking in-depth review of assets and commissioned competent
person's report
- Elected to withdraw from Brodina licence, Romania
Post reporting date events
- Announced withdrawal from Cuejdiu licence, Romania
- February and March production levels higher than H1 average
Chairman's Statement
During the six months to 31 January 2012, we have made progress in
moving our diverse, multistage, portfolio of European focussed assets forward.
As a result of the work undertaken, we are well-placed to drill up to three
high impact wells in the UK over the next 18 months. This work is anticipated
to commence in the second half of this year with the Wressle prospect in the
UK, which we rate as having a one in three chance of adding materially to our
current oil production average of approximately 200 barrels per day. In
addition, discussions are progressing towards conclusion of two farm-out
agreements which could lead to a further two wells in the next 18 months.
Much has been achieved behind the scenes at both strategic and
operational levels that will lay the foundations for our drilling programme.
We have subjected all our licences to robust technical and commercial analysis
to ensure that they warrant further investment and development. This
comprehensive review of each of our assets both in isolation and in the
context of our overall portfolio is nearing completion, and starting to bear
fruits. For example, as a result of our work during the period at our French
Béarn des Gaves permit, home of the potentially huge Berenx deep gas prospect,
we have identified a previously unknown shallow gas play. Earlier exploration
on the permit centred on the well-known deeper gas prospects, including
Berenx. We are very excited about this new gas play and in response to
interest received from potential partners, we took the decision to divide the
permit into two sections with 4,000m acting as the cut off depth, giving us
the option to farm-out both plays individually to different partners. We
remain actively involved in farm-out discussions and we hope to be in a
position to provide an update shortly with our progress.
Our portfolio review has covered all aspects of each licence,
including volumetrics. In order to verify our assessment of the level of
reserves and resources, ERC Equipoise Limited has been instructed to undertake
a Competent Person's Report (`CPR') on our UK and French assets. We will soon
be publishing the findings of the report, which will serve as an independent
validation of the prospectivity and potential of our core asset base and at
the same time will provide a strong foundation from which we can advance each
licence.
Our asset base is comprised of projects at various stages of
maturity including: production in the UK that generates sufficient cashflow to
cover corporate overheads; appraisal in the UK and France offering low risk
opportunities to increase production in the short term; and highly prospective
exploration in France, the UK, the Irish Atlantic Margin and Western Sahara.
We continue to actively manage this diverse and sizeable portfolio to maintain
the balance of production, development and exploration projects with the aim
of delivering consistent value creation over an extended period of time.
As we have shown in recent announcements, particularly in relation
to Romania, there are no sacred cows in our portfolio. If a licence no longer
satisfies our strict risk / reward criteria then we will look to withdraw our
interest. Operationally, the disappointing results of the Hordonic-1 well on
the Brodina concession provided an unwelcome reminder of the risks associated
with hydrocarbon exploration. However, they also highlight the benefits of
holding a large and diversified portfolio of assets such as ours which spreads
exploration risk and allows the pipeline of projects to keep moving with only
minimal disruption.
Of course as projects mature or no longer fit with our investment
criteria we need to ensure our pipeline of opportunities is replenished and
during the period we added two exploration licensing options in the Irish
Atlantic Margin, a highly prospective region where significant discoveries
have previously been made and where interest is once again growing. Ireland is
increasingly being viewed as an emerging hydrocarbon play following drilling
success in recent months. The securing of the licences in the Irish Atlantic
Margin is an example of how we constantly evaluate opportunities to add to our
asset base.
In the UK, as mentioned earlier, we remain on course to drill an
exploration well at our Wressle prospect later this year following the
acquisition and processing of 3-D seismic in H1 2012. This same seismic data
covers the Broughton prospect which we also rate as having a one in three
chance of adding materially to our daily production. We have a 33.3%
non-operated interest with our partners in both wells and may drill Broughton
in 2013 subject to funding. In addition, we submitted our appeal against the
2011 decision by Surrey County Council not to grant permission to drill a
temporary exploration well to test the Holmwood prospect in PEDL 143 in the
Weald Basin. This decision was made despite the planning officers covering the
case indicating support for the well. The appeal is due to be heard in July
2012 and subject to a favourable ruling and the necessary funds being
available, the Company intends to drill the exploration well during 2013.
Meanwhile, our UK producing assets have performed well and I am
pleased to report that production during the months of February and March 2012
has been higher than recent monthly averages. This, along with the successful
execution of the unscheduled workover programme for the West Firsby 7 (WF-7)
well, which was shut due to a hole in a section of the tubing, is testament to
the expertise and commitment of our team on the ground. Production performance
in the period was pleasing, helping to generate a 61% increase in revenue over
the first half of 2011. Cash generated from operations in the first half of
2012 was higher than that generated in the full year of 2011.
On 31 October 2011, the Company issued 7,777,776 shares at 9p
raising £665,000 net of costs. There were no other shares issued in the 6
months to 31 January 2012.
During the period, Hugh Mackay officially joined us as Chief
Executive. Hugh brings a wealth of experience to Europa having previously held
senior positions at BP, Enterprise Oil, The Peak Group, AGR Petroleum and
Avannaa Resources. Upon taking up his position on 10 October 2011, Hugh has
led the in depth review of our asset base that I have commented on in this
report. At the same time, in addition to acquiring shares in Europa, Hugh was
granted an options package with exercise prices set considerably higher than
the current market price, thereby aligning his interests with those of
shareholders. Agreeing to such terms can be considered a vote of confidence in
the prospects for the Company and its assets.
Having spent the last six months thoroughly reviewing our licences,
we are now well placed to progress a number of our assets further along the
development curve. After the efforts of our team over the last six months, the
second half of the year promises to be the start of an exciting period for the
Company that has the potential to deliver a material change to the value of
our portfolio and, in the process, generate considerable value for
shareholders.
WH Adamson
Chairman, 18 April 2012
Operations Report
Europa operates exploration, production and appraisal assets across
three core EU jurisdictions - UK, France and Romania. During the six months to
31 January 2012, the Company acquired licences in the Irish Atlantic Margin,
adding a fourth EU jurisdiction to its portfolio.
United Kingdom
Europa's portfolio in the UK is a combination of exploration,
appraisal and producing assets. The producing assets comprise three sites in
the East Midlands.
Exploration
UK exploration during the six month period centred on the
acquisition, with our partners Egdon Resources and Celtique Energie Petroleum
Ltd, of 45 km2 of 3-D seismic, covering the Wressle prospect and the Broughton
oil discovery both of which are located in PEDL 180 and 182 in the East
Midlands Petroleum Province. Plans are currently being drawn up to drill a
well at Wressle later this year and we are considering the possibility of a
follow up well at Broughton.
In December 2011, the Company submitted its appeal against the
decision by Surrey County Council in May 2011 not to grant permission to drill
a temporary exploration well to test the Holmwood prospect on the PEDL 143
licence located in the Weald Basin, Surrey. This decision was made despite the
planning officer covering the case indicating support for the well. The appeal
is due to be heard in July 2012. Subject to a favourable ruling, the Company
is looking to drill the exploration well in 2013.
Production - West Firsby and Crosby Warren (100%), Whisby-4 (65%)
During the six month period to 31 January 2012, the Company saw a
61% increase in revenues to £2.4 million compared to £1.5 million in the
equivalent six months of the previous year. A 23% increase in volumes to 187
barrels of oil per day (`bopd') (H1 2011: 151 bopd) during the period combined
with a 39% increase in the oil price to US$108.9 (H1 2011: US$82.7) lay behind
the strong performance. The contribution from the West Firsby WF-9 well along
with reduced downtime caused by breakdowns, drilling activities and adverse
weather contributed to the jump in production. This strong performance was
achieved despite unscheduled downtime at WF-7 caused by a hole in a section of
the tubing. The workover programme was completed on schedule, keeping the
effect of the shut-in on overall production to a minimum.
Since the period end, the good performance of the UK producing
assets has continued. February production was 231 bopd, our highest monthly
production rate since November 2008. In March, our average was 222 bopd.
In connection with our review of assets, the Company considered the
potential value in fracking the CW-1 well. We have concluded that the
associated risks clearly outweigh possible increases in production and have
therefore decided not to frack the well. The Board has further decided to
record a £785,000 impairment charge against the Crosby Warren assets.
France
Europa holds 100% interest in two permits with both development and
exploration potential in the Aquitaine Basin, adjacent to the producing
Lacq-Meillon gas fields. The Béarn des Gaves permit contains a sizeable deep
gas play that has previously been explored but low prevailing gas prices and
limited technology led to the then operator Elf relinquishing the licences in
the 1980s. In November 2011, the Company submitted its renewal application to
extend the terms of the permit for a further three years. The renewal process
commenced in March 2012 and can take up to 15 months to complete.
Reprocessing and interpretation of existing seismic during the
period identified a previously unknown shallow gas play on the Béarn des Gaves
permit. Earlier exploration work on the permit had focussed only on deep lying
gas prospects. As a result, the Company decided to divide the licence into a
deep and shallow play with 4,000m being the cut off level. Discussions with
potential partners for both the newly identified shallow gas play and Berenx
deep are ongoing.
At the same time, farm-out discussions are in train with potential
partners for the Tarbes Val d'Adour permit. Tarbes holds a number of oil
accumulations including the Osmets and Jacques fields, both of which produced
modest quantities of oil under Elf in the 1980s. The licence renewal process
is currently underway with the Company actively engaged with the relevant
French authorities.
Romania
At the beginning of the six month period under review, the Company
held interests in four exploration licences in Romania.
In January 2012, Europa announced its decision to withdraw from one
of these, the Brodina licence (Europa 28.75%) in northern Romania, following
the unsuccessful Horodnic-1 exploration well which failed to indicate the
presence of potentially hydrocarbon bearing intervals. The withdrawal from the
concession resulted in a write-off of previously incurred drilling and other
exploration expenses of £4 million.
Post the reporting date, Europa, with its partners Aurelian and
Romgaz, announced the withdrawal of its involvement from the Cuejdiu licence
(Europa's interest having been 17.5%). As with all its licences, an extensive
review of the Cuejdiu concession both in isolation and within the context of
the Company's portfolio as a whole had been undertaken. This involved a
detailed technical and commercial evaluation of all aspects of the licence
including the prospectivity of the project, anticipated costs attributable to
Europa's continued participation, associated commitments, timetable and
geologic risk. The result of this analysis has led to the Company's decision
to withdraw resulting in a write-off of previously incurred drilling and other
exploration expenses of £1.3 million. Withdrawal from the Cuejdiu licence
shortly after the reporting date was considered by the Directors to indicate
that impairment had occurred in the current period. For this reason the
write-off has been recorded the period ending 31 January 2012.
Following its withdrawal from the Cuejdiu licence, Europa has
interests in two further concessions in Romania, Brates (100%) and Bacau
(19%). The Bacau licence is operated by Raffles Energy and a review of
existing data is currently underway.
In September 2011, the Company was notified by the Romanian tax
authorities that the sum of £0.6 million (including penalties) is payable in
settlement of a VAT liability triggered by the sale of the Company's Bilca Gas
field in 2007. We have submitted an appeal to the Romanian tax authorities
which is progressing. Advice from local tax advisors KPMG continues to be that
our technical case is strong.
Ireland
In October 2011, the Company was awarded two exploration Licensing
Options in the Irish Atlantic Margin licensing round, covering two four-block
parcels in the Porcupine Basin situated off the west coast of Ireland with a
total area of approximately 2,000 sq km. Previous drilling in the basin led to
the discovery of Connemara, Spanish Point and Burren, providing evidence for
the existence of a viable petroleum system. Our focus will be to identify
large stratigraphic traps in Cretaceous and younger submarine fan systems
similar to those that have been proved to be successful elsewhere along the
Atlantic Margins.
The awarded areas are situated on the margins of the Porcupine
Basin in water depths of between 700m and 2,000m in Quads 43 and 54. There are
modest work programmes attached to the licences over a two year period
requiring reprocessing and interpretation of seismic, and an option to convert
into a 15 year Frontier Exploration Licence to undertake seismic and drilling
operations.
Since acquiring the licences, the Company has worked to secure a
farm-out and any update on this front will be released to the market
accordingly.
Western Sahara
Europa holds interests in Western Sahara licenced by the Sahrawi
Arab Democratic Republic. The 100% interest in the licence covers almost
80,000 sq km of exploration acreage and crosses the Tindouf and Aaiun basins.
The concession has significant potential for both conventional and
unconventional gas resources, specifically shale gas. The Tindouf Basin is
geologically similar to the prolific Algerian Palaeozoic basins. Meanwhile,
the Aaiun Basin is an Atlantic margin basin similar to that developed along
the West African margin.
The Company is currently looking to farm-out its interest in the
licence and an appropriate announcement will be made in due course.
Outlook
Europa Oil and Gas is first and foremost an exploration company,
albeit with producing assets in the UK that generate sufficient cash flow to
cover corporate overheads. The reported activity that has taken place across
our licences during the period, including acquiring and interpreting seismic
data in the UK and France and negotiating with potential farm-in partners in
France, Ireland, Romania and Western Sahara, is all geared towards maximising
the value of our portfolio whilst minimising risk. In addition we have
furthered our understanding of the prospectivity of our assets, as illustrated
by the identification of a previously unknown shallow gas play at the Béarn
des Gaves licence in France. Europa is now well placed to embark on a multi
well drilling programme, starting with our Wressle prospect in the second half
of 2012, and we look forward to providing further updates on our progress in
due course.
HGD Mackay
CEO, 18 April 2012
Licence Interests Table
Field/
Country Area Licence Prospect Operator Equity Status
UK East
Midlands DL003 West Firsby Europa 100% Production
DL001 Crosby Warren Europa 100% Production
PL199/215 Whisby-4 BPEL 65% Production
PEDL150 Hykeham / West Whisby Europa 75% Exploration
PEDL180 Wressle Egdon 33% Exploration
PEDL181 Caister Europa 50% Exploration
PEDL182 Broughton Egdon 33% Exploration
Weald PEDL143 Holmwood Europa 40% Exploration
North Sea Holderness Offshore UCG Europa 90% Exploration
Humber South Offshore UCG Europa 90% Exploration
Ireland Porcupine LO-11-7 (Quad 43) Western margin Europa 100% Exploration
LO-11-8 (Quad 54) Eastern margin Europa 100% Exploration
France Aquitaine Béarn des Gaves Berenx (deep) Europa 100% Exploration/Appraisal
Béarn des Gaves Berenx (shallow) Europa 100% Exploration/Appraisal
Tarbes val d'Adour Osmets/Jacque Europa 100% Exploration/Appraisal
Romania Carpathians EIII-4 Bacau Raffles 19% Exploration
EPI-3 Brates Barchiz deepening Europa 100% Exploration
Western
Sahara Tindouf Bir Lehlou Europa 100% Exploration
Aaiun Hagounia Europa 100% Exploration
Financials
Unaudited consolidated statement of comprehensive income
Year to
6 months to 6 months to 31 July
31 January 31 January 2011
2012 2011 (audited)
£000 £000 £000
Revenue 2,362 1,468 3,766
Other cost of sales (1,214) (889) (2,216)
Exploration write-off (5,335) - -
Impairment of producing fields (785) - (425)
Total cost of sales (7,334) (889) (2,641)
-------- -------- --------
Gross (loss) / profit (4,972) 579 1,125
Administrative expenses (279) (248) (646)
Finance income 69 60 1
Finance expense (393) (83) (189)
-------- -------- --------
(Loss) / profit before taxation (5,575) 308 291
Taxation (35) (681) (523)
-------- -------- --------
Loss for the period from continuing (5,610) (373) (232)
operations
Discontinued operations
Loss for the period from discontinued - - (788)
operations
Loss for the period attributed to the (5,610) (373) (1,020)
equity holders of the parent
Other comprehensive income
Exchange gains/(losses) arising on 89 (88) 8
translation of foreign operations
-------- -------- --------
Total comprehensive loss for the period (5,521) (461) (1,012)
attributable to the equity shareholders
of the parent
======== ======== ========
Pence per Pence per Pence per
share share share
Loss per share (LPS)
Basic and diluted LPS from continuing (4.19)p (0.40)p (0.22)p
operations
Basic and diluted LPS from discontinued - - (0.74)p
operations
Basic and diluted LPS from continuing (4.19)p (0.40)p (0.96)p
and discontinued operations
Unaudited consolidated statement of financial position
31 July
31 January 31 January 2011
2012 2011 (audited)
£000 £000 £000
Assets
Non-current assets
Intangible assets 8,129 10,730 11,348
Property, plant and equipment 5,780 5,672 6,742
Deferred tax asset 305 - 930
-------- -------- --------
Total non-current assets 14,214 16,402 19,020
-------- -------- --------
Current assets
Inventories 37 58 43
Trade and other receivables 713 674 795
Cash and cash equivalents 293 1,751 1,876
-------- -------- --------
Total current assets 1,043 2,483 2,714
-------- -------- --------
Total assets 15,257 18,885 21,734
======== ======== ========
Liabilities
Current liabilities
Trade and other payables (1,544) (2,011) (1,757)
Derivative (64) (48) (56)
Short-term borrowings (86) (114) (996)
-------- -------- --------
Total current liabilities (1,694) (2,173) (2,809)
-------- -------- --------
Non-current liabilities
Long-term borrowings (219) (240) (230)
Deferred tax liabilities (4,098) (3,917) (4,686)
Long-term provisions (1,635) (1,441) (1,570)
-------- -------- --------
Total non-current liabilities (5,952) (5,598) (6,486)
-------- -------- --------
Total liabilities (7,646) (7,771) (9,295)
-------- -------- --------
Net assets 7,611 11,114 12,439
======== ======== ========
Capital and reserves attributable to
equity holders of the parent
Share capital 1,379 1,139 1,301
Share premium 13,160 10,881 12,573
Merger reserve 2,868 2,868 2,868
Foreign exchange reserve 505 320 416
Retained deficit (10,301) (4,094) (4,719)
-------- -------- --------
Total equity 7,611 11,114 12,439
======== ======== ========
Unaudited consolidated statement of changes in equity
Foreign
Share Share Merger exchange Retained Total
capital premium reserve reserve deficit equity
£000 £000 £000 £000 £000 £000
Unaudited
Balance at 1 August
2010 822 7,132 2,868 408 (3,752) 7,478
Total comprehensive
income / (loss) for
the period - - - (88) (373) (461)
Share based payments - - - - 31 31
Issue of share capital
(net of issue costs) 317 3,749 - - - 4,066
-------- -------- -------- -------- -------- --------
Balance at 31
January 2011 1,139 10,881 2,868 320 (4,094) 11,114
======== ======== ======== ======== ======== ========
Audited
Balance at 1 August
2010 822 7,132 2,868 408 (3,752) 7,478
Total comprehensive
income / (loss) for
the year - - - 8 (1,020) (1,012)
Share based payments - - - - 53 53
Issue of share capital
(net of issue costs) 479 5,441 - - - 5,920
-------- -------- -------- -------- -------- --------
Balance at 31
July 2011 1,301 12,573 2,868 416 (4,719) 12,439
======== ======== ======== ======== ======== ========
Unaudited
Balance at 1 1,301 12,573 2,868 416 (4,719) 12,439
August 2011
Total comprehensive
income / (loss) for
the period - - - 89 (5,610) (5,521)
Share based payments - - - - 28 28
Issue of share capital
(net of issue costs) 78 587 - - - 665
-------- -------- -------- -------- -------- --------
Balance at 31 January 1,379 13,160 2,868 505 (10,301) 7,611
2012
======== ======== ======== ======== ======== ========
Unaudited consolidated statement of cash flows
Year to
6 months to 6 months to 31 July
31 January 31 January 2011
2012 2011 (audited)
£000 £000 £000
Cash flows from operating activities
Loss after taxation (5,610) (373) (232)
Adjustments for:
Share based payments 28 31 53
Depreciation 179 134 354
Exploration write-off 5,335 - -
Impairment of property, plant
and equipment 785 - 425
Finance income (69) (60) (1)
Finance expense 393 83 189
Taxation expense 35 681 523
Increase in trade and
other receivables (104) (150) (412)
Decrease / (increase) in inventories 6 (20) (5)
Decrease in trade and other payables (187) (277) (239)
-------- -------- --------
Cash generated from
continuing operations 791 49 655
Loss after taxation from
discontinued operations - - (788)
Adjustments for:
Decrease in trade and other receivables - - 193
Increase in trade and other payables - - 617
Non cash increase in
intangible assets - - (22)
-------- -------- --------
Cash used in discontinued
operations - - -
Income tax repayment received - 329 330
-------- -------- --------
Net cash from operating activities 791 378 985
======== ======== ========
Cash flows used in investing
activities
Purchase of property, plant &
equipment (64) (333) (3,213)
Purchase of intangible assets (1,899) (1,416) (1,809)
Interest received - - 1
-------- -------- --------
Net cash used in investing activities (1,963) (1,749) (5,021)
======== ======== ========
Cash flows from financing activities
Proceeds from issue of share capital
(net of issue costs) 665 4,066 5,920
(Decrease)/increase in payables
related to issue of share capital (115) - 115
Proceeds from shareholder loan - 90 -
Proceeds from short-term borrowings - - 1,065
Repayment of borrowings (951) (512) (612)
Finance costs (101) (33) (80)
-------- -------- --------
Net cash (used in) / from financing
activities (502) 3,611 6,408
======== ======== ========
Net (decrease)/increase in cash
and cash equivalents (1,674) 2,240 2,372
Exchange gain / (loss) on cash and
cash equivalents 91 (14) (21)
Cash and cash equivalents
at beginning of period 1,876 (475) (475)
-------- -------- --------
Cash and cash equivalents
at end of period 293 1,751 1,876
======== ======== ========
Notes to the consolidated interim statement
1 Nature of operations and general information
Europa Oil & Gas (Holdings) plc ("Europa Oil & Gas") and
subsidiaries' ("the Group") principal activities consist of investment in oil
and gas exploration, development and production.
Europa Oil & Gas is the Group's ultimate parent Company. It is
incorporated and domiciled in England and Wales. The address of Europa Oil &
Gas's registered office head office is 6 Porter Street, London W1U 6DD. Europa
Oil & Gas's shares are listed on the London Stock Exchange AIM market.
The Group's consolidated interim financial information is presented
in Pounds Sterling (£), which is also the functional currency of the parent
Company.
The consolidated interim financial information has been approved
for issue by the Board of Directors on 18 April 2012.
The consolidated interim financial information for the period 1
August 2011 to 31 January 2012 is unaudited. In the opinion of the Directors
the condensed interim financial information for the period presents fairly the
financial position, and results from operations and cash flows for the period
in conformity with the generally accepted accounting principles consistently
applied. The condensed interim financial information incorporates unaudited
comparative figures for the interim period 1 August 2010 to 31 January 2011
and the audited financial year to 31 July 2011.
The financial information contained in this interim report does not
constitute statutory accounts as defined by section 435 of the Companies Act
2006. The report should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 July 2011.
The comparatives for the full year ended 31 July 2011 are not the
Company's full statutory accounts for that year. A copy of the statutory
accounts for that year has been delivered to the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain a
statement under section 498 (2) - (3) of the Companies Act 2006 but did
include an emphasis of matter which drew attention to the directors'
disclosure concerning the Group's ability to fund its licence commitments,
without qualifying their report. As noted in the full year accounts, the
funding of the 2012 work programme is expected to be met from additional fund
raising which could include the issue of equity, bank funding or the trading
of assets. In the current period the Company issued equity to raise £665,000
and renewed its RBS overdraft facility.
The information has been prepared on the going concern basis.
2 Summary of significant accounting policies
The condensed interim financial information has been prepared using
policies based on International Financial Reporting Standards (IFRS and IFRIC
interpretations) issued by the International Accounting Standards Board
("IASB") as adopted for use in the EU. The condensed interim financial
information has been prepared using the accounting policies which will be
applied in the Group's statutory financial information for the year ended 31
July 2011.
This results in the adoption of various standards and
interpretations, none of which have had a material impact on the interim
report or are expected to have a material impact on the financial statements
for the full year.
3 Share capital
On 31st October 2011, the Company issued 7,777,776 shares at 9p
raising £665,000 net of broker commission. There were no other shares issued
in the 6 months to 31st January 2012. The table below shows all shares issued
since 31st July 2010.
£000
Shares raised net of Total shares
Date issued Price commission in issue
31 July 2010 82,206,587
14 October 2010 13,360,810 11.5p 1,452,000 95,567,397
24 December 18,339,333 15p 2,615,000 113,906,730
2010
31 January 2011 113,906,730
28 June 2011 16,170,998 13p 1,853,000 130,077,728
31 July 2011 130,077,728
31 October 2011 7,777,776 9p 665,000 137,855,504
31 January 2012 137,855,504
All the authorised and allotted shares are of the same class and
rank pari passu.
4 Loss per share (LPS)
Basic loss per share has been calculated on the loss after taxation
divided by the weighted average number of shares in issue during the period.
Diluted loss per share uses an average number of shares adjusted to allow for
the issue of shares, on the assumed conversion of all in-the-money options and
warrants.
As the inclusion of the potential ordinary shares would result in a
decrease in the loss per share in the current period they are considered not
to be dilutive and, as such, the diluted loss per share calculation is the
same as the basic loss per share in the period to 31 January 2012.
The calculation of the basic and diluted loss per share is based on
the following:
Year to 31
6 months to 6 months to July
31 January 31 January 2011
2012 2011 (audited)
£000 £000 £000
Losses
Loss after taxation from continuing (5,610) (373) (232)
activities
Loss from discontinued operations - - (788)
-------- -------- --------
Loss from continuing and discontinued (5,610) (373) (1,020)
operations
======== ======== ========
Number of shares
Weighted average number of ordinary
shares for the
purposes of basic LPS 134,008,887 92,613,172 105,418,814
Weighted average number of ordinary
shares for the
purposes of diluted LPS 134,008,887 92,697,737 105,929,247
5 Taxation
Consistent with the year end treatment, current and deferred tax
assets and liabilities have been calculated at tax rates that are expected to
apply to their respective period of realisation.
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770
Phil Greenhalgh Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770
Sarah Wharry finnCap Ltd +44 (0) 20 7600 1658
Henrik Persson finnCap Ltd +44 (0) 20 7600 1658
Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Friday, 10th January 2025
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