Europa Oil & Gas shares plummet as loss widens

Europa Oil & Gas shares (LON: EOG) fell after the group announced its final results for the 12 month period ended 31 July 2020.

Revenue for the full-year fell from £1.7m in 2019 to £1.2m in the 12 months to the end of July 2020, whilst pre-tax loss widened from £0.9m to £1.2m.

Chief executive, Hugh Mackay, has stepped down and Simon Oddie has been appointed as the interim chief executive and executive director.

“The award of the Inezgane permit offshore Morocco, the granting of planning consent for the Wressle Oil Field, the refocus of the Offshore Ireland portfolio onto the proven gas play of the Slyne Basin following the acquisition of FEL3/19 and the 1.2 tcf Edge prospect – much progress has been made during the year under review,” said Oddie.

“While the ongoing pandemic and volatility in oil and gas prices may impact exact timings of planned activity, we are confident that the momentum behind our various projects will continue to build in the year ahead.

“Our objective is to expose our shareholders to significant value creating opportunities while minimising risk. Our UK production, which is set to dramatically increase once Wressle comes online, provides us with a low risk cash flow generative platform. Our offshore Ireland and offshore Morocco assets, which hold company-making volumetrics, provide us with multiple opportunities to generate significant value.

“We also intend to resume our efforts to add a third leg to our business by securing a late stage appraisal project, once market conditions improve. Our confidence in Europa’s assets and team remains as high as ever and with this in mind, I look forward to providing further updates on our progress in the year ahead,” he added.

Europa Oil & Gas shares (LON: EOG) are fell on Tuesday’s opening 14.29% and are currently trading at 0.88 (0843GMT).

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.