(Alliance News) - UK and Ireland-focused exploration firm Europa Oil & Gas Holdings PLC on Thursday said full-year loss narrowed on a non-repeat of write-off costs and growth in revenue.
In the year ended July 31, Europa's revenue grew by 4.8% to GBP1.7 million from GBP1.6 million.
The company's pretax loss narrowed to GBP654,000 from GBP2.3 million. Administrative expenses were cut by 16% to GBP811,000 from GBP967,000, but the biggest contributor to the improvement was the non-repeat of GBP1.3 million in exploration write-offs incurred last year.
Europa reported a "challenging" year in Ireland where it was hurt by delays in farmout and operational activities.
The company explained it was hurt by regulatory factors like the time it took to obtain government approval for licence renewals and site surveys. Europa also added that the Climate Emergency Measures Bill, which did not proceed through the Irish parliament, threatened substantial investment in the country.
In the UK, Europa said its focus is to bring the Wressle oil discovery into production after the North Lincolnshire Council initially refused planning consent. The company owns 30% interest in the Wressle oil discovery.
Europa explained: "The news that North Lincolnshire Council have withdrawn from the inquiry is positive. The operator Egdon Resources PLC is working hard to present a strong case to the planning inspector and we are more hopeful than ever that we will have the well, which was drilled in 2014, producing oil in 2020.
"Gross oil production on Wressle startup is forecast to be 500 barrels of oil per day and Europa's 30% share will more than double our current production providing an important part of our financial resilience."
In September, post-period end, the firm was awarded an exploration licence covering a "large, under-explored" area of the Agadir basin in Morocco.
Shares in Europa were 4.7% lower at 1.91 pence each in London on Thursday morning.
By Eric Cunha; firstname.lastname@example.org
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