Europa Oil & Gas (Holdings), the AIM quoted UK, Ireland and West Africa focused oil and gas exploration, development and production company, has announced its unaudited interim results for the six-month period ended 30 June 2026.
Financial Performance
- Revenue £1.5 million (6 months to 30 June 2025: £1.5 million)
- Gross profit £0.3 million (6 months to 30 June 2025: £0.2 million)
- Pre-tax loss of £0.8 million (6 months to 30 June 2025: pre-tax loss £0.9 million)
- Net cash used in operating activities £0.9 million (6 months to 30 June 2025: net cash generated £0.02 million)
- Cash balance at 30 June 2026: £2.8 million (31 December 2025: £0.3 million)
Capital raise
- On 5 March, the Company raised a total of £4.1 million by way of an issuance of new Ordinary Shares, of which £3.5 million was through the placing of new Ordinary Shares to institutional investors. The Company also raised further aggregate gross proceeds of approximately £640,000 following an oversubscribed WRAP retail offer, (the 'Placing').
- The proceeds of the Placing will go towards financing the drilling of the Barracuda prospect and to provide general working capital to support working commitments on other licence interests.
- The Placing has further strengthened the Company's balance sheet and demonstrates the ongoing shareholder support for the business.
Operational Highlights
Equatorial Guinea
- Europa, through its 42.9% interest in Antler Global Limited ('Antler'), continued to progress completion of the binding Farm-out Agreement ("FOA") signed with Fuhai (Beijing) Energy Limited ("Fuhai") in December 2025, under which Fuhai will acquire a 40% interest in the EG-08 production sharing contract ("PSC") in offshore Equatorial Guinea.
- On 29 May 2026, the Company announced that the Ministry for Mining and Hydrocarbons Department of Equatorial Guinea ("MMHD") had granted its approval of the FOA, the first of the two conditions precedent to completion.
- Completion of the FOA remains subject to Outbound Direct Investment ('ODI') approval from the Beijing Municipal Development and Reform Commission ("MDRC"). The Longstop Date for completion was extended by mutual agreement, first to 31 July 2026 (announced 22 June 2026) and, post period end, to 30 September 2026, to allow additional time for the ODI approval process to conclude.
- On completion, Antler will retain a 40% interest in EG-08 and operatorship, with Fuhai holding 40% and GEPetrol holding the remaining 20%, resulting in a net attributable interest to Europa of 17.2% (H1 2025: 34.32%, prior to dilution for the Fuhai farm-out).
- Under the FOA, Fuhai will fund 95% of the costs of drilling the Barracuda exploration well (capped at US$53 million gross), with Antler funding the remaining 5%; Fuhai's carry is preferentially recoverable from future production revenues, with interest on 45% of the carry (capped at 5% per annum) waived in the absence of a commercial discovery.
- Barracuda is estimated to hold 893 BCF (Pmean) of prospective resource, with an estimated 80% chance of geological success, underpinned by direct hydrocarbon indications on seismic and close analogy to the adjacent, highly successful Alen and Aseng fields operated by Chevron
- Rig tendering preparations have continued during the period; a formal tender is expected to be launched promptly following FOA completion. Reflecting the time taken to secure ODI approval, the Company now expects Barracuda to spud during the first half of 2027, having previously targeted late 2026.
- In May 2026 Europa invested a further £0.23 million into Antler by way of a further subscription of ordinary share capital. The subscription was done on a pro-rata basis to our existing shareholding and our equity interest remains at 42.9% subsequent to the increase in share capital. Total gross new share capital issued by Antler amounted to £0.53 million.
- Key members of the drilling team have been contracted and the detailed engineering work for the Barracuda well is well progressed. In addition, suitable rigs have been identified to drill the well along with the service providers required, however the formal tender process will only begin once the ODI approval has been secured.
Offshore Ireland
- Europa holds a 100% interest in Licence FEL 4-19, containing the Inishkea West gas prospect, with an estimated Pmean prospective resource of 1.5 TCF and an estimated post-tax NPV10 of US$2.0 billion.
- On 27 March 2026, the Irish Government's Department of Climate, Energy and the Environment approved an extension of the Phase 1 period of the FEL 4/19 licence to 31 January 2028, providing further time to complete technical studies and secure a farm-in partner.
- The Company continued to actively market Inishkea West to potential farm-in partners during the period. The prospect's scale, low carbon intensity (2.8 kg CO2/boe versus 36 kg CO2/boe for UK-imported gas) and proximity to the producing Corrib gas field infrastructure continue to underpin its attractiveness, against a backdrop of heightened focus on European and Irish energy security and reducing reliance on imported gas.
Onshore UK
- Total average net production of 90 bopd was produced from Europa's UK onshore fields during the 6-month period (6 months to 30 June 2025 average was 113 bopd) with Wressle contributing roughly 85% of this and the remainder coming from the two older fields. Lower production levels and a slightly weaker US dollar were offset by the significantly higher average oil price of US$91 (6 months to 30 June 2025 average was US$71) which resulted in revenues remaining similar compared to the prior period.
- Wressle production and development
- Gross production averaged 255 bopd throughout the period (6 months to 30 June 2025: 300 bopd), with Europa's net share equating to 77 bopd (6 months to 30 June 2025: 90 bopd).
- Production at Wressle continued its natural decline during the period, consistent with the Ashover Grit reservoir's maturity, with Europa's net working interest remaining 30%.
- The Wressle Joint Venture (Egdon Resources (operator), Union Jack Oil and Europa) continued to progress the development plan targeting the deeper, untested Penistone Flags reservoir, together with an associated gas monetisation solution and pipeline tie-in to the local gas network that would eliminate routine flaring.
- An Environmental Statement in support of the Penistone Flags planning application was in preparation during the period for submission to North Lincolnshire Council, addressing the use of non-renewable resources, climate change impacts, socio-economic matters and cumulative effects, consistent with the requirements following the 2024 Finch Supreme Court judgment
- Cloughton gas field appraisal
- On 16 January 2026, the North Sea Transition Authority approved a two-year extension to the Phase 1 term of the PEDL343 licence, which hosts the 137 BCF (GIIP) Cloughton discovery, extending the Phase 1 deadline to 21 March 2028 (Phase 2: 21 July 2030).
- On 24 April 2026, North Yorkshire Council's ("NYC") planning committee indicated it was minded not to approve the planning application for the Cloughton appraisal well at Burniston, then formally refusing the planning application on 18 May 2026.
- This was against the recommendation of the Council's own planning officers, who had endorsed the application following review of thirteen independent expert reports. The Company is disappointed with this decision and is considering its options, which include an appeal to the Planning Inspectorate, remaining confident that permission will ultimately be granted on appeal.
- Post period end, the Environment Agency opened a public consultation on its draft decision to grant an environmental permit for the temporary Cloughton 2 exploration wellsite, a separate regulatory process running in parallel with the planning appeal.
- The Company has opened a data room and continues to seek a farm-in partner to fund the appraisal of Cloughton, with the prospective introduction of the Oil & Gas Price Mechanism from 2030 expected to further enhance the asset's attractiveness to partners.
- The five-year extension to the DL003 licence at West Firsby, secured in November 2025, continues to provide operational continuity for the field. Consideration is being given to performing a workover of WF-7 well to improve productivity.
- Post period end, the Company commenced work-over operations on the CW-1 well to optimise production at its 100%-owned Crosby Warren site. The operation is ongoing and is expected to be concluded imminently, thereafter the well will be brought back online.
- Administrative expenses for the period were £0.85 million (6 months to 30 June 2025 £0.71 million) with the increase from a low baseline in 2025 driven mainly by the resumption of essential administrative activities delayed by or deferred due to the change in accounting year-end and the timing of the 2026 fundraising and an increase in business development activities to generate new opportunities for growth. Administrative expenses remain meaningfully lower than a number of our peers.
Change of accounting reference date
In 2024, Europa announced a change to its accounting reference date from 31 July to 31 December. In accordance with Rule 18 of the AIM Rules, therefore, the Company has prepared these unaudited results for the 6-months to 30 June 2026, with the comparative period re-presented to reflect the equivalent 6-month period to 30 June 2025.
Will Holland, CEO of Europa, said:
'During the first half of 2026, we have continued to work towards completing the farm-out of EG-08 to Fuhai and progressing preparations to drill the Barracuda well. Receiving Ministry approval in Equatorial Guinea in May was an important milestone, and while the final step, Outbound Direct Investment approval from the Chinese authorities, has taken longer than we would have liked, due to new Chinese outbound investment regulations that came into effect on 1 July 2026, we remain confident that completion will follow in the coming weeks, with drilling now targeted for the first half of 2027.
We were also pleased to materially strengthen our balance sheet in the period, raising £4.1 million through an oversubscribed placing and retail offer, underlining the continued support of our shareholders and ensuring we are fully funded to meet our share of Barracuda's costs.
The planning refusal at Cloughton was disappointing, particularly given the strength of the technical case, the unanimous support of thirteen independent expert reports and the recommendation to approve from the North Yorkshire Council's own planning officers. We are, now considering the best approach to progress the project, which may involve an appeal and continue to seek a farm-in partner for the asset. At Wressle, our production base continues to decline naturally as expected, and our focus remains on progressing the Penistone Flags development and gas monetisation solution through the necessary planning process.
Across the portfolio, our priorities for the second half of the year are clear: complete the Fuhai farm-out, prepare for the drilling of Barracuda, advance Cloughton and continue to seek partners for both Cloughton and Inishkea West. We remain debt-free, with a strengthened balance sheet, and are well placed to deliver what we believe could be a genuinely transformational catalyst for the Company.'
Source: Europa Oil & Gas (Holdings)
