Europa Oil & Gas (Holdings), the AIM traded West Africa, UK and Ireland focused oil and gas exploration, development and production company, has announcesd its final audited results for the 17-month period ended 31 December 2025.
Financial Performance
17 months to 31 December 2025 versus 12 months to 31 July 2024
- Revenue £3.9 million (12 months to 31 July 2024: £3.6 million)
- Gross profit of £0.3 million (12 months to 31 July 2024: £0.3 million)
- Administrative expenses of £2.4 million (12 months to 31 July 2024: £1.9 million) representing a decrease on a pro-rata time basis
- Pre-tax loss of £2.7 million (12 months to 31 July 2024: £6.8 million)
- Net cash used in operating activities £0.2 million (12 months to 31 July 2024: £0.6 million)
- Cash balance at 31 December 2025: £0.3 million (31 July 2024: £1.5 million)
Operational Highlights
Equatorial Guinea
- In December 2025, the Company, via its 42.9% stake in Antler Global Limited ("Antler"), signed a binding Farm-out Agreement ("FOA") with Fuhai (Beijing) Energy Limited ("Fuhai") under which Fuhai acquired a 40% interest in the EG-08 PSC in offshore Equatorial Guinea, subject to the relevant regulatory approvals
- Fuhai will fund 95% of the Barracuda well costs (capped at $53 million) with Antler funding the remaining 5%
- The well targets the 893 BCF Barracuda prospect
- Antler remains operator
- Fuhai will recover its carry (with interest on 45%, capped at 5%) from production revenues; interest is waived if no commercial discovery
- EG-08 holds ~2.2 TCF prospective resources (Pmean), with Barracuda as the primary target and estimated to be 893 BCF (Pmean) with an 80% chance of success
- Post-deal ownership: Antler 40% (Operator), Fuhai 40%, GEPetrol 20%, resulting in a net attributable percentage to Europa of 17.2%
- Drilling of Barracuda is expected to commence in late 2026 or early 2027 following receipt of necessary approvals
Offshore Ireland
- 100% interest in the FEL 4/19 licence containing the 1.5 TCF (Pmean) Inishkea West gas prospect, located near the Corrib gas field, enabling potential infrastructure synergies and low carbon-intensity gas supply
- Attractive project economics, with an estimated post-tax NPV10 of US$2.0 billion
- The Company continues to seek a farm-in partner and believes the asset could be brought online quickly due to its proximity to existing infrastructure
- A successful discovery could supply over two thirds of Ireland's gas demand by 2030
- Post-Period end, the Phase 1 FEL 4/19 licence term was extended to 31 January 2028, providing additional time for technical evaluation and efforts to secure a farm-in partner
Onshore UK
- Wressle produced an average 281 bopd (Europa's net share: 84 bopd)
- Development plans include a new well targeting the Penistone Flags reservoir and a gas monetisation solution
- A five-year extension to the DL003 licence at West Firsby was secured in November 2025
- The Company continues to investigate and assess options to increase returns from the UK onshore sites
Post Reporting Period Events
- Europa successfully raised a total of £4.1 million, 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 £640,000 following an oversubscribed WRAP retail offer, (the "Placing")
- The proceeds of the Placing will go towards financing drilling of the Barracuda prospect and 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
- At Cloughton in North Yorkshire planning approval to test and appraise the commerciality of the 137 BCF resource was refused by the North Yorkshire Council planning committee in May 2026, against the recommendation of the Council's own planning officers. The Company is now assessing options with a view to appealing. The application is supported by 13 studies from independent experts, and a farm-in partner is being sought
Change of accounting reference date
- Last year, Europa announced a change to its accounting reference date from 31 July to 31 December. This change aligns the Company's financial reporting period with the calendar year and allows for enhanced comparability with peer companies in the oil and gas industry. It also aligns more closely with industry standard timeframes for project work programmes and budgets. As a result, the full annual report covers the 17-month period ending 31 December 2025. In accordance with Rule 18 of the AIM Rules, therefore, the Company has prepared these final results for the 17 months to 31 December 2025. The comparative figures are presented for the 12 months ended 31 July 2024.
William Holland, CEO of Europa, said:
'The 17-month period to 31 December 2025 has been the most significant in Europa's recent history, and one that I believe sets the Company on a genuinely transformational path. We have made meaningful progress across our portfolio, but it is the signing of the Farm-out Agreement with Fuhai Energy in Equatorial Guinea that stands out as the defining moment of the period.
The farmout of a 40% interest in the EG-08 licence to Fuhai, securing a carry on the Barracuda exploration well, is the direct result of three years of careful technical and commercial work since we first acquired our stake in Antler. Fuhai's decision to commit is a powerful endorsement of the quality of the asset given their scale and experience as a major player in China's petrochemicals sector. With an estimated 893 BCF (Pmean) of prospective resource, coupled with an 80% geological chance of success, Barracuda is a genuinely high-quality exploration target, and we are targeting spud in Q4 2026 or early 2027.
Beyond EG-08, encouraging progress continues to be made across our broader portfolio. At Wressle, production averaged 281 bopd gross throughout the period and the development plan to target the Penistone Flags reservoir continues to advance. In Ireland, Inishkea West remains an exceptional undrilled gas prospect and the recently approved licence extension to January 2028 gives us additional time to secure the right farm-in partner. We remain confident in the merits of the Cloughton gas appraisal well and are pursuing an appeal whilst opening a data room to attract a farm-in partner.
The oversubscribed £4.1 million equity raise completed after the period end reflects the continued support of our shareholders and strengthens our balance sheet ahead of what promises to be an exciting year. We remain debt-free, our UK production continues to generate cash, and we now have a funded pathway to drilling a well that could genuinely change the scale of the business. We look forward to keeping shareholders updated as we move towards that milestone.'
Source: Europa Oil & Gas
