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Exploration
Discovery
Production
EUROPA OIL & GAS (HOLDINGS) PLC
Annual Report and Accounts
for the year ended 31 July 2013
Europa Oil & Gas (Holdings) plc
Annual Report and Accounts for the year ended 31 July 2013
Europa Oil & Gas (Holdings) plc is an AIM listed
exploration and production company focused
on Europe. It offers an attractive mix of very
high impact exploration offshore Ireland and
onshore France, supported by exploration and
production onshore UK.
The Cover: The Polarcus Amani has been shooting
3D seismic over Europa’s licence interests in the
Irish Atlantic Margin
Highlights
Chairman’s statement
Operational review
Directors’ report
Statement of directors’ responsibilities
Report of the independent auditor
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Company statement of financial position
Company statement of changes in equity
Consolidated statement of cash flows
Company statement of cash flows
Notes to the financial statements
Directors and advisers
1
2
4
10
12
13
14
15
16
17
18
19
20
21
40
1
Please visit our website for more
information. www.europaoil.com
Operational highlights
Financial performance
• Farm-in secured with Kosmos Energy Ireland
(“Kosmos”) for two blocks offshore Ireland
• Converted two Irish Licence Options to
Frontier Exploration Licences (“FEL”)
• Commenced 3D seismic acquisition
programme offshore Ireland
• Identified large shallow gas prospects
on Béarn des Gaves permit onshore France
• Wrote down the Tarbes val d’Adour
intangible asset onshore France
• Acquired 77 km of 2D seismic and identified
four new conventional hydrocarbon leads
in North East Lincolnshire (PEDL181)
• Favourable judgment at High Court for
UK Holmwood planning appeal
• 182 boepd recovered from three UK
onshore fields – ahead of forecast
Post reporting date events
• Renewed Béarn des Gaves permit until
23 March 2017
• Received £0.3 million from Kosmos in respect
of costs on the two Irish licence options
• 3D seismic acquisition in Ireland ongoing,
FEL 3/13 is completed
• Two new subsidiary companies established
for Irish licence interests
• Leith Hill Action Group announced its
intention to appeal against Europa’s
successful High Court challenge regarding
the Holmwood prospect
• Underground Coal Gasification licences
allowed to lapse
Revenue
£4.5m(2012: £5.1m)
Pre-tax profit
£0.4m(2012: loss £12.1m)
Pre-tax profit excluding exploration
write-off and impairment
£0.6m(2012: £1.2m)
Cash generated from operations
£1.6m(2012: £2.1m)
Net cash balances as at 31 July 2013
£0.7m(2012: £0.2m)
Revenue (£’m)
Adjusted pretax
profit (£’m)1
3.1
3.8
5.1
4.5
0.3 0.7 1.2 0.6
10
11
12
13
10
11
12
13
1 Pretax profit for continuing operations,
excluding exploration write-off and impairments
www.europaoil.comOUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERS
2
Chairman’s statement
“Europa is not just an
oil and gas explorer but
also a producer. For the
second consecutive year,
our production from
three UK onshore fields
has hit our forecast. This
year we produced 182
boepd which generated
revenues of £4.5 million
over the period. “
Dear shareholders,
At our Annual General Meeting in December 2012 we stated our
objective to become an upper quartile exploration and production
company on AIM by 2017. I am pleased to report that we have taken a
very significant step towards achieving that objective with our farm-out
in Ireland.
Our Irish licences contain prospects that may hold very large
volumes of oil. Exploration success at these prospects would be utterly
transformational for Europa. In April 2013 we were delighted to announce
a farm-in agreement with Kosmos a leading independent oil and gas
exploration and production company. They have immediately moved
us into an accelerated exploration programme. Kosmos pioneered the
Cretaceous stratigraphic play that has resulted in significant exploration
success in the Atlantic margin basins. With such a pedigree, we view
Kosmos’ participation in our Irish blocks as a vote of confidence in the
technical work we carried out. Today, Europa has a 15% free carry on
potentially two high impact wells operated by a leading frontier explorer
in an emerging hydrocarbon hotspot. We have now moved from talk to
action. Should the state of the art 3D seismic we acquired this summer
confirm the prospectivity then by the summer of 2014 we could be
committing to drill a playmaker exploration well in 2015. This is fast track
deepwater frontier exploration and we are already a year ahead of the
competition.
New technical work in the Béarn des Gaves permit in the Aquitaine Basin,
onshore France has substantially upgraded the gas resources at the
Berenx shallow prospect to more than 400 bcf. Exploration success would
be a company maker. Having only just received notification of the renewal
of the permit we have initiated drilling planning and will immediately
look to restart the farm-out process with a view to drilling a shallow well
within the next 18 months.
Europa will continue to pursue new ground floor exploration ventures
with minimal entry costs. The technical insights that we are acquiring in
Ireland provide us with a competitive edge that we will seek to exploit
through participation in the next Irish Atlantic margin licensing round.
We are also investigating other ground floor exploration opportunities
in the North Atlantic and Mediterranean as well as further afield.
We continue to work up our onshore UK portfolio. The Wressle well in
PEDL180 will be spudded towards the end of the year. We acquired new
seismic in PEDL181 and are working up new prospects that may become
candidates for drilling next year. We continue to seek planning approval
for the Holmwood well in PEDL143.
In parallel with this exploration activity we are seeking opportunities
to acquire production either from actively producing fields or more
brownfield activity. We are also reviewing consolidation opportunities.
The Europa team is actively in the deal flow and announcements will
be made as and when significant events occur.
Europa is not just an oil and gas explorer but also a producer. For the
second consecutive year, our production from three UK onshore fields
has hit our forecast. This year we produced 182 boepd which generated
revenues of £4.5 million over the period, a lower figure than the previous
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 3
About Kosmos
The Irish farm-out partners Europa with Kosmos – a self-funded
explorer with financial strength and flexibility, the architect of the
overlooked Late Cretaceous play, and the ideal partner to accelerate
the exploration programme.
• Founded in 2003
•
In June 2007 discovered the massive Jubilee Field in
the deep waters offshore Ghana
• Delivered first oil from Jubilee in November 2010
• Listed on the New York Stock Exchange in 2011
• Developing additional discoveries offshore Ghana
• Focused on exploration of the Atlantic Transform Margin
– Ghana, Ireland, Mauritania, Morocco and Suriname
• Approximately 250 employees
Mullen
Kiernan
year’s average of 200 boepd due to the anticipated natural decline in
production. We have completed an integrated reservoir and production
engineering study that will provide the technical basis for the future
management of the West Firsby field. After taking into account the cost
of two work-overs on the West Firsby well in H1 2013 and costs associated
with reservoir studies undertaken in H2 2013, profit before tax (before
exploration write-offs) for the year was £0.6 million (2012: £1.2 million).
Costs were higher over the period, predominantly as a result of additional
spend on the work-overs, and exaggerated by administrative costs in
the prior period having benefitted from a credit from the disposal of the
Ukraine business.
Cash as at 31 July 2013 stood at £0.7 million (2012: £0.2 million). With an
additional £0.3 million received from Kosmos in August 2013 in respect
of Irish back costs, we can fully fund our share of drilling the Wressle
prospect on PEDL180 later this year.
Outlook
Largely as a result of the progress made during the 12 months under
review, the year ahead promises to be a highly active period for Europa
including drilling Wressle, completing 3D seismic acquisition offshore
Ireland with subsequent processing, interpretation and prospect
generation and generating drillable prospects in PEDL181. In addition,
following the recent renewal of the Béarn des Gaves permit, we intend
to commence the permitting process required to drill a well in the 416
bcf Berenx shallow prospect, in conjunction with reopening a data room
for potential partners. Following the favourable High Court judgment in
July 2013 regarding our application to drill a temporary exploration well
on the Holmwood prospect in the Weald Basin, we are hopeful that we
will eventually be in a position to drill what we believe to be one of the
best undrilled prospects onshore UK.
Outside our existing portfolio, having proved our low cost exploration
model generates value, we are actively looking to acquire new licences
around the world which match our criteria and where we can replicate
the success we achieved offshore Ireland. We are working hard to close
the gap which has opened up between our current share price and the
value of our risked and diluted net resources and production. With a team
in place that has already achieved much success, as evidenced by Kosmos’
decision to farm-in to our Irish licences, I believe we are well placed
to become an upper quartile oil and gas company on AIM and in the
process generate significant value for shareholders.
Finally, I would like to thank the management team, directors and advisers
for their hard work during the year and also to our shareholders for their
continued support over the period.
WH Adamson
Chairman
www.europaoil.comOUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERS
4
10
Operational review
Operations and development
“Thanks to the success
of the in-house technical
work undertaken over
the course of the year
we have two potential
company makers in our
portfolio: offshore Ireland
and onshore France.”
Hugh Mackay
CEO
Europa operates
exploration, production
and appraisal assets
across three core EU
countries.
Our Portfolio
Country
UK
Ireland
France
Romania
Area
Licence
East Midlands
Weald
Porcupine
DL 003
DL 001
PL 199/215
PEDL150
PEDL180
PEDL181
PEDL182
PEDL143
FEL 2/13
FEL 3/13
Field/
Prospect
West Firsby
Crosby Warren
Whisby-4
West Whisby
Wressle
Caistor
Broughton
Holmwood
Mullen
Kiernan
Aquitaine
Béarn des Gaves Berenx (deep and shallow)
Carpathians
EIII-4 Bacau
EPI-3 Brates
Barchiz
Operator
Equity
Status
Europa
Europa
BPEL
Europa
Egdon
Europa
Egdon
Europa
Kosmos
Kosmos
Europa
Raffles
Europa
100%
100%
65%
75%
33%
50%
33%
40%
15%
15%
100%
19%
100%
Production
Production
Production
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Planning to exit
Planning to exit
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
5
Ireland
Exploration
Porcupine Basin Frontier Exploration Licences (“FEL”) 2/13
and 3/13- Europa (15%); Kosmos (85% and operator)
Corrib
Ireland - Porcupine
Galway
Cork
Connemara
Spanish Point
Burren
Mullen
FEL 2/13 (15%)
Dunquin
Kiernan
FEL 3/13 (15%)
0
km
50
In November 2011 Europa was awarded two Licence Options (“LO”) in the
South Porcupine Basin offshore southwest Ireland; LO 11/7 and LO 11/8.
The South Porcupine Basin is underexplored and had been overlooked
by the mainstream oil and gas industry. The exploration model for the
licences involves a new play, the Cretaceous stratigraphic play: comprising
Early Cretaceous turbidite sandstone reservoirs charged by mature Late
Jurassic and Early Cretaceous source rocks and contained in stratigraphic
traps with elements of structural closure. The Cretaceous play in Ireland
is considered to be analogous to the Cretaceous play in the equatorial
Atlantic Margin province that has delivered the Jubilee and Mahogany
oil fields. Previous drilling offshore West Ireland during the 1970s and
1980s focused on a North Sea style Jurassic play and failed to find
commercial hydrocarbons. We believe that the new Cretaceous play,
enabled by modern 3D seismic and deepwater drilling technology,
has the potential to deliver commercial hydrocarbon discoveries.
Europa’s interpretation of pre-existing 2D seismic identified two
previously unknown prospects in the Lower Cretaceous stratigraphic play:
Mullen in LO 11/7 and Kiernan in LO 11/8. The Company estimates these
to have gross mean un-risked indicative resources of 482 million barrels
of oil and 1.612 billion barrels of oil equivalent respectively. Information
about the Mullen and Kiernan prospects were provided to the markets
in press releases dated 6 November 2012 and 16 January 2013.
Europa launched its farm-out of both Licence Options in November
2012 and opened a data room to prospective farminees in January 2013.
There was significant interest from large and mid-cap oil companies and
on 18 April 2013 Europa announced it had successfully farmed out both
LO 11/7 and LO 11/8 to Kosmos.
Kosmos agreed to farm-in to each Licence Option, earning an 85%
interest in, and operatorship of, each licence. The transfer of interest and
operatorship was approved by the Irish Government on 8 May 2013 and
Kosmos, as operator, undertook to accelerate the conversion of LOs 11/07
and 11/08 into Frontier Exploration Licences. FELs were granted by the
Irish Government commencing on 5 July 2013. Following the mandatory
25% relinquishment LO 11/7 became FEL 2/13 and LO 11/8 became
FEL 3/13. Each FEL lasts for a period of 15 years and is broken down
into a maximum of four phases. The first phase of three years includes
a commitment to acquire 740 km2 of 3D seismic on each licence.
The second phase lasts four years and has a commitment to drill
an exploration well on each licence.
Under the terms of the farm-in Kosmos will fully fund the costs of a 3D
seismic programme in the first phase of each FEL. Contingent upon an
election of the companies to enter into the second phase of the FEL,
which carries a drilling commitment, Kosmos will incur 100% of the
costs of the first exploration well on each FEL. The first exploration wells
on FEL 2/13 and FEL 3/13 have investment caps of US$90 million and
US$110 million respectively. Costs in excess of the investment cap
would be shared between Kosmos (85%) and Europa (15%).
In parallel with the FEL application process Kosmos secured a
seismic vessel and obtained the appropriate permits from the relevant
departments of the Irish Government to enable 3D seismic acquisition
during the summer 2013 season. The MV Polarcus Amani started
acquisition on 5 July 2013. The early conversion to an FEL in July 2013
means that seismic has been obtained a year earlier than would have
been had we followed the conventional timetable and converted in
November. FEL 3/13 has been completed and the first phase work
commitment on this licence is already fulfilled. Seismic acquisition is
ongoing over FEL 2/13.
The 3D seismic being acquired over the licences is a very significant
first step towards realising the hydrocarbon potential of the basin.
Based on the historic 2D seismic Europa estimates geological risk to be
around 1 in 10 for both the Kiernan and Mullen prospects. 3D has the
potential to substantially de-risk these prospects. Particularly if features
like conformance, flat events and AVO anomalies are observed on the
3D seismic data. It is anticipated that the indicative resources previously
provided to the market will change according to the vastly improved
prospect mapping arising from the state of the art 3D data currently
being acquired. The prospect sizes will likely remain large and the
quantum of resources is likely to be hundreds of millions of barrels.
www.europaoil.comOUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERS 6
Operational review
Operations and development
In July 2013 ExxonMobil completed drilling the Dunquin exploration
well in licence FEL 3/04 which lies in the South Porcupine basin between
FEL 2/13 and 3/13. The well targeted a very different hydrocarbon play
comprising carbonate reef reservoir on a volcanic ridge in the middle of the
basin and proved to be water bearing with no commercially recoverable
hydrocarbons. This result is irrelevant to the Cretaceous turbidite sandstone
stratigraphic play being pursued in FEL 2/13 and 3/13 since we are
pursuing a completely different reservoir and trap on the flanks of the
basin. Of more relevance is the report that oil shows were present in
sidewall cores over the upper 44m section of the Dunquin reservoir,
suggesting the presence of a possible residual oil column. If correct this
indicates that an oil prone source rock is present in the basin and may
de-risk the source rock component of the Cretaceous stratigraphic play.
The pioneering work in the Porcupine basin by the participants in the
2011 Atlantic Margin Licensing Round has been endorsed by the entry
of mid-cap and large oil companies during the first half of 2013. At the
same time as farming into Europa’s licences Kosmos also farmed into
Antrim’s licence FEL 1/13. On 7 May 2013 Cairn Energy announced a
farm-in to Chrysaor operated FELs 2/04 and 4/08 and LO 11/2. On 28 June
2013 Woodside Petroleum announced a farm-in to Petrel’s LO 11/4 and
11/6 and Bluestack’s LO 11/3.
The earliest feasible drill date in our licences is 2015. The operator
Kosmos has a new build, 6th generation, ultra-deepwater drillship,
Atwood Achiever scheduled for delivery in mid 2014 for a three year
contract. With a maximum water depth capability of 3,650m the drillship
can work in the 1,000-2,000m water depths in our licences. Further
announcements will be made in due course and following prospect
mapping with the new seismic in H1 2014.
We are excited by the potential of a new play in an underexplored
and overlooked basin. We are at the forefront of exploration of this play.
The technical insights that Europa has, and will gain, from its work in the
South Porcupine Basin provides a competitive edge that we will seek
to exploit through participation in future licensing rounds in Ireland.
France
Highlights
• Berenx Shallow gas prospectivity and suggests
potential gross mean un-risked resources of 416 bcf
Dax
France - Aquitaine
Berenx
Béarn des
Gaves (100%)
Lacq
0
km
10
Percorade
Vic Bilh
Pau
Meillon
Tarbes val
d’Adour
(100%)
Castera
Lou
Lagrave
Cassourat
Ger
Tarbes
Jacque
& Osmets
Béarn des Gaves 100%
Europa holds a 100% interest in the onshore Béarn des Gaves permit in
the Aquitaine basin, the heartland of the French oil industry. The permit
contains two prospects: Berenx Deep and Berenx Shallow.
Berenx Deep is an appraisal project having previously been explored
and drilled by EssoRep with two wells, Berenx-1 (1969) and Berenx-2
(1972), both encountering strong gas shows over a 500m thick gas
bearing zone. In 1975 Berenx-2 was re-entered, drill stem tested and
flowed gas to surface from the same carbonate reservoir that delivered
9 tcf and 2 tcf from nearby fields at Lacq and Meillon.
Europa possesses all data connected to both wells. Good quality 2D
seismic data exists for the licence as well as a reprocessed 3D seismic
dataset covering the area between Berenx and Lacq. Europa’s in-house
technical work indicates that the Berenx deep appraisal prospect could
hold in excess of 500 bcf of recoverable gas resources. In a CPR dated
31 May 2012, ERC Equipoise estimated gross mean un-risked resources
of 277 bcf for the Berenx deep gas play. The difference between Europa’s
and ERC’s assessment of resources reflects the confidence of each party
in mapping in a geologically complex terrain. Europa was able to map
a larger area of closure and as a consequence larger resources.
Thorough re-evaluation and interpretation of existing seismic and well
data on the permit has resulted in the better definition of a shallow gas
prospect, Berenx Shallow. Previous exploration on the concession had
focused only on the deep lying gas prospectivity. A comprehensive
review of historic well results, re-interpretation of structure and better
understanding of proven hydrocarbon bearing reservoir distribution
in the shallow Cretaceous and Late Jurassic carbonate sediments by
Europa has upgraded the Berenx Shallow gas prospectivity and
suggests potential gross mean un-risked resources of 416 bcf.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 7
Gross un-risked resources bcf
Reservoir
Neocomian
Kimmeridgian
Total
P90
126
66
P50
240
156
P10
402
261
United Kingdom
Highlights
Mean
254
162
416
The Company’s strategy for Béarn des Gaves is to first target the shallow
gas play, drill a well to deliver a commercial flow rate and, on the back
of success, to further appraise shallow prospectivity and undertake work
to de-risk the Berenx Deep appraisal project. The anticipated total depth
of the Berenx Shallow well is approximately 2,500m.
Europa submitted its application for the renewal of Béarn des Gaves in
November 2011 and the renewal process formally started on 22 March
2012. Post-period end on 3 October 2013, the Company was informed
by the French authorities that the permit has been successfully renewed.
This next phase covers a period of five years from 22 March 2012 and
carries an expenditure commitment of approximately €2.5 million. The
Directors intend to immediately commence a farm-out process for the
permit in tandem with well planning and permitting for a well location
on Berenx Shallow ahead of drilling in the next 18 months.
• Four prospects on PEDL181 were the focus of a 78 line km
2D seismic acquisition programme completed in April 2013
United Kingdom - Exploration
NE Lincolnshire
Easington
Gas Terminal
Crosby Warren
(100%)
PEDL182 (33%)
Immingham
Oil Refinery
Broughton
Grimsby
Scunthorpe
Wressle
PEDL180 (33%)
East
Central
s
d
a
r l e
Cuxwold
West
t
PEDL181
a i s
C
PEDL181 (50%)
o
PEDL181 (50%)
0
10
km
The permit benefits from being located only 20 km from the Lacq Field,
which potentially provides a straightforward export route, allowing gas
to be processed in an existing facility with spare capacity.
UK - East Midlands
Tarbes Val d’Adour 100%
As announced in July, the Tarbes Val d’Adour permit has not yet been
renewed by the French authorities. Under the terms of the agreement,
if notification of renewal has not been received by the expiry date then
the permits are deemed to have lapsed.
Europa has submitted an appeal to the relevant French authorities.
Further updates with respect to the appeal process will be provided
by the Company as and when it is appropriate to do so. Total aggregate
exploration costs of £0.2 million previously incurred on the permit by
Europa has been written off in the current financial period.
PEDL180 33.3% (Wressle)
PEDL180 covers an area of 100 km2 of the East Midlands Petroleum
Province south of the Crosby Warren field. Europa has a 33.3% working
interest in the block with its partners Egdon Resources (operator 25%)
Celtique Energie Petroleum Ltd (33.3%) and Union Jack Oil (8.3%). 49 km2
of 3D seismic acquisition covering PEDL180 and PEDL182 was acquired in
Q1 2012 and has been processed and interpreted. The operator estimates
the Wressle prospect to hold mean gross un-risked recoverable resources
of 2.1 mmbo. Drilling at Wressle is planned to take place towards the end
of 2013.
PEDL182 33.3% (Broughton)
To the north, PEDL182 is an area of 40 km2 with the same equity structure
as that of PEDL180. The Broughton prospect was previously drilled by
BP and flowed oil. The May 2012 Competent Person’s Report (“CPR”)
estimated the Broughton prospect to hold mean gross un-risked
recoverable resources of 1.85 mmbo.
www.europaoil.comOUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERS
8
Operational review
Operations and development
PEDL181 50%
Europa has a 50% interest in and is the operator of the PEDL181 licence,
with Egdon Resources UK Limited and Celtique Energie Petroleum Ltd
each holding a 25% interest. PEDL181 is located in the Carboniferous
petroleum play and covers an area of over 540 km2 in the Humber Basin.
The licence has good potential for conventional oil and gas and unusually
for this play has never been previously drilled. The licence is located in a
working hydrocarbon system where a number of discoveries have been
made along the Brigg-Broughton anticline, an analogous trend to the
west of Caistor anticline. Europa’s existing oil production at the Crosby
Warren field lies at the westernmost end of the anticline.
Technical evaluation has confirmed several conventional prospects/leads
on PEDL181. Four of these in the southern part of the licence, all with
reservoirs of Carboniferous age, were the focus of a 78 km 2D seismic
acquisition programme that was completed in April 2013. Reprocessing
of 150 km2 of existing 3D seismic data has been performed together
with processing of the new data. Interpretation of the integrated dataset
is being performed with the objective of maturing the four leads, and
defining drillable prospects. This work is due to be completed later this
year, at which point the results will be released along with a forward plan
for the licence.
In addition to the conventional prospectivity the licence may also
contain shale gas potential in the South Humber basin. Interpretation
of the new seismic data suggests that this basin may contain a much
thicker sequence of Namurian age sediments than was previously
thought. To date this sedimentary package has not been drilled in the
South Humber basin. The Namurian section in the Gainsborough Trough
basin, located some 25 km to the west of PEDL181 has been drilled and is
known to host the Bowland Shale which has well documented potential
for shale gas. It is possible that the Namurian section in the South Humber
basin may contain a Bowland Shale equivalent with similar potential for
shale gas.
Dorking area
UK - Weald
M25
Guildford
Dorking
Brockham
Holmwood-1
(Proposed)
Albury
PEDL143 (40%)
0
km
10
Crawley
M23
PEDL143 40% (Holmwood)
The PEDL143 licence covers an area of 92 km2 of the Weald Basin,
Surrey. Europa is the operator and has a 40% working interest in the
licence with partners Egdon Resources (38.4%), Altwood Petroleum
(1.6%), and Warwick Energy (20%). The Holmwood prospect is a Jurassic
sandstone project with a low geological risk. The May 2012 CPR estimated
Holmwood to hold gross mean recoverable resources of 5.64 mmbo.
Europa considers Holmwood to be one of the best undrilled exploration
prospects in the UK onshore.
The prospect lies south of Dorking within the Surrey Hills Area of
Outstanding Natural Beauty and an application to construct a temporary
exploration well on the site was originally made in 2008. This application
was refused in 2011 by Surrey County Council contrary to their planning
officer’s recommendation to approve. An appeal to overturn the decision
was heard at a public inquiry in July 2012. The appeal was dismissed on
26 September 2012.
As announced on 1 November 2012, Europa, along with its partners,
applied for an order to quash the decision of the Secretary of State for
Communities and Local Government’s appointed Inspector to dismiss
the appeal. On 25 July 2013 in the Royal Courts of Justice the judge,
Mr Justice Ouseley, gave judgment in favour of quashing the Inspector’s
decision. The judge also granted the Leith Hill Action Group (“LHAG”)
leave to appeal to the Court of Appeal against his judgment. On 19
September 2013, LHAG submitted an appeal to the Court of Appeal.
The hearing is expected to be of one day duration and to take place
between February and May 2014. If the Court rules in favour of
Europa, the appeal will be remitted to the Planning Inspectorate
for redetermination, which may involve a further planning inquiry,
for the exploratory drill site at Holmwood.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 9
Production
• West Firsby (WF) 100%
• Crosby Warren (CW) 100%
• Whisby-4 well 65%
The three UK fields produced 182 boepd in line with management
expectations. During the period, workovers were successfully completed
on the West Firsby wells which are now back on production. Detailed
production and reservoir engineering studies have been conducted and
the results implemented with the aim of maximising recovery rates at the
producing fields.
Proven and probable (“2P”) producing reserves of the three producing
fields was estimated at 0.65 mmbo by the CPR (as at 31 December 2011).
Unconventional resources
Underground Coal Gasification (UCG) 90%
Europa (90%) and Oxford Energy Consulting Limited (10%) acquired two
UCG licences on the 22 September 2010 from the Coal Authority, using
powers conferred on it by the Coal Industry Act 1994: one being the
Holderness Offshore Area (CA11/UCG/0015/S) and the other the South
Humber Offshore Area (CA11/UCG/0016/S).
Following a technical evaluation, Europa concluded there is at present
no commercial means of exploiting the coal using UCG at the depth at
which the coal occurs and taking into account thickness of the individual
coal seams. As a result, these licences were allowed to lapse on the
22 September 2013.
Shale Gas
As previously noted PEDL181 has some potential for shale gas.
Romania
Planning to exit
The Company continues to hold interests in two exploration licences in
Romania: Brates (100%) and Bacau (19%). Both licences are in the process
of being relinquished. The assets were fully written down in the year
ended 31 July 2012.
Conclusion
Thanks to the success of the in-house technical work undertaken over
the course of the year we have two potential company makers in our
portfolio offshore Ireland and onshore France. Ireland is funded and we
have begun an exploration programme that could lead to realisation of
this potential by drilling in 2015.
Plenty of work remains to be done on our existing projects and new
ventures in the year ahead. We are delighted with the pace that Kosmos
has set in advancing the Irish licences since taking over operatorship.
By acquiring 3D seismic in summer 2013, the partnership has gained
a year and we can focus on processing and interpreting the seismic
during the winter months to further define the prospectivity and identify
possible drilling targets. Having secured the renewal of Béarn des Gaves
we will target securing a farm-in partner with a view to drilling a well
at Berenx Shallow in the next 18 months. In the UK, we are close to
identifying drillable prospects on PEDL181, while on PEDL180 we
expect to drill Wressle towards the end of 2013. I am excited about
the year ahead and look forward to making further significant progress
on all our projects and particularly our two company makers.
Hugh Mackay
CEO
West Firsby #9 well producing on beam pump
www.europaoil.comOUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERS 10
Directors’ report
The directors present their report and the audited financial statements for the year ended 31 July 2013.
Principal activities
The principal activity of the Group is investment in oil and gas exploration, development and production. The Group’s assets and activities are located
in the United Kingdom, Ireland and France. The Board has considered and will continue to consider investments in Europe, Mediterranean and Atlantic
Margin.
Business review
A detailed review of the Group’s business and prospects is set out in the Chairman’s statement (page 2) and Operational review (page 4).
Key performance indicators
At its regular meetings, the Board closely monitors production rates, costs and progress with all the licences in which the Group has interests.
Primary risks and uncertainties
Europa’s activities are subject to a range of financial risks including commodity prices, liquidity within the business and of counterparties, exchange
rates and loss of operational equipment or wells. These risks are managed with the oversight of the Board and the Audit Committee through ongoing
review taking into account the operational, business and economic circumstances at that time. The primary risk facing the business is that of liquidity.
Liquidity
Detailed cash forecasts are prepared frequently and reviewed by management and the Board. The Group’s production provides a monthly inflow of
cash and is the main source of working capital and project finance. Additional cash is available through a £700,000 overdraft facility and the placing
of Europa shares in the market.
Overdraft facility
The Royal Bank of Scotland (RBS) multi-currency facility signed on 8 February 2013 provides an overdraft of up to £700,000 (2012: £700,000). Interest is
charged at 3% over base rate (2012: 3% over base rate). The facility is due to be renewed before 31 January 2014. The principal interest rate risk for the
Group is the interest charge arising from utilisation of the multi-currency facility.
Placing of shares
During the year, no shares were issued (2012: a total of 7,777,776 shares issued at 9p raising £665,000 net of broker commission).
The SEDA facility
On 15 July 2011 Europa entered into a 3 year agreement with YA Global Master SPV (Yorkville) under which Yorkville provided a £5 million Standby
Equity Distribution Agreement (SEDA). Yorkville is an investment fund managed by Yorkville Advisors UK LLP. To date there have been no draw downs
against the SEDA. Due to uncertainty over future use of the facility, Europa wrote-off the SEDA arrangement fee in 2012.
Commodity price, credit and currency
The Board has considered the use of financial instruments to hedge oil price and US Dollar exchange rate movements. To date, the Board has not
hedged against price or exchange rate movements, but intends to regularly review this policy.
Sales revenue is generated primarily in US Dollars and these funds are matched where possible against expenditures within the business. As most
capital and operating expenditures are Sterling denominated, US Dollars are periodically sold to purchase Sterling.
Crude oil is sold to one multinational oil company. Credit risk is considered to be minimal.
Exploration, drilling and operational risk
The business of exploration and production of oil and gas involves a high degree of risk. Few prospects that are explored are ultimately developed into
producing oil and gas fields.
Significant expenditure is required to establish the extent of oil and gas reserves through seismic surveys and drilling and there can be no certainty
that oil and gas reserves will be found. The exploration and development of oil and gas assets may be curtailed, delayed or cancelled by unusual or
unexpected geological formation pressures, hazardous weather conditions or other factors.
There are numerous risks inherent in drilling and operating wells, many of which are beyond the Company’s control. The Group’s operations may be
curtailed, delayed or cancelled as a result of environmental hazards, industrial accidents, occupational and health hazards, technical failures, shortage or
delays in the delivery of rigs and/or other equipment, labour disputes and compliance with governmental requirements.
Drilling may involve unprofitable efforts, not only with respect to dry wells, but also to wells which, though yielding some oil or gas, are not sufficiently
productive to justify commercial development. Completion of a well does not assure a profit on the investment or recovery of drilling, completion and
operating costs.
Licences may be revoked by the relevant issuing authority if commitments under those licences are not met. Further details of current licence
commitments are given in Notes 10 and 23.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 11
Exploration, drilling and operational risk (continued)
Appropriate insurance cover is obtained annually for all of Europa’s exploration, development and production activities.
Future drilling plans are disclosed in the Operations review.
Accounting policies
The Group has not made any material changes to its accounting policies in the year to 31 July 2013.
Results for the year and dividends
The Group loss for the year after taxation was £101,000 (2012 loss: £11,316,000). The directors do not recommend the payment of a dividend (2012: £nil).
Directors and their interests
The directors’ interests in the share capital of the Company at 31 July were:
WH Adamson
CW Ahlefeldt-Laurvig1
RJHM Corrie2
P Greenhalgh
HGD Mackay
Number of
ordinary shares
Number of ordinary
share options
2013
2012
2013
2012
575,000
25,502,442
87,500
250,000
860,823
475,000
25,502,442
87,500
250,000
786,863
500,000
—
500,000
3,075,000
6,600,000
500,000
—
500,000
1,875,000
5,000,000
1. CW Ahlefeldt-Laurvig holds his shares through HSBC Global Custody Nominee (UK) Limited.
2. RJHM Corrie holds his shares via a 50% interest in RT Property Investments Limited which holds 50,000 shares, and Corrie Limited, of which Mr Corrie is a director, owns 62,500 shares.
In addition to their interest in the ordinary shares of the Company, WH Adamson and RJHM Corrie hold stock options. These options were awarded in
connection with their appointment to the Board and full details of the options are included in Note 21. The Board has listened to comments raised by
certain investors and discussed the subject with advisers. Whilst recognising that the granting of options to non-executive directors is contrary to the
principles of the UK corporate governance code the Board considers that the quantum of options granted is not so significant as to raise any issue
concerning the independence of these directors. In addition, the Board wishes to retain the ability to grant stock options to non-executive directors
in future.
Details of the vesting conditions of the directors’ stock options are included in Note 21.
Directors’ interests in transactions
No director had, during the year or at the end of the year, other than disclosed below, a material interest in any contract in relation to the Group’s
activities except in respect of service agreements.
Subject to the conditions set out in the Companies Act 2006, the Company has arranged appropriate Directors’ and Officers’ insurance to indemnify
the directors against liability in respect of proceedings brought by third parties. Such provisions remain in force at the date of this report.
Policy and practice on payment of suppliers
The Group’s policy on payment of suppliers is to settle amounts due on a timely basis taking into account the credit period given. At 31 July 2013,
the Group had 48 days of purchases outstanding (2012: 47 days) and the Company had 20 days of purchases outstanding (2012: 25 days).
Financial instruments
See Note 1 and Note 22 to the financial statements.
Related party transactions
See Note 25 to the financial statements.
Post reporting date events
See Note 26 to the financial statements.
Capital structure and going concern
Further details on the Group’s capital structure are included in Note 20. Comments on going concern are included in Note 1.
Accounting policies
A full list of accounting policies is set out in Note 1 to the financial statements.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
12
Directors’ report (continued)
Disclosure of information to the auditors
In the case of each person who was a director at the time this report was approved:
• So far as that director was aware there was no relevant available information of which the Company’s auditors were unaware.
• That director had taken all necessary steps to make themselves aware of any relevant audit information, and to establish that the Company’s
auditors were aware of that information.
Auditors
A resolution to re-appoint the auditors, BDO LLP will be proposed at the next Annual General Meeting.
On behalf of the Board 10 October 2013
P Greenhalgh
Finance Director
Statement of directors’ responsibilities
Directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the
Group and Company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state
of affairs of the Group and Company and of the profit or loss of the Group for that year. The directors are also required to prepare financial statements
in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
In preparing these financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material departures disclosed
and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose
with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the
requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
Website publication
The directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are
published on the Company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial
statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the
directors. The directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 Report of the independent auditor
13
Independent auditor’s report to the members of Europa Oil & Gas (Holdings) plc
We have audited the financial statements of Europa Oil and Gas (Holdings) plc for the year ended 31 July 2013 which comprise the consolidated
statement of comprehensive income, the consolidated and Company statement of financial position, the consolidated and Company statement of
changes in equity, the consolidated and Company statement of cashflows and the related Notes. The financial reporting framework that has been
applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards
the parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance
with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s
Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/
auditscopeukprivate
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and the parent Company’s affairs as at 31 July 2013 and of the Group’s
loss for the year then ended;
• the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
• the parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied
in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the
financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches
not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Anne Sayers (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
London, United Kingdom
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com 14
Consolidated statement of comprehensive income
For the year ended 31 July
Revenue
Other cost of sales
Exploration write-off
Impairment of producing fields
Total cost of sales
Gross profit/(loss)
Administrative expenses
Finance income
Finance expense
Profit/(loss) before taxation
Taxation (charge)/credit
Note
2
2
10
11
6
7
3
8
2013
£000
4,503
(2,954)
(231)
—
(3,185)
1,318
(718)
15
(208)
407
(508)
2012
£000
5,080
(2,692)
(12,451)
(785)
(15,928)
(10,848)
(755)
—
(452)
(12,055)
739
Loss for the year attributable to the equity shareholders of the parent
(101)
(11,316)
Other comprehensive income/(loss)
Those that may be reclassified to profit and loss
Exchange gain/(loss) arising on translation of foreign operations
Total comprehensive loss for the year attributable to the equity shareholders of the parent
37
(64)
(36)
(11,352)
Loss per share (LPS) attributable to the equity shareholders of the parent
Basic and diluted LPS
The accompanying Notes form part of these financial statements.
Note
Pence
per share
Pence
per share
9
(0.07)p
(8.33)p
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
Consolidated statement of financial position
As at 31 July
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Deferred tax asset
Total non-current assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Other current assets
Assets classified as held for sale
Total assets
Liabilities
Current liabilities
Trade and other payables
Current tax liabilities
Derivative
Short-term borrowings
Short-term provisions
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Long-term provisions
Total non-current liabilities
Total liabilities
Net assets
Capital and reserves attributable to equity holders of the parent
Share capital
Share premium
Merger reserve
Foreign exchange reserve
Retained deficit
Total equity
15
2012
£000
2,127
4,959
14
7,100
56
1,250
230
1,536
338
8,974
(1,880)
(87)
(64)
(230)
—
(2,261)
(2,948)
(1,950)
(4,898)
(7,159)
1,815
1,379
13,160
2,868
380
(15,972)
1,815
Note
2013
£000
10
11
18
13
14
15
16
16
17
19
18
19
20
2,446
4,383
—
6,829
33
928
672
1,633
338
8,800
(1,227)
(541)
(48)
(208)
(290)
(2,314)
(2,902)
(1,681)
(4,583)
(6,897)
1,903
1,379
13,160
2,868
417
(15,921)
1,903
These financial statements were approved by the Board of directors and authorised for issue on 10 October 2013 and signed on its behalf by:
P Greenhalgh
Finance Director
Company registration number 5217946
The accompanying Notes form part of these financial statements.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
16
Consolidated statement of changes in equity
Balance at 1 August 2011
Total comprehensive loss for the year
Share based payment
Issue of share capital (net of issue costs)
Balance at 31 July 2012
Balance at 1 August 2012
Total comprehensive loss for the year
Share based payment
Balance at 31 July 2013
Share
capital
£000
1,301
—
—
78
1,379
1,379
—
—
1,379
Share
premium
£000
12,573
—
—
587
13,160
13,160
—
—
13,160
Merger
reserve
£000
2,868
—
—
—
2,868
2,868
—
—
2,868
Attributable to the equity holders of the parent
Foreign
exchange
reserve
£000
416
(36)
—
—
380
380
37
—
417
Retained
deficit
£000
(4,719)
(11,316)
63
—
(15,972)
(15,972)
(101)
152
(15,921)
Total
equity
£000
12,439
(11,352)
63
665
1,815
1,815
(64)
152
1,903
The accompanying Notes form part of these financial statements.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
Company statement of financial position
As at 31 July
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Investments
Total non-current assets
Current assets
Other receivables
Cash and cash equivalents
Other current assets
Assets classified as held for sale
Total assets
Liabilities
Current liabilities
Trade and other payables
Derivative
Short-term borrowing
Total current liabilities
Total liabilities
Net assets
Capital and reserves attributable to equity holders of the parent
Share capital
Share premium
Merger reserve
Retained deficit
Total equity
17
Note
2013
£000
2012
£000
10
11
12
14
15
16
16
17
20
1,028
14
3,320
4,362
354
54
408
338
5,108
(186)
(48)
(208)
(442)
(442)
—
22
3,316
3,338
61
27
88
338
3,764
(162)
(64)
(230)
(456)
(456)
4,666
3,308
1,379
13,160
2,868
(12,741)
4,666
1,379
13,160
2,868
(14,099)
3,308
These financial statements were approved by the Board of directors and authorised for issue on 10 October 2013 and signed on their behalf by:
P Greenhalgh
Finance Director
Company registration number 5217946
The accompanying Notes form part of these financial statements.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
18
Company statement of changes in equity
Balance at 1 August 2011
Total comprehensive income for the year
Share based payment
Issue of share capital (net of issue costs)
Balance at 31 July 2012
Balance at 1 August 2012
Total comprehensive income for the year
Share based payment
Balance at 31 July 2013
The accompanying Notes form part of these financial statements.
Share
capital
£000
1,301
—
—
78
Share
premium
£000
12,573
—
—
587
Merger
reserve
£000
2,868
—
—
—
Retained
deficit
£000
(306)
(13,856)
63
—
1,379
13,160
2,868
(14,099)
1,379
—
—
1,379
13,160
—
—
13,160
2,868
—
—
2,868
(14,099)
1,206
152
(12,741)
Total
equity
£000
16,436
(13,856)
63
665
3,308
3,308
1,206
152
4,666
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
Consolidated statement of cash flows
For the year ended 31 July
Cash flows from operating activities
Loss after tax
Adjustments for:
Share based payments
Depreciation
Exploration write-off
Impairment of property, plant & equipment
Finance income
Finance expense
Taxation expense/(credit)
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventories
(Decrease)/increase in trade and other payables
Cash generated from operations
Income tax payment
Net cash from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Expenditure on well decommissioning
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of share capital (net of issue costs)
Decrease in payables related to the issue of share capital
Repayment of borrowings
Finance costs
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Exchange (loss)/gain on cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
The accompanying Notes form part of these financial statements.
19
Note
2013
£000
2012
£000
(101)
(11,316)
21
11
10
11
6
7
8
152
578
231
—
(15)
208
508
621
23
(535)
1,670
(84)
1,586
(5)
(1020)
(51)
(1,076)
—
—
(22)
(34)
(56)
454
(12)
230
672
63
673
12,451
785
—
452
(739)
(647)
(13)
350
2,059
—
2,059
(78)
(2,955)
—
(3,033)
665
(115)
(1,025)
(289)
(764)
(1,738)
92
1,876
230
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
20
Company statement of cash flows
For the year ended 31 July
Cash flows from operating activities
Profit/(loss) after tax
Adjustments for:
Share based payments
Depreciation
Transfer costs to intangibles
Movement in intercompany loan
Finance income
Finance expense
Decrease in trade and other receivables
Increase in trade and other payables
Net cash (used in)/from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Movement on loan to Group companies
Net cash from /(used in) investing activities
Cash flows from financing activities
Proceeds from issue of share capital (net of issue costs)
Decrease in payables related to the issue of share capital
Repayment of borrowings
Finance costs
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Exchange (loss)/gain on cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
The accompanying Notes form part of these financial statements.
Note
2013
£000
2012
£000
1,206
(13,856)
11
148
10
11
(1,591)
(321)
214
7
23
(293)
(2)
(2)
376
372
—
—
(22)
(29)
(51)
28
(1)
27
54
63
22
—
13,096
(377)
844
185
36
13
(16)
—
(834)
(850)
665
(115)
(1,025)
(275)
(750)
(1,587)
36
1,578
27
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
Notes to the financial statements
21
1 Accounting Policies
General information
Europa Oil & Gas (Holdings) plc is a Company incorporated and domiciled in England and Wales with registered number 5217946. The address of the
registered office is 6 Porter Street, London, W1U 6DD. The Company’s administrative office is at the same address.
The functional and presentational currency of the Company is Sterling (UK£).
Basis of accounting
The consolidated financial statements have been prepared in accordance with applicable International Financial Reporting Standards (IFRS) as adopted
by the EU. The policies have not changed from the previous year.
The accounting policies that have been applied in the opening statement of financial position have also been applied throughout all periods presented
in these financial statements. These accounting policies comply with each IFRS that is mandatory for accounting periods ending on 31 July 2013.
Going concern
In their assessment of going concern the directors note that the Group is dependent on the existing bank facility in place. The current bank facility is
due to expire in January 2014. Based on correspondence with the Group’s bankers the directors have no reason to believe that the facility will not be
renewed on the same or similar acceptable terms in an appropriate timescale. Therefore given this expectation and the continuing cash inflow from
the Group’s producing assets the directors have concluded, at the time of approving the financial statements, that there is a reasonable expectation,
based on the Group’s cash flow forecasts, that the Group can continue in operational existence for the foreseeable future, which is deemed to be at
least 12 months from the date of signing these financial statements. Accordingly they continue to adopt the going concern basis in preparing the
financial statements.
Future changes in accounting standards
The IFRS financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of
the accounting period. The IASB and IFRIC have issued the following standards and interpretations:
IAS 12
IAS 1
Deferred Tax Recovery of Underlying Assets
Amendment – Presentation of Items of Other Comprehensive Income
Effective date
1 Jan 2012
1 Jul 2012
The following are amendments to existing standards and new standards which may apply to the Group in future accounting periods. Except for the
disclosure requirements of IAS 24 and the impact of IFRS 9 and IFRS 11, which the directors are continuing to assess, none of the following are
considered to affect the Company.
IFRS 9 *
IFRS 10
IFRS 11
IFRS 12
IFRS 13
IAS 19
IAS 27
IAS 28
Financial instruments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Involvement with Other Entities
Fair Value Measurement
Employee Benefits
Separate Financial Statements
Investments in Associates and Joint Ventures
Effective date
(periods beginning on or after)
1 Jan 2015
1 Jan 2014
1 Jan 2014
1 Jan 2014
1 Jan 2013
1 Jan 2013
1 Jan 2014
1 Jan 2014
Items marked * had not yet been endorsed by the European Union at the date that these financial statements were approved and authorised for issue
by the Board.
Basis of consolidation
The Group financial statements consolidate those of the Company and all of its material subsidiary undertakings drawn up to 31 July 2013. Subsidiaries
are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from its activities. The Group
obtains and exercises control through voting rights.
Intra Group balances are eliminated on consolidation. Unrealised gains on transactions between the Group and its subsidiaries are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
The Group is engaged in oil and gas exploration, development and production through unincorporated joint ventures. The accounting for the Group’s
share of the results and net assets of these joint arrangements is described below.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
22
Notes to the financial statements
1 Accounting Policies (continued)
Revenue Recognition
Revenue, excluding value added tax and similar taxes, represents net invoiced sales of the Group’s share of oil and gas revenues in the year. Revenue
is recognised at the end of each month based upon the quantity and price of oil and gas delivered to the customer.
Non-current assets
Oil and gas interests
The financial statements with regard to oil and gas exploration and appraisal expenditure have been prepared under the full cost basis. This accords
with IFRS 6 which permits the continued application of a previously adopted accounting policy.
Pre-production assets
Pre-production assets are categorised as intangible assets on the statement of financial position. Pre-licence expenditure is expensed as directed
by IFRS 6. Expenditure on licence acquisition costs, geological and geophysical costs, costs of drilling exploration, appraisal and development wells,
and an appropriate share of overheads (including directors’ costs) are capitalised and accumulated in cost pools on a geographical basis. These
costs which relate to the exploration, appraisal and development of oil and gas interests are initially held as intangible non-current assets pending
determination of commercial viability. On commencement of production these costs are tested for impairment prior to transfer to production assets.
Production assets
Production assets are categorized within property, plant and equipment on the statement of financial position. With the determination of commercial
viability and approval of an oil and gas project the related pre-production assets are transferred from intangible non-current assets to tangible non-
current assets and depreciated upon commencement of production within the appropriate cash generating unit.
Impairment tests
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash
generating units) as disclosed in Notes 10 and 11. As a result, some assets are tested individually for impairment and some are tested at cash
generating unit level.
An impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted
cash flow evaluation. Impairment losses recognised for cash-generating units, to which goodwill has been allocated, are credited initially to the
carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash generating unit. With the exception
of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs and
the estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding liability is recognised within
provisions.
Depreciation
All expenditure within each cost pool is depreciated from the commencement of production, on a unit of production basis, which is the ratio of
oil and gas production in the period to the estimated quantities of proven plus probable commercial reserves at the end of the period, plus the
production in the period. Costs used in the unit of production calculation comprise the net book value of capitalised costs plus the estimated future
field development costs within each cost pool. Changes in the estimates of commercial reserves or future field development costs are dealt with
prospectively.
Furniture and computers are depreciated on a 25% per annum straight line basis.
Leasehold buildings are depreciated on a 2% per annum straight line basis.
Reserves
Proven and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons which the existing geological,
geophysical and engineering data shows to be recoverable in future years. The proven reserves included herein conform to the definition approved
by the Society of Petroleum Engineers (SPE) and the World Petroleum Congress (WPC). The probable and possible reserves conform to definitions of
probable and possible approved by the SPE/WPC using the deterministic methodology. Reserves used in accounting estimates for depreciation are
updated periodically to reflect management’s view of reserves in conjunction with third party formal reports. Reserves are reviewed at the time of
formal updates or as a consequence of operational performance, plans and the business environment at that time.
Reserves are adjusted in the year that formal updates are undertaken or as a consequence of operational performance and plans, and the business
environment at that time, with any resulting changes not applied retrospectively.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 23
1 Accounting Policies (continued)
Future decommissioning costs
A provision for decommissioning is recognised in full at the point that the Group has an obligation to decommission an appraisal, development
or producing well. A corresponding non-current asset (included within producing fields in Note 11) of an amount equivalent to the provision is
also created. The amount recognised is the estimated cost of decommissioning, discounted to its net present value and is reassessed each year
in accordance with local conditions and requirements. For producing wells, the asset is subsequently depreciated as part of the capital costs of
production facilities within tangible non current assets, on a unit of production basis. Any decommissioning obligation in respect of a pre-production
asset is carried forward as part of its cost and tested annually for impairment in accordance with the above policy.
Changes in the estimates of commercial reserves or decommissioning cost estimates are dealt with prospectively by recording an adjustment to
the provision, and a corresponding adjustment to the decommissioning asset. The unwinding of the discount on the decommissioning provision is
included within finance expense.
Taxation
Current tax is the tax payable based on taxable profit/(loss) for the year.
Deferred income taxes are calculated using the balance sheet liability method on temporary differences. Deferred tax is generally provided on the
difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition
of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting
profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary
differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. Tax losses available to be carried
forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying
deductible temporary difference will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at
tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the reporting date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the statement of comprehensive income, except where
they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.
Foreign currency
The Group and Company prepare their financial statements in Sterling.
Transactions denominated in foreign currencies are translated at the rates of exchange ruling at the date of the transaction. Monetary assets and
liabilities in foreign currencies are translated at the rates of exchange ruling at the reporting date. Non-monetary items that are measured at historical
cost in a foreign currency are translated at the exchange rate at the date of transaction. Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at the date the fair value was determined.
Any exchange differences arising on the settlement of items or on translating items at rates different from those at which they were initially recorded
are recognised in the Statement of comprehensive income in the period in which they arise. Exchange differences on non-monetary items are
recognised in the Statement of Changes in Equity to the extent that they relate to a gain or loss on that non-monetary item taken to the Statement
of Changes in Equity, otherwise such gains and losses are recognised in the Statement of comprehensive income.
The monetary assets and liabilities in the financial statements of foreign subsidiaries are translated at the rate of exchange ruling at the reporting
date. Income and expenses are translated at monthly average rates providing there is no significant change in the month. The exchange differences
arising from the retranslation of the opening net investment in subsidiaries are taken directly to the foreign exchange reserve in equity. On disposal
of a foreign operation the cumulative translation differences are transferred to the statement of comprehensive income as part of the gain or loss on
disposal.
Europa Oil and Gas (Holdings) plc is domiciled in the UK, which is its primary economic environment and the Company’s functional currency is
Sterling. The Group’s current operations are based in the UK, Ireland, Romania and France, and the functional currencies of the Group’s entities are the
prevailing local currencies in each jurisdiction. Given that the functional currency of the Company is Sterling, management has elected to continue
to present the consolidated financial statements of the Group and Company in Sterling.
Investments
Investments, which are only investments in subsidiaries, are carried at cost less any impairment. Additions include the net value of share options issued
to employees of subsidiary companies less any lapsed, unvested options.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com 24
Notes to the financial statements
1 Accounting Policies (continued)
Financial instruments
Financial assets and liabilities are recognised on the statement of financial position when the Group becomes a party to the contractual provisions of
the instrument. The Group and Company classifies its financial assets into loans and receivables, which comprise trade and other receivables and cash
and cash equivalents. The Group has not classified any of its financial assets as held to maturity or available for sale or fair value through profit or loss.
Trade and other receivables are measured initially at fair value plus directly attributable transaction costs, and subsequently at amortised cost using
the effective interest rate method, less provision for impairment. A provision is established when there is objective evidence that the Group will not
be able to collect all amounts due. The amount of any provision is recognised in the Statement of comprehensive income.
Cash and cash equivalents comprise cash held by the Group, short-term bank deposits with an original maturity of three months or less and bank
overdrafts. Within the consolidated statement of cash flows, cash and cash equivalents includes the overdraft drawn against the multi-currency facility
described in Note 17.
The Group and Company classify financial liabilities into one of two categories, depending on the purpose for which the asset was acquired.
The accounting policy for each category is as follows:
Fair value through profit or loss
This category comprises only out-of-the-money derivatives. They are carried in the statement of financial position at fair value with changes in fair
value recognised in the consolidated Statement of comprehensive income. Other than these derivative financial instruments, the Group does not
have any liabilities held for trading nor has it designated any financial liabilities as being at fair value through profit or loss.
Other financial liabilities
Include the following items:
Bank and other borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument.
Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any
interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the statement of financial position.
Interest expense in this context includes initial transaction costs and any interest or coupon payable while the liability is outstanding.
Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using
the effective interest method.
Financial liabilities and equity instruments issued by the Group are classified in accordance with the substance of the contractual arrangements
entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest
in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net
of direct issue costs.
Leased assets
During the current and prior year the Group and Company did not have any finance leases. All leases are regarded as operating leases and the
payments made under them are charged to the statement of comprehensive income on a straight line basis over the lease term. Lease incentives
are spread over the term of the lease.
Assets held for sale
Assets classified as held for sale are those assets which are being actively marketed for sale and the Board has an expectation that the sale will be
completed in the following year.
Treatment of finance costs
All finance costs are expensed through the income statement.
Defined contribution pension schemes
The pension costs charged against profits are the contributions payable to the scheme in respect of the accounting period.
Inventories
Inventories comprise oil in tanks stated at the lower of cost and net realisable value. Cost is determined by reference to the actual cost of production
in the period.
Joint ventures
Joint ventures are those ventures in which the Group holds an interest on a long term basis which are jointly controlled by the Group and one or
more venturers under a contractual arrangement. When these arrangements do not constitute entities in their own right, the consolidated financial
statements reflect the relevant proportion of costs, revenues, assets and liabilities applicable to the Group’s interests in accordance with IAS 31.
The Group’s exploration, development and production activities are generally conducted jointly with other companies in this way.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013 25
1 Accounting Policies (continued)
Share-based payments
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are rewarded
using share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted
to the employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and
sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the statement of comprehensive income with a corresponding
credit to reserves. Where options over the parent Company’s shares are granted to employees of subsidiaries of the parent, the charge is recognised
in the statement of comprehensive income of the subsidiary. In the parent Company accounts there is an increase in the cost of the investment in the
subsidiary receiving the benefit.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate
of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options
expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is
made to any expense recognised in prior periods if the number of share options ultimately exercised is different to that initially estimated.
Upon exercise of share options the proceeds received, net of attributable transaction costs, are credited to share capital, and where appropriate share
premium.
Critical accounting judgements and key sources of estimation uncertainty
Details of the Group’s significant accounting judgements and critical accounting estimates are set out in these financial statements and include:
Accounting judgements and estimates:
• Carrying value of intangible assets (Note 10) – carrying values are justified by reference to future estimates of cash flows and expenditures,
discounted at appropriate rates.
• Carrying value of property, plant and equipment (Note 11) – carrying values are justified by reference to future estimates of cash flows, discounted
at appropriate rates.
• Decommissioning provision (Note 19) – inflation and discount rate estimates are used in calculating the provision, along with third party estimates
of remediation costs.
• Share-based payments (Note 21) – various estimates, referenced to external sources where possible, are used in determining the fair value of options.
2 Operating segment analysis
In the opinion of the directors the Group has five reportable segments as reported to the chief operating decision maker, being the UK, Ireland,
Romania, France and North Africa.
The reporting on these segments to management focuses on revenue, operating costs and capital expenditure. The impact of such criteria is discussed
further in the Chairman’s Statement, Operational Review and Financial Review of this annual report.
Income statement for the year ended 31 July 2013
Continuing operations
Revenue
Other cost of sales
Exploration write-off
Impairment of producing fields
Cost of sales
Gross profit
Administrative expenses
Finance costs
Profit before tax
Taxation
Loss for the year
UK
£000
Ireland
£000
Romania
£000
France
£000
North Africa
£000
4,503
(2,954)
—
—
(2,954)
1,549
(824)
(193)
532
(508)
24
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(231)
—
(231)
(231)
(9)
—
(240)
—
(240)
—
—
—
—
—
—
115
—
115
—
115
Total
£000
4,503
(2,954)
(231)
—
(3,185)
1,318
(718)
(193)
407
(508)
(101)
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
26
Notes to the financial statements
2 Operating segment analysis (continued)
Segmental assets and liabilities as at 31 July 2013
Non-current assets
Current assets
Held for sale assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Other segment items
Capital expenditure
Depreciation
Share based payments
UK
£000
5,788
1,595
338
7,721
(4,583)
(1,546)
(6,129)
551
578
152
Ireland
£000
Romania
£000
85
—
—
85
—
—
—
309
—
—
—
38
—
38
—
(768)
(768)
—
—
—
France
£000
956
—
—
956
—
—
—
165
—
—
North Africa
£000
—
—
—
—
—
—
—
—
—
—
Total
£000
6,829
1,633
338
8,800
(4,583)
(2,314)
(6,897)
1,025
578
152
Income statement for the year ended 31 July 2012
UK
£000
Ireland
£000
Romania
£000
France
£000
North Africa
£000
Total
£000
Continuing operations
Revenue
Other cost of sales
Exploration write-off
Impairment of producing fields
Cost of sales
Gross loss
Administrative expenses
Finance costs
Loss before tax
Taxation
Loss for the year
Segmental assets and liabilities as at 31 July 2012
Non-current assets
Current assets
Held for sale assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Other segment items
Capital expenditure
Depreciation
Share based payments
5,080
(2692)
(2,056)
(785)
(5,533)
(453)
(675)
(358)
(1,486)
739
(747)
UK
£000
5,995
1,530
338
7,863
(4,648)
(1,573)
(6,221)
583
674
63
—
—
—
—
—
—
—
—
—
—
—
—
—
(10,395)
—
(10,395)
(10,395)
(39)
(94)
(10,528)
—
(10,528)
Ireland
£000
Romania
£000
66
—
—
66
—
—
—
66
—
—
—
6
—
6
(250)
(688)
(938)
1,863
—
—
—
—
—
—
—
—
—
—
—
—
—
France
£000
1,039
—
—
1,039
—
—
—
521
—
—
—
—
—
—
—
—
(41)
—
(41)
—
(41)
North Africa
£000
—
—
—
—
—
—
—
—
—
—
5,080
(2,692)
(12,451)
(785)
(15,928)
(10,848)
(755)
(452)
(12,055)
739
(11,316)
Total
£000
7,100
1,536
338
8,974
(4,898)
(2,261)
(7,159)
3,033
674
63
100% of the total revenue (2012: 100%) relates to UK based customers. Of this figure, one single customer (2012: one) commands more than 99% of
the total.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
3 Profit/(loss) before taxation
Profit/(loss) from continuing operations is stated after charging:
Depreciation on property, plant & equipment
Staff costs including directors
Exploration write-off
Impairment of property, plant and equipment
Fees payable to the auditor for the audit
Fees payable to the auditor for non-audit services
Operating leases – land and buildings
Amount of inventory recognised as an expense / (income)
Foreign exchange
27
Note
11
5
10
11
2013
£000
578
1,181
231
—
41
8
38
23
21
2012
£000
673
1,022
12,451
785
42
7
37
(14)
24
The Company has taken advantage of the exemption provided under Section 408 of the Companies Act 2006 not to publish its individual statement of
comprehensive income and related notes. The profit dealt with in the financial statements of the parent Company is £1,206,000 (2012: loss £13,856,000).
4 Directors’ emoluments
Directors’ salaries and fees
WH Adamson
CW Ahlefeldt-Laurvig
PA Barrett (to 22 April 2012)
RJHM Corrie
P Greenhalgh
HGD Mackay (from 10 October 2011)
Total
Directors’ pensions
PA Barrett
P Greenhalgh
ES Syba
Total
2013
£000
40
25
—
25
177
234
501
2013
£000
—
18
—
18
2012
£000
40
21
96
21
129
149
456
2012
£000
16
17
6
39
The above charge represents premiums paid to money purchase pension plans during the year. Under the terms of a compromise agreement dated
12 August 2010, the Company continued to pay pension contributions in respect of ES Syba until February 2012. PA Barrett resigned as a director on
21 October 2011 and remained an employee until 22 April 2012.
Social security costs in relation to directors’ remuneration were £64,000 (£2012: £57,000).
Directors’ share based payments
WH Adamson
RJHM Corrie
P Greenhalgh
HGD Mackay
Total
2013
£000
8
—
36
96
140
2012
£000
11
1
11
39
62
The above represents the accounting charge in respect of stock options with vesting periods during the year. No share options were exercised during
the period (2012: none).
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
28
Notes to the financial statements
4 Directors’ emoluments (continued)
Directors’ total emoluments
Salaries and fees
Social security costs
Pensions
Share based payments
Total
5 Employee information
Average monthly number of employees including directors
Management and technical
Field exploration and production
Total
Staff costs
Wages and salaries (including Director’s emoluments)
Social security
Pensions
Share based payment (Note 21)
Total
Total staff costs for the Company were £915,000 (2012: £793,000).
6 Finance income
Interest rate swap fair value credit (Note 22)
Total
7 Finance expense
Bank interest payable
Loan interest payable
Interest on tax payment
Unwinding of discount on decommissioning provision (Note 19)
Exchange rate losses
Bank charges
Loan arrangement fee
Interest rate swap fair value charge (Note 22)
Total
8 Taxation
Current tax liability
Deferred tax asset (Note 18)
Release deferred tax liability (Note 18)
Tax charge/(credit)
2013
£000
501
64
18
140
723
2012
£000
456
57
39
62
614
2013
Number
2012
Number
8
5
13
2013
£000
864
110
55
152
8
4
12
2012
£000
785
100
74
63
1,181
1,022
2013
£000
15
15
2013
£000
21
4
—
153
21
9
—
—
208
2013
£000
540
14
(46)
508
2012
£000
—
—
2012
£000
28
32
1
130
24
10
219
8
452
2012
£000
83
916
(1,738)
(739)
UK corporation tax is calculated at 30% (2012: 30%) of the estimated assessable profit for the year being the applicable rate for a ring-fence trade
excluding the Supplementary Charge of 32% (2012: 32%). Taxation in other jurisdictions is calculated at the rates prevailing in the respective
jurisdictions.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
29
8 Taxation (continued)
Profit/(loss) on ordinary activities per the accounts
Tax reconciliation
Profit/(loss) on ordinary activities multiplied by the standard rate of corporation tax in the UK of 30% (2012: 30%)
Expenses not deductible for tax purposes
Other reconciling items including Supplementary Charge in the UK
Total tax charge/(credit)
2013
£000
407
122
115
271
508
2012
£000
(12,055)
(3,617)
3,990
(1,112)
(739)
9 Loss per share
Basic loss per share (LPS) has been calculated on the loss or profit after taxation divided by the weighted average number of shares in issue during the
period. Diluted LPS uses an average number of shares adjusted to allow for the issue of shares, on the assumed conversion of all in-the-money options.
The Company’s average share price for the year to 31 July 2013 was 9.32p (2012: 8.97p), which was below the exercise price of all of the 11,685,000
(2012: 8,275,000) outstanding share options. As there was a loss in the period for both years the options are not considered dilutive.
The calculation of the basic and diluted (loss) per share is based on the following:
Losses
Loss after tax
Weighted average number of shares
for the purposes of basic and diluted LPS
10 Intangible assets
Intangible assets - Group
At 1 August
Additions
Exploration write-off
At 31 July
Intangible assets comprise the Group’s pre-production expenditure on licence interests as follows:
France (Béarn des Gaves permit)
Ireland
UK PEDL143 (Holmwood)
UK PEDL180 (Wressle)
UK PEDL181 (Caistor)
UK PEDL182 (Broughton)
Total
Exploration write-off
France (Tarbes val d’Adour permit)
UK PEDL150 (Hykeham)
Romania
Total
2013
£000
2012
£000
(101)
(11,316)
137,855,504
135,921,685
2013
£000
2,127
550
(231)
2,446
2013
£000
950
78
463
315
429
211
2,446
2013
£000
231
—
—
231
2012
£000
11,348
3,230
(12,451)
2,127
2012
£000
1,039
66
437
279
113
193
2,127
2012
£000
—
2,057
10,394
12,451
The Tarbes Val d’Adour permit was not renewed by the French authorities within the set timeframe of the renewal process. Under the terms of the
agreement, if notification of renewal has not been received by the expiry date then the permit is deemed to have lapsed. While Europa has appealed
against this outcome, with this uncertainty, the intangible asset has been written off in the period.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
30
Notes to the financial statements
10 Intangible assets (continued)
Intangible assets - Group (continued)
Certain of the UK exploration licences carry well commitments in 2014. If the Group elects to continue with these licences, it will need to fund the
drilling of wells by raising finance or by farming down. If the Group is not able to raise funding, or elects not to continue in the licences, then the impact
on the financial statements will be the impairment of some or all of the intangible assets disclosed above. Further details of the commitments are
included in Note 23.
Intangible assets - Company
At 1 August
Additions – Transferred from group company
Additions
At 31 July
2013
£000
—
1,023
5
1,028
2012
£000
—
—
—
—
Licence interests relating to France and Ireland were transferred to the Company from a subsidiary in the period, as the legal party to the licences is the
Company.
Intangible assets comprise the Company’s pre-production expenditure on licence interests as follows:
France (Béarn des Gaves permit)
Ireland
Total
11 Property, plant and equipment
Property, plant & equipment – Group
Cost
At 1 August 2011
Additions
Transfer to assets for sale
Disposals
At 31 July 2012
Additions
At 31 July 2013
Depreciation, depletion and impairment
At 1 August 2011
Charge for year
Transfer to assets for sale
Disposal
Impairment
At 31 July 2012
Charge for year
At 31 July 2013
Net Book Value
At 31 July 2011
At 31 July 2012
At 31 July 2013
2013
£000
950
78
1,028
Furniture &
computers
£000
Leasehold
building
£000
Producing
fields
£000
2012
£000
—
—
—
Total
£000
11,288
16
(437)
(39
10,828
10,785
—
—
—
10,785
—
2
10,785
10,830
4,412
651
—
—
785
5,848
568
6,416
6,373
4,937
4,369
4,546
673
(100)
(35)
785
5,869
578
6,447
6,742
4,959
4,383
66
16
—
(39)
43
2
45
42
14
—
(35)
—
21
10
31
24
22
14
437
—
(437)
—
—
—
—
92
8
(100)
—
—
—
—
—
345
—
—
The producing fields referred to in the table above are the production assets of the Group, namely the oilfields at Crosby Warren and West Firsby, and
the Group’s interest in the Whisby-4 well, representing three of the Group’s cash generating units.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
31
11 Property, plant and equipment (continued)
The carrying value of each producing field was tested for impairment by comparing the carrying value with the value in use. The value in use was
calculated using a Brent crude price of $110 per barrel, an assumption of no future tax losses being available and a discount rate of 10%. There was no
impairment at any of the sites in 2013 (2012: Crosby Warren £785,000, West Firsby and Whisby-4 well £nil).
Property, plant and equipment – Company
Cost
At 1 August 2011
Additions
Transfer to assets held for sale
Disposals
At 31 July 2012
Additions
At 31 July 2013
Depreciation
At 1 August 2011
Charge for the year
Transfer to assets held for sale
On disposals
At 31 July 2012
Charge for year
At 31 July 2013
Net Book Value
At 31 July 2011
At 31 July 2012
At 31 July 2013
Furniture &
computers
£000
Leasehold
building
£000
66
16
—
(39)
43
2
45
42
14
—
(35)
21
10
31
24
22
14
437
—
(437)
—
—
—
—
92
8
(100)
—
—
—
—
345
—
—
Total
£000
503
16
(437)
(39)
43
2
45
134
22
(100)
(35)
21
10
31
369
22
14
The Abingdon property has been vacated and has been put up for sale. The net book value has been transferred to current assets (see Note 14).
The property loan of £208,000 (2012: £230,000) described in Note 17 is secured against this building.
12 Investments – Company
Investment in subsidiaries
At 1 August
Current year additions
31 July
2013
£000
3,316
4
3,320
2012
£000
3,315
1
3,316
The Company’s investments at the reporting date in the share capital of unlisted companies include 100% of Europa Oil & Gas Limited (this company
undertakes oil and gas exploration, development and production) and 100% of Europa Oil & Gas (West Firsby) Limited (this company is non-trading).
These two companies are registered in England and Wales.
The results of the two companies have been included in the consolidated accounts. Europa Oil & Gas Limited owns 100% of the ordinary share capital
of each of: Europa Oil & Gas Resources Limited (this UK company undertakes exploration in the area of underground coal gasification); Europa Oil & Gas
SRL registered in Romania; and Malopolska Oil & Gas Company Sp.z.o.o., registered in Poland. The result of the Polish company has not been consolidated
on the grounds that it is not material to the Group.
Additions to the cost of investments represent the net value of options over the shares of the Company issued to employees of subsidiary companies
less any lapsed, unvested options.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
32
Notes to the financial statements
13 Inventories – Group
Oil in tanks
14 Trade and other receivables
Current trade and other receivables
Trade receivables
Other receivables
Prepayments
Total
2013
£000
33
2013
£000
299
8
47
354
2012
£000
56
Company
2012
£000
—
17
44
61
2013
£000
760
90
78
928
Group
2012
£000
1,057
109
84
1,250
Loans to subsidiaries have been fully written down in the Company accounts.
15 Assets classified as held for sale
In January 2012 the Group relocated its head office from Abingdon to London. The vacated leasehold property in Abingdon has been classified as an
asset held for sale. The property loan of £208,000 (2012: £230,000) described in Note 17 is secured against this building and will be repaid out of the sale
proceeds.
Property, plant & equipment
Cost at 1 August
Transfer from non-current assets
Cost at 31 July
Depreciation at 1 August
Transfer from non-current assets
Depreciation at 31 July
Net book value at 31 July
16 Trade and other payables
Trade payables
Other payables
Accruals
Derivative liability
Interest rate swap
2013
£000
437
—
437
99
—
99
338
2013
£000
417
16
794
1,227
Group
2012
£000
—
437
437
—
99
99
338
Group
2012
£000
1,032
14
834
1,880
48
64
2013
£000
437
—
437
99
—
99
338
2013
£000
67
—
119
186
48
Company
2012
£000
—
437
437
—
99
99
338
Company
2012
£000
105
—
57
162
64
Group other payables includes advances received from partners on projects in UK. More information on the interest rate swap is included in Note 22.
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
33
17 Borrowings
The Royal Bank of Scotland (RBS) multi-currency facility renewed on 31 January 2013 provides an overdraft of up to £700,000. At 31 July 2013 and at
31 July 2012 the facility was not used. The facility is due to be renewed 31 January 2014.
The loan of £208,000 (2012: £230,000) secured against the Abingdon property is repayable over 10 years but will be fully repaid with proceeds from
the sale of the property which is classified as a non-current asset held for sale (see Note 15). As the Group anticipates the property selling within a year,
the property loan has been reported in short term borrowings.
Loans repayable in less than 1 year
Property loan
Total short term borrowing
2013
£000
208
208
Group
2012
£000
230
230
2013
£000
208
208
Company
2012
£000
230
230
18 Deferred Tax – Group
As the Group was profitable in the period, it has nil non-current deferred tax asset (2012: £14,000) in respect of losses arising in the year within the
UK ring fence.
Recognised deferred tax liability:
As at 1 August
Credited to statement of comprehensive income
At 31 July
The Group has a net deferred tax liability of £2,902,000 (2012: £2,948,000) arising from accelerated capital allowances.
Unrecognised deferred tax asset:
Accelerated capital allowances
Trading losses
Net deferred tax asset
2013
£000
2,948
(46)
2,902
2013
£000
(312)
3,625
3,313
2012
£000
4,686
(1,738)
2,948
2012
£000
(335)
1,279
944
The Group has a net deferred tax asset of £3,313,000 (2012: £944,000), which arises mainly in relation to overseas trading losses of £11.3 million
(2012: £3.7 million) and Company losses of £0.8 million (2012: £0.6 million), that have not been recognised in the accounts as the timing of the utilisation
of the losses is considered uncertain.
No deferred tax assets or liabilities are recognised in the Company.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
34
Notes to the financial statements
19 Provisions – Group
Decommissioning provisions are based on third party estimates of work which will be required and the judgement of directors. By its nature, the detailed
scope of work required and timing is uncertain.
Provisions for decommissioning the Barchiz and Hykeham wells were classified as short-term in the reporting period. Work on Barchiz started in the year
and costs were written against the provision. Work on Hykeham started post the reporting date.
Short-term provisions
As at 1 August
Transferred from long-term provisions
Utilised in year - Barchiz
At 31 July
Long-term provisions
As at 1 August
Charged to statement of comprehensive income
Added to exploration write-off
Transferred to short-term provisions
At 31 July
20 Called up share capital
Allotted, called up and fully paid
137,855,504 ordinary shares of 1p each (2012: 137,855,504)
All the allotted shares are of the same class and rank pari passu.
2013
£000
—
422
(132)
290
2013
£000
1,950
153
—
(422)
1,681
2013
£000
2012
£000
—
—
—
—
2012
£000
1,570
130
250
—
1,950
2012
£000
1,379
1,379
In 2005, the Company issued 39,999,998 ordinary shares of 1p at a nil premium in exchange for the entire shareholding of Europa Oil & Gas Limited.
This gave rise to the merger reserve at 31 July 2013 of £2,868,000 (2012: £2,868,000).
The following describes the purpose of each reserve within owners’ equity:
Reserve
Share premium
Merger reserve
Foreign exchange reserve
Retained deficit
Description and purpose
Amount subscribed for share capital in excess of nominal value
Reserve created on issue of shares on acquisition of subsidiaries in prior years
Reserve arising on translation of foreign subsidiaries
Cumulative net gains and losses recognised in the consolidated statement of comprehensive income
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
35
21 Share based payments
There are 11,685,000 ordinary 1p share options outstanding (2012: 8,275,000). These are held by certain members of the Board: WH Adamson 500,000;
RJHM Corrie 500,000; P Greenhalgh 3,075,000; HGD Mackay 6,600,000, and employees of the Group 1,010,000.
Of the outstanding options, 3,885,000 are exercisable: one third 18 months after grant; a further third 30 months after grant and the balance 42 months
after grant, with no further vesting conditions.
5,000,000 options held by HGD Mackay are exercisable after 24 months, subject to the Company’s share price trading above a target level for at least 30
consecutive business days. The options are exercisable as follows:
Number of options
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Target price
25p
35p
45p
50p
60p
The remaining 2,800,000 options are exercisable after 12 months, subject to the Company’s share price trading above 13p for at least 30 consecutive
business days.
The latest date at which all options can be exercised is the 10th anniversary from the grant date.
The fair values of all options were determined using a Black Scholes Merton model. Volatility is based on the Company’s share price volatility since
flotation.
The inputs used to determine the values of the 3,410,000 options granted in 2013 are detailed in the table below:
Grant date
Number of options
Share price at grant
Exercise price
Target price
Volatility
Dividend yield
Risk free investment rate
Option life (years)
Fair value per share
The inputs used to determine the values of the 5,250,000 options granted in 2012 are detailed in the table below:
Grant date
Number of options
Share price at grant
Exercise price
Target price
Volatility
Dividend yield
Risk free investment rate
Option life (years)
Fair value per share
10 Oct
2011
1,000,000
10.25p
13p
25p
90%
nil
1.73%
5
3.18p
10 Oct
2011
1,000,000
10.25p
13p
35p
90%
nil
1.73%
6
2.74p
10 Oct
2011
1,000,000
10.25p
13p
45p
90%
nil
1.73%
7
2.18p
10 Oct
2011
1,000,000
10.25p
13p
50p
90%
nil
1.73%
8
1.52p
24 Oct
2012
610,000
7.6p
10p
na
90%
nil
0.88%
6
5.01p
10 Oct
2011
1,000,000
10.25p
13p
60p
90%
nil
1.73%
9
0.79p
24 Oct
2012
2,800,000
7.6p
10p
13p
90%
nil
0.73%
5
3.70p
24 Oct
2011
250,000
9.5p
10p
na
90%
nil
1.58%
5
6.15p
Based on the above fair values above, the charge arising from employee share options was £152,000 (2012: £63,000).
In the year 3,410,000 options were granted and no options expired or were forfeited or exercised (2012: 5,250,000 options were granted, 357,142
expired, and none were forfeited or exercised).
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
36
Notes to the financial statements
21 Share based payments (continued)
Outstanding at the start of the year
Granted
Expired
Outstanding at the end of the year
Exercisable at the end of the year
2013
Number
of options
2013
Average
exercise price
8,275,000
3,410,000
—
11,685,000
3,024,999
15.05p
10p
—
13.58p
18.75p
2012
Number
of options
3,382,142
5,250,000
(357,142)
8,275,000
2,953,805
2012
Average
exercise price
18.35p
12.86p
14p
15.05p
18.80p
The weighted average remaining contractual life of share options outstanding at the end of the period was 7.7 years (2012: 8.1 years).
22 Financial instruments
The Group’s and Company’s financial instruments comprise cash and cash equivalents, bank borrowings, loans, interest rate derivatives, and items such
as trade and other receivables and trade and other payables which arise directly from its operations. Europa’s activities are subject to a range of financial
risks the main ones being: credit; liquidity; interest rates; commodity prices; foreign exchange and capital. These risks are managed through ongoing
review taking into account the operational, business and economic circumstances at that time.
Credit risk
The Group is exposed to credit risk as all crude oil production is sold to one multinational oil company. The customer is invoiced monthly for the oil
delivered to the refinery in the previous month and invoices are settled in full on the 15th of the following month. At 31 July 2013 trade receivables
were £761,000 representing one month of oil revenue of £460,000 and other receivables due from the Irish licence joint venture partner of £300,000
(2012: £1,057,000 representing one month of oil revenue of £417,000 and other receivables in respect of oil deliveries made on behalf of other parties
and joint venture partners of £640,000). The fair value of trade receivables and payables approximates to their carrying value because of their short
maturity. Any surplus cash is held on short term deposit with Royal Bank of Scotland. The maximum credit exposure in the year was £459,000
(2012: £513,000).
The Company exposure to credit risk is negligible.
Liquidity risk
Though the Group has the benefit of a regular revenue stream, there is still a need for bank financing. The Company has in place a £0.7 million flexible
multi-currency facility with its bankers which can be utilised in either Sterling or foreign currency via an overdraft. At the year end there was no
overdraft (2012: no overdraft).
The Group and Company monitor their levels of working capital to ensure they can meet liabilities as they fall due. The following table shows the
contractual maturities of the Group’s financial assets and liabilities.
At 31 July 2013
6 months or less
6-12 months
1-2 years
2-5 years
Over 5 years
Total
At 31 July 2012
6 months or less
6-12 months
1-2 years
2-5 years
Over 5 years
Total
Trade
and other
receivables
£000
Trade
and other
payables
£000
Derivative
at fair value
£000
Short-term
borrowings
£000
850
—
—
—
—
850
1,160
6
—
—
—
1,166
(1,227)
—
—
—
—
(1,227)
(1,763)
(117)
—
—
—
(1,880)
(5)
(5)
(9)
(20)
(9)
(48)
(6)
(6)
(11)
(25)
(16)
(64)
—
(208)
—
—
—
(208)
—
(230)
—
—
—
(230)
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
37
22 Financial instruments (continued)
The following table shows the contractual maturities of the Company’s financial assets and liabilities.
At 31 July 2013
6 months or less
6-12 months
1-2 years
2-5 years
Over 5 years
Total
At 31 July 2012
6 months or less
6-12 months
1-2 years
2-5 years
Over 5 years
Total
Trade
and other
receivables
£000
Trade
and other
payables
£000
Derivative
at fair value
£000
Short-term
borrowings
£000
307
—
—
—
—
307
17
—
—
—
—
17
(186)
—
—
—
—
(186)
(162)
—
—
—
—
(162)
(5)
(5)
(9)
(20)
(9)
(48)
(6)
(6)
(11)
(25)
(16)
(64)
—
(208)
—
—
—
(208)
—
(230)
—
—
—
(230)
Cash and cash equivalents in both Group and Company are all available at short notice.
Trade and other payables do not normally incur interest charges. There is no difference between the fair value of the trade and other payables and their
carrying amounts. Borrowings bear interest at variable rates, except for the property loan of £208,000 (2012: £230,000) which was swapped for a fixed
rate of interest.
Interest rate risk
The Group has interest bearing liabilities as described in Note 16. The £700,000 multi-currency facility is secured over the assets of Europa Oil & Gas
(Holdings) plc and Europa Oil & Gas Limited. Interest is charged on the multi-currency facility at base rate plus 3%.
A loan of £208,000 (2012: £230,000) is secured over a long lease property and is repayable over 10 years, although it will be fully repaid on sale of the
property. At the time of the purchase of the property in 2007, the Company considered it prudent to enter into an interest rate swap which fixed
the interest rate for the life of the loan (until May 2022) at 5.52%. The fair value of the swap at 31 July 2013 was £48,000 (2012: £64,000) and this has
been recorded as a current liability of the Company. The table below shows the sensitivity of the swap to changes in interest rates. There would be a
corresponding charge or credit to the statement of comprehensive income.
Fair value of swap
Long term forward Sterling base rate
1%
3%
5%
2013
£000
49
27
6
2012
£000
62
36
10
The fair value of the interest rate swap has been based on an estimate provided by the Company’s bankers which meets the definition of tier 2
disclosures under the provisions of International Financial Reporting Standard 7 “Financial Instruments: Disclosures”.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
38
Notes to the financial statements
22 Financial instruments (continued)
Commodity price risk
The selling price of the Group’s production of crude oil is set at a small discount to Brent prices. The table below shows the range of prices achieved in
the year and the sensitivity of the Group’s Profit/(Loss) Before Taxation (PBT) to such movements in oil price. There would be a corresponding increase or
decrease to net assets. There is no commodity price risk in the Company.
Oil price
Highest
Average
Lowest
Month
Feb 13
Apr 13
Price
2013
$/bbl
114.7
107.6
100.4
PBT
2013
£000
699
407
111
Price
2012
$/bbl
123.8
110.0
93.3
PBT
2012
£000
(11,442)
(12,055)
(12,833)
Foreign exchange risk
The Group’s production of crude oil is invoiced in US Dollars. Revenue is translated into Sterling using a monthly exchange rate set by reference to the
market rate. The table below shows the range of average monthly US Dollar exchange rates used in the year and the sensitivity of the Group’s PBT to
similar movements in US Dollar exchange. There would be a corresponding increase or decrease to net assets.
US Dollar
Highest
Average
Lowest
Month
Dec 12
May 13
2013
Rate
$/£
1.617
1.563
1.516
2013
PBT
£000
260
407
544
2012
Rate
$/£
1.628
1.585
1.528
The table below shows the Group’s currency exposures. Exposures comprise the net financial assets and liabilities of the Group that are not
denominated in the functional currency.
Currency
Euro
US Dollar
Total
Item
Cash and cash equivalents
Trade and other payables
Cash and cash equivalents
Trade and other receivables
Trade and other payables
2013
£000
6
(61)
8
636
(2)
587
Group
2012
£000
(1)
(15)
159
879
(562)
460
2013
£000
6
(3)
—
—
(2)
1
2012
PBT
£000
(12,190)
(12,055)
(11,870)
Company
2012
£000
(1)
(8)
(4)
—
—
(13)
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for
shareholders and maintain an optimal capital structure to reduce the cost of capital. The Group defines capital as being the consolidated shareholder
equity (Note 20) and bank borrowings (Note 17). The Board monitors the level of capital as compared to the Group’s long term debt commitments and
adjusts the ratio of debt to capital as is determined to be necessary, by issuing new shares, reducing or increasing debt, paying dividends and returning
capital to shareholders. The Group is not subject to any externally imposed capital requirements.
23 Capital commitments and guarantees
As at the reporting date, Europa had contractual commitments to drill up to four wells onshore UK. In PEDL180 Wressle is expected to be drilled in 2013
and Europa is able to fund this from existing resources. Wells at PEDL143 Holmwood (subject to planning approval), PEDL182 Broughton and PEDL181
Caistor (both additionally subject to detailed prospect mapping) are not currently funded (see Note 10). Europa’s share of total costs on the four wells
is expected to be £3.8 million.
24 Operating lease commitments
Europa Oil & Gas Limited pays an annual site rental for the land upon which the West Firsby and Crosby Warren oil field facilities are located. The West
Firsby lease runs until September 2022 and can be terminated upon giving 2 months notice. The annual cost is currently £18,000 (2012: £18,000) and
increases annually in line with the retail price index. The Crosby Warren lease runs until December 2022 and can be terminated on 3 months notice.
The annual cost is currently £20,000 (2012: £20,000).
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
39
25 Related party transactions
Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Group. In the
opinion of the Board, the Group’s and the Company’s key management are the directors of Europa Oil & Gas (Holdings) plc. Information regarding their
compensation is given in Note 4.
At the reporting date there were no balances owed by subsidiary companies to the Company (2012: zero). In 2012 balances owed to the Company
amounting to £8,250,000 were written off to the Income statement.
During the year, the Company provided services to subsidiary companies as follows:
Europa Oil & Gas Limited
Europa Oil & Gas SRL
Europa Oil & Gas Resources Limited
Total
2013
£000
1,040
34
1
1,075
2012
£000
9,576
4,613
46
14,235
26 Post reporting date events
In August 2013, Europa received £300,000 from Kosmos in respect of costs previously incurred on the two Irish licence options.
Regarding the Holmwood prospect in PEDL143, in September 2013 it was announced that the Leith Hill Action Group intends to appeal against
Europa’s successful High Court challenge.
Expiry of UCG licences. In September 2013, two Underground Coal Gasification licences, awarded by the UK Coal Authority, were allowed to lapse.
Europa held a 90% interest in the licences and no costs had been capitalised.
On 3 October 2013 it was announced that the Béarn des Gaves permit had been renewed for a period of five years until 23 March 2017.
Two new UK subsidiary companies were established; Europa Oil & Gas (Ireland West) Limited and Europa Oil & Gas (Ireland East) Limited, with the
intention of transferring the Irish licence interests currently held by the Company.
OUR BUSINESSGOVERNANCEFINANCIAL STATEMENTSADVISERSwww.europaoil.com
40
Directors and advisers
Company registration number
5217946
Registered office
6 Porter Street
London
W1U 6DD
Directors
Secretary
Banker
Solicitor
Auditor
Nominated advisor and broker
Registrar
WH Adamson – Non Executive Chairman
CW Ahlefeldt-Laurvig – Non Executive
RJHM Corrie – Non Executive
P Greenhalgh – Finance Director
HGD Mackay – Chief Executive Officer
P Greenhalgh
Royal Bank of Scotland plc
1 Albyn Place
Aberdeen
AB10 1BR
Charles Russell LLP
5 Fleet Place
London
EC4M 7RD
BDO LLP
55 Baker Street
London
W1U 7EU
finnCap Limited
60 New Broad Street
London
EC2M 1JJ
Computershare Investor Services plc
PO Box 82
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
Designed and produced by www.carrkamasa.co.uk
Europa Oil & Gas (Holdings) plc Annual Report and Accounts for the year ended 31 July 2013
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EUROPA OIL & GAS (HOLDINGS) PLC
6 Porter Street
London, W1U 6DD
Tel: +44 (0)20 7224 3770
www.europaoil.com