Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 15 April 2015 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Interim Results Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration andproduction company with a combination of producing, appraisal and explorationassets in Europe, announces its interim results for the six month period ended31 January 2015. Highlights * Irish prospect inventory received from Kosmos identified 1.5 billion barrels of gross mean un-risked prospective oil resources * Wressle exploration well in PEDL180, Lincolnshire, discovered oil with aggregate production from all payzones of 710 boepd during testing operations * Applications submitted for 14th UK onshore licensing round Financial performance * Revenue £1.3m (H1 2014: £2.1m) * Pre-tax loss prior to field impairments of £0.3m, (H1 2014: pre-tax profit from continuing operations £0.5m) * Pre-tax loss post field impairments of £1.4m (H1 2014: pre-tax profit from continuing operations £0.5m) * Net cash generated from operations £0.2m (H1 2014: £0.6m) * Cash balance at 31 January 2015 £3.6m (31 January 2014: £4.8m) Post reporting date events * Farm-out of Tarbes Val d'Adour permit in France to Vermilion Energy * Oil and gas production from four intervals tested at the Wressle discovery in PEDL180 * The Kiln Lane exploration well in PEDL181, Lincolnshire was drilled and abandoned; whilst not a discovery, oil shows indicate a working petroleum system in the licence * A new Jurassic hybrid play recently reported in PEDL137 in the Weald Basin next to Europa's 40% owned PEDL143 * Retirement of Bill Adamson from the Board and appointment of Colin Bousfield as Chairman Europa's CEO, Hugh Mackay said, "We are confident the momentum that has beenestablished across our portfolio of multistage projects will be maintained inthe second half of 2015 and beyond: a CPR on our Irish and UK licences; anextended well test on the Wressle discovery that may lead to a fast trackdevelopment; and the results of our applications in the 14th UK onshorelicensing round are anticipated following the general election. In addition, weare working with our new farm-in partner and operator Vermilion Energy toadvance our Tarbes permit in onshore France and the farm-out of our Bearn desGaves permit onshore France is ongoing. "Outside our existing portfolio, we are evaluating a number of newopportunities, as we look to leverage our proven technical expertise togenerate significant value for shareholders. This is precisely what we havedone with our Irish licences, which our partner Kosmos Energy estimates havegross mean un-risked prospective resources of up to 1.5 billion barrels of oil.We are intent on building the very high reward component of our portfolio. Ourrecent technical work indicates that there is substantial exploration upside inthe Porcupine Basin and we will be bidding for new licences in the 2015 IrishAtlantic Margin licensing round." For further information please visit www.europaoil.com or contact: Hugh Mackay / Phil Greenhalgh Europa +44 (0) 20 7224 3770 Matt Goode / Simon Hicks finnCap Ltd +44 (0) 20 7220 0500 Frank Buhagiar / Lottie St Brides Partners Ltd +44 (0) 20 7236 1177Brocklehurst Qualified Person Review This release has been reviewed by Hugh Mackay, Chief Executive of Europa, whois a petroleum geologist with 30 years' experience in petroleum exploration anda member of the Petroleum Exploration Society of Great Britain, AmericanAssociation of Petroleum Geologists and Fellow of the Geological Society. MrMackay has consented to the inclusion of the technical information in thisrelease in the form and context in which it appears. Chairman's Statement Since the last Chairman's Statement with the Annual Results in October 2014,Europa has been through a period of increased activity, including: * the drilling of two wells which targeted up to 5 million barrels of gross prospective resources, which resulted in: + flow test rates of 710 barrels of oil equivalent per day (`boepd') from the Wressle discovery, ahead of an extended well test (`EWT') which should commence in Q2 2015, ahead of long term production + the indication of working petroleum system in the PEDL181 block evidenced by the Kiln Lane exploration well. Well operations were achieved efficiently, safely, on time and budget; * the interpretation and evaluation of seismic surveys over our Porcupine Basin licences where we have a 15% interest, resulted in gross prospective resources estimated by the operator, Kosmos, approaching 1.5 billion barrels. Europa's share of drilling costs being carried up to US$200m across the two licences. The scale of the prospective resource is highly encouraging and should assist with the planning for drilling activities; * the farm-out of one of our French licences to the leading onshore operator in the country, Vermillion, providing a carry of exploration costs up to € 4.65m in exchange for an 80% interest in the licence; * the continued evaluation and discussion of acquisition opportunities. These activities represent the latest stage in our programme to mature and growour portfolio of prospects and leads and most importantly prove these up viathe drill bit. Detailed post-drill analysis from the Wressle and Kiln Lanewells is continuing, and should confirm additional potential in the twolicences. In addition to our existing inventory, we have applied for licencesin the 14th UK onshore round and are preparing our applications for theforthcoming Irish offshore licencing round. We also continue to evaluate anumber of potential acquisition opportunities with a view to ensuring we have aregular stream of activity and news flow, which is capable of increasingEuropa's value and share price. All of this has been against a backdrop of a dramatic drop in oil prices whichhas seen the price of Brent crude drop from US$94/bbl to the current level ofUS$58/bbl. The oil price collapse has seen most E&P companies' share pricesfall, with some AIM listed E&Ps falling over 50% during this period. Europa'sshare price has held relatively stable, and our standing amongst the 102 E&Pcompanies on AIM, as determined by market capitalisation, has risen from 64that the end of September 2014 to 53rd by the end of March 2015. Hugh has previously indicated that we intend to complete a Competent PersonsReport (`CPR') on our licence portfolio and the first part of this, coveringour Irish acreage, is expected to be available by the end of May. Theexploration success at Wressle and the greater clarity on the risk and value inour Irish prospects will be reflected in the CPR as we continue to mature ourportfolio through detailed technical work and the drill bit. Financials In the first half of 2015 our production sold for an average realised price ofUS$78.3/bbl (H1 2014: US$108.3/bbl). Our average production of 144 boepd in theperiod (H1 2014: 170boepd) was impacted by the loss of approximately 8 bopdproduction from the WF9 well which at current prices is uneconomic to workover. As a result, our revenue was £1.3 million (H1 2014: £2.1 million). Netcash generated from operations was £0.2 million (H1 2014: £0.6 million). Ourcash balance at the end of January 2015 was £3.6 million (31 January 2014: £4.8million). The carrying value of each of our producing assets was tested for impairment.Using a reduced forward oil price, there was a £1.1 million impairment of theWest Firsby field. There was no impairment at Crosby Warren or Whisby. Administrative expenses in the period were £612,000 (H1 2014: £371,000) theincrease being due to legal costs incurred on the Tarbes farm-out and costsassociated with the 14th round and other licensing applications. Board In February 2015, Bill Adamson stepped down as Chairman to enable him toconcentrate on his work in the voluntary sector. Bill had been Chairman forjust under five years, during which time he presided over a period oftransition for the Company, including the appointment of Hugh Mackay as ChiefExecutive. The Board and I would like to thank Bill on behalf of allshareholders for his efforts during this period. Outlook Whilst the current oil price presents challenges for all E&P companies, I amconfident that Europa has an excellent portfolio of assets and opportunities.With Wressle moving from prospect to discovery and soon onto an extended welltest ahead of full production, we are poised to see an increase in production,revenue and cashflow. This should coincide with confirmation of the scale ofour Irish prospects and the next steps in their progress towards maturity. Withsome progress in farming out our French permits and the potential for the awardof licences onshore UK and offshore Ireland, I am convinced that the nextmonths will be a very exciting time for Europa and its shareholders. Finally, I would like to thank the management and operational teams, directorsand advisers for their hard work and also our shareholders for their continuedsupport over this six month period. Colin BousfieldChairman14 April 2015 Operational review Europa operates exploration, production and appraisal assets across three EUcountries: Ireland, France and UK. Ireland - Porcupine Basin Frontier Exploration Licences (`FELs') 2/13 and 3/1315% (Beckett, Wilde and Doyle) The primary exploration model for these licences is the Cretaceousstratigraphic play: comprising Early Cretaceous turbidite sandstone reservoirs;charged by mature Late Jurassic and Early Cretaceous source rocks and containedin stratigraphic traps with elements of structural closure. The Cretaceous playin Ireland is essentially undrilled and is considered to be analogous to thesame play in the equatorial Atlantic Margin province that has delivered theJubilee and Mahogany oil fields. The Jurassic exploration play remains ofinterest and we note that on the Canadian side of the North Atlantic conjugatemargin Statoil has made three significant oil discoveries in the Flemish Passbasin. Under the terms of the farm-out in April 2013, Kosmos fully funded the costs ofa 3-D seismic acquisition programme over both FELs which was completed inOctober 2013. Final processed data was delivered in April 2014 and in earlyDecember 2014 Kosmos delivered a new prospect inventory. This showed combinedgross mean un-risked prospective resources of 1.5 billion barrels of oil(resources by definition are recoverable) across both FEL 2/13 and FEL 3/13. OnFEL 3/13, prospects Beckett and Wilde have gross mean prospective resources of760 million barrels of oil (`mmbo') and 493 mmbo respectively while in FEL 2/13the Doyle A and Doyle B prospects have gross mean prospective resources of 123mmbo and 69 mmbo. The new prospect inventory is based on state of the art 3-D seismic data whichmade full use of all the latest technical developments in acquiring, imagingand interpreting data in deep-water environments. Desktop technical work onrisking and ranking the prospects is currently underway, in particular specialseismic analysis is being used to identify direct hydrocarbon indicators, flatspots, conformance and AVO anomalies. This work is expected to be completedlater in 2015 and will enable a drill decision to be made. Europa hascommissioned a CPR on its two Irish licences and the results will be madeavailable shortly. Kosmos has indicated that a well might be drilled in H2 2016or 2017. If a decision is made to drill under the terms of the farm-out, Kosmos willincur 100% of the costs of the first exploration well on each licence up to anagreed cap. The first exploration wells on FEL 2/13 and FEL 3/13 haveinvestment caps of US$90 million and US$110 million respectively. Costs inexcess of the cap would be shared between Kosmos (85%) and Europa (15%). The technical insights that Europa continues to gain from its work in the SouthPorcupine Basin provides a competitive edge that the directors will seek toexploit in securing new licences in the 2015 Atlantic Margin licensing roundthat closes in September 2015. France - Béarn des Gaves 100% (Berenx) Europa holds a 100% interest in the onshore Béarn des Gaves permit in theAquitaine basin, the heartland of the French oil industry. The permit containstwo prospects: Berenx Deep and Berenx Shallow. Berenx Deep is an appraisalproject having previously been explored and drilled by EssoRep with two wells,Berenx-1 (1969) and Berenx-2 (1972), both encountering strong gas shows over a500 metre thick gas bearing zone. In 1975 Berenx-2 was re-entered, drill stemtested and flowed gas to surface from the same carbonate reservoir thatdelivered 9 tcf and 2 tcf from nearby fields at Lacq and Meillon. Europa's in-house technical work indicates that the Berenx deep appraisalprospect could hold in excess of 500 bcf of recoverable gas resources. In a CPRdated 31 May 2012, ERC Equipoise estimated gross mean un-risked resources of277 bcf for the Berenx deep gas play. The difference between Europa's and ERC'sassessment of resources reflects the confidence of each party in mapping in ageologically complex terrain. Europa was able to map a larger area of closureand as a consequence larger resources. Previous exploration on the concession had focused on the deep gasprospectivity. However, Europa's technical team has undertaken a re-evaluationand interpretation of existing seismic and well data on the permit whichresulted in the definition of a shallow gas prospect, Berenx Shallow. Therecent discovery of previously missing seismic data by the French authorities,together with a substantial seismic reprocessing project has delivered are-interpretation of structure and a better understanding of proven hydrocarbonbearing reservoir distribution in the shallow Cretaceous and Late Jurassiccarbonate sediments. Europa estimates Berenx Shallow has potential gross meanun-risked resources of 107 bcf of gas. The Company's strategy for Béarn des Gaves is to first target the shallow gasplay, drill a well with the aim of delivering a commercial flow rate and, onthe back of commercial success, to further appraise the shallow prospectivityand undertake work to de-risk the Berenx Deep appraisal prospect. The shallowprospect can be tested with a comparatively simple exploration well with ananticipated total depth of 2,500 metres. On 3 October 2013, the permit was successfully renewed for a period of fiveyears from 22 March 2012 and carries an expenditure commitment of approximately€2.5 million. The farm-out process for Bearn des Gaves is on-going in parallelwith planning and permitting for a Berenx shallow well to evaluate the 107 bcfgross mean un-risked contingent resources. A lease has been obtained for thedrill site and drilling permit documentation is currently being exchanged withthe French authorities. Scoping economics suggests a value of US$11.5 boe andNPV10 of US$170 million therefore the Directors believe that explorationsuccess at Berenx Shallow would be company-making for Europa. France - Tarbes Val d'Adour 20% Tarbes Val d'Adour Permit (`Tarbes') onshore France is located in the Aquitainebasin onshore France close to the giant Lacq - Meillon gas fields. Tarbescontains several oil accumulations that were previously licensed by Elf butwere abandoned in 1985 due to a combination of technical issues and low oilprices. Two fields, Jacque and Osmets, were drilled using vertical wells whichgenerated modest production levels. In February 2015, Europa signed a Farm-OutAgreement (`FOA') for Tarbes with Vermilion REP SAS, a wholly owned subsidiaryof Vermilion Energy Inc (`Vermilion') a Calgary, Alberta based internationaloil and gas producer. Under the terms of the FOA, Vermilion is to acquire an 80% interest in, andoperatorship of, Tarbes in exchange for assuming 100% of the cost of a workprogramme, which may include seismic acquisition or reprocessing and drillingoperations up to a total of €4.65 million. Europa will hold the remaining 20%interest and once costs above €4.65 million are incurred, Europa will beresponsible for its 20% share of future work programme costs. The FOA is subject to the relevant approvals being granted by the Frenchauthorities including the transfer of equity and operatorship to Vermilion andalso obtaining an extension for the permit. Both these processes are underway. UK - NE Lincolnshire - PEDL180 33.3% (Wressle) PEDL180 covers an area of 100km2 of the East Midlands Petroleum Province southof the Crosby Warren field. Europa has a 33.3% working interest in the blockwith its partners Egdon Resources (operator, 25%), Celtique Energie PetroleumLtd (33.3%) and Union Jack Oil (8.3%). The Wressle exploration discovery well in PEDL180 was spudded in August 2014and discovered hydrocarbons in four discrete intervals: * the Ashover Grit - 80 bopd and 47 thousand cubic feet of gas per day (`mcfd') free flow; * the Wingfield Flags - 182 bopd and 456 mcfd free flow ; * Zone 3b of the Penistone Flags - 12 bopd and 1,700 mcfd free flow; * Zone 3a of the Penistone Flags - 77 bopd, swabbed. A total of 710 boepd was therefore recovered during testing operations. A twomonth EWT will commence in May 2015 to obtain more detailed and insightfulinformation about reservoir performance. This information will be used todesign an optimum Field Development Plan (`FDP') and enable a fast trackdevelopment. Any oil produced by the EWT will be sold. DECC approval of the FDPis also required before long term production operations can take place. Europa believes there is further exploration and appraisal upside along theCrosby Warren (Europa producing field) to Wressle structural trend and will beworking to investigate these opportunities further. UK - NE Lincolnshire - PEDL181 50% (Kiln Lane) Europa has a 50% interest in and is the operator of licence PEDL181 in theHumber Basin, with Egdon Resources UK Limited and Celtique Energie PetroleumLtd, each holding a 25% interest. PEDL181 is located in the Carboniferouspetroleum play and covers an area of over 540km2 in a working hydrocarbonsystem where a number of discoveries have been made along the Brigg-Broughtonanticline, including Europa's existing oil production at the Crosby Warrenfield at the westernmost end of the anticline. Technical evaluation identified several conventional prospects and leads inPEDL181. Four of these in the southern part of the licence were the focus of a78 km 2-D seismic acquisition programme that was completed in April 2013.Reprocessing of 150 km2 of existing 3-D seismic data together with processingof the new data resulted in the identification of the Kiln Lane prospect. Drilling operations at Kiln Lane-1 commenced on 23 February 2015 and a totaldepth (`TD') of 2,291 metres was reached on 19 March. Sandstones in theWestphalian and Namurian intervals were penetrated in line with the pre-drillgeological model and significant oil and gas shows were observed duringdrilling operations. Wireline logging and subsequent petrophysical analysisindicated that the sandstones encountered were water wet. The decision wastherefore taken to plug and abandon the well and restore the site toagricultural use. Kiln Lane was the first well to be drilled on this large licence where multipleleads have been identified. The presence of hydrocarbon shows is encouragingand Europa, along with its partners, will conduct a detailed post-drilltechnical review of all relevant well and seismic data to determine the wayforward. Whilst the results were disappointing Kiln Lane was a fast track explorationwell drilled against a very tight timeframe on schedule, on budget and safely.It is a strong demonstration of our operational capability in the evolving UKregulatory environment and we hope to deploy these skills following award ofany new licences in the 14th UK onshore licensing round. UK - Dorking area - PEDL143 40% (Holmwood) The PEDL143 licence covers an area of 92 km2 of the Weald Basin, Surrey. Europais the operator and has a 40% working interest in the licence with partnersEgdon Resources (38.4%), Altwood Petroleum (1.6%), and Warwick Energy (20%).The Holmwood prospect is a conventional Jurassic sandstone reservoir with a lowgeological risk. The May 2012 CPR estimated Holmwood to hold gross meanrecoverable resources of 5.64 mmbo. Europa considers Holmwood to be one of thebest undrilled conventional exploration prospects in the UK. The prospect lies south of Dorking within the Surrey Hills Area of OutstandingNatural Beauty. An application to construct a temporary exploration well on thesite was originally made in 2008. This application was refused in 2011 bySurrey County Council contrary to their planning officer's recommendation toapprove. An appeal to overturn the decision was heard at a public inquiry inJuly 2012. The appeal was dismissed on 26 September 2012. Europa, along with its partners, applied for an order to quash the decision ofthe Secretary of State for Communities and Local Government's appointedInspector to dismiss the appeal. On 25 July 2013, the Royal Courts of Justicegave judgment in favour of Europa and quashed the Inspector's decision. Anappeal was submitted to the Court of Appeal which was subsequently dismissed bythe Court on 19 June 2014. As a result, Europa's appeal against Surrey CountyCouncil's refusal to grant planning permission to drill one exploratoryborehole and undertake a short-term test for conventional hydrocarbons at theHolmwood prospect has been remitted to the Planning Inspectorate forredetermination. This will involve a further planning inquiry. The planning inquiry for the Holmwood well will be conducted in two parts withthe first, for the original application site, taking place in April 2015. As aconsequence of changes to the regulatory regime, an application for planningpermission for the underground deviated well path is also required. In theevent that planning permission for the deviated well path is refused theplanning inspector will hear the evidence in the second part of the planningenquiry and make one decision for both the surface site and deviatedunderground well path. Following the inquiry it is expected that the planninginspector's decision should be announced in H2 2015. A successful outcome wouldresult in drilling the Holmwood exploration well, with 2016/17 being the mostrealistic timing for this activity. An exciting new play has recently been reported by UK Oil & Gas Investments PLCin the adjacent PEDL137 following analysis of the Horse Hill-1 exploration welldrilled in 2014. In an RNS dated 9 April 2015 a new play identified by theHorse Hill-1 well is reported; the "Jurassic hybrid play". Given the immediateproximity of our 35 square mile PEDL143 the potential for this new play toextend into our licence will be evaluated. Our focus remains on obtaining afavourable outcome at the planning inquiry and drilling the conventional oilexploration well at Holmwood. UK - Production (West Firsby 100%; Crosby Warren 100%; Whisby W4 well 65%) Europa produces hydrocarbons from six wells across three fields: Crosby Warren(100% interest); Whisby (65% interest); and West Firsby (100% interest). Thethree UK fields produced an average of 144 boepd during the six month periodunder review and full year production is on course to meet expectations of 144boepd. Conclusion The first half of the year saw a number of key milestones achieved, includingthe drilling of the Wressle well, licence applications in the 14th UK onshorelicensing round and the delivery of a prospect inventory for offshore Irelandfrom Kosmos Energy, showing gross prospective resources of up to 1.5 billionbarrels. Technical work by Europa has provided strong encouragement toparticipate in the 2015 Irish Atlantic Margin licensing round. The second halfhas carried on where the first left off: Wressle has been declared an oil andgas discovery after hydrocarbons flowed from four discreet payzones in testingoperations; the Tarbes licence onshore France has been farmed out which, oncethe relevant approvals are in place, will allow operations to commence; and thedrilling of the Kiln Lane well on the previously undrilled PEDL181 licencewhich, while not a discovery, encountered encouraging oil shows and we feelthere is further upside in our NE Lincolnshire licences. This is an excitingperiod for Europa, as management focuses on monetising the underlying value ofthe Company's asset base and in the process generate significant value forshareholders. Hugh Mackay CEO 14 April 2015 Licence Interests Table Field/Country Area Licence Prospect Operator Equity Status DL003 West Firsby Europa 100% Production DL001 Crosby Warren Europa 100% Production PL199/215 Whisby-4 BPEL 65% Production East UK Midlands PEDL180 Wressle Egdon 33% Exploration PEDL181 Kiln Lane Europa 50% Exploration PEDL182 Broughton Egdon 33% Exploration Weald PEDL143 Holmwood Europa 40% Exploration FEL 2/13 Doyle Kosmos 15% ExplorationIreland Porcupine FEL 3/13 Beckett, Kosmos 15% Exploration Wilde Shaw (lead) Béarn des Gaves Berenx Deep Europa 100% Exploration/ Appraisal France Aquitaine Béarn des Gaves Berenx Europa 100% Exploration/ Shallow Appraisal Tarbes val Vermilion 20% Exploration/ d'Adour Appraisal Financials Unaudited consolidated statement of comprehensive income 6 months to 6 months to Year to 31 January 31 January 31 July 2015 2014 2014 (restated) (audited) £000 £000 £000 Revenue 1,285 2,060 3,878 Other cost of sales (944) (1,100) (2,301) Impairment of producing fields (1,100) - (1,203) Total cost of sales (2,044) (1,100) (3,504) --------- --------- --------- Gross(loss)/profit (759) 960 374 Administrative expenses (612) (371) (832) Finance income 62 7 20 Finance expense (105) (120) (244) --------- --------- --------- (Loss)/profit before taxation (1,414) 476 (682) Taxation credit/(charge) 587 (231) 314 --------- --------- --------- (Loss)/profit for the period from (827) 245 (368)continuing operations Discontinued operations - 386 933 Profit for the period from discontinuedoperations --------- --------- --------- (Loss)/profit for the period attributed to (827) 631 565the equity holders of the parent Other comprehensive income Recycling of foreign currency translation - (417) (417)of foreign operations --------- --------- --------- Total comprehensive (loss)/profit for the (827) 214 148period attributable to the equityshareholders of the parent ========= ========= ========= Pence per Pence per Pence per share share share (Loss)/Earnings per share (LPS/EPS)attributable to the equity shareholders of the parent Attributable to the equity shareholdersof thw Basic and diluted (LPS)/EPS from (0.40)p 0.17 (0.21)pcontinuing operations Basic and diluted (LPS)/EPS from - 0.27 0.53pdiscontinued operations Basic and diluted (LPS)/EPS from (0.40)p 0.44 0.32pcontinuing and discontinued operations Unaudited consolidated statement of financial position 31 January 31 January 31 July 2015 2014 2014 (restated) (audited) £000 £000 £000 Assets Non-current assets Intangible assets 4,516 2,594 3,553 Property, plant and equipment 1,795 4,134 3,046 Deferred tax asset 475 - - --------- --------- --------- Total non-current assets 6,786 6,728 6,599 --------- --------- --------- Current assets Inventories 38 43 32 Trade and other receivables 684 665 456 Cash and cash equivalents 3,569 4,816 4,501 --------- --------- --------- 4,291 5,524 4,989 --------- --------- --------- Other current assets Assets classified as held for sale - 338 - Total assets 11,077 12,590 11,588 ========= ========= ========= Liabilities Current liabilities Trade and other payables (1,299) (1,003) (970) Current tax liability (220) (871) (220) Derivative (40) (41) (35) Short-term borrowings (23) (197) (22) Short-term provisions - (21) (4) --------- --------- --------- Total current liabilities (1,582) (2,133) (1,251) --------- --------- --------- Non-current liabilities Long-term borrowings (152) - (164) Deferred tax liabilities (2,259) (2,799) (2,371) Long-term provisions (2,054) (1,764) (1,959) --------- --------- --------- Total non-current liabilities (4,465) (4,563) (4,494) --------- --------- --------- Total liabilities (6,047) (6,696) (5,745) --------- --------- --------- Net assets 5,030 5,894 5,843 ========= ========= ========= Capital and reserves attributable toequity holders of the parent Share capital 2,049 2,049 2,049 Share premium 14,080 14,080 14,080 Merger reserve 2,868 2,868 2,868 Retained deficit (13,967) (13,103) (13,154) --------- --------- --------- Total equity 5,030 5,894 5,843 ========= ========= ========= Unaudited consolidated statement of changes in equity Share Share Merger Foreign Retained Total capital premium reserve exchange deficit equity reserve £000 £000 £000 £000 £000 £000 Unaudited - restated Balance at 1 August 1,379 13,160 2,868 417 (15,921) 1,9032013 Profit for the period - - - - 631 631attributable to theequity shareholdersof the parent Other comprehensive - - - (417) - (417)loss for the period Share based payments - - - - 67 67 Issue of share 670 920 - - 2,120 3,710capital net of issuecosts --------- --------- --------- --------- --------- --------- Balance at 31 January 2,049 14,080 2,868 - (13,103) 5,8942014 ========= ========= ========= ========= ========= ========= Audited Balance at 1 August 1,379 13,160 2,868 417 (15,921) 1,9032013 Profit for the year - - - - 565 565attributable to theequity shareholdersof the parent Other comprehensive - - - (417) - (417)loss for the period Share based payments - - - - 82 82 Issue of share 670 920 - - 2,120 3,710capital net of issuecosts --------- --------- --------- --------- --------- --------- Balance at 31 July 2,049 14,080 2,868 - (13,154) 5,8432014 ========= ========= ========= ========= ========= ========= Unaudited Balance at 1 August 2,049 14,080 2,868 - (13,154) 5,8432014 Total comprehensive - - - - (827) (827)loss for the period Share based payments - - - - 14 14 --------- --------- --------- --------- --------- --------- Balance at 31 January 2,049 14,080 2,868 - (13,967) 5,0302015 ========= ========= ========= ========= ========= ========= Unaudited consolidated statement of cash flows 6 months to 6 months to Year to 31 January 31 January 31 July 2015 2014 2014 (restated) (audited) £000 £000 £000 Cash flows from operating activities (Loss)/profit after taxation (827) 245 (368) Adjustments for: Share based payments 14 67 82 Depreciation 156 251 475 Impairment of property, plant & equipment 1,100 - 1,203 Finance income (62) (7) (20) Finance expense 105 120 244 Taxation (credit)/expense (587) 231 (314) (Increase)/decrease in trade and other (46) (43) 184receivables (Increase) / decrease in inventories (6) (10) 1 Increase/(decrease) in trade and other 360 (249) (60)payables --------- --------- --------- Cash generated from continuing operations 207 605 1,427 Profit after taxation from discontinued - 386 933operations Adjustment for: - Profit on disposal (411) (1,034) --------- --------- --------- Cash used in discontinued operations - (25) (101) Income tax payment - - (537) --------- --------- --------- Net cash from operating activities 207 580 789 ========= ========= ========= Cash flows used in investing activities Purchase of property, plant & equipment (1) (2) (3) Purchase of intangibles (1,184) (170) (514) Receipt for licence back costs in - 300 300connection with farm-in Expenditure on well decommissioning - (344) (363) Interest received 5 - 6 --------- --------- --------- Net cash used in investing activities (1,180) (216) (574) ========= ========= ========= Cash flows from financing activities Proceeds from issue of share capital (net - 3,710 3,710of issue costs) Decrease in payables related to share issue - 120 -costs Repayment of borrowings (11) (11) (22) Finance costs (18) (8) (25) --------- --------- --------- Net cash (used in)/ from financing (29) 3,811 3,663activities ========= ========= ========= Net (decrease)/increase in cash and cash (1,002) 4,175 3,878equivalents Exchange gain/(loss) on cash and cash 70 (31) (49)equivalents Cash and cash equivalents at beginning of 4,501 672 672period --------- --------- --------- Cash and cash equivalents at end of period 3,569 4,816 4,501 ========= ========= ========= Notes to the consolidated interim statement 1 Nature of operations and general information Europa Oil & Gas (Holdings) plc ("Europa Oil & Gas") and subsidiaries' ("theGroup") 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 anddomiciled in England and Wales. The address of Europa Oil & Gas's registeredoffice head office is 6 Porter Street, London W1U 6DD. Europa Oil & Gas'sshares are listed on the London Stock Exchange AIM market. The Group's consolidated interim financial information is presented in PoundsSterling (£), which is also the functional currency of the parent Company. The consolidated interim financial information has been approved for issue bythe Board of Directors on 14 April 2015. The consolidated interim financial information for the period 1 August 2014 to31 January 2015 is unaudited. In the opinion of the Directors the condensedinterim financial information for the period presents fairly the financialposition, and results from operations and cash flows for the period inconformity with the generally accepted accounting principles consistentlyapplied. The condensed interim financial information incorporates unauditedcomparative figures for the interim period 1 August 2013 to 31 January 2014 andthe audited financial year to 31 July 2014. The financial information contained in this interim report does not constitutestatutory accounts as defined by section 435 of the Companies Act 2006. Thereport should be read in conjunction with the consolidated financial statementsof the Group for the year ended 31 July 2014. The comparatives for the full year ended 31 July 2014 are not the Company'sfull statutory accounts for that year. A copy of the statutory accounts forthat year has been delivered to the Registrar of Companies. The auditors'report on those accounts was unqualified and did not contain a statement undersection 498 (2) - (3) of the Companies Act 2006. 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 policiesbased on International Financial Reporting Standards (IFRS and IFRICinterpretations) issued by the International Accounting Standards Board("IASB") as adopted for use in the EU. The condensed interim financialinformation has been prepared using the accounting policies which will beapplied in the Group's statutory financial information for the year ended 31July 2015. This results in the adoption of various standards and interpretations, none ofwhich have had a material impact on the interim report or are expected to havea material impact on the financial statements for the full year. 3 Share capital The table below shows all shares issued since 31 July 2013. Date Shares issued Price £000 Total shares raised net of in issue commission and costs 10 January 2014 - Placing 47,694,665 6p 2,597 185,550,169 21 January 2014 - Open Offer 19,332,855 6p 1,113 204,883,024 31 January 2015 204,883,024 All the authorised and allotted shares are of the same class and rank paripassu. Merger relief is available on the Placing shares under section 612(1) of theCompanies Act 2006, and premium has therefore been recognised within retaineddeficit rather than share premium. 4 Loss / earnings per share (LPS/EPS) Basic LPS has been calculated on the loss after taxation divided by theweighted average number of shares in issue during the period. Diluted LPS usesan average number of shares adjusted to allow for the issue of shares, on theassumed conversion of all in-the-money options. The Company's average share price for the period was 7.35p (H1 2014: 8.51p)which was above the exercise price of 1,391,626 of the 14,016,626 outstandingshare options (H1 2014: which was above the exercise price of 1,391,626 of the13,076,626 outstanding share options). The calculation of the basic and diluted (loss)/ earning per share is based onthe following: 6 months to 6 months to Year to 31 January 31 January 31 July 2015 2014 2014 (audited) £000 £000 £000 Profits / losses (Loss)/profit after tax from continuing (827) 245 (368)operations Profit/(loss) for the year from - 386 933discontinued operations --------- --------- --------- Profit/(loss) for the period (827) 631 565attributable to the equity shareholdersof the parent ========= ========= ========= Number of shares Weighted average number of ordinary 204,883,024 144,713,895 174,551,189shares for the purposes of basic EPS/LPS Weighted average number of ordinary 205,196,140 145,296,059 174,551,189shares for the purposes of diluted EPS/LPS 5 Taxation Consistent with the year-end treatment, current and deferred tax assets andliabilities have been calculated at tax rates which were expected to apply totheir respective period of realisation at the period end. 6 Post reporting date * Farm-out of Tarbes Val d'Adour permit in France to Vermilion Energy * Oil and gas production from four intervals tested at the Wressle discovery in PEDL180, Lincolnshire * The Kiln Lane exploration well in PEDL181, Lincolnshire was drilled and abandoned; whilst not a discovery, oil shows indicate a working petroleum system in the licence * A new Jurassic hybrid play recently reported in PEDL137 in the Weald Basin next to Europa's 40% owned PEDL143 * Retirement of Bill Adamson from the Board and appointment of Colin Bousfield as Chairman