Focusing on high-value
growth opportunities
Europa Oil & Gas (Holdings) plc
Annual Report and Financial Statements 2024
Europa Oil & Gas (Holdings) plc, the AIM traded West
Africa, UK and Ireland focused oil and gas exploration,
development and production company, announces its final
results for the 12-month period ended 31 July 2024.
What we do
Europa is building a balanced portfolio of producing,
appraisal and exploration assets with minimal emissions
within the net zero context
1.
Producing assets generating
significant revenues with an
associated work programme
that will aim to drive shareholder
value over the next 18 months
and provide Windfall Tax shelter
2.
Gas appraisal and development
opportunities with multiple
development routes
3.
Two high impact gas exploration
assets near existing infrastructure
(“ILX”) with farm-out processes
underway on both.
To find out the most
up-to-date information,
visit our website:
www.europaoil.com
New port expansion in Bata, Equatorial Guinea
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
WHO WE ARE
Accelerating growth
with high-value assets
Governance
30 Chairman’s introduction
36 Audit Committee report
37 Remuneration Committee report
37 Nominations Committee report
37 Strategy Committee report
38 ESG Committee report
38 Risk Committee report
39 Board of directors
42 Directors’ report
43 Statement of directors’ responsibilities
Our board
Read more on page 39
Strategic Report
<< Who we are
02 Financial and operational highlights
05 At a glance
08 Statement from the chairman
10 Our strategy
11
Investment case
12 Sustainability
16 Operational review
18 Energy outlook
20 Insights
26 Risks and uncertainties
28 Section 172
29 Stakeholder engagement
Our strategy
Read more on page 10
Financial Statements
44 Independent auditor’s report
49 Consolidated statement of comprehensive income
50 Consolidated statement of financial position
51 Consolidated statement of changes in equity
52 Company statement of financial position
53 Company statement of changes in equity
54 Consolidated statement of cash flows
55 Company statement of cash flows
56 Notes to the financial statements
Our assets
Read more on page 16
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
01
IN THIS REPORT
Equatorial Guinea
Europa announced a ground-
breaking deal in December 2023
with the acquisition of a 42.9%
stake in Antler Global Limited
(“Antler”), which has an 80%
working interest in licence
EG-08 offshore Equatorial Guinea.
This gives rise to a joint venture
arrangement
^ Europa agreed a US$3 million cash
subscription for new ordinary shares
in Antler, with the payments being
made in four instalments and which
has now completed
^ EG-08 is a highly prospective licence
which has three drill-ready prospects,
with internally estimated Mean
Prospective Resource of 1.4 tcf
of gas equivalent
^ Antler and our technical team have
further evaluated the seismic data across
the block and have identified additional
prospectivity, resulting in a Mean
Prospective Resource of 2.1 tcf of
gas equivalent
^ Antler commenced a farm-down process
in Q3 this year with a view to bringing in
a partner for drilling, potentially in 2025
^ A discovery from only one of the three
main prospects could be quickly tied back
to existing gas infrastructure located 9km
to the south
Offshore Ireland
Lower risk/very high reward
infrastructure-led exploration in
proven gas play in the Slyne Basin
^ Licence FEL 4/19 contains the Inishkea
West gas exploration prospect, which has
been mapped as a large four-way closure
with a prospective resource Pmean of
1.5 tcf of recoverable gas
^ The FEL 4/19 licence extension was
granted by the Irish Government,
extending the licence term to
31 January 2026
^ Following the licence extension, a farm-
out process has begun again with the aim
of bringing in a partner to assist with the
drilling of the prospect
^ Inishkea West is within easy tie-back
range of the Corrib gas field situated
some 18 kilometres to the southeast.
This proximity to the Corrib infrastructure,
the mapped four-way closure, the large
prospective resource and the reduced
seal risk means that the Inishkea West
prospect has become the primary
exploration target on the FEL 4/19 licence
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Our performance in 2024
Europa Oil & Gas (Holdings) plc, the AIM traded West Africa, UK and Ireland
focused oil and gas exploration, development and production company,
announces its final results for the 12-month period ended 31 July 2024.
Onshore UK
Net production declined 48% to
137 barrels of oil per day (“bopd”)
(2023: 265 bopd) following
planned downtime and increased
water cut on the Wressle oilfield
^ We continue to progress our Cloughton
asset to determine if commercial
rates can be obtained using modern
completion techniques so that the
192 bcf (Pmean) potential can be
monetised. Terms have been agreed for
the site and work has now commenced
to secure the necessary permits required
to drill an appraisal well, expected to be
in 2026. Given the proximity to the UK
gas network and quality of the natural
gas contained within the reservoir, a
successful appraisal well could be quickly
brought online, displacing LNG imports
and reducing global emissions
^ Wressle production declined throughout
the period
• Gross production averaged 357 bopd
throughout the period (2023: 710 bopd),
with Europa’s net share equating to
107 bopd (2023: 213 bopd)
• A jet pump was installed on the
Wressle-1 well that took three months
to complete and resulted in interrupted
production between mid-August
through to early November 2023
Operational highlights
Building a balanced portfolio of exploration, appraisal, and production assets
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
02
^ A new seismic interpretation and mapping
exercise across the Wressle field has
highlighted a potentially significant
increase in resources from the Ashover
Grit and the results of the analysis are
now being incorporated into the field
development plan. The intention is that
two back-to-back development wells will
be drilled from the existing Wressle site.
Planning consent was received for the
project in September, however the North
Lincolnshire Council’s decision to grant
planning permission has subsequently
been challenged in light of the Finch
Supreme Court judgement which
ruled that scope 3 emissions must be
considered in planning applications for oil
and gas developments. This is expected
to result in the planning approval being
rescinded. The Wressle Joint Venture is
now going to submit further information
that covers potential scope 3 emissions
such that a future planning process
could be approved. The wells will be
drilled at the earliest opportunity, once
the necessary consents and regulatory
approvals have been received
^ In addition to the two development wells,
work is ongoing to monetise the associated
gas being produced from Wressle by
connecting to a local gas distribution
network. This work is expected to be
completed around the same time as the
development wells and is subject to the
same regulatory approvals
^ The revised CPR on Wressle was
completed in H2 2023 by ECRE which
incorporated the new field interpretation,
historical production performance data
and the field development plan. The key
highlights of the CPR included: 263%
increase in 2P Reserves compared
to 2016 CPR, reclassification of 1,883
mboe in Penistone Flags Contingent
Resources to 2P Reserves, 59% upgrade
to the Ashover Grit and Wingfield Flags
Estimated Ultimate Recoverable and
23% upgrade to Broughton North
Prospective Resources
^ Total net production of 137 bopd was
produced from Europa’s UK onshore
fields during the year with Wressle
contributing roughly 78% of this and
the remainder coming from the three
older fields
Offshore UK
Serenity discovery in the
North Sea
^ The recent change in government in
the UK and the continued uncertainty
of the domestic regulatory and fiscal
environment have sharply increased the
possibility of future fiscal changes for the
oil and gas industry, which we believe
could negatively impact the economics
of the Serenity project
^ Given that the Serenity licence was due
to expire at the end of September 2024,
we have therefore taken the decision
to allow the licence to lapse, which has
resulted in a £4.9 million impairment of
the capitalised costs associated with
the project
UK offshore licensing
round
^ In 2022, Europa participated in the UK
Government’s 33rd offshore oil and gas
licensing round and in May 2024 the
Company was contacted by the North
Sea Transition Authority (“NSTA”)
who proposed a licence-sharing
arrangement between Europa and
another party for a new licence. After
careful consideration, the Company has
decided not to accept the proposed
shared licence given the recent new
country entry into the highly prospective
EG-08 licence and the limited resources
of the Company. The board believes that
the risk/reward proposition for new assets
in the UK is currently challenging
Board
^ Simon Oddie resigned in November 2023
^ Stephen Williams resigned in November 2023
^ Simon Ashby-Rudd was appointed in
December 2023
^ Eleanor Rowley was appointed in April 2024
Post reporting period
events
^ In September 2024, we were delighted
that planning approval was awarded
for two new development wells on the
Wressle field which we expect to drill
back-to-back next year. As a result of
the Finch Supreme Court ruling and a
proposed legal challenge to the granting
of planning permission for the next phase
of the Wressle development, it is expected
that the planning consent will be rescinded
once the court process has concluded.
The Wressle Joint Venture plans to submit
further information that covers potential
scope 3 emissions such that a future
planning process could be approved.
^ We have decided against applying to
extend the Serenity licence in the North
Sea following its expiry at the end of
September 2024 and given the ongoing
uncertainties around the oil and gas fiscal
regime in the UK
Change of accounting
reference date
^ We have decided to change our
accounting reference date from 31 July
to 31 December. This change aligns
our financial reporting period with the
calendar year and allows for enhanced
comparability with peer companies in the
oil and gas industry. It also aligns more
closely with industry standard timeframes
for project work programmes and budgets.
As a result, our next full annual report
will be for the 17-month period ending
31 December 2025. We will report interim
results as at 31 December 2024 and
30 June 2025 in the intervening period.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
03
FINANCIAL AND OPERATIONAL HIGHLIGHTS CONTINUED
Europa announced a highly material new
country entrance during the 2023/24 financial
year, with the acquisition of a 42.9% stake in
Antler Global, providing us with significant
near-term exposure to exploration in
Equatorial Guinea through the EG-08 licence.
I cannot overstate how exciting an opportunity
this is for Europa and its stakeholders, given
the sheer scale of the prize on offer in this
highly prospective hydrocarbon province.
With over 2 tcf of nearfield, infrastructure-led,
low-risk, Amplitude versus Offset (“AVO”)
supported prospects identified which can be
quickly brought online, EG-08 is a world-class
asset. We have a data room up and running
and have already seen considerable interest
from industry. We are targeting completion of a
farm-out within the coming months and have
concurrently started planning for a well to be
drilled, which could spud as early as next year.
We continue to progress our Irish business
throughout the year and are hoping to
farmout a portion of our 100% owned licence
FEL 4/19, which contains the 1.5 tcf Inishkea
West near-field exploration prospect. I am
pleased to report that a licence extension
was granted by the Irish Government,
extending the licence term from January
2024 to 31 January 2026. Last October,
we announced the results of our internally
generated seismic reprocessing which has
materially improved the subsurface imaging
of the prospect. We now have much greater
confidence in the quality of the seal and trap at
Inishkea West. A prospect of this size and
quality simply has to be drilled in my opinion,
not least because of the significant impact a
successful discovery would have on Ireland’s
security of energy supply for a number of years.
Since assuming operatorship of Cloughton
in July 2023 we have made steady progress
with the appraisal work on PEDL343, which is
an onshore UK licence.
We have agreed terms for a site on which
to establish a drilling pad and have initiated
the planning approval process in order to
drill an appraisal well on the field to test if
the estimated 192 bcf (Pmean) GIIP can be
produced at commercial rates. We believe
that whilst the UK continues to consume
gas, which is forecast to continue beyond
2050, the most responsible source is, both
commercially and environmentally, domestic
gas. For that reason, a development of the
Cloughton gas field is fully aligned with the
UK Government’s British Energy Security
Strategy and Net Zero 2050 goals.
We continued to develop and produce from our
core assets onshore UK, where we continue to
invest in our flagship Wressle oilfield. Planning
is ongoing to develop the gassy Penistone Flags
reservoir with two back-to-back wells as soon
as the necessary approvals have been received.
We believe that these wells will boost oil production
and enable the export of gas into the local
network grid, thus eliminating the need for flaring.
In the year, we delivered revenue of
£3.6 million, and whilst this was roughly half of
the previous year’s, we invested significantly
in the Wressle field with the successful
installation of a jet pump. The extensive works
on the jet pump and associated production
facilities meant that Wressle was offline for
three months which materially impacted the
volume of oil that we produced. This was
further exacerbated by lower oil prices during
the period, resulting in the reduced revenue
for the year. Nevertheless, we ended the year
with a cash balance of £1.5 million in Europa
accounts, £0.7 million in Antler accounts (gross)
and we continue to generate cash flow from
Wressle and our other onshore UK assets.
Throughout the year, we worked on various
development options for the Serenity oil
discovery in the Central North Sea. However,
we became increasingly concerned about the
political and fiscal backdrop in the UK as time
progressed. We have evaluated the options for
commercialisation of the asset and do not believe
in the current environment it is attractive
for Europa shareholders. Consequently, in
September 2024 we chose not to extend the
Serenity licence, which we believe is in the
best interest of Europa and its shareholders.
Following the expected activity from our
new-country entry into Equatorial Guinea,
and progress with our onshore UK projects at
Cloughton and Wressle along with our Irish
acreage, I believe we are well positioned to
continue to grow the Company, and I look
forward to updating shareholders over the
coming 12 months.
William Holland, CEO
Financial performance
Revenue (£m)
£3.6m
2024
£6.7m
2023
^ Revenue declined 46% to £3.6 million,
reflecting lower oil production (which
included a three-month shut-in period at
Wressle) and lower realised oil prices
(2023: £6.7 million)
Gross profit (£m)
£0.3m
2024
£3.4m
2023
Pre-tax loss (£m)
£6.8m
2024
£0.9m
2023
^ Pre-tax loss of £6.8 million after non-cash
exploration impairment loss of £5.0 million
(2023: pre-tax loss of £0.9 million after non-
cash impairment loss of £1.7 million)
Net cash (used in)/generated by
operating activities (£m)
(£0.6m)
2024
£2.8m
2023
Cash balance at 31 July 2024 (£m)
£1.5m
2024
£5.2m
2023
04
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
AT A GLANCE
Responsible custodians
of hydrocarbons
Shareholders
Government
regulators
Joint venture
partners
Suppliers and
advisers
Local community
Europa’s objective is to participate actively in the global energy transition
to sustainable renewables by being a preferred partner for the supply of
hydrocarbons as this transition takes place. By being a good custodian of the
hydrocarbon resource and developing assets responsibly, Europa provides
a valuable resource and helps minimise the total emissions associated with
consuming hydrocarbons.
It is recognised that hydrocarbons play
a vital role in society and that mankind is
reliant on both oil and gas and shall be for
the foreseeable future. However, in order to
reduce emissions as much as possible, the
best sources of hydrocarbons are the ones
that are produced as close to where they
are consumed as possible, as this reduces
the significant emissions associated with the
transportation process. Gas in particular is
seen as a transition fuel that will play a vital
role in the global energy transition.
The UK Government recognises that
delivering a low-carbon future will be
achieved by protecting infrastructure already
present in the UK Continental Shelf and
onshore through continued activity. It also
recognises the need for hydrocarbons and
the strategic importance of utilising existing
infrastructure to reduce our emissions and
improve energy security.
Equally, Ireland is well positioned to utilise
its existing gas infrastructure to minimise
the total emissions associated with its
energy consumption by targeting domestic
exploration opportunities and prioritising
these above higher emissions gas imports.
Europa has a material gas-focused portfolio
with development of the gassy Penistone
Flags reservoir at Wressle, high impact gas
appraisal at Cloughton and material gas
exploration potential at EG-08 and FEL 4/19,
all of which could potentially supply the UK
and European gas markets.
Delivering for our
stakeholders
Europa is committed to creating stakeholder
value by building a balanced portfolio of
exploration, appraisal and production assets
with an emphasis on West Africa whilst
continuing to develop our core UK assets
and the high potential of Atlantic Ireland.
With a focus on value and prudent utilisation
of cash, we will continue to evaluate
and acquire quality assets, provided that
these can be acquired and developed on
acceptable commercial terms and within the
transition context.
Experienced team
Europa is led by a highly experienced board
and management team with extensive
knowledge of the oil and gas sector and a
proven track record of project monetisation,
focused on generating substantial
shareholder value.
Malabo, Equatorial Guinea
North Yorkshire, England
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
05
AT A GLANCE CONTINUED
A diverse portfolio of predominantly high
impact gas assets from ILX to development
Our portfolio
We have a diverse portfolio of assets from
exploration and appraisal to development
and production
Read more on page 16
Country
Area
Licence
Field/Prospect
Operator
Working interest
Status
Expiry
Equatorial
Guinea
Douala Sub Basin,
Gulf of Guinea
EG-08
Arrowhead,
Barracuda, Cardinal
Antler1
34.32%2
Exploration
20273
UK
East Midlands
DL 003
West Firsby
Europa
100%
Production
20254
DL 001
Crosby Warren
Europa
100%
Production
2026
PL 199/215
Whisby W4
BPEL
65%
Production
2026
PEDL180
Wressle
Egdon
30%
Production
2039
PEDL182
Broughton North
Egdon
30%
Exploration
2039
PEDL343
Cloughton
Europa
40%
Exploration
20465
Ireland
Slyne Basin
FEL 4/19
Inishkea, Corrib North
Europa
100%
Exploration
20346
EG-08 PSC
2.1 tcf Pmean
Read more on page 20
Inishkea West prospect
1.5 tcf Pmean
Read more on page 16
Cloughton appraisal
192 bcf GIIP
Read more on page 16
1 Europa is a 42.9% shareholder in Antler and has one of the two seats on the Antler board of directors
2 Antler holds an 80% interest in EG-08, as a result Europa holds a 34.32% net interest in the licence
3 Initial two-year term expiring in October 2025 followed by two-year second term after which further extension is subject to well results and term negotiation
with host government
4 Production period expiry is in December 2025 and a further extension will be applied for during 2025. Last extension was granted in 2022
5 Progression to next phase by March 2026
6 Progression to next phase by January 2026
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
06
Equatorial Guinea EG-08
Farm-out process launched
in Q3 2024
Read more on page 20
Equatorial Guinean asset
The interest in the EG-08 asset
was acquired as a direct result of a
proactive business development
campaign to identify and secure
a high-impact asset with near-
term value-generating activity.
Since acquiring the interest in
December 2023 the technical
team has mapped 2.1 tcf of
near-field infrastructure lead
exploration prospects and
initiated a farm-out process.
The EG-08 attributes are what
the majors are looking for:
materiality, great technical
characteristics, gas prone, near
existing infrastructure so quick
to production which feeds the
European gas market.
Read more on page 20
Key
Production
Exploration
Appraisal
Development
Equatorial Guinea
Inishkea West prospect
Licence extended to January
2026 and farm-out process
ongoing
Read more on page 16
Cloughton –
North Yorkshire
Terms of drilling pad have
been agreed and planning
application in progress for a
gas appraisal well
Read more on page 16
Wressle
Planning approval ongoing
for a two-well development
programme and gas processing
and grid connection
Read more on page 17
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
07
Brian O’Cathain, Chairman
STATEMENT FROM THE CHAIRMAN
Executing on our growth strategy
and diversifying our political risk
Equatorial Guinea
In the final month of 2023, we were delighted
to complete the acquisition of a 42.9% stake
in Antler, which has an 80% working interest
in licence EG-08 offshore Equatorial Guinea
in West Africa. This entry into West Africa
was a prudent decision underpinned by
the wealth of exploration and development
project experience the Europa team and
board have across the region. We consider
EG-08 to be a highly prospective, low risk
opportunity for the Company and have
been encouraged by the Equatorial Guinean
Government’s robust support and regular
communication since we acquired a stake
in the licence.
We estimate that EG-08 has total prospective
resources of 2.1 tcfe and, given it contains
what we consider to be drill-ready prospects
consisting of three independent targets
totalling 1.4 tcfe (Pmean) with a 70%
geological chance of success (“GCOS”),
we regard EG-08 as a relatively low risk,
high impact opportunity which is close to
infrastructure so can be brought quickly into
production, if successfully appraised.
We have now initiated the farm-in process to
secure a partner capable of providing us with
the financial support necessary to advance
this exciting project, whilst we will continue
to evaluate other opportunities that arise in
this prolific hydrocarbon region which is well
regulated and supportive of the upstream
hydrocarbon industry.
Offshore Ireland
Following the Irish Government’s decision
to extend the FEL 4/19 exploration licence
until 2026, we have continued with our
extensive search for a suitable farm-in
partner during the period. Located off the
west coast of Ireland, FEL 4/19 is ideally
positioned adjacent to the Corrib gas field,
which has been producing gas for domestic
consumption for a number of years and has
sufficient ullage to monetise a discovery on
our licence. FEL 4/19 contains the large 1.5 tcf
low-risk Inishkea West gas prospect where
a discovery could be brought online quickly
providing domestic gas with significantly
lower emissions intensity than imported gas
from the UK, Norway or other jurisdictions.
During the period, we also published an
updated emissions report for FEL 4/19.
The third-party study, which calculated the
expected emissions associated with the
development of a future 1 tcf indigenous
gas discovery on the licence, demonstrated
that our gas resource at the Inishkea West
prospect has the potential to eradicate the
need for higher emissions intensity gas
imports from the UK for up to three years
whilst helping Ireland meet its carbon
emission reduction targets.
Russia’s invasion of Ukraine and the
geopolitical turmoil that has ensued have
highlighted to governments worldwide, but
particularly those in Europe, the importance
of energy security. We will continue to
ensure Irish politicians, councillors and all
key stakeholders are well informed on our
licence and the role it could play in mitigating
Ireland’s dependence on expensive, carbon
intensive overseas imports.
Onshore UK
At our principal producing asset Wressle,
development work to enhance production
rates included the installation of a jet
pump during the period. This involved a
three-month shutdown of the well and,
as a result, Wressle’s average gross
production rate during the year was
357 bopd. The well continues to perform at
rates above the independent Competent
Person’s P10 production profile, which was
updated and announced in January 2024.
Wressle continues to generate cash flow
and, post-period end, we were pleased
to announce receipt of planning consent
from North Lincolnshire Council for the
further development of the Wressle well
site. We are disappointed that the planning
permission is likely to be rescinded following
a legal challenge in light of the recent Finch
Supreme Court judgement which ruled that
scope 3 emissions must be considered
in planning applications for oil and gas
developments. The Wressle Joint Venture is
now going to submit further information that
covers potential scope 3 emissions such that
a future planning process could be approved.
The works will include extending the existing
site to accommodate the drilling of two new
wells and construction of gas processing
facilities and a 600m underground gas
pipeline to connect Wressle to the local
gas distribution network. This will result in
zero routine flaring as the gas sales further
increase revenues.
Introduction
The 2023/2024 financial year was
a busy, and at times challenging,
period for Europa as we focused
on progressing workstreams
surrounding our new Equatorial
Guinea (EG) licence whilst
ensuring the Company maintains
a healthy balance of producing,
exploration and appraisal assets.
Against a backdrop of well-documented
macroeconomic pressures and political
tensions impacting UK-focused hydrocarbon
businesses, we have still managed to identify
a suitable location for an appraisal well at
Cloughton and, alongside our partners, have
ensured Wressle remains cash generative.
Through our decision to turn our new
ventures focus on Africa and not apply for
an extension to the Serenity licence, we
have further diversified our asset mix whilst
reducing our exposure to some of the
negative political rhetoric surrounding the
UK upstream sector. We continue to focus on
finding good farm-in partners for our EG and
Irish assets as an important near-term priority.
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
08
In February 2024, we announced that the
NSTA had granted us a two-year extension
to our PEDL343 (Cloughton) licence. The
extension has enabled us to continue our
ongoing work on the licence, where we
estimate Cloughton to have gross gas initially
in place (GIIP) volumes of 192 bcf (Pmean).
The Cloughton discovery well, drilled in
1986, was looking for oil and demonstrated
good quality sweet gas that flowed naturally
at rates of up to 28,000 scf/day. We believe
that a well could flow at rates of 6 mmscf/day
using the modern completion techniques.
We have selected Burniston Mill as our
location for an appraisal well at Cloughton
and continue to engage with stakeholders
to obtain the necessary permits and
consents needed to drill the well in order
to demonstrate the productivity of the field,
which remains a key target for 2025.
Offshore UK
Post-period end, we announced that we
do not intend to apply to the North Sea
Transition Authority for an extension to the
Serenity licence, which consequently expired
on 30 September 2024. As a result, the
incurred costs associated with Serenity that
the Company has capitalised on its balance
sheet will be written off.
Board changes
In November 2023, Simon Oddie and
Stephen Williams decided to withdraw
their candidacy for re-election from the
resolutions at the Annual General Meeting
(“AGM”). Consequently, they ceased to serve
as directors of the Company after the AGM.
Simon and Stephen both made a significant
contribution to the development of Europa,
and on behalf of the board and the Company,
I would like to put on record our sincere
thanks to them, and best wishes for their
future endeavours.
In December 2023, the board was
strengthened with the addition of Mr Simon
Ashby-Rudd as independent non-executive
director. Simon has extensive experience in
the upstream energy sector which includes
30 years in investment banking roles at large
financial institutions, including Dresdner
Kleinwort Benson, Citigroup and Standard
Bank, where he was Global Head of Oil &
Gas. He was the founding European partner
at Tristone Capital, which was a leading
UK boutique M&A and equity advisory firm
before it was acquired by Macquarie Bank.
Simon has significant global experience in
advising energy companies on corporate strategy
and capital structuring and has spent much of
his career focused on Europe and Africa.
In April 2024, we further strengthened the
board with the appointment of Dr Eleanor
Rowley as independent non-executive
director. Eleanor is an exploration geologist
and a successful hydrocarbon finder who has
extensive experience in the upstream energy
sector, with a particular focus on African projects.
Eleanor’s extensive knowledge of exploration
and appraisal asset evaluation has already
contributed significant value to Europa, with
her skillset highly complementary to the
board’s existing strengths.
Importantly, appointing a third independent
non-executive director has enhanced
the independent governance at Europa,
returning the board to a majority of
independent directors.
Conclusion and outlook
By developing a well-balanced portfolio of
assets across trusted oil and gas jurisdictions,
we remain in a stable position to deliver solid
operational progress in the coming months.
2025 will be an exciting period for Europa
with activity across many of our assets
that has the potential to materially drive
shareholder value. Wressle remains one of
the UK’s leading onshore oilfields and a key
cash generator for Europa, and the proposed
two well development would generate
important revenues for the Company.
At Cloughton, appraisal drilling to test the
reservoir productivity could result in the
UK’s largest onshore gas field, which given
its proximity to gas infrastructure, could be
brought online quickly.
In addition, we have exciting near-term gas
exploration opportunities at our Equatorial
Guinea licence, as well as our Ireland licence,
and continue to search for ideal farm-inees
for both assets. Both assets are close to gas
infrastructure so, like Cloughton, both can
be brought online quickly following a
successful well.
On behalf of the board, I would like to thank
all Europa employees who have helped us
mitigate the impact of macroeconomic and
domestic headwinds prevalent across the
period. We look forward to what should be
a highly productive next 12 months for
Europa with a number of key projects
progressing as planned.
Brian O’Cathain
Non-executive Chairman
25 October 2024
The 2023/24
financial year
was a productive
period for Europa
underpinned by
our entry into the
highly prospective
EG-08 PSC.
“
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
09
OUR STRATEGY
Expanding our portfolio with
a value driven new country entry
New ventures
1.
Value driven
2. Target the best deals for EOG
• Opportunity cost in both staff time (G&A)
and EOG financial resources
3. New opportunities
measured against
• Strategic fit to EOG portfolio
• Match to EOG core skillset
• Materiality – significantly move
EOG valuation
• Risk – acceptable risk/reward profile
4. Proactive approach to
new ventures
• Leverage EOG management
experience
5. Experienced team: across
multiple African jurisdictions
and basins
Fiscal
terms
Geography
Management
experience/
network
Geology
Europa is focused on building a
high impact balanced portfolio of
producing, development, appraisal
and exploration assets in West
Africa, the UK and Atlantic Ireland.
We continue to assess significant value
accretive opportunities while ensuring
that the Company minimises risk. Europa
uses various financial and non-financial
performance measures to monitor progress
and ensure that strategic objectives are met.
The key performance indicators for 2023/24
are set out in this report and comprise daily
production, revenue, gross profit, and net
cash generated by operating activities.
The value-focused strategy was epitomised
during the last year with the acquisition of
the EG-08 asset in Equatorial Guinea and
assuming operatorship of Cloughton. EG-08
has multi-tcf gas potential located close to
existing infrastructure which supplies the
European gas market. The prospectivity
of the licence is excellent as the primary
structures are defined by calibrated
amplitude versus offset (“AVO”) responses
which result in a 70% chance of finding gas
for each of the three primary prospects. The
risk/reward proposition of this licence is
excellent and is attracting significant interest
from potential farm-in partners.
A strategic asset review of the Europa
portfolio identified Cloughton as a “sleeper
asset” with material upside within the
portfolio. The partners agreed that Europa
was best placed to appraise and develop
the estimated 192 bcf GIIP potential of
the onshore UK gas field, which was
discovered in 1986 but not developed due
to the prevailing gas market at the time.
We now intend to drill an appraisal well
and demonstrate that the gas can be
produced commercially.
The field’s potential will then be realised by
a field development which would involve
connecting it to the UK gas network and
selling the gas.
Over the last five years, the Company
has moved away from a predominantly
frontier exploration strategy with some
local production paying the bills to a lower
risk near-field exploration, appraisal and
development strategy matching the current
industry demands and with a shorter time
scale from investment to production.
With gas being a clean transition fuel,
opportunities to explore and develop gas
fields remain attractive, especially those located
near the market. This is the case for Cloughton
in the UK along with the EG-08 and the FEL 4/19
assets, which are both located adjacent to
existing infrastructure and which both have
multi-tcf potential. The proximity to infrastructure
means that the gas can be brought online
quickly following successful drilling.
Smaller companies are facing challenging
times for expansion. Inflation means that
projects are more expensive and equity
markets remain tight as some institutional
investors increasingly choose not to invest in
the hydrocarbon sector. As such, we carefully
manage our cost base and utilise our existing
cash flow. All new projects are assessed by
their potential to add value whilst maintaining
profitability at a time when regulation, planning
delays and increased governmental taxation
makes cash accumulation for capital-intensive
projects more challenging. Europa continues
to focus on projects where we can see that we
have a competitive advantage while at the same
time pursuing value-added diversification to
ensure effective risk management.
The Cloughton and Wressle fields have great
potential for undeveloped gas and will form
the foundation for a substantial business for
the immediate future.
EG-08 continues to attract significant
attention from farm-in partners while FEL 4/19
remains of interest to some key potential
partners and both have the potential to
materially drive shareholder value.
For small E&P companies, access to finance
affects the rate of growth of the Company.
Therefore, all new opportunities must not
only satisfy our own rigorous technical
assessment but must also be able to attract
the necessary investment finance to appraise
and develop the asset.
Assets
We have a diverse portfolio of hydrocarbon assets
at various stages of the development cycle
including exploration, appraisal and production.
North Sea
The UK Government recognises that
hydrocarbons will play a vital role in the UK
beyond 2050 as the country progresses
towards the stated Net Zero goals. As such,
our Cloughton and Wressle assets are well
placed to play a role in this process.
European gas
Gas has long been seen as an important
transition fuel for the European markets, and
following Russia’s invasion of Ukraine and
the resulting impact on gas prices, security
of supply has also become an important
factor. Both our Irish and EG assets provide
excellent near-field infrastructure-led gas
opportunities, and, following exploration
success, both could quickly start providing
gas into the European gas markets.
Europa recognises the myriad of
opportunities that exist in the upstream
sector and continues to explore new projects
to further diversify its asset base and
generate additional shareholder value.
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
10
INVESTMENT CASE
Four reasons to invest
1
Balanced and diverse portfolio of
producing, development, high impact
appraisal, and high impact exploration
assets
Europa is well placed to continue its production, development,
appraisal and exploration of existing onshore and offshore UK assets,
alongside the Company’s projects in Equatorial Guinea and Ireland.
The Company is committed to continuing to build on its asset portfolio
by adding further exploration and appraisal opportunities which can
drive shareholder value in the near term.
3
Pivotal role in the energy transition
Gas will play a key role in the energy transition and the main assets
that are being progressed by the Company are either gas plays or
gas-focused developments. EG-08, FEL 4/19 and Cloughton are
all gas projects, and added to this the development of Wressle is
targeting the gas-rich Penistone Flags reservoir horizon of the field.
All projects are close to gas infrastructure so can be brought online
relatively quickly and all will supply the UK or European gas market.
Governments and some environmental groups alike agree that a key
step in achieving net zero goals is to increase domestic gas supply
which minimises the transportation and emissions associated with
importing hydrocarbons, especially now that the UK gas market is
increasingly reliant on high emissions LNG.
2
Near-term transformational activity
Over the next 12 months there is activity across our asset base
that has the potential to drive material shareholder value. We are
progressing the farm-out process with both of our infrastructure-
led exploration assets in EG and Ireland where we are seeking
partners to provide a full carry on near field exploration prospects.
Concurrently we are progressing our onshore UK Cloughton gas
appraisal asset to secure the necessary approval for drilling in 2026.
4
Robust financial foundations with an
experienced board providing platform to
explore additional E&P opportunities
With no debt, supportive shareholders and continuing profits from
production which, due to past investment, continues to be shielded
from the Energy Profits Levy (Windfall Tax), Europa is in a position
to further develop its existing producing assets and to target value
enhancing appraisal opportunities contained in our existing asset
portfolio. The board and management team at Europa have a
history of successfully identifying and monetising new upstream
opportunities and the Company is well placed to continue to seek
and acquire further assets. Our strategic acquisition focus is on assets
that can delivery material shareholder value, contribute to domestic
supply and those that utilise existing infrastructure.
Multiple near-term value
accretive activities
Financial Statements
Governance
Strategic Report
11
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
Europa recently undertook a materiality assessment that helped identify the key material
topics relevant to Europa’s business. These topics were then aligned with relevant United
Nations Sustainable Development Goals (“UN SDGs”). From this, we developed high-level
goals which have been built upon this year as we further develop our strategy, as well as
continue to support the UK’s energy transition.
Europa’s strategy revolves around the three key pillars of ESG:
Environment, Social and Governance.
SUSTAINABILITY
Gas focused asset base to support the
energy transition to 2050 and beyond
Environment
We believe in acting as
responsible custodians of
the physical spaces which
we occupy as a company,
with the utmost respect for
the environment in which
we operate.
Social
Europa commits to being
fair and inclusive in all
our interactions with our
employees and partners,
including those communities
with whom we interact.
Read more on page 14
Read more on page 15
Read more on page 30
Governance
As an AIM-quoted entity
Europa follows all required
reporting and corporate
governance guidelines.
To go beyond the minimum
requirements, our ESG
Committee has oversight on
the integration of our ESG
strategy with our overall
Company development
and activities.
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
12
Materiality matrix
Important topics
Material topics
Impact on Europa’s stakeholders
Impact on Europa’s business
8
1
7
5
3
6
4
11
2
12
9
10
1.
Local communities and
economic impacts
2.
Non-discrimination and
equal opportunity
3.
Water and waste
management
4.
Ecological impact
5.
Climate adaptation, energy
transition and emissions
6.
Health and safety, asset
integrity
7.
Policy engagement
8.
Anti-corruption and strong
governance
9.
Land and resource rights
10. Freedom of association and
collective bargaining
11. Anti-competitive behaviour
12. Closure and rehabilitation
Europa continued to reassess the materiality matrix to ensure that it still accurately represents our
stakeholders and business. It was determined there were currently no changes to our material topics and
that the previously conducted materiality matrix was still relevant. The materiality matrix will be periodically
reassessed to ensure it remains relevant and reflective of Europa’s activities.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
13
Strategic Report
Governance
Financial Statements
SUSTAINABILITY CONTINUED
Transparent, responsible
and accountable
Supporting the energy
transition
Europa plays an active role in providing
energy security and supporting the energy
transition. Through our producing and
appraisal assets we provide a domestic
supply of hydrocarbons.
Europa is also active in supporting the
Irish Government’s plans of transitioning
towards a lower carbon economy. As per an
independent report commissioned by the
Company from a leading ESG consultancy,
domestic gas which could be produced
from Europa’s FEL 4/19 licence is expected
to have a carbon intensity of 2.5 kgCO2e/
boe, considerably less than the intensity
of imported gas from the UK which has an
average intensity of 36 kgCO2e/boe.
A discovery at FEL 4/19 could extend the life
of the Bellanaboy Gas Terminal and could
have the potential to supply up to 75% of
Ireland’s gas needs. As Ireland currently
imports roughly 80% of its natural gas supply
from the UK via the Moffat Interconnector,
a domestic supply from Europa’s FEL 4/19
licence would have a significantly beneficial
impact on the carbon intensity of Ireland’s
natural gas supply.
A discovery at EG-08 would be produced
into the Punta Europa terminal on Bioko
Island which in turn ships gas predominantly
into the European gas market. Given the
proximity to the existing infrastructure, which
includes a gas pipeline to Punta Europa that
lies across the EG-08 block, any discovery
could be brought online quickly and with
minimal additional infrastructure and as such
minimal additional emissions.
Cliffs of Moher, Galway, Ireland
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
14
Update from our last report
Zero Flaring
We continue to make steady progress
towards our Zero Flaring goal at Wressle
and will seek to obtain planning permission
to install gas processing facilities on site.
This will include a 600m pipeline which is
planned to be installed at the site during
2025 to allow for a connection to the local
gas grid, at which point routine flaring at
Wressle will be eliminated.
Community fund
So far during 2024, the Wressle partners’
community fund has awarded £41,000
to 11 local projects. Since inception the
Wressle partners have awarded funding to
sports clubs, schools, youth centres and
youth groups, events, and theatre groups.
Funds included support for sign language
training, equipment for an outside gym, and
modifications to allotments to make them
more accessible for those with mobility
issues. Through the continued support of the
community fund, Europa contributes to our
UN SDGs of Reduced Inequalities and Good
Health and Wellbeing.
Employee wellbeing
Europa strives to be an employer of choice
and is committed to the health and wellbeing
of its employees. We support flexible working
arrangements wherever feasible and support
all employees with access to a range of
benefits and services supporting both
physical and mental health.
Europa participates in the UK Government’s
cycle to work scheme and is proud to
report that over 50% of employees in our
London office cycle to work, both improving
employee wellbeing and reducing emissions.
.
Reporting frameworks
Last year Europa undertook a review of
relevant ESG reporting frameworks and
standards to determine which would be the
best fit. The introduction of the International
Financial Reporting Standards (“IFRS”) S1
and S2 in June 2023 is testament to the
fact that this area continues to develop
and progress. Both the IFRS standards
and the TPT framework build upon the
Taskforce for Climate-related Financial
Disclosures (“TCFD”) framework structure and
requirements. Therefore, Europa has decided
to voluntarily start working towards reporting
to the TCFD to put itself in good stead for
reporting to the IFRS or TPT if required to
do so in the future.
To aid this, a data audit has been carried
out of the Company’s currently collected
data to determine what is already being
recorded and what additional data collection
processes need to be put in place to allow
them to report to the TCFD. Europa has
adopted a new data collection approach, set
up to identify how and what we are required
to report. It is expected that this data
collection and the quality of the information
will be improved over time, allowing steady
progress that will be reflected in Europa’s
annual reporting. Data collected will be
aligned with the Global Reporting Initiative
(“GRI”) Universal and Oil and Gas Sector
Standards (2021 version) to enable future
reporting in reference to the GRI.
GHG reporting
Europa has elected to work towards
developing a full GHG inventory to allow the
Company to identify the biggest sources
of emissions and plan any reduction or
mitigation projects that can be undertaken.
This process started in 2023 with an
investigation of how the Company could
create a GHG inventory aligned with the
GHG Protocol and ISO 14064-1 standard and
will be ongoing as Europa works to establish
all data collection processes to enable a
comprehensive inventory.
What is TCFD?
The TCFD framework is designed to identify
climate-related risks and opportunities to aid
companies’ and investors’ understanding of
the financial implications of transitioning to
a lower-carbon economy and the changes
in physical risks associated with climate
change. The TCFD disclosures are structured
around the four pillars of Governance,
Strategy, Risk Management, and Metrics &
Targets with 11 recommended disclosures.
Scenario analysis is recommended as part
of the TCFD process to identify the range of
risks and opportunities a company may face
across different climate scenarios.
Metrics and targets
To build on the high level ESG strategy set
out in last year’s report, Europa has begun
developing performance metrics by which
the Company can transparently measure
current performance across the material
topics, goals, and selected UN SDGs.
These metrics have been aligned with the
three pillars of Environment, Social and
Governance to ensure that they span across
all Europa’s activities. Setting this up will allow
Europa to develop a clearer measure of our
current performance and the work required
to reach our goals. During 2024/25 the
Company will be developing targets in line
with our goals and metrics to enable these
to be tracked and to improve performance
over time.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
15
OPERATIONAL REVIEW
Our assets
Infrastructure-led
exploration – Equatorial
Guinea
In December 2023, the Company acquired
a 42.9% equity interest in Antler Global
Limited (“Antler”), which holds an 80%
working interest in the highly prospective
EG-08 production sharing contract (“PSC”),
offshore Equatorial Guinea, with Guinea
Ecuatorialde Petroleos (“GEPetrol”), the
national oil company, holding the remaining
20%. This adds an additional geographical
location to the Company’s existing portfolio
of assets, and one which the board believes
has enormous near-term, infrastructure-led,
near-field exploration potential.
Since acquiring the interest, Europa has
evaluated the seismic data across the block
and identified three primary prospects with
a Mean Prospective Resource (“Pmean”) of
1.4 tcf (internal estimate) and a further six
prospects that result in a total Pmean of
2.1 tcf. With the completion of this stage of
technical work, we have started a process to
secure a farm-in partner to accelerate drilling
an exploration well which will target one
horizon in the primary Barracuda prospect,
with an estimated GCOS of 70%. Future wells
will target the significant additional upside in
Barracuda and throughout the licence. It is
hoped that a farm-in partner can be secured
by early 2025.
Infrastructure-led
exploration – offshore
Ireland
Located offshore Ireland on the west coast,
Europa’s FEL 4/19 licence is a strategic asset
containing the large, low risk Inishkea West
gas prospect which is estimated to contain
1.5 tcf of recoverable gas. We have continued
to search for a suitable partner to farm-in
to this licence, and have been awarded
an extension to the licence by the Irish
Government through to 31 January 2026. FEL
4/19 is adjacent to the Corrib
gas field which has been producing one
of the lowest carbon intensive gases in
Europe since 2015.
This prospect has the potential to facilitate
the energy transition and mitigate Ireland’s
dependence on energy imports, particularly
vital amid the current energy security
crisis facing Europe, as described in the
Government of Ireland’s Energy Security
in Ireland to 2030 report. The Company’s
recent third-party emissions report found
that the projected production from Inishkea
West has the potential to almost eliminate the
need for gas imports from the UK to Ireland
in 2030 through to the end of 2032 (based
on SEAI demand predictions) and therefore
dramatically reduce associated emissions.
UK appraisal – Cloughton
In July 2023, Europa assumed operatorship
for PEDL343 (Cloughton) where it holds
a 40% working interest. Cloughton was
discovered in 1986 and drilled by Bow Valley,
where the discovery well encountered gas
throughout the Carboniferous section. The
discovery well at PEDL 343 (Cloughton)
flowed good quality sweet gas (with over
98% methane and ethane content) at rates
of up to 28,000 scf/day on natural flow, and
the Company believes that a well could flow
at 6 mmscf/day using the modern completion
techniques. The discovery well encountered
60 metres of Carboniferous net sandstone
reservoir with high gas saturations. Europa
has subsequently completed an internal
review of the gross Cloughton gas in place
volumes which has resulted in a Pmean Gas
Initially In Place (“GIIP”) estimate of 192 bcf
demonstrating the material volume of gas in
place that has already been discovered.
Cloughton is a gas appraisal opportunity
with the critical technical challenge being
to obtain commercial flowrates from future
production testing operations. Burniston Mill
has been identified as a potential location for
an appraisal well pad, and Europa is in the
process of submitting its planning application
to North Yorkshire Council, the local planning
authority. Following the granted permissions
and successful testing operations, the field
would be developed by connection to the
nearby gas grid.
JOA signing at GE Petrol
Luba Freeport, Equatorial Guinea
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
16
The proposed drilling activities at Burniston
include a proppant squeeze, a conventional
low volume production enhancing operation.
Domestically produced gas generates
employment, local and national tax revenues
and has a lower carbon footprint than the
imported gas upon which the UK is becoming
increasingly reliant. As such, development
of Cloughton is fully aligned with the UK
Government’s British Energy Security
Strategy and Net Zero 2050 goals.
The NSTA granted a two-year extension to
the Cloughton licence in February 2024,
allowing Europa to continue its ongoing
work to commercialisation. Post-year end
in September 2024, the Company held a
Questions & Answer session for the local
community in Cloughton and Burniston
to address any local concerns and to
communicate the Company’s focus to
minimise any disruption for local people
or environmental disturbance.
Europa held a 25% working interest in
the Serenity oil discovery, a development
opportunity that we farmed into in April
2022. Post-period end in September 2024,
the Company announced its decision to not
apply to the NSTA for an extension to the
Serenity licence, which expired on
30 September 2024.
UK development – Wressle
During the period, Wressle averaged
357 bopd gross (107 bopd net to Europa).
Wressle continues to be one of the most
productive onshore UK oilfields, despite a
three-month shutdown period required to
source and install a jet pump for an artificial
lift on the Wressle-1 well. Wressle operations
remain cash generative.
A seismic interpretation and mapping
exercise that took place this year across the
Wressle field has highlighted a potentially
significant increase in resources from the
Ashover Grit and the results of the analysis
have been incorporated into the field
development plan, which predominantly
looks to develop the Penistone Flags
reservoir of the field. The intention is that
two back-to-back development wells will
be drilled from the existing Wressle site.
In addition to the two development wells,
work is ongoing to develop the associated
gas being produced from Wressle by
connecting to the local gas distribution
network, just 600m from the wellsite. This
work is expected to be completed around
the same time as the development wells
and is subject to the same regulatory
approvals. Post-year end in September
2024, planning consent was received from
North Lincolnshire Council for the further
development of the Wressle well site. As a
result of the Finch Supreme Court ruling and
a proposed legal challenge to the granting
of planning permission for the next phase
of the Wressle development, it is expected
that the planning consent will be rescinded
once the court process has concluded. The
Wressle Joint Venture plans to submit further
information that covers potential scope
3 emissions such that a future planning
process could be approved. The works
will include extending the existing site to
accommodate the drilling of two new wells
and construction of gas processing facilities
and an underground gas pipeline to connect
Wressle to the local gas distribution network.
Our exploration, appraisal and development
assets are gas focused and infrastructure-
led thereby reducing the investment cycle by
accelerating cash flows, all within the energy
transition context.
Wressle, England
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
17
Governance
The Company operates in well-regulated jurisdictions that govern
the operational activities undertaken by Europa. In addition, these
governing bodies issue licences, permits and determine the fiscal
environment. The regulatory bodies in both the UK, EG and Ireland
have experienced staff and well-defined statutes. The UK Exchequer
has a record of changing the fiscal environment in line with oil prices
where it increases and decreases the tax burden on oil and gas
companies as oil and gas prices fluctuate. These frequent changes in
the UK’s regulatory and fiscal environment expose the Company to
additional uncertainties relating to our UK assets.
What is the impact?
It is difficult to model the economic outcome for shareholders
when there is significant instability in the UK fiscal and regulatory
environment, and it is challenging to put in place mitigating measures.
By contrast, the legally defined stability inherent in a production
sharing contract such as that for Equatorial Guinea block 08 results in
a significantly more stable fiscal and regulatory environment.
What does this mean for Europa?
The value of the discovery, development and production of
hydrocarbons in the UK is uncertain as the stability of the prevailing
policies of the relevant governing bodies cannot be reliably forecast.
Commodity prices
History demonstrates that the price of crude oil is never immutable.
Wide price swings are experienced in times of shortage or
oversupply. The price of crude oil may fluctuate violently, affected
by external factors such as global macroeconomic conditions, the
Organisation of Petroleum Exporting Countries plus other oil-
producing countries (“OPEC +”) policy, political factors, war, market
speculation, and the value of the US dollar. Recently crude oil
prices have continued to be volatile, despite being in a tight range,
and the decline in prices over the summer period (due to reduced
fuel demand in China and slowing US jobs growth) is expected to
recover with OPEC+ production cuts. The US Energy Information
Administration (“EIA”) forecasts oil prices to be between $80 to
$85/bbl during 2025. The EIA expects that Brent oil prices will rise
to average $83/b in 1Q25. By mid-2025, the EIA anticipates that the
market will gradually return to moderate inventory builds as OPEC+
increases production throughout the year and as forecast production
growth from countries outside of OPEC+ begins to outweigh global
oil demand growth. The EIA estimates that global oil inventories will
increase by an average of 0.5 million b/d in the second half of 2025
(2H25) and forecasts the Brent price will average $84/b in 2025.
With regards to gas, the EIA forecasts that prices will generally
rise during 2025.
What is the impact?
Fluctuating oil prices have a direct impact on the Company’s income
and result in uncertainty around the availability of capital to deploy
into development, appraisal and exploration operations.
What does this mean for Europa?
Europa models future cash flows and adopts a conservative view on
oil prices to ensure that the Company does not overcommit available
capital. Where there are capital commitments which are reliant on
future cash flows that require certainty over funding, a hedging
strategy may be implemented.
ENERGY OUTLOOK
Global energy markets
in the year ahead
An overview of the key factors that have an impact
on the energy market
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
18
Demand and supply
The EIA forecasts that global consumption of liquid fuels will increase
by 1.5 million b/d in 2025. Most of the expected liquid fuels demand
growth is from non-OECD countries, which will increase their liquids
consumption by 1.0 million b/d in 2024 and 1.3 million b/d in 2025.
The Institute for Energy Economics and Financial Analysis forecasts
that by the end of 2028, the world’s LNG capacity could reach 666.5
MTPA, which far exceeds the International Energy Agency (“IEA”) total
LNG trade forecast of 482 MTPA under its stated policies scenario.
This robust supply growth will likely lead to lower prices. Also, in
Asia ongoing fiscal challenges and lengthy delays for new LNG
infrastructure pose structural challenges to demand. To overcome
these challenges some LNG importers are investing in and trading
with emerging market buyers to offload surplus contracted supplies.
Similarly, European players justified new offshore regasification
terminals partly by arguing that they could eventually be relocated to
Asia. For the LNG industry to thrive financially, emerging Asian nations
must not only replace shrinking imports from developed markets,
but also absorb the massive volume of new supplies coming online.
This renders the LNG industry increasingly reliant on markets with
less-creditworthy buyers, riskier business environments and greater
sensitivity to high prices. If rapid and sustained demand growth does
not materialise, LNG suppliers and traders, particularly those with
higher costs and significant uncontracted supplies, will likely face an
extended period of low prices.
What is the impact?
The market is currently reasonably balanced. However, the global
macropolitical and economic environments can change rapidly and
disrupt this balance.
What does this mean for Europa?
Changes in the global demand and supply balance will have a direct
impact on global oil and gas prices, which in turn impacts the future
income of Europa and, in the case of an over supplied market, its
ability to progress asset development due to potential shortfalls
in available capital.
Transition to renewable energy
With its European partners the UK has committed to transition to
net zero carbon emissions by 2050. While the transition to net
zero carbon emissions by 2050 is a big challenge, it is believed
to be economically and technically feasible, and is becoming easier
as the cost of low-carbon technologies declines. However, during
this transition and beyond there is an ongoing demand for
hydrocarbons, not only as a fuel source but also due to the myriad
of consumer products that are made from petroleum byproducts. To
achieve these net zero goals, scope 1 and scope 2 emissions need
to be minimised. This can be done by producing hydrocarbons in
the most emissions-efficient manner possible and also by producing
hydrocarbons locally to the demand centres, rather than transporting
the product over long distances.
What is the impact?
Mature hydrocarbon countries, such as the UK, EG and Ireland,
provide not only a well understood sub-surface environment but
also existing infrastructure that can be efficiently utilised to extract
hydrocarbons in a well-regulated environment with world class levels
of emissions. This domestic and gas focused production is materially
more emissions-efficient than importing hydrocarbons from overseas.
What does this mean for Europa?
Europa is focused on exploring, appraising and developing
hydrocarbons, especially gas, which is close to existing infrastructure
and centres of demand, thereby contributing towards the global goals
of net zero 2050. The Company is experienced in the regions in
which we operate, and therefore understands the specific technical
challenges associated with developing the resources, and how to
do so most efficiently.
North Yorkshire, England
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
Equatorial Guinea
Equatorial Guinea, a Spanish-speaking
country, consists of the mainland, Rio Muni,
and five islands including Bioko, where
the capital Malabo and the Punta Europa
gas processing, methanol and LNG plants
are located. Equatorial Guinea is one of
sub-Saharan Africa’s biggest oil and gas
producers and is a member of OPEC. The
giant Alba gas field (4.6 tcf) was discovered
in 1984 and brought onstream in 1991.
Marathon is operator and there is associated
gas processing infrastructure producing LPG,
methanol and LNG products. The giant Zafiro
oil field (1.2 billion bbls) was discovered in
1995 by Mobil and began production in 1996.
Thereafter, exploration activity accelerated
with several oil, condensate and gas
discoveries being made at Ceiba & Okume
(Triton, then Hess) and Alen & Aseng (Noble,
now Chevron) between 2001 and 2007, all of
which are now in production with gas being
produced through Punta Europa. In the last
decade or so little exploration activity has taken
place, however natural decline has resulted
in capacity at Punta Europa which in turn has
reinvigorated exploration interest in the region.
In 2023, the Equatorial Guinea government
signed an HOA with Chevron and Marathon
for the development of Gas Mega Hub
phases II and III. Phase II is Alba infill drilling,
while Phase III will monetise previously
reinjected Aseng gas (Block I).1
INSIGHTS: WHY EQUATORIAL GUINEA
Equatorial Guinea – a well-established
hydrocarbon jurisdiction
Energy use
The average energy consumption
per person in Equatorial Guinea was
12,399 kWh in 2021, with the country
overall consuming 20 TWh of energy
in 2021.2
Transport links
There are seven airports in Equatorial
Guinea with carriers including Air
Europa from Madrid and Air France
from Paris. A ferry service operates
between Douala, Bata and Malabo.
Market stats
Oil and gas are the country’s main
exports, and forestry, farming and
fishing are also major components
of GDP.3
1
Wood Mackenzie Equatorial Guinea upstream summary
2 https://ourworldindata.org/energy/country/equatorial-guinea
3 https://www.experience-africa.de/index.php?en_equatorial-guinea_economy
Equatorial Guinea
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
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Equatorial Guinea:
28,050
Area (km²)
1.6
Population (millions)
731
Licence area (km2)
Malabo
Capital
296
Coastline (km)
Why Equatorial Guinea is a good opportunity for Europa
Equatorial Guinea holds nearly two
billion boe of remaining resources, and
benefits from existing gas infrastructure
and capacity at the Punta Europa
plant. The majority of LNG from Punta
Europa feeds the European gas market1
Equatorial Guinea
Cameroon
Gabon
Nigeria
Central African
Republic
Republic of
the Congo
Democratic
Republic of
the Congo
Equatorial Guinea’s
Gas Mega Hub
^ An agreement between the Equatorial
Guinea government, Marathon Oil and
Chevron’s Noble Energy E.G. Ltd has
been made to move forward with the
development of the Gas Mega Hub.
^ The infrastructure on Bioko Island is set
to make Equatorial Guinea one of West
Africa’s biggest producers of LNG.4
Well-established and well-regulated oil and gas
industry
Government highly supportive of
hydrocarbon exploration
Already attracted oil and gas majors
4 S&P Global article
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
731
Licence area (km2)
2.1
tcfe
Mean prospective resources
70%
Chance of success for each of
the three primary prospects
Block EG-08 offshore in the Douala Basin of Equatorial Guinea is held by
Antler Global Ltd, a company that was set up specifically to acquire the
EG-08 block which is effective from October 2023, with 80% working interest
in the EG-08 production sharing contract and Guinea Ecuatorialde Petroleos
(“GEPetrol”), the national oil company, holding the remaining 20%.
EG-08 has over 2 tcf of gas prospectivity, of
which 1.4 tcf stems from three high-graded
prospects which we assess to have similar
AVO characteristics to the Alen and Aseng
fields and other discoveries in Chevron’s
Blocks O and I immediately to the south.
The Alen gas field is located 9km to the
south of our primary prospect and produces
gas into the Punta Europa LNG facility on
Bioko Island with the connecting pipeline
crossing the EG-08 licence.
The AVO story is very compelling and
regionally seven of the eight exploration
prospects have resulted in a commercial
discovery. Accordingly, we estimate the
chance of success is 70% for each of the
three prospects, which we believe to be
independent of each other. Volumes across
the three identified prospects are estimated
at mean prospective resources of 1.4 tcfe
(this figure includes the gas and liquids). Each
of these three primary prospects has a 70%
chance of success and, as such, this is a
high-quality, low risk and high reward asset
in shallow water with modest well costs.
A successful discovery in EG-08 could be
developed quickly with possible offtake to
Chevron’s nearby Alen platform (9km), where
hydrocarbons would be processed with any
liquids being exported through the Chevron
infrastructure to an FPSO and with the gas
going via the pipeline to the Punta Europa
LNG and methanol facility on Bioko Island.
The initial phase of the licence is a two-year
drill or drop. During this period, Antler intends
to refine the existing 3D seismic data and
begin a farm-out process. There then follows
a two-year second period, two one-year
extension periods and a development phase.
The PSC is typical for Equatorial Guinea
whereby the state has a carried 20% interest
and a royalty and profits share depending
on production.
INSIGHTS: OUR ASSET
Block EG-08 offshore
in the Douala Basin
Equatorial Guinea
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
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The AVO story is
very compelling
and, accordingly,
we estimate
the chance of
success at 70%
for each of the
three independent
prospects.
“
EG-08
Licence
34.32%
Europa interest (via a 42.9% ownership
interest in Antler)
GEPetrol
Partner (20% WI)
731
Area km2
Douala Basin
Basin
Two-year
Term (drill or drop)
1.1
Billion barrels of proven
crude oil reserves
1.7 tcf
of proven natural gas
reserves
Resource upside
Beyond the primary three prospects
there is an additional 344 bcfe Pmean
identified in four prospects, which are
also found in the Alen Strata. Outside
of the Alen Strata two other leads have
been mapped with 375 bcfe Pmean
potential. All of these additional leads
and prospects also present a class 2
AVO response.
Asset potential
The three primary prospects in theEG-08
block are Barracuda, Cardinal and Arrowhead,
with Barracuda being assessed as having
798 bcfe Pmean in strata equivalent to the
producing Alen Field located 9km from
Barracuda. Cardinal and Arrowhead have
a combined 599 bcfe Pmean identified,
also in Alen equivalent strata. Each
prospect is defined by a calibrated class
2 AVO response. These AVO responses
have resulted in commercial discoveries
on seven of the eight wells drilled in the
near vicinity on the same play. A discovery
could be monetised either via the Alen Field
or connected directly to the pipeline to Punta
Europa that crosses the EG-08 block.
Bioko
Island
Marathon operates gas
terminal and LNG plant
Alba gas field
Zafiro oil field
Aseng field
Block EG-08
Key
Appraisal/development block
Open acreage
Licensed acreage
Production licence
Main prospect
Export pipeline to LGN plant
Alen field
Barracuda
Arrowhead
Cardinal
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
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INSIGHTS: Q&A
Equatorial Guinea
exploration Q&A
The AVO story is very
compelling and, accordingly,
we estimate the chance of
success at 70% for each of the
three independent structures.
“
What is the expected reservoir
quality?
We are targeting marine turbidities with
excellent quality homogeneous reservoir
and expect up to 30% porosity and sand
permeability of potentially up to eight darcies.
This results in highly productive wells with
high reserves per well, which reduces
the well density and development capital
requirement.
What is the water depth?
The water depth varies across the licence
but at the primary prospect it is 80m, so can be
drilled by a standard jack-up rig. There is good
rig availability and we have already engaged
with rig providers and service companies.
Why did one of the eight
exploration wells in the region fail?
The O-2 well was declared dry, but did in
fact demonstrate a short gas column in high
quality reservoir, but was deemed to be
sub-commercial due to the column height.
The Barracuda prospect will be drilled in the
centre of the same structure as the O-2 well
but up dip from the original gas discovery.
What are the well costs?
A tested discovery well is expected to cost c.
$50m, which would be suspended as a future
producer. Drilling should be simple given the
relatively soft rock and well depth of ~3000m
with no salt or overpressure considerations.
Q
A
Q
A
Q
A
Q
A
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
What is the local operating
environment like?
Equatorial Guinea has had an active oil
and gas industry since the 1980s which is
the main source of income for the country.
As such there is a well-established legal
system which is supported by a responsive,
knowledgeable regulator and a ministry that
actively encourages drilling activity in the
country. In addition, given the drilling activity
in the region, the upstream sector is well
supplied with materials and expertise from
international service companies and advisers.
Is there LNG and methanol
capacity at the Punta Europa plant?
Both independent and internal analysis
clearly demonstrate that not only is there
capacity in the Punta Europa plant in both
the LNG and the methanol facilities but also
that there are supply concerns given that the
primary fields supplying the Punta Europa
plant have come off plateau and are now
in decline. As such the operators of Punta
Europa are actively looking for new sources
of supply to maintain the plant output.
How active is the farm-in market
for the region?
For several reasons the market is very active
in EG with majors and large independents
actively seeking high quality opportunities.
They are drawn to EG-08 because it is
gas prone, shallow water, close to gas
infrastructure that supplies LNG into the
European market, can be brought online
quickly, is in a well-regulated active
region supported by international service
companies and is technically very compelling
given the calibrated AVO response from
the prospects.
Will the well be abandoned after
drilling?
If the well is a commercial discovery it will be
suspended as a producer so it can be quickly
tied into the nearby existing infrastructure and
monetised via the Punta Europa gas facilities.
SLB bulk plant, Luba Freeport, Equatorial Guinea
Q
A
Q
A
Q
A
Q
A
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
RISKS AND UNCERTAINTIES
Effective risk management
Key risk
Description and impact
Mitigation
Change
Funding/
Liquidity
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.
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 11 and 25, also
note comments on going concern in note 1.
The Group primarily relies on existing cash
balances and revenues from its producing
assets to fund its activities. Where such revenues
are insufficient to meet its funding demands
the Group is reliant on external debt or equity
funding. Although the Group has a track record of
successfully raising debt and equity funds when
required, there can be no certainty that these
sources of funding will be available at the same
time as when they are required by the Group.
Detailed cash forecasts are prepared regularly 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.
Management regularly assesses the credit and
capital markets to establish the availability and
suitability of financing opportunities.
Additional cash may be available through the
placing of Europa shares in the market, debt
financing, or potentially by the trading of assets.
Commodity
price and
foreign
exchange
Each month’s oil production is sold at a small
discount to Brent price in US Dollars. 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. A fall in
oil price could make some projects economically
unviable. During the year the price of oil was
volatile and ranged between approximately $90
and $75 per barrel. At the reporting date the
oil price was approximately $87 but has since
deteriorated. After trading in a relatively stable
range around $1.27 during most of 2023/24 the
US Dollar has weakened noticeably to around
$1.33/GBP. There is no mitigation in place at
the moment and the Company assumes $1.30/GBP
for forecasting.
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 continue reviewing
this policy.
Customer
All oil production is sold to one UK-based refinery
– if it was to stop buying Europa’s crude, additional
transportation costs would be incurred.
Other refineries are known to Europa, but the
proximity of the incumbent customer aligns with the
Group’s aim of minimising emissions generated by
its operations.
The various activities of Europa subject the Company to a range of
financial risks including commodity prices, liquidity, exchange rates
and loss of operational equipment or wells.
These risks are managed with the oversight of the board, which this year established a
Risk Committee tasked with regularly reviewing the prevailing operational, business and
economic circumstances to a granular level. The Risk Committee reports back to the
board on a bi-monthly basis, or at any time that a serious shift in risk profile is identified.
The primary risk facing the business is that of asset performance.
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
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Key risk
Description and impact
Mitigation
Change
Exploration,
drilling and
operational
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.
There are numerous risks inherent in drilling and
operating wells, many of which are beyond the
Company’s control. Operations may be curtailed,
delayed or cancelled as a result of environmental
hazards, industrial accidents, occupational and
health hazards, technical failures, weather, reservoir
pressures, shortage or delays in the delivery of
rigs and 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 or
continued operation. Completion of a well does
not assure a profit on the investment or recovery of
drilling, completion and operating costs.
Despite having production from four oil wells
located at four different sites, approximately 80% of
current production comes from the Wressle-1 well.
The Company aims to mitigate this concentration
risk through the pursuit of the further development
of the Wressle site by drilling at least two more
producing wells.
Appropriate insurance is obtained annually which
covers some of Europa’s exploration, development
and production activities.
The non-operating partners within each joint
venture assess the technical merits of each joint
venture operator, providing a peer review of
operational activities.
Planning risk
Securing planning consent for onshore wells takes
time and the outcome of planning applications is
not certain.
The granting of planning permission for the further
development of the Wressle site was welcomed,
however the subsequent legal challenge may
result in a delay to the project. However, we do
expect that the planning permission will be granted
once the scope 3 GHG emissions report has been
included in the planning application, but the Group
remains subject to various planning consents to
progress its other projects. The Group engages
planning and legal specialists in the field.
Political risk
The elected governments of the countries where
the Group operates set the regulatory and
licensing regime within which the Group operates.
The regulatory regime may change dramatically
based on the policies of the governing party, for
example a ban on new exploration licences may
be announced, existing licences may be curtailed,
or certain operating methods may be restricted.
A change of government policy could materially
affect the ability of the Group to operate. Europa
currently has exposure to political risk in the UK,
Ireland and Equatorial Guinea.
The Group monitors changes and proposed
changes in government policy in the jurisdictions
where it operates, in order to understand the
potential impact on the Group, and takes such
actions as it can to mitigate the impact on the Group.
In the UK, the Company works with industry bodies
such as UKOOG to participate actively in raising its
concerns at the appropriate levels of government.
The Company’s diversification into Equatorial
Guinea is in part designed as a mitigating
factor against increasingly challenging political
environments in the UK and Europe.
Climate risk
As a producer of oil and gas, climate change and
the transition to a low carbon economy affect
the Group’s operations through aspects such as
potentially adverse effects on commodity prices,
limited access to funding and higher cost of capital.
The Group supports the energy transition and
complies with all current environmental guidelines.
As set out in the Sustainability section of this report,
the Group is taking various actions and initiatives to
reduce emissions whilst also contributing to energy
security in the jurisdictions in which we operate.
On behalf of the board
William Holland
CEO
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SECTION 172
Directors’ statement under Section 172 (1) of
the Companies Act 2006
Section 172 (1) of the Companies Act obliges the directors to promote the
success of the Company for the benefit of the Company’s members as a whole.
This section specifies that the directors must
act in good faith when promoting the success
of the Company and in doing so, have regard
(amongst other things) to:
a) the likely consequences of any decision in
the long term;
b) the interests of the Company’s employees;
c) the need to foster the Company’s business
relationship with suppliers, customers
and others;
d) the impact of the Company’s operations
on the community and environment;
e) the desirability of the Company
maintaining a reputation for high standards
of business conduct; and
f) the need to act fairly between members
of the Company.
The board of directors is collectively
responsible for the Company’s strategy,
which is to develop significant value
accretive opportunities across a balanced
portfolio of energy assets while minimising
risk to shareholders.
The board of directors confirms that during
the last year under review it acted in
accordance with section 172 (1) of the 2006
Companies Act, which requires the board
to promote the long-term success of the
Company for the benefit of shareholders.
The strategies developed under the
leadership and guidance of the board of
directors and executed by the Company
have yielded a firm foundation for future
value creation, and a meaningful de-risking
of development plans.
Some of the key decisions taken by the
directors during the year under review,
and the significant outcomes achieved by
the Company aimed at delivering on its
strategies, included:
^ The directors approved the acquisition
of a 42.9% interest in Antler Global
Limited (“Antler”), which has an 80%
working interest in licence EG-08
offshore Equatorial Guinea. The Company
subscribed to new ordinary shares in
Antler for US$3 million.
^ The directors continued farm-out efforts
on the Frontier Exploration Licence (“FEL”)
4/19 located offshore Ireland near the
producing Corrib gas field. During the
year the Company continued to engage
proactively with the Irish Government in
relation to the contribution that FEL 4/19
could make to Ireland’s energy security
and has actively been seeking a suitable
farm-in partner.
^ During the year Simon Oddie and
Stephen Williams ceased to serve as
director of the Company and Simon
Ashby-Rudd and Eleanor Rowley were
appointed as non-executive directors.
^ The directors decided not to accept the
33rd Round licence award that the Group
applied for in 2023/24. This decision
was made in consideration of the earlier
decision to commit significant funds to
the investment in Equatorial Guinea.
^ Following a third-party review, the
directors approved a restructuring of
the Company’s EMI scheme by issuing
50,000,000 new EMI options to executive
directors and key employees, and
the concurrent cancellation of certain
historical options. This was done to
appropriately incentivise and retain
talent, as well as to ensure their interests
are aligned with those of the Company
and its shareholders.
^ The directors approved the
commissioning of a new Competent
Person’s Report (“CPR”) of the Wressle
field which provided an improved
understanding of the recoverable
reserves, which better informs and
supports the Company’s decisions
in relation to further development
of the field.
^ The directors approved the Company’s
participation in operations to install an
artificial lift system at the Wressle field
to maximise the performance of the
Wressle-1 well.
Wressle tanks
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
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STAKEHOLDER ENGAGEMENT
Active engagement
There are a number of ways in which Europa seeks effective engagement with
stakeholders, as summarised in the table below:
Key stakeholders:
Methods of engagement:
Shareholders
^ Website – all announcements are posted to the Company’s website, as is information around
operations and strategy
^ The Company maintains active LinkedIn and X accounts
^ Online information sessions with Q&A
^ In-person meetings
^ Email communication via mail@europaoil.com
Employees
^ All employees have direct access to both the CEO and COO, and the full board visits both the
administrative office and the well sites at least annually in order to meet with employees
Government
regulators
^ NSTA – meetings, seminars, written correspondence and via the NSTA’s online portal
^ PPRS – monthly submissions and website data input
^ Environment Agency – bi-annual reports, soliciting a CAR Report and site visits
^ HSE – site visits, meetings, inspections
^ DECC – letter and email correspondence
^ UKOOG – meetings, letter and email correspondence
Joint venture partners
^ Regular informal “check-ins”, written correspondence and annual TCM/OCM formal meetings
Suppliers and
advisers
^ Email, orders and payments, letters and KYC work
Local community
^ Maintaining constructive relationships with relevant local communities is important to Europa.
The Company’s approach to this is site specific and includes group meetings as well as
individual meetings with key community representatives
Glossary
CAR
Compliance Assessment Report
DECC
Department of the Environment
and Climate Change (Ireland)
HSE
Health and Safety Executive
KYC
Know Your Customer
OCM
Operations Committee Meeting
NSTA
North Sea Transition Authority (UK)
PPRS
Petroleum Production Reporting
System
TCM
Technical Committee Meeting
UKOOG UK Onshore Oil and Gas
Financial Statements
Governance
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Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
29
How we govern the Group
As chairman of Europa Oil & Gas (Holdings)
plc, it is my responsibility to ensure that
the board is performing its role effectively
and has the capacity, ability, structure and
support to enable it to continue to do so. The
information on corporate governance set out
below, and on the website www.europaoil.com,
is, in the opinion of the board, fully in
accordance with the requirements of AIM Rule 26.
The last 12 months have seen, amongst
others, the following governance
developments:
^ S Ashby-Rudd joined the board of
directors as senior independent
non-executive director (“SID”).
^ E Rowley joined the board of directors as
a non-executive director (independent).
^ Relinquishment of existing options held
by non-executive directors to address
concerns raised by shareholders last
year around independence of non-
executive directors.
^ SID S Ashby-Rudd assumed the role
of Chair of the Audit Committee, with
the other member, B O’Cathain, also
being independent, resulting in a fully
independent Audit Committee.
^ SID S Ashby-Rudd assumed the role of
Chair of the Remuneration Committee,
with the other member, B O’Cathain, also
being independent, resulting in a fully
independent Remuneration Committee.
^ SID S Ashby-Rudd joined the Nomination
Committee, which now comprises
two-thirds of independent NEDs.
^ Meetings and discussions with major
shareholders.
^ The board engaged an independent
third party review into the Company’s
Long Term Incentive Plans for employees.
Acting on the recommendations of that
review, the Company cancelled existing
employee share options and introduced
a new Long Term Incentive Plan with a
longer vesting period and price target
metrics in line with UK market standards.
The board has determined that the Quoted
Companies Alliance (“QCA”) Corporate
Governance Code for small and mid-size
quoted companies is the most appropriate
for the Group to adhere to. The QCA
released a revised code in November 2023
which, for Europa, will come into effect for the
reporting period commencing 1 August 2024.
We have however, where practical, sought
to incorporate the principles of the revised
code in this report.
The QCA Code is constructed around a set
of principles and associated disclosures.
We have considered how we apply each
principle, and below provide an explanation
of the approach taken in relation to each.
The board considers that it has not departed
from any of the principles of the QCA Code
during the year under review.
A description of how the Company complies
with the principles of the QCA Code is set
out below.
As chairman of Europa
Oil & Gas (Holdings) plc,
it is my responsibility
to ensure that the board
is performing its role
effectively and has
the capacity, ability,
structure and support
to enable it to continue
to do so.
“
Brian O’Cathain, Chairman
CHAIRMAN’S INTRODUCTION
Introduction to governance
Europa Oil & Gas Holdings Plc
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
30
Review of each of the QCA principles
Principle 1:
Establish a strategy and business
model which promotes long-term
value for shareholders
Our strategy is described here: http://www.europaoil.com/strategy.aspx and also in the Strategic Report
forming part of this Annual Report.
^ The Strategy Committee met twice in 2023/24
^ Strategy is actively assessed and adjusted by discussion between the directors
^ Strategy is by necessity opportunity driven
Principle 2:
Seek to understand and
meet shareholder needs and
expectations
The Company engages with shareholders, and seeks to understand their needs and expectations by:
^ Conducting regular interviews with Proactive Investors and appearing on various virtual forums and
in-person retail investor information sessions
^ Issuing Regulatory News Service (“RNS”) announcements.
^ Maintaining active X and LinkedIn accounts
^ Replying directly to investor questions sent to mail@europaoil.com
^ Conducting at least twice-yearly meetings with major shareholders on its results roadshows to obtain
a balanced understanding of their issues and concerns
^ Hosting an annual “Meet the Team” event
Shareholder liaison is the responsibility of the CEO and chairman, with assistance from the SID.
Major shareholders as at 30 September 2024 were:
Interactive Investor
15.55%
Hargreaves Lansdown, Stockbrokers
15.00%
HSDL, Stockbrokers
7.71%
Bo Kroll
6.04%
Christian W Ahlefeldt-Laurvig
6.00%
BGF
5.91%
Polus Capital Management
5.79%
Barclays Smart Investor
5.19%
Charles Stanley Wealth Management
3.74%
A J Bell, Stockbrokers
3.62%
IG Markets, Stockbrokers
3.59%
Principle 3:
Take into account wider
stakeholder and social
responsibilities and their
implications for long-term
success
Key stakeholders, other than shareholders, are:
^ Regulators (NSTA, DECC (Department of Environment, Climate and Communications (Ireland)),
EA, HSE, Local Authorities)
^ Host governments
^ Local communities
^ Partners and co-venturers
^ Employees and consultants
^ Phillips 66 (who purchase our produced crude oil)
^ Suppliers
The CEO provides a weekly report to the board which includes a section on finance and investor
relations. This includes stakeholder and social responsibility feedback from multiple sources.
Europa is a member of the UK Onshore Oil and Gas (“UKOOG”) which represents the UK onshore
oil and gas industry and the wider supply chain.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
31
Principle 4:
Embed effective risk
management, considering
both opportunities and threats,
throughout the organisation
The Risk Committee maintains a risk register for the Group that identifies key operational and financial
risks, which is reviewed and updated at least every two months. All members of the board are provided
with a copy of the register, which includes a monitoring dashboard.
The Audit Committee monitors the integrity of the financial statements and related announcements,
reviews the Company’s internal control processes and risk management systems, and reports its
conclusions to the board. The Committee regularly reviews the effectiveness of the Company’s systems
and risk management.
As part of our internal financial reporting procedures, specific financial risks including foreign currency,
interest rates, liquidity and credit are evaluated in detail.
All members of staff and contractors are provided with a handbook which includes sections on share
dealing, bribery, social media use and whistleblowing. The handbook is updated and reissued regularly.
Principle 5:
Maintain the board as a
well-functioning, balanced team
led by the chair
All three NEDs are considered by the board to be independent.
Biographies are available at: http://www.europaoil.com/Directors.aspx
None of the NEDs currently hold any share options.
Directors serving more than six years will be proposed for re-election at each AGM.
W Holland (CEO) and A Stuart (COO) are full-time employees.
B O’Cathain (non-executive chairman), S Ashby-Rudd and E Rowley (both non-executive directors) are
all expected to devote such time as is necessary for the proper performance of their duties including
attendance at board meetings, the AGM, and board committee meetings.
The minimum numbers of meetings for committees are: Audit Committee – two; Remuneration
Committee – one; ESG Committee – one; Nominations Committee – one; and Risk Committee – six.
Meetings held and attendance records of all directors for the period 1 August 2023 to 31 July 2024 are
set out below.
The board is balanced in terms of experience, and the split between executive and non-executive directors.
All board and board committee members receive the agenda and associated papers a few days in
advance of meetings.
Principle 6:
Ensure that between them the
directors have the necessary
up-to-date experience, skills
and capabilities
Members of the board of directors are listed at http://www.europaoil.com/Directors.aspx
where their relevant experience, skills and personal qualities are set out.
There is appropriate breadth of experience covering the key aspects of the business including technical,
operational, financial and international. In selecting the two new appointments to the board in the past
year, the Company’s increasing focus on the West African region was forefront of the selection process
to ensure that collectively the board had broad knowledge of and experience in these markets.
It is the responsibility of each director to keep their skills up to date with the assistance of the chairman
who has a core responsibility in addressing the development needs of the board as a whole with a view
to enhancing its overall effectiveness.
Board committees call on external advisers where this is deemed necessary. In this past year, the
Remuneration Committee engaged external consultants to advise on aspects of employee remuneration.
The main internal advisory functions are those of Senior Independent director and company secretary.
New directors receive relevant training from the Company’s Nominated Adviser and broker.
Principle 7:
Evaluate board performance
based on clear and relevant
objectives, seeking continuous
improvement
An independent external review of the board’s performance had been undertaken during 2023, the
findings of which were provided to the board in September of that year. The review considered aspects
such as how well the board performs its duties, governance, risk management and strategy and the
overall conclusion was that board is performing at a high level of effectiveness. The report concluded
that the board was functioning well.
There have been two new appointments to the board during the past year, both contributing significantly
to the depth of industry knowledge and experience available to the Company via its board, and also
increasing gender diversity.
CHAIRMAN’S INTRODUCTION CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
32
Principle 8:
Promote a corporate culture that
is based on ethical values and
behaviours
Members of the board are committed to observing and promoting the highest standards of ethical
conduct in the performance of their responsibilities on the board of Europa. The board believes that
a culture that is based on the highest ethical standards provides a competitive advantage and is
consistent with fulfilment of the Group’s strategy.
The board meets once a year at one of the production sites during which directors are encouraged
to spend time with, listen to, and act upon any concerns of staff members or contractors.
^ The board considers that there are no material cultural differences between the UK and Ireland.
^ We do not have a culture policy, nor a specific culture related employee training/induction programme
but resolve to review the need for such a programme annually. As the Company expands into West
Africa, we have taken steps to engage with in-country organisations and professionals in order to
ensure that we are mindful and respectful of cultural differences and that the Company plays an
active role in providing opportunities for local people and in supporting their wellbeing.
^ Culture and strategy are deeply aligned.
^ The board ensures that the Company has the means to determine that ethical values and behaviours
are recognised and respected.
Principle 9:
Maintain governance structures
and processes that are fit for
purpose and support good
decision making by the board
Role of the chairman – B O’Cathain
^ Runs the board and sets its agenda.
^ Promotes the highest standards of corporate governance.
^ Ensures that the members of the board receive accurate, timely and clear information, to promote the
success of the Group.
^ Attends sufficient meetings with major shareholders to obtain a balanced understanding of their
issues and concerns.
^ Ensures effective communication with shareholders.
^ Takes the lead in identifying and meeting the development needs of individual directors, ensuring
that the performance of individuals and of the board as a whole and its committees is evaluated at
least once a year.
Role of the CEO – W Holland
^ Develops Group objectives and strategy.
^ Executes strategy following approval by the board.
^ Recommends and executes appropriate licence acquisition and disposal decisions, joint venture
opportunities, and approves major work programmes.
^ Leads geographic diversification initiatives.
^ Identifies and executes new business opportunities outside current core activities.
^ Manages the Group’s risk profile, including the health and safety performance of the business, in line
with the extent and categories of risk considered acceptable by the board.
Role of the SID – S Ashby-Rudd
^ Works closely with the chairman, acting as a sounding board and providing support.
^ Acts as an intermediary for other directors if and when necessary.
^ Is available to shareholders and other non-executives to address any concerns or issues they feel
have not been adequately dealt with through the usual channels of communication.
^ Meets at least annually with the non-executives to review the chairman’s performance and carry out
succession planning for the chairman’s role.
^ Attends sufficient meetings with major shareholders to obtain a balanced understanding of their
issues and concerns.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
33
Principle 9 continued:
Role of the COO – A Stuart
^ Oversees daily business operations.
^ Identifies means of improving operating procedures for optimal efficiency.
^ Assesses and enhances the efficiency of internal and external operational processes.
^ Leads and motivates staff to achieve organisational objectives.
^ Evaluates Company performance, and recommends strategies to improve results.
^ Seeks to identify business opportunities in line with Europa’s strategic goals.
^ Collaborates with directors and other stakeholders to raise capital and carry out other business-
expanding strategies.
Role of the company secretary – L Armstrong
^ Distributes documents to the board.
^ Is available to the Audit, Remuneration, Nominations, Strategy, ESG and Risk Committees as required.
^ Keeps accurate and timely minutes of meetings.
^ Updates Companies House records for the Company and subsidiaries.
Committee Terms of Reference and Matters Reserved for the board are available at:
http://www.europaoil.com/corporatedocuments.aspx
The board intends to continuously review its governance framework in line with the Company’s plans
for growth.
Principle 10:
Communicate how the Company
is governed and is performing
by maintaining a dialogue with
shareholders and other relevant
stakeholders
The main method for communicating financial and operational performance, and information about how
the Company is governed is via this audited Annual Report and the unaudited half-yearly Interim Report.
In addition, the Company communicates important information via press releases and updates to the
Company website and social media channels.
Past Notice of AGMs are available at http://www.europaoil.com/reportsandpresentations.aspx
Board
The board is responsible for the overall governance of the Company. Its responsibilities include setting the strategic direction of the Company,
providing leadership to put the strategy into action and supervising the management of the business.
The Board now comprises three non-executive directors (“NEDs”) and two executive directors, being the CEO and the COO. Biographies of the
directors are set out in the Board of directors section of this report. All three NEDs are considered by the board to be independent. The roles
and responsibilities of the chairman, CEO, senior independent director (“SID”), COO and company secretary are set out on the website and
summarised above.
B O’Cathain is non-executive chairman, S Ashby-Rudd is the senior independent director, E Rowley is non-executive director.
Terms of Reference
The Terms of Reference of all board committees are available on the website.
CHAIRMAN’S INTRODUCTION CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
34
Record of meetings
Meetings held and attendance records of all directors for the period 1 August 2023 to 31 July 2024 are set out below:
Board
Audit Committee
Remuneration
Committee
Nomination
Committee
ESG
Committee
Strategy
Committee
Risk Committee
Attended of
Possible
Attended of
Possible
Attended of
Possible
Attended of
Possible
Attended of
Possible
Attended of
Possible
Attended of
Possible
B O’Cathain
8/9
2/2
3/3
1/1
1/1
2/2
N/A
S Ashby-Rudd
5/5
1/1
3/3
1/1
0/0
2/2
N/A
E Rowley
2/2
N/A
N/A
N/A
0/0
1/1
N/A
W Holland
9/9
N/A
N/A
1/1
N/A
2/2
6/6
A Stuart
9/9
N/A
N/A
N/A
N/A
2/2
6/6
S Oddie
2/2
N/A
N/A
N/A
1/1
0/0
N/A
S Williams
2/2
1\1
N/A
N/A
1/1
0/0
N/A
Brian O’Cathain
Chairman
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
35
The Audit Committee meets
at least twice a year and is
chaired by S Ashby-Rudd
with B O’Cathain as the
other member. During the
year, the committee has
reviewed:
^ The internal financial control systems
and other internal control and risk
management systems;
^ The statements included in the Annual
Report concerning internal controls,
risk management and the going
concern statement;
^ The carrying values of producing and
intangible assets;
^ The adequacy and security of the
Company’s arrangements for its
employees and contractors to raise
concerns about possible wrongdoing in
financial reporting or other matters;
^ The procedures for detecting fraud;
^ The systems and controls for the
prevention of bribery;
^ The need for an internal audit function
and determined that at this stage, due to
the Company’s size and scale, an internal
audit function is not required.
The committee has overseen the relationship
with the external auditors, including:
^ Approved the remuneration for audit and
non-audit services;
^ Approved the terms of engagement and
the scope of the audit;
^ Satisfied itself that there are no
relationships between the auditor and
the Company which would adversely
affect the auditor’s independence and
objectivity;
^ Monitored the auditor’s processes for
maintaining independence, its compliance
with relevant UK law, regulation, other
professional requirements and ethical
standards, including guidance on the
rotation of audit partner and staff;
^ Assessed the qualifications, expertise,
resources, and independence of the
external auditor and the effectiveness
of the external audit process;
^ Evaluated the risks to the quality and
effectiveness of the financial reporting
process in the light of the external
auditor’s communications with the
Committee;
^ Met with the external auditor without
management present, to discuss the
auditor’s remit and any issues arising
from the audit;
^ Discussed with the external auditor
factors that could affect audit quality and
reviewed and approved the annual audit
plan, ensuring its consistency with the
scope of the audit engagement, having
regard to the seniority, expertise and
experience of the audit team.
The committee reviewed the findings of the
audit with the external auditor, including:
^ A discussion of issues which arose during
the audit, including any errors identified,
and the auditor’s explanation of how the
risks to audit quality were addressed;
^ Key accounting and audit judgements;
^ The auditor’s view of their interactions
with senior management;
^ A review of any representation letters
requested by the external auditor before
they were signed by management;
^ A review of the management letter and
management’s response to the auditor’s
findings and recommendations;
^ A review of the effectiveness of the
audit process, including an assessment
of the quality of the audit, the handling
of key judgements by the auditor, and
the auditor’s response to questions
from the Committee.
Simon Ashby-Rudd
Audit Committee Chair
AUDIT COMMITTEE REPORT
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
36
The Remuneration Committee reviews
the scale and structure of the executive
directors’ remuneration and the terms of their
service contracts. Remuneration and terms
and conditions of appointment of the non-
executive directors are set by the board.
S Ashby-Rudd chairs the committee
and B O’Cathain is the other member.
The Remuneration Committee met twice
in the year.
In setting the remuneration for the executive
directors and key staff, the Committee
compares published remuneration data for
other AIM oil and gas companies of a similar
market capitalisation and seeks to ensure
that the remuneration of the executive
directors is broadly comparable to their
peers in other similarly sized organisations.
In 2023/24:
^ There were no changes to remuneration
policy, pension rights or any
compensation payments.
^ Changes were made in pay across the
Company and Group.
^ An award under the executive bonus
scheme was made for the calendar
year 2023. A scheme for the calendar
year 2024 is in operation for the year
commencing 1 January 2024 following the
approval and setting of KPIs for the 2024
calendar year.
^ Options on issue to employees were
cancelled and a new Long Term Incentive
Plan (“LTIP”) put in place, the terms of
which are aligned to standard market
practice. Options were issued under this
new plan to five employees, these options
having a term of four years to vesting
date and being contingent on a share
price performance hurdle. This LTIP is only
available to employees, and not to non-
executive directors.
^ All options held by non-executive
directors were surrendered during the
year. No non-executive directors currently
hold any options in the Company’s stock.
Directors’ remuneration is set out in note 4
of the financial statements.
Simon Ashby-Rudd
Remuneration Committee Chair
The Nominations Committee reviews the
size, structure and composition of the
board and considers succession planning.
The committee identifies and nominates
candidates to fill board vacancies for
approval by the board.
B O’Cathain chairs the committee. S Ashby-
Rudd and W Holland are members. The
Nominations Committee met once in the year
and discussed and recommended:
^ That Dr. E Rowley be appointed to the
board as a NED.
Brian O’Cathain
Nominations Committee Chair
The Strategy Committee reviews the
Company’s progress in realising its strategic
objectives, and reviews opportunities,
initiatives, alliances and potential mergers.
W Holland chairs the Committee. B O’Cathain,
S Ashby-Rudd, E Rowley and A Stuart are
members. The Strategy Committee last sat in
July 2024 and its key decisions were:
^ Prioritisation of the EG-08 farm-out process.
^ To continue active assessment of the
optimisation of existing UK onshore assets.
^ Continued progression of the Ireland asset.
^ That the Company should continue to
seek new venture opportunities within
its financial means, and in this regard
continue to focus on West Africa.
William Holland
Strategy Committee Chair
REMUNERATION COMMITTEE REPORT
NOMINATIONS COMMITTEE REPORT
STRATEGY COMMITTEE REPORT
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
37
The Risk Committee meets six times per
year to review identified business risk
factors, any changes in the risk environment
and to ensure that appropriate mitigations
are in place. W Holland is Chair of the Risk
Committee, and A Stuart is a member.
Specific risks considered are weighted with
respect to probability of occurrence and
severity of business disruption in case of
occurrence. The Risk Committee reports
its bi-monthly determinations to the Audit
Committee and on to the full board.
William Holland
Risk Committee Chair
The ESG Committee reviews the ESG
policies and initiatives, ensuring they
remain effective and up to date, along
with ensuring compliance with legal and
regulatory requirements including corporate
governance principles and industry
standards. The board has adopted a
precautionary approach to ESG, identifying
and assessing the potential risks and impacts
of our operations on the world around us at
all stages of a project, and the oversight of
this lies with the ESG Committee.
The ESG Committee is chaired by
B O’Cathain, with S Ashby-Rudd and
E Rowley as members.
Environment – The board is committed to
ensuring that the environmental impacts of
its activities are taken into account and that
the Company is regarded as a good steward
of hydrocarbon resources. As such the ESG
Committee will consider how it can actively
reduce greenhouse gas emissions and
energy consumption in its activities.
Social – The committee will consider the
Company’s interactions with employees
and all stakeholders of the Company to
ensure that these relationships are being
appropriately managed and will consider
the role of the Company in society to ensure
that all groups impacted by the activities
of the business are given appropriate
consideration.
Governance – The ESG Committee is
responsible for ensuring that the appropriate
governance policies are in place. All relevant
policies relating to ESG shall be reviewed by
the committee and where the committee is
not satisfied it shall report its views to the board.
In 2023-24, the ESG Committee:
^ Determined to continue to evaluate
opportunities for viable renewable energy
activities at the West Firsby site.
^ Committed to continue to work toward
building out our ESG reporting framework.
^ Committed to continue working to
establish appropriate and comprehensive
data collection processes.
^ Reviewed metric and emissions targets.
^ Reviewed material for the website.
Brian O’Cathain
ESG Committee Chair
ESG COMMITTEE REPORT
RISK COMMITTEE REPORT
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
38
Audit
Committee
Role: receives
and reviews
reports from
management and
the Company’s
auditors relating
to the annual and
interim accounts
and the accounting
and internal
control systems
of the Company.
It has unrestricted
access to the
Company’s
external auditors.
Chair:
S Ashby-Rudd
Members:
B O’Cathain
Audit
Committee
Remuneration
Committee
Role: reviews the
scale and structure
of the executive
directors’
remuneration and
the terms of their
service contracts.
The remuneration
and terms and
conditions of
appointment of
the non-executive
directors are set
by the board.
Chair:
S Ashby-Rudd
Members:
B O’Cathain
Remuneration
Committee
Nominations
Committee
Role: reviews the
size, structure and
composition of the
board and gives
consideration
to succession
planning. The
committee
identifies and
nominates
candidates to fill
board vacancies
for approval of
the board.
Chair:
B O’Cathain
Members:
S Ashby-Rudd
W Holland
Nominations
Committee
ESG
Committee
Role: provides
an oversight of
the Company’s
ESG strategy and
activities. This
includes reviewing
ESG policies and
initiatives, ensuring
they remain
effective and up
to date.
Chair:
B O’Cathain
Members:
S Ashby-Rudd
E Rowley
ESG
Committee
Strategy
Committee
Role: provides
support to
the executive,
monitors progress
on strategy
implementation
and advises
on resource
requirements.
Chair:
W Holland
Members:
B O’Cathain
S Ashby-Rudd
E Rowley
A Stuart
Strategy
Committee
Role: reviews the
various risks faced
by the business,
assesses the
impact that each
risk presents
and identifies
mitigations
that could be
implemented. The
Risk Committee
reports to the
board
Chair:
W Holland
Members:
A Stuart
Strategy
Committee
Risk
Committee
Chairman
Brian O’Cathain
Independent Non-Executive
Chairman
Executive Directors
William Holland
Chief Executive Officer
Alastair Stuart
COO Executive Director
Non-Executive Directors
Simon Ashby-Rudd
Senior Independent Director
Dr Eleanor Rowley
Independent Non-Executive
Director
Your board of directors
Chairman
Executive Directors
Non-Executive Directors
BOARD OF DIRECTORS
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
39
Alastair Stuart,
Chief Operating Officer and
Executive Director
Appointed: April 2023
Skills and experience:
Alastair has over 30 years of experience in
operational, commercial and technical roles
in the energy sectors. He has been working
with Europa in a consultant capacity since
2012. As a 1982 graduate of Heriot-
Watt’s Masters programme in Petroleum
Engineering, he began his career with Total
CFP in Paris before joining Enterprise Oil in
1986, shortly after it was established, where
he focused on projects in the North Sea
and the Far East. He was later promoted to
New Ventures Manager, where he led the
evaluation and progression of new ventures
in South America, Eastern Europe and the
Far East. After ten years with Enterprise,
he worked briefly with Hardy Oil & Gas,
before setting up his own consulting group
in 1998 which developed processes and
systems for managing capital allocation
across large portfolios of investments in the
oil and gas, pharmaceutical and venture
capital sectors. Alastair consulted for many
years with Heritage Oil as Chief Petroleum
Engineer, where he was responsible for all
engineering matters relating to their
African portfolio.
Committee memberships:
Strategy and Risk.
William Holland,
Chief Executive Officer and
Executive Director
Appointed: June 2022
Skills and experience:
William is a proven industry leader with
a career spanning over 25 years in
the upstream sector. He started as an
engineer with Halliburton focused on
North Sea and West Africa operations
before moving into upstream banking
at Macquarie Bank. From 2013 he
ran a successful consulting business
which advised energy companies on
commercial, financial and M&A matters
before joining Europa in a full-time
capacity in 2022. William has significant
experience in corporate acquisitions,
establishing and growing small market
capitalisation E&P companies, debt
and equity financing, balance sheet
restructuring and investor relations,
much of which was gained working on
upstream deals across Africa, the UK
and Europe. This includes four years of
upstream operational experience living
in West Africa followed by over 15 years
of investing in West African businesses
and numerous M&A activities. He has
an engineering degree from Warwick
University and an MBA from Heriot-Watt
University.
Committee memberships:
Nominations, Strategy (Chair), and
Risk (Chair).
Members of the board of directors are listed
below, including their relevant experience,
skills and personal qualities. There is an
appropriate breadth of experience for
current activities covering the key aspects
of the business including technical,
operational, financial and international. It is
the responsibility of each director to keep
skills up to date with the assistance of the
chairman who has a core responsibility
in addressing the development needs
of the board as a whole with a view to
enhancing its overall effectiveness.
Board Committees call on external advisers
where this is deemed necessary. During
2023-24 the Remuneration Committee
sought advice on employee remuneration
from external advisers. The Nominated
Adviser is consulted on matters of adherence
to AIM regulations and MAR requirements
and associated disclosures.
The main internal advisory functions are
that of SID (S Ashby-Rudd) and company
secretary (L Armstrong).
BOARD OF DIRECTORS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
40
Brian O’Cathain,
Non-Executive Chairman
Appointed: January 2018
Skills and experience:
Brian has worked as a geologist and
petroleum engineer in the oil and gas
sector since 1984. He began his career
with Shell International and worked at
Enterprise Oil and Tullow Oil in senior roles.
He served as CEO of Afren plc to 2007,
and as CEO of Petroceltic International
plc until 2016. He was a non-executive
director of Eland Oil and Gas, an AIM
quoted company producing over 20,000
bopd in Nigeria, until its successful sale to
Seplat plc in December 2019. He is also a
non-executive director of Nephin Energy, a
private gas producing company which is a
large equity holder in the Corrib gas field in
Ireland. Nephin Energy is a 100% subsidiary
of Canadian Pension Plan Investment
Board, one of the world’s largest pension
funds with assets of US$473 billion (as of
30 June 2024) under management. He is
a founding director and chair of Causeway
Geothermal Limited, a geothermal
company.
His skills include fundraising, and the
technical, legal and financial aspects
of running a publicly listed oil and gas
company, and he brings a wealth of market
understanding to the table. He led and
negotiated the agreed nil-premium merger
of Petroceltic and Melrose Resources in 2012.
Brian holds a BSc (First Class) in Geology
from the University of Bristol.
Committee memberships:
ESG (Chair), Audit, Remuneration,
Nomination (Chair) and Strategy.
Simon Ashby-Rudd,
Non-Executive Director
Appointed: December 2023
Skills and experience:
Simon joined the board in December
2023 and has extensive experience in the
upstream energy sector which includes
30 years in investment banking roles
at large financial institutions, including
Dresdner Kleinwort Benson, Citigroup
and Standard Bank, where he was Global
Head of Oil & Gas. He was the founding
European partner at Tristone Capital,
which was a leading UK boutique M&A
and equity advisory firm before it was
acquired by Macquarie Bank. Simon has
significant global experience in advising
energy companies on corporate strategy
and capital structuring, and has spent
much of his career focused on Europe
and Africa.
Simon holds a B.Sc in Economics from
University College London.
Committee memberships:
Audit (Chair), ESG, Remuneration (Chair),
Nomination, and Strategy.
Dr Eleanor Rowley,
Non-Executive Director
Appointed: April 2024
Skills and experience:
Eleanor joined the board in April 2024
and has extensive experience in the
upstream energy sector working as
a geoscientist in both exploration
and development projects. She is a
proven hydrocarbon finder who has
been responsible for multiple impactful
discoveries in India, Cyprus, the Middle
East and North Africa, and has been
responsible for evaluating exploration and
appraisal opportunities across multiple
jurisdictions including sub-Saharan Africa.
Eleanor is currently Managing Director
at Capricorn Energy (Egypt), where she
was initially responsible for setting up
Capricorn’s business in Egypt, involving
a net investment of >US$300 million in
the last two calendar years, and now
manages that business, which averaged
gross production of 75 kboepd in 2023.
Prior to that, she held senior executive
positions with supermajors as well
as midsize and small E&P companies
in multiple geographies, including a
period as Vice President Exploration
(MENA & Caspian Southern Europe) at
TotalEnergies where she was responsible
for the region’s exploration and appraisal
projects, new business development
strategy, exploration operations and
technical excellence.
Eleanor holds a BA in Earth Science
from Oxford University and a PhD in
Geophysics from Cambridge University.
Committee memberships:
ESG and Strategy.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
41
Business review
A detailed review of the Group’s business is set out in the Chairman’s statement and Our strategy.
Future developments
Details of expected future developments for the Group are set out in the Chairman’s statement and Our strategy.
Dividends
The directors do not recommend the payment of a dividend (2023: £nil).
Directors and their interests
The directors’ interests in the share capital of the Company at 31 July were:
Number of ordinary shares
Number of ordinary share options
2024
2023
2024
2023
BJ O’Cathain
1,467,948
1,467,948
–
2,950,000
SG Oddie
–
3,384,615
–
9,200,000
SA Williams
–
141,131
–
2,500,000
WP Holland
5,023,316
1,308,357
20,000,000
7,721,000
AM Stuart
710,000
210,000
15,000,000
–
E Rowley
–
–
–
–
S Ashby-Rudd
–
–
–
–
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 above, 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.
Significant shareholdings
Significant direct and indirect interests in the issued share capital of the Company above 3% are shown in this report under the Chairman’s
introduction to governance and are also available and updated quarterly at https://www.europaoil.com/investors/aim-rule-26/.
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. No new accounting standards were adopted in the period.
Disclosure of information to the auditor
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 auditor was unaware; and
^ That director had taken all necessary steps to make themselves aware of any relevant audit information, and to establish that the Company’s
auditor was aware of that information.
Auditor
PKF Littlejohn LLP was reappointed as the auditor of the Company at the Annual General Meeting that was held on 23 November 2023 and a resolution
to re-appoint PKF Littlejohn LLP as auditors for the period through to the end of the Company’s 2025 AGM will be proposed at the Company’s
2024 Annual General Meeting.
On behalf of the board
William Holland, CEO, 25 October 2024
DIRECTORS’ REPORT
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
42
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 UK adopted International Accounting Standards. 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 AIM.
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 UK adopted International Accounting Standards, subject to any material
departures disclosed and explained in the financial statements; and
^ 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.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
43
Opinion
We have audited the financial statements of Europa Oil & Gas (Holdings) plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year
ended 31 July 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statement
of Financial Position, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company
Statements of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that
has been applied in their preparation is applicable law and UK-adopted international accounting standards and as regards the parent company
financial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
^ the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 July 2024 and of the
group’s loss for the year then ended;
^ the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
^ the parent company financial statements have been properly prepared in accordance with UK-adopted international accounting standards
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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are
independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to note 1 in the financial statements, which indicates that conditions exist that may cast doubt on the group’s ability to
continue as a going concern. The group incurred a loss of £6,781,000 (2023: £852,000) and incurred operating cash outflows of £613,000
(2023: cash inflows of £2,748,000) and is not expected to generate positive cash inflows from the operations in the 12 months from the date at
which these financial statements were signed. As stated in note 1, these events or conditions, along with the other matters as set forth in note 1,
indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of
the financial statements is appropriate. Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going
concern basis of accounting included:
^ obtaining budgets for at least a 12-month period from the date of approval of the financial statements, ascertaining the key assumptions in
the preparing of this forecast/budget and assessing the reasonableness of such assumptions along with undertaking a sensitivity analysis;
^ comparing previous budgets to performance to assess the reliability of such forecast/budgets.
^ Obtaining the directors’ going concern assessment and evaluating the appropriateness of this assessment; and
^ Reviewing of external market factors affecting the group and its future economic viability, such as the energy transition, and ensuring this is
appropriately reflected in management’s forecasts.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. At the planning
stage materiality is used to determine the financial statements areas that are included within the scope of our audit and the extent of sample
sizes during the audit.
We consider gross assets to be the most significant determinant of the group’s financial position and performance used by shareholders, with the key
financial statement balances being exploration assets and producing assets. The ability of the group to continue as a going concern depends
on its means of funding operations going forward, as well as on the valuation of its assets, which represent the underlying value of the group.
Materiality for the financial statements as a whole was £146,000 (2023: £259,000) based on a benchmark of 1.5% (2023: 1.5%) of gross assets.
The same basis for calculation was used for the components of the group, with the parent company materiality set at £145,900 (2023: £258,990)
and for the remaining components between £18,000 and £145,900 (2023: £19,000; £256,000). Performance materiality for the group and its
components was set at 70% (2023: 70%) of the overall materiality figure, as determined from our risk assessment for 2024, being £102,200,
£102,130 and £12,600 to £102,130 for the group, parent company and remaining components respectively (2023: £181,000; £180,990; £13,000;
£179,000).
We agreed with the audit committee that we would report to the committee al audit differences identified during the course of our audit in
excess of £7,300 for the group as well as differences below these thresholds that, in our view, warranted reporting on qualitative grounds.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF EUROPA OIL & GAS (HOLDINGS) PLC
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
44
Our approach to the audit
Our audit is risk based and is designed to focus our efforts on the areas at greatest risk of material misstatement, aspects subject to significant
management judgement as well as greatest complexity, risk and size.
As part of designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the financial statements.
In particular, we looked at areas involving significant accounting estimates and judgement by the directors and considered future events that
are inherently uncertain. These areas of estimate and judgement included:
^ the carrying value of exploration and evaluation assets (identified as a key audit matter)
^ the carrying value of producing assets (identified as a key audit matter)
^ the carrying value of intercompany receivables at the parent company level (identified as a key audit matter)
^ the valuation of decommissioning provision
^ the valuation of share based payments
We also addressed the risk of management override of internal controls, including among other matters consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
The scope of our audit was based on the significance of component’s operations and materiality. Each component was assessed as to whether
they were significant or not to the group by either their size or risk.
A few subsidiaries have been assessed as significant components of the group however all subsidiaries have been subject to full scope audits
for statutory purposes.
All audit work was conducted by the group audit team in London.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including
those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to
going concern section we have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our scope addressed this matter
Accuracy and valuation of the carrying value of the group’s capitalised exploration costs (Note 11)
The group has intangible assets in
relation to capitalised exploration costs
in respect of the licences held. There is
the risk that the asset is overstated as
a result of additions being incorrectly
capitalised though not meeting the
criteria as per IFRS 6 and indicators
of impairment may exist as at 31 July
2024 which would trigger the need for
impairment.
Particularly for early stage exploration
projects where the calculation of
recoverable amount via value in use
calculations is not possible, management’s
assessment of impairment under IFRS 6
requires estimation and judgement.
This is therefore considered to be a
key audit matter due to the significant
judgement and estimates involved in
assessing whether any indicators of
impairment have arisen at the year end,
and in quantifying any potential impairment.
Our work in this area included:
^ Substantive testing of a sample of exploration and evaluation expenditures to assess their
eligibility for capitalisation under IFRS 6 by corroborating to original source documentation;
^ Confirmation that the entity holds good title to the relevant licence areas for the period
under review;
^ Making enquiries of management regarding future plans for each project including obtaining
cashflow projections where necessary and corroborating to minimum spend requirements
attached to licences, where appropriate;
^ Considering whether there are indications of impairment on a project by project basis in
accordance with IFRS 6 criteria;
^ Assessing the farm-out agreements in place, their accounting and disclosures;
^ Reviewing management’s impairment assessment and latest Competent Person’s report for
indicators of impairment in respect of the carrying value of intangible assets and providing
challenge thereto and corroborating key assumptions used; and
^ Ensuring disclosures made in the financial statements in relation to critical accounting
estimates and judgements are adequate and in line with our understanding of the Group
and its activities.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
45
Key audit matter
How our scope addressed this matter
Accuracy and valuation of the carrying value of the group’s property, plant and equipment (PPE) (Note 12)
There is a risk that the carrying value
of the group’s Oil & Gas assets are
overstated at the year end as it is one
of the material balances in the financial
statements.
This is considered to be a key audit
matter due to the significant judgement
and estimates involved in assessing
whether any impairment has arisen at
the year end, and in quantifying any
such impairment.
The volatile nature of long-term oil prices
give rise to an increased risk, especially
in the circumstances of the group being
its key source of revenue and cash
generation and the decrease in the Brent
Crude price over the financial year.
Changes in macroeconomic factors
would increase the risk of inappropriate
interest and discount rates used as
working assumptions in the value in use
calculation of the producing assets, thus
inflating the value of the assets. These
changes include the energy crisis driven
by Russia’s invasion of Ukraine and the
introduction of Labour government who
wish to minimise exploration activities in
the interest of net-zero goals.
Our work in this area included:
^ Assessing the process used by management to derive their internal Reserves and Contingent
Resources estimates and associated production profiles for each of the four scenarios;
^ Reviewing the Competent Person Report (“CPR”) in place, assessing the scope of work,
including an evaluation of the competence, capabilities and independence of the CPR;
^ Reviewing management’s internal production forecasts to the CPR and assessing the
appropriateness of any differences which arise;
^ Reviewing management’s impairment review/net present value workings including oil price
assumptions against readily available market data and trends (such as Platts price data) in
order to challenge the validity of forecasted prices. In addition, consideration of external
market factors and the impact on the valuation of the oil and gas assets held, such as the
energy transition, demand and climate change;
^ Discussing with PKF internal valuation experts to independently develop a reasonable range
of discount rates for the assets and compared to the discount rate applied by management;
^ Assessing any further management assumptions by reference to third party information, our
knowledge of the group and industry and also budgeted and forecast performance;
^ Verifying the existence of a sample of asset additions and confirming appropriate
classification in line with UK-adopted IAS; and
^ Assessing whether management’s presentation and disclosures relating to estimation
uncertainty and PPE balances are adequate.
Carrying value of investments in subsidiaries and recoverability of intragroup balances (Company only) - (Note 15)
Investments in intercompany balances at
the year end represent a material asset
on the company’s books. Recoverability
depends on management’s assumptions
regarding the future performance of
subsidiaries which are in turn dependent
on the market conditions
and performance of the group.
There is the risk that these intercompany
balances may not be recoverable and
may be impaired.
This is therefore considered to be a
key audit matter due to the significant
judgement and estimates involved in
assessing whether any indicators of
impairment have arisen at the year
end, and in quantifying any potential
impairment.
Our work in this area included:
^ Reviewing management’s impairment assessment of investments held, testing key inputs
to supporting documentation and challenging key inputs and estimates included therein;
^ Agreeing investment holdings to underlying documentation to support current ownership;
^ Assessing the net asset values of the counterparty of which the loan is held;
^ Reconciling the intercompany balances to the intercompany matric and respective audited
trial balances;
^ Reviewing the implication of IFRS 9 and expected credit loss provisioning on the
intercompany balances and ensuring adequate disclosure in the financial statements.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF EUROPA OIL & GAS (HOLDINGS) PLC CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
46
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report
thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the group and parent
company financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do
not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
^ the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
^ the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which 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.
Responsibilities of directors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the group and parent
company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the group and parent company financial statements, the directors are responsible for assessing the group and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic
alternative but to do so.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
47
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below:
^ We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and regulations that
could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through
discussions with management, industry research and application of cumulative audit knowledge and experience of the sector.
^ We determined the principal laws and regulations relevant to the group and parent company in this regard to be those arising from
•
Companies Act 2006;
•
Control of Major Accident Hazards Regulations
•
Anti Money Laundering Legislation
•
Local Tax laws and regulations
•
AIM Rules
•
Employment Law
•
Bribery Act
•
Environmental Law
^ We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the
group and parent company with those laws and regulations. These procedures included, but were not limited to:
•
A review of the board minutes throughout the year and post year end;
•
A review of the RNS announcements;
•
A review of legal expenses per general ledger transactions; and
•
Discussion with management
^ We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-
rebuttable presumption of a risk of fraud arising from management override of controls, the carrying value of the assets held to be an
area of potential for management bias. Whilst the carrying value of the assets is held at historical cost, management must consider the
impairment indicators under IFRS 6 and IAS 36 and the potential need to conduct a formal impairment review. Being the key balance within
these financial statements, and the key driver for the business, this gives rise to an increased risk of material misstatement as a result of
management bias. Supporting evidence has been obtained for an appropriate sample of additions throughout the year, and a detailed
impairment assessment has been undertaken by management against those indicators as set out per IFRS 6 and IAS 36 and ensured that
the carrying value is appropriate.
^ As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which
included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business
rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material
misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or
regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware
of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
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.
Nicholas Joel (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor, 25 October 2024
15 Westferry Circus
Canary Wharf
London E14 4HD
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF EUROPA OIL & GAS (HOLDINGS) PLC CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
48
Note
2024
£000
2023
£000
Continuing operations
Revenue
2
3,566
6,653
Cost of sales
2
(3,117)
(3,448)
Impairment of producing fields
12
(189)
177
Total cost of sales
(3,306)
(3,271)
Gross profit
260
3,382
Exploration impairment
11
(4,968)
(1,686)
Administrative expenses
(1,855)
(1,872)
Share of loss from associate
(2)
–
Finance income
6
223
9
Finance expense
7
(439)
(717)
Loss before taxation
3
(6,781)
(884)
Taxation expense
8
–
32
Loss for the year
(6,781)
(852)
Other comprehensive (loss)/profit
Items which will not be reclassified to profit /(loss)
Profit on investment revaluation
9
–
5
Items which may be reclassified to profit/(loss)
Exchange differences on translation of foreign operations
(17)
–
Total other comprehensive (loss)/profit
(17)
5
Total comprehensive (loss)/income for the year attributable to the equity shareholders of the parent
(6,798)
(847)
Note
Pence
per share
Pence
per share
Earnings per share (“EPS”) attributable to the equity shareholders
of the parent from continuing operations
Basic EPS
10
(0.71)p
(0.09)p
Diluted EPS
(0.71)p
(0.09)p
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
49
Note
2024
£000
2023
£000
Assets
Non-current assets
Intangible assets
11
2,664
7,146
Property, plant and equipment
12
1,928
2,417
Investments in joint ventures
13a
2,406
–
Total non-current assets
6,998
9,563
Current assets
Inventories
14
9
19
Trade and other receivables
15
1,309
893
Cash and cash equivalents
1,463
5,165
Total current assets
2,781
6,077
Total assets
9,779
15,640
Liabilities
Current liabilities
Trade and other payables
16
(1,387)
(781)
Total current liabilities
(1,387)
(781)
Non-current liabilities
Trade and other payables
16
(6)
(12)
Long-term provisions
19
(4,607)
(4,368)
Total non-current liabilities
(4,613)
(4,380)
Total liabilities
(6,000)
(5,161)
Net assets
3,779
10,479
Capital and reserves attributable to equity holders of the parent
Share capital
20
9,592
9,592
Share premium
20
23,682
23,682
Merger reserve
20
2,868
2,868
Foreign currency translation reserve
20
(17)
–
Retained deficit
(32,346)
(25,663)
Total equity
3,779
10,479
These financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and signed on its behalf by:
William Holland
CEO
Company registration number 05217946
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
50
Attributable to the equity holders of the parent
Share
capital
£000
Share
premium
£000
Merger
reserve
£000
FCTR
£000
Retained
deficit
£000
Total
equity
£000
Balance at 1 August 2022
9,565
23,660
2,868
–
(24,864)
11,229
Comprehensive loss for the year
Loss for the year attributable to the equity shareholders
of the parent
–
–
–
–
(852)
(852)
Other comprehensive profit attributable to the equity
shareholders of the parent
–
–
–
–
5
5
Total comprehensive loss for the year
–
–
–
–
(847)
(847)
Contributions by and distributions to owners
Issue of share capital (net of issue costs)
27
22
–
–
–
49
Share-based payments (note 21)
–
–
–
–
48
48
Total contributions by and distributions to owners
27
22
–
–
48
97
Balance at 31 July 2023
9,592
23,682
2,868
–
(25,663)
10,479
Balance at 1 August 2023
9,592
23,682
2,868
–
(25,663)
10,479
Comprehensive loss for the year
Loss for the year attributable to the
equity shareholders of the parent
–
–
–
–
(6,781)
(6,781)
Other comprehensive loss attributable to the
equity shareholders of the parent
–
–
–
(17)
–
(17)
Total comprehensive loss for the year
–
–
–
(17)
(6,781)
(6,798)
Contributions by and distributions to owners
Share-based payments (note 21)
–
–
–
–
98
98
Total contributions by and distributions to owners
–
–
–
–
98
98
Balance at 31 July 2024
9,592
23,682
2,868
(17)
(32,346)
3,779
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
51
Note
2024
£000
2023
£000
Assets
Non-current assets
Property, plant and equipment
12
37
49
Investments
13b
2,343
2,343
Investments in joint ventures
13a
2,425
–
Amounts due from Group companies
15,22
5,502
22,143
Total non-current assets
10,307
24,535
Current assets
Other receivables
15
236
129
Cash and cash equivalents
164
121
Total current assets
400
250
Total assets
10,707
24,785
Liabilities
Current liabilities
Trade and other payables
16
(436)
(250)
Total current liabilities
(436)
(250)
Trade and other payables
16
(6)
(12)
Total non-current liabilities
(6)
(12)
Total liabilities
(442)
(262)
Net assets
10,265
24,523
Capital and reserves attributable to equity holders of the parent
Share capital
20
9,592
9,592
Share premium
20
23,682
23,682
Merger reserve
20
2,868
2,868
Retained deficit
(25,877)
(11,619)
Total equity
10,265
24,523
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 loss dealt with in the financial statements of the parent Company is £14,356,000
(2023: £8,964,000 profit).
These financial statements were approved by the board of directors and authorised for issue on 25 October 2024, and signed on its behalf by:
William Holland
CEO
Company registration number 05217946
The accompanying notes form part of these financial statements.
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
52
Share
capital
£000
Share
premium
£000
Merger
reserve
£000
Retained
deficit
£000
Total
equity
£000
Balance at 1 August 2022 originally stated
9,565
23,660
2,868
(20,631)
15,462
Comprehensive profit for the year
Profit for the year attributable to the equity shareholders of the parent
–
–
–
8,964
8,964
Total comprehensive profit for the year
–
–
–
8,964
8,964
Contributions by and distributions to owners
Issue of share capital (net of issue costs)
27
22
–
–
49
Share-based payments (note 21)
–
–
–
48
48
Total contributions by and distributions to owners
27
22
–
48
97
Balance at 31 July 2023
9,592
23,682
2,868
(11,619)
24,523
Balance at 1 August 2023 originally stated
9,592
23,682
2,868
(11,619)
24,523
Comprehensive profit for the year
Loss for the year attributable to the equity shareholders of the parent
–
–
–
(14,356)
(14,356)
Total comprehensive profit for the year
–
–
–
(14,356)
(14,356)
Contributions by and distributions to owners
Issue of share capital (net of issue costs)
–
–
–
–
–
Share-based payments (note 21)
–
–
–
98
98
Total contributions by and distributions to owners
–
–
–
98
98
Balance at 31 July 2024
9,592
23,682
2,868
(25,877)
10,265
The accompanying notes form part of these financial statements
COMPANY STATEMENT OF CHANGES IN EQUITY
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
53
Note
2024
£000
2023
£000
Cash flows from/(used in) operating activities
Loss after tax from continuing operations
(6,781)
(852)
Adjustments for:
Share-based payments
21
98
48
Depreciation
12
781
1,133
Impairment/(reversal) of producing field
12
189
(177)
Exploration impairment
11
4,968
1,686
Share of loss from joint venture
2
–
Finance income
(223)
–
Finance expense
7
439
717
Taxation expense recognised in profit and loss
8
–
(32)
(Increase)/decrease in trade and other receivables
(416)
973
Decrease in inventories
10
17
Increase/(decrease)in trade and other payables
320
(765)
Net cash (used in)/generated by operations
(613)
2,748
Income taxes paid
–
32
Net cash (used in)/generated by operating activities
(613)
2,780
Cash flows from/(used in) investing activities
Purchase of property, plant and equipment
(679)
(564)
Purchase of intangible assets
(486)
(5,047)
Investment in joint venture
13
(2,138)
–
Cash guarantee re Morocco
–
263
Cash escrow deposit re Serenity
–
6,622
Net cash (used in)/generated from investing activities
(3,303)
1,274
Cash flows (used in)/from financing activities
Gross proceeds from issue of share capital
20
–
49
Proceeds from borrowings
–
1,000
Repayment of borrowings
–
(1,040)
Lease liability payments
(7)
(20)
Lease liability interest payments
(1)
(2)
Finance costs
(1)
(35)
Disposal of listed shares
–
29
Net cash used in financing activities
(9)
(19)
Net (decrease)/increase in cash and cash equivalents
(3,925)
4,035
Exchange gain/(loss) on cash and cash equivalents
223
(264)
Cash and cash equivalents at beginning of year
5,165
1,394
Cash and cash equivalents at end of year
1,463
5,165
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
54
Note
2024
£000
2023
£000
Cash flows used in operating activities
(Loss)/profit after tax from continuing operations
(14,356)
8,964
Adjustments for:
Share-based payments
21
98
48
Depreciation
12
26
38
Movement in intercompany loan provision
22
15,567
(7,997)
Finance income
(2,333)
(1,928)
Finance expense
1
13
(Increase)/decrease in trade and other receivables
(105)
36
Decrease in trade and other payables
(101)
(273)
Net cash used in operating activities
(1,203)
(1,099)
Cash flows from/(used in) investing activities
Purchase of property, plant and equipment
(14)
(61)
Investment in joint venture
(2,138)
–
Movement on loans to Group companies
3,407
1,052
Net cash flows generated from investing activities
1,255
991
Cash flows used in financing activities
Gross proceeds from issue of share capital
20
–
49
Proceeds from borrowings
–
1,000
Repayment of borrowings
–
(1,040)
Lease liability principal payment
(7)
(15)
Lease liability interest payment
(1)
(1)
Finance costs
(1)
(13)
Net cash used in financing activities
(9)
(20)
Net increase/(decrease) in cash and cash equivalents
43
(128)
Cash and cash equivalents at beginning of year
121
249
Cash and cash equivalents at end of year
164
121
The accompanying notes form part of these financial statements.
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
55
1. Accounting policies
General information
Europa Oil & Gas (Holdings) plc is a public company incorporated and domiciled in England and Wales, limited by shares, with registered
number 05217946. The address of the registered office is 30 Newman Street, London, W1T 1PT. The principal activity of the Company is oil
and gas exploration, appraisal, development and production.
The functional and presentational currency of the Company is Sterling (UK£), which is also the presentational currency of the Group.
Basis of accounting
The consolidated and individual Company financial statements have been prepared in accordance with applicable UK adopted International
Accounting Standards.
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 2024.
Going concern
The directors have prepared a cash flow forecast for the period ending 31 October 2025 (the “going concern period”), which considers the
continuing and forecast cash inflow from the Group’s producing assets, the cash held by the Group at October 2024, less administrative
expenses and planned capital expenditure.
As at 31 July 2024 the Group had cash of £1.5 million and net current assets of £1.4 million and no borrowings.
Oil price estimates for the base case cash flow forecast are based on the Quarter 3 ERCE forward price curve, which assumes an average oil
price in 2025 of $81.70 per barrel, whilst production estimates are sourced from the January 2024 Competent Person’s Report for Wressle and
augmented by the Group’s internal modelling taking into account recent actual production. The Group has planned, but as yet not-committed,
capital expenditures related to its projects for which the timing of the expenditure is uncertain and depends on factors outside the control of
the Group, such as being granted planning consents and permits to conduct operations. The directors have considered multiple scenarios
in relation to the timing of expenditures, including capital expenditure. The directors have also stress tested various cash flow scenarios with
extreme downside assumptions such as a $65 per barrel oil price and a 50% reduction in Wressle volumes.
For the going concern period the Group has forecast expenditure, including potential capital expenditure, in excess of its currently available
cash resources and cash inflows from its producing assets. For the Group to pursue all of its capital projects in a timely and efficient manner it
is likely to require additional funding during the going concern period to enable it to meet its obligations as they fall due. In addition, should
either or both of the extreme downside scenarios materialise, the need for further funding could be accelerated.
Having considered the prepared cash flow forecasts, likely availability of investor support and asset-backed debt, the directors consider that
they will have access to adequate resources during the going concern period. As a result, they consider it appropriate to continue adopting
the going concern basis in the preparation of the financial statements.
There can be no assurance that the cash received from fundraises and debt issuance will match the directors’ expectations, and this may affect
the Group’s ability to carry out its work programmes as expected.
Should the Group and Company be unable to continue trading as a going concern, adjustments would have to be made to reduce the value
of the assets to their recoverable amounts, to provide for further liabilities which might arise and to classify non-current assets as current. The
financial statements have been prepared on the going concern basis and do not include the adjustments that would result if the Group and
Company were unable to continue as a going concern.
The directors have concluded, as at the date of approval of these financial statements, that there is a reasonable expectation that the Group
and Company will still have sufficient cash resources to be able to continue as a going concern and meet its obligations as and when they fall
due over the going concern period.
Basis of consolidation
Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following
elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power
to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of
these elements of control. 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 operations.
Joint arrangements
Joint arrangements are those arrangements 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
IFRS 11. The Group’s exploration, development and production activities are presently conducted jointly with other companies in this way.
For the licences where the Group does not hold 100% equity (refer to the licence interests table) a joint arrangement exists.
The equity and voting interest of the Group is disclosed in the table, and activities are typical for activities in the oil and gas sector and are
strategic to the Group’s activities. The principal place of business for all the joint arrangements is the UK.
NOTES TO THE FINANCIAL STATEMENTS
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
56
1. Accounting policies (continued)
Investments in joint ventures
Investments in joint ventures shall be recognised when the Group has joint control and rights to the net assets of the arrangement. The equity
method of accounting will be applied to investments in joint ventures. Under this method, the Group’s investment is initially recognised at cost,
including direct incremental transaction costs, and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of
the joint venture. The Group’s share of joint ventures’ profit or loss is recognised in the Group’s statement of comprehensive income. Where
necessary, adjustments are made to the financial statements of joint ventures to bring the accounting policies used into line with those of
the Group. Distributions received from joint ventures will reduce the carrying amount of the investments. Unrealised gains or losses on other
transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in them. At each reporting date, the
Group will assess whether there is any indication that investments in joint ventures may be impaired. An impairment loss will be recognised
when the recoverable amount of the investment is less than its carrying amount. The Company will recognise its investment in the joint venture
at cost less impairment losses.
Revenue recognition
The Group follows IFRS 15. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard
is that an entity shall recognise revenue when control passes on the transfer of promised goods or services to customers at an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a
new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. This is
described further in the accounting policies below. Contracts with customers are presented in an entity’s balance sheet as a contract liability,
a contract asset, or a receivable, depending on the relationship between the entity’s performance and the customer’s payment. The Group’s
accounting policy under IFRS 15 is that revenue is recognised when the Group satisfies a performance obligation by transferring oil to a customer.
The title to oil and gas typically transfers to a customer at the same time as the customer takes physical possession of the oil or gas. Typically,
at this point in time, the performance obligations of the Group are fully satisfied.
Revenue is measured based on the consideration to which the Group expects to be entitled under the terms of a contract with a customer.
The consideration is determined by the quantity and price of oil and gas delivered to the customer at the end of each month.
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. The unit of account for exploration
and evaluation assets is the individual licence.
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 on a licence-by-licence
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 technical feasibility and commercial viability. On commencement of production these costs are tested for
impairment prior to transfer to production assets. If licences are relinquished, or assets are not deemed technically feasible or commercially
viable, accumulated costs are written off to cost of sales.
Production assets
Production assets are categorised 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 11 and 12. As a result, some assets are tested individually for impairment and some are tested at cash
generating unit level.
Impairment tests are performed when indicators as described in IAS 36 are identified. In addition, indicators such as a lack of funding or farm-out
options for a licence which is approaching termination or the implied value of a farm-out transaction are considered as indicators of impairment.
An impairment loss is recognised and charged to cost of sales 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. All assets are subsequently reassessed for indications that an impairment loss
previously recognised may no longer exist or have decreased. A previously recognised impairment loss is reversed only if there has been
a change in the assumptions used to determine the asset’s or cash generating unit’s recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount of the asset or cash generating unit does not exceed either its recoverable
amount, or the carrying amount that would have been determined, net of depreciation/amortisation, had no impairment loss been recognised
for the asset or cash generating unit in prior years. Such a reversal is credited to cost of sales.
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.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
57
1. Accounting policies (continued)
Non-current assets (continued)
Depreciation
All expenditure within tangible non-current assets 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.
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.
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.
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 12) 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. The discount rate used is the risk-free rate, adjusted for risks that are not already
included in the forecast cash flows. 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.
Acquisitions of exploration licences
Acquisitions of exploration licences through acquisition of non-operational corporate structures that do not represent a business, and therefore
do not meet the definition of a business combination, are accounted for as the acquisition of an asset. Related future consideration that is
contingent is not recognised as an asset or liability until the contingent event has occurred.
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.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
58
1. Accounting policies (continued)
Foreign currency (continued)
Europa Oil & 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 and Ireland 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.
Financial instruments
Financial assets and financial liabilities are recognised in the statement of financial position when the Group becomes a party to the contractual
provisions of the instrument.
Financial assets
Financial assets are classified as either financial assets at amortised cost, at fair value through other comprehensive income (“FVTOCI”) or at
fair value through profit or loss (“FVPL”) depending upon the business model for managing the financial assets and the nature of the contractual
cash flow characteristics of the financial asset.
A loss allowance for expected credit losses is determined for all financial assets, other than those at FVPL, at the end of each reporting
period. The Group applies a simplified approach to measure the credit loss allowance for trade receivables using the lifetime expected credit
loss provision. The lifetime expected credit loss is evaluated for each trade receivable taking into account payment history, payments made
subsequent to year end and prior to reporting, past default experience and the impact of any other relevant and current observable data. The
Group applies a general approach on all other receivables classified as financial assets. The general approach recognises lifetime expected
credit losses when there has been a significant increase in credit risk since initial recognition.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of ownership of the asset to another party. The Group derecognises financial liabilities when
the Group’s obligations are discharged, cancelled or have expired.
Fair value through other comprehensive income
The Group has a number of strategic investments in listed and unlisted entities which are not accounted for as subsidiaries, associates or
jointly controlled entities. For those investments, the Group has made an irrevocable election to classify the investments at fair value through
other comprehensive income rather than through profit or loss as the Group considers this measurement to be the most representative of
the business model for these assets. They are carried at fair value with changes in fair value recognised in other comprehensive income
and accumulated in the fair value through other comprehensive income reserve. Upon disposal any balance within fair value through other
comprehensive income reserve is reclassified directly to retained earnings and is not reclassified to profit or loss.
Dividends are recognised in profit or loss, unless the dividend clearly represents a recovery of part of the cost of the investment, in which
case the full or partial amount of the dividend is recorded against the associated investment’s carrying amount.
Purchases and sales of financial assets measured at fair value through other comprehensive income are recognised on settlement date
with any change in fair value between trade date and settlement date being recognised in the fair value through other comprehensive
income reserve.
Amortised cost
This category is the most relevant to the Company. Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. The losses arising from impairment are recognised in a separate line in the income
statement. This category generally applies to trade and other receivables.
Cash and cash equivalents
Cash and cash equivalents are carried at cost and include all highly liquid investments with a maturity of three months or less.
Restricted cash are those amounts held by third parties on behalf of the Group and are not available for the Group’s use; these are recognised
separately from cash and cash equivalents on the balance sheet.
Financial liabilities
The classification of financial liabilities at initial recognition depends on the purpose for which the financial liability was issued and its
characteristics. All purchases of financial liabilities are recorded on the trade date, being the date on which the Group becomes party to the
contractual requirements of the financial liability. Unless otherwise indicated the carrying amounts of the Group’s financial liabilities approximate
to their fair values. The Group’s financial liabilities consist of financial liabilities measured at amortised cost and financial liabilities at fair value
through profit or loss.
Trade and other payables
Trade and other payables are initially recorded at fair value and subsequently carried at amortised cost.
Derecognition of financial liabilities
A financial liability (in whole or in part) is derecognised when the Group has extinguished its contractual obligations, it expires or is cancelled.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
59
Any gain or loss on derecognition is taken to the statement of comprehensive income.
1. Accounting policies (continued)
Treatment of finance costs
All finance costs are expensed through the income statement. The Group does not incur any finance costs that qualify for capitalisation.
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.
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:
Critical accounting judgements
^ Carrying value of intangible assets (note 11) – carrying values are justified with reference to indicators of impairment as set out in IFRS 6.
Based on judgements at 31 July 2024 there was £4,968k write off (2023: £1,686k). On 13 September 2024 the Company announced that
it does not intend to apply to the North Sea Transition Authority for an extension to the Serenity licence, which expired on 30 September
2024. The directors considered this an adjusting event in relation to the year ended 31 July 2024 and as a result, the incurred costs
associated with Serenity that the Company has capitalised on its balance sheet were written off.
The Phase 1 period of the FEL 4/19 licence was extended on 29 January 2024 for a further period until 31 January 2026. The impairment
indicator in relation to the near-term expiry date of the licence that existed as at 31 July 2023 no longer existed as at 31 January 2024.
^ Carrying value of investment in joint venture (note 13a) – the investment in Antler Global Limited was assessed to establish whether the
investment may be impaired with consideration of the principles in IAS28 and IAS36. In making this assessment management applies
judgement to evaluate both external and internal sources of information, including the financial performance of the joint venture, market
conditions, changes in the operating environment in which the joint venture operates and other relevant factors. Based on the current
review, the directors have not identified any indicators of impairment in relation to this investment in the joint venture as at 31 July 2024.
Critical accounting estimates
^ Carrying value of property, plant and equipment (note 12) – carrying values are justified by reference to future estimates of cash flows,
discounted at appropriate rates. The directors estimate variables such as reserves volumes, future oil prices, future capital and operating
expenditure and discount rates. The directors rely on third party formal reports and historical reservoir performance to establish the
appropriate reserves volumes and production profiles to use in estimating future cash flows. Future costs are based on internal or joint venture
budgets, and discount rates are estimated with reference to applicable external and internal data sources. The directors utilise management’s
view on external analyst datasets in relation to oil and gas price forecasts. At 31 July 2024 there was an net impairment of £189k of producing
assets, comprising mainly the impairment of workover costs incurred in relation to the Crosby Warren field (2023: £177k impairment reversal).
^ Deferred taxation (note 20) – assumptions regarding the future profitability of the Group and whether the deferred tax assets will be recovered.
^ Decommissioning provision (note 21) – inflation and discount rate estimates (3% and 10% respectively) are used in calculating the provision,
along with third party estimates of remediation costs.
^ Share-based payments (note 23) – measurement of the fair value of options granted uses valuation techniques where active market quotes are not
available. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management
bases its assumptions on observable data as far as possible but this is not always available. In that case, management uses the best information
available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.
^ Reserves and resources (note 12) – reserves and resources are estimated based on management’s view and third-party formal reports and
these estimates directly impact the recoverability of asset carrying values that are reported in the financial statements.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
60
2. Operating segment analysis
In the opinion of the directors the Group has four reportable segments as reported to the chief executive officer, being the UK, Ireland and
West 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 and the Strategic Report of this Annual Report.
Income statement for the year ended 31 July 2024
UK
£000
Ireland
£000
West Africa
£000
Total
£000
Revenue
3,566
–
–
3,566
Cost of sales
(3,117)
–
–
(3,117)
Impairment of producing fields
(189)
–
–
(189)
Cost of sales
(3,306)
–
–
(3,306)
Gross profit
260
–
–
260
Exploration impairment
(4,968)
–
–
(4,968)
Administrative expenses
(1,855)
–
–
(1,855)
Share of loss from joint venture
–
–
(2)
(2)
Finance income
222
1
–
223
Finance costs
(439)
–
–
(439)
Loss before tax
(6,780)
1
(2)
(6,781)
Taxation
–
–
–
–
Loss for the year
(6,780)
1
(2)
(6,781)
Segmental assets and liabilities as at 31 July 2024
UK
£000
Ireland
£000
West Africa
£’000
Total
£000
Non-current assets
2,127
2,465
2,406
6,998
Current assets
2,781
–
–
2,781
Total assets
4,908
2,465
2,406
9,779
Non-current liabilities
(4,613)
–
–
(4,613)
Current liabilities
(1,081)
(19)
(287)
(1,387)
Total liabilities
(5,694)
(19)
(287)
(6,000)
Other segment items
Capital expenditure – cash flow
882
283
2,138
3,303
Depreciation
781
–
–
781
Share-based payments
98
–
–
98
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61
2. Operating segment analysis (continued)
Income statement for the year ended 31 July 2023
UK
£000
Ireland
£000
Morocco
£000
New ventures
£000
Total
£000
Revenue
6,653
–
–
–
6,653
Cost of sales
(3,448)
–
–
–
(3,448)
Impairment of producing fields
177
–
–
–
177
Cost of sales
(3,271)
–
–
–
(3,271)
Gross profit
3,382
–
–
–
3,382
Exploration impairment
–
–
(1,686)
-
(1,686)
Administrative expenses
(2,078)
227
–
(21)
(1,872)
Finance income
(4)
4
9
–
9
Finance costs
(717)
–
–
–
(717)
Loss before tax
582
232
(1,677)
(21)
(884)
Taxation
32
–
–
–
32
Loss for the year
615
231
(1,677)
(21)
(852)
Segmental assets and liabilities as at 31 July 2023
UK
£000
Ireland
£000
Morocco
£000
New ventures
£000
Total
£000
Non-current assets
7,380
2,183
–
–
9,563
Current assets
6,077
–
–
–
6,077
Total assets
13,457
2,183
–
–
15,640
Non-current liabilities
(4,380)
–
–
–
(4,380)
Current liabilities
(762)
(19)
–
–
(781)
Total liabilities
(5,142)
(19)
–
–
(5,161)
Other segment items
Capital expenditure – cash flow
4,925
387
299
–
5,611
Depreciation
1,133
–
–
–
1,133
Share-based payments
48
–
–
–
48
100% of the total revenue (2023: 100%) relates to UK-based customers. Of this figure, one end customer (2023: one) commands more than
95% of the total, including sales made through operators to the end customer. UK revenue by site was as follows: West Firsby £445,000 (2023:
£489,000); Crosby Warren £264,000 (2023: £447,000); Whisby £202,000 (2023: £387,000); and Wressle £2,559,000 (2023: £5,330,000).
Recharges of costs to Antler Global Limited of £96,000 (2023: £nil) is included within revenue and is not eliminated.
The positive value for administrative expenditure in the Ireland segment in 2023 relates to the reversal of certain accrued licence expenditure
which had previously been impaired.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
62
3. Profit/loss before taxation
Profit/loss before taxation is stated after charging/(crediting):
Note
2024
£000
2023
£000
Depreciation and amortisation on property, plant and equipment
12
781
1,133
Staff costs including directors
5
1,468
1,371
Diesel
131
174
Business rates
41
37
Site safety and security
97
98
Exploration impairment
11
4,968
1,686
Impairment/impairment reversal
12
189
(177)
Fees payable to the auditor for the audit
80
78
Operating leases – land and buildings
77
44
Foreign exchange (gain)/loss
(208)
264
4. Directors’ emoluments
Directors’ total emoluments for the Group and the Company are set out in the tables below for the current and comparative years.
Salaries
and fees
£000
BIK
£000
Pensions
£000
Share-based
payments
£000
Total
2024
£000
BJ O’Cathain
48
–
–
–
48
SG Oddie (resigned 23 November 2023)
11
1
–
–
12
S Williams (resigned 23 November 2023)
11
–
–
–
11
W Holland
263
3
20
49
335
A Stuart
198
6
16
22
242
S Ashby-Rudd (appointed 20 December 2023)
27
–
–
–
27
E Rowley (appointed 8 April 2024)
13
–
–
13
571
10
36
71
688
Salaries
and fees
£000
BIK
£000
Pensions
£000
Share-based
payments
£000
Total
2023
£000
CW Ahlefeldt-Laurvig (resigned 27 April 2023)
18
2
–
–
20
BJ O’Cathain
44
5
–
1
50
SG Oddie
344
47
–
4
395
S Williams
33
3
–
1
37
W Holland
230
32
18
38
318
A Stuart (appointed 3 April 2023)
53
7
5
–
65
722
96
23
44
885
Pension charges represent premiums paid to money purchase pension plans during the year. Share-based payments charges represent the
accounting charge in respect of share options. No share options were exercised during the period (2023: none).
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5. Employee information
Average monthly number of employees including directors – Group
2024
Number
2023
Number
Management and technical
8
7
Field exploration and production
4
5
12
12
Staff costs – Group
2024
£000
2023
£000
Wages and salaries (including directors’ emoluments)
1,155
1,133
Social security
136
137
Pensions
79
53
Share-based payments (note 21)
98
48
1,468
1,371
Average monthly number of employees including directors – Company
2024
Number
2023
Number
Management and technical
8
7
8
7
Staff costs – Company
2024
£000
2023
£000
Wages and salaries (including directors’ emoluments)
885
881
Social security
103
113
Pensions
63
37
Share-based payments
98
48
1,149
1,079
6. Finance income
2024
£000
2023
£000
Bank interest received
15
9
Foreign exchange gains
208
–
223
9
7. Finance expense
2024
£000
2023
£000
Unwinding of discount on decommissioning provision (note 19)
437
416
Foreign exchange loss
–
264
Other finance expense
2
37
439
717
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
64
8. Taxation
2024
£000
2023
£000
Movement in deferred tax asset (note 18)
(2,102)
1,503
Movement in deferred tax liability (note 18)
2,102
(1,503)
Current tax – UK
–
32
Tax credit/(expense)
–
32
UK corporation tax is calculated at 40% (2023: 40%) of the estimated assessable profit for the year being the applicable rate for a ring-fence
trade including the Supplementary Charge of 10%. From 24 May 2022 a new UK tax, the Excess Profits Levy (“EPL”) applies to the Group, and
it is levied at 25% of assessable EPL profits for the period from 26 May 2022 to 31 December 2022, and at 35% from 1 January 2023 onwards.
The proposed increase to the rate of EPL to 38% had not yet been substantially enacted as at the reporting date.
2024
£000
2023
£000
(Loss)/profit before tax
(6,781)
(884)
Tax reconciliation
Loss multiplied by the standard rate of corporation tax in the UK including
Supplementary Charge of 40% (2023: 40%)
(2,712)
(354)
Expenses not deductible for tax purposes
2,581
1,003
Deferred tax asset not recognised
113
192
Accelerated capital allowances
(169)
(1,802)
Taxed at a different rate
(121)
(3,995)
Losses carried forward
949
5,172
Previously unrecognised tax losses utilised
(641)
(266)
Prior year adjustment
–
18
Total tax (credit)/expense
–
(32)
9. Other comprehensive income
2024
£000
2023
£000
Profit on sale of investment
–
5
On 8 May 2019, the Group disposed of its interest in PEDL143 to UK Oil & Gas Plc (“UKOG”) for consideration of 25,951,557 UKOG shares. At the
time of the sale the shares were worth 1.156p each, resulting in a total value of £300,000. An irrevocable election was made to record gains and
losses arising on the shares as Other Comprehensive Income. The investment was revalued at the year-end 2022 to £24,000 (0.09p per share)
and was sold during 2023 for £29,000 (0.11p per share).
10. Earnings per share
Basic earnings per share (“EPS”) has been calculated on the (loss)/profit after taxation divided by the weighted average number of shares in
issue during the period. Diluted EPS uses an average number of shares adjusted to allow for the issue of shares on the assumed conversion
of all in the money options.
As the Group made a loss from continuing operations in the year, any potentially dilutive instruments were considered to be anti-dilutive.
Therefore, the diluted EPS is equal to the basic EPS for the year. As at 31 July 2024 there were nil (2023: 19,724,154) potentially dilutive
instruments in issue related to “in the money” options.
The calculation of the basic and diluted earnings per share is based on the following:
2024
£000
2023
£000
Loss for the year attributable to the equity shareholders of the parent
(6,781)
(852)
Weighted average number of shares
For the purposes of basic EPS
959,184,178
958,804,515
For the purpose of diluted EPS
959,184,178
958,804,515
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11. Intangible assets
Intangible assets – Group
2024
£000
2023
£000
At 1 August
7,146
3,785
Additions
486
5,047
Exploration impairment
(4,968)
(1,686)
At 31 July
2,664
7,146
Intangible assets comprise the Group’s pre-production expenditure on licence interests as follows:
2024
£000
2023
£000
Ireland FEL 4/19 (Inishkea)
2,444
2,166
UK PEDL181
–
112
UK PEDL182 (Broughton North)
35
34
UK PEDL343 (Cloughton)
185
108
Serenity
–
4,726
Total
2,664
7,146
Exploration impairment
2024
£000
2023
£000
Morocco (Inezgane)
–
(1,686)
Serenity
(4,871)
–
PEDL 181
(97)
–
On 13 September 2024 the Company announced that it does not intend to apply to the North Sea Transition Authority for an extension to the
Serenity licence, which expired on 30 September 2024. The directors considered this an adjusting event in relation to the year ended 31 July
2024 and as a result, the incurred costs associated with Serenity that the Company has capitalised on its balance sheet were written off. Details
of commitments are included in note 23.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
66
12. Property, plant and equipment
Property, plant and equipment – Group
Furniture &
computers
£000
Producing
fields
£000
Right of
use assets
£000
Total
£000
Cost
At 31 July 2022
18
15,714
67
15,799
Additions
38
290
24
352
At 31 July 2023
56
16,004
91
16,151
Additions
21
460
–
481
At 31 July 2024
77
16,464
91
16,632
Depreciation, depletion and impairment
At 31 July 2022
4
12,723
51
12,778
Charge for year
24
1,090
19
1,133
Impairment reversal in year
–
(177)
–
(177)
At 31 July 2023
28
13,636
70
13,734
Charge for year
20
753
8
781
Impairment in year
–
189
–
189
At 31 July 2024
48
14,578
78
14,704
Net book value
At 31 July 2022
14
2,991
16
3,021
At 31 July 2023
28
2,368
21
2,417
At 31 July 2024
29
1,886
13
1,928
The producing fields referred to in the table above are the production assets of the Group, namely the oilfields at Wressle, Crosby Warren and
West Firsby, and the Group’s interest in the Whisby W4 well.
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 discounted cash flow model with production decline rates based on engineering estimates and recent production
experience. Brent crude price was based on the Quarter 3 ERCE forward curve, which assumes an average oil price per barrel in the table
below. For years after 2033 a 2% inflation factor was applied.
Year
Price
Year
Price
Year
Price
2024
$83.80
2028
$82.00
2032
$89.00
2025
$81.70
2029
$83.00
2033
$90.00
2026
$79.00
2030
$85.00
2027
$80.00
2031
$87.00
The post-tax discount rate of 10% (pre-tax 16.67%) is high because of the applicable rates of tax in the UK. Cash flows were projected over the
expected life of the fields which is expected to be longer than five years.
Based on the assumptions set out above, an impairment of £189k of producing assets, comprising mainly of the impairment of workover costs
incurred in relation to the Crosby Warren field (2023: impairment reversal of £177,000) was required. The recoverable amount was calculated at
a discount rate of 10% (2023: 10%).
.
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12. Property, plant and equipment (continued)
Sensitivity to key assumption changes
Variations to the key assumptions used in the value-in-use calculation, as outlined above, would cause impairment of the producing fields as follows:
Impairment of
producing fields
£000
Production decline rate
+10%
–
-10%
–
Brent crude price per barrel
$65 flat
–
$55 flat
–
Pre-tax discount rate
20%
–
25%
–
None of the variations result in an impairment individually.
Property, plant and equipment – Company
Furniture &
computers
£000
Right of
use assets
£000
Total
£000
Cost
At 31 July 2022
18
37
55
Additions
37
24
61
At 31 July 2023
55
61
116
Additions
14
–
14
At 31 July 2024
69
61
130
Depreciation
At 31 July 2022
4
25
29
Charge for year
24
14
38
At 31 July 2023
28
39
67
Charge for year
18
8
26
At 31 July 2024
46
47
93
Net book value
At 31 July 2022
14
12
26
At 31 July 2023
27
22
49
At 31 July 2024
23
14
37
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
68
13. Investments
13a) Investment in joint ventures
Group
Company
2024
£000
2023
£000
2024
£000
2023
£000
Investment in Antler Global Limited
2,406
–
2,425
–
On 20 December 2023, the Company completed the acquisition of an interest of 42.9% in Antler Global Limited (“Antler”) by way of a
subscription for 750,000 new ordinary shares for a total cash consideration of US$3,000,000 (£2,353,000). The consideration is payable in
four instalments over a period between the completion date and 1 October 2024 according to the following schedule:
US$000
GBP£000
Five business days post completion
1,927
1,511
1 April 2024
387
304
1 July 2024
317
249
1 October 2024
369
289
Total
3,000
2,353
Antler is a special purpose entity which on the date of the subscription for shares by the Company held no identifiable assets, apart from the
interest in licence EG-08 offshore Equatorial Guinea, and no identifiable liabilities. The investment has been initially recognised at the value of
the purchase price and direct incremental transaction costs of £72,000 for a total investment value of £2,425,000. During the period after the
investment by the Company Antler has been engaged in exploration activities, the costs of which have been capitalised as intangible assets
resulting in an immaterial charge to its statement of comprehensive income. Summarised financial information for Antler at 31 July 2024 is
included below:
31 July 2024
£000
Summarised balance sheet
Current assets
981
Non-current assets
4,623
Current liabilities
(158)
Net assets
5,446
Company % interest in Antler
42.857%
Company share of net assets
2,334
31 July 2024
£000
Summarised statement of comprehensive income
Revenue
–
Loss from continuing operations
(2)
Total comprehensive loss
(2)
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13. Investments (continued)
13b) Investments in subsidiaries – Company
2024
£000
2023
£000
At 1 August
2,343
2,343
Current year additions
–
–
At 31 July
2,343
2,343
The Company’s investments at the reporting date include 100% of the share capital in the following unlisted companies:
^ Europa Oil & Gas Limited, which undertakes oil and gas exploration, development and production in the UK.
^ Europa Oil & Gas (West Firsby) Limited, which is non-trading.
^ Europa Oil & Gas (Ireland West) Limited, which previously held the interest in the FEL 2/13 licence.
^ Europa Oil & Gas (Ireland East) Limited, which previously held the interest in the FEL 3/13 and FEL 1/17 licences.
^ Europa Oil & Gas (Inishkea) Limited, which holds the interest in the FEL 4/19 and previously held the interest in FEL 3/19 licences.
^ Europa Oil & Gas (New Ventures) Limited, which previously held the interest in the Moroccan licence.
All six companies are registered in England and Wales, all having their registered office at 30 Newman Street, London W1T 1PT.
The results of the six companies have been included in the consolidated accounts.
Europa Oil & Gas Limited owns 100% of the ordinary share capital of Europa Oil & Gas (UK) Limited (registered in England and Wales
with registered office at 30 Newman Street, London W1T 1PT and is non-trading).
14. Inventories – Group
2024
£000
2023
£000
Oil in tanks
9
19
15. Trade and other receivables
Group
Company
2024
£000
2023
£000
2024
£000
2023
£000
Current trade and other receivables
Trade receivables
1,002
556
133
–
Other receivables
33
103
12
30
Corporation tax receivable
50
50
–
–
Prepayments
224
184
91
99
1,309
893
236
129
Non-current other receivables
Owed by Group undertakings (note 22)
–
–
5,502
22,143
16. Trade and other payables
Group
Company
2024
£000
2023
£000
2024
£000
2023
£000
Current trade and other payables
Trade payables
140
454
61
175
Lease liabilities
6
10
6
8
Other payables
1,241
317
369
67
1,387
781
436
250
Non-current trade and other payables
Lease liabilities
6
12
6
12
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
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70
17. Leases
Group
Company
2024
£000
2023
£000
2024
£000
2023
£000
Amounts recognised in the statement of comprehensive income:
Interest on right of use liabilities
(1)
(1)
(1)
(1)
Amounts recognised in the statement of cash flows:
Repayment of lease liabilities – principal
(7)
(20)
(7)
(15)
Repayment of lease liabilities – interest
(1)
(2)
(1)
(1)
Maturity analysis (undiscounted):
Amounts due within 1 year
(6)
(9)
(6)
(8)
Amounts due after more than 1 year & less than 5 years
(6)
(12)
(6)
(12)
Amounts due after more than 5 years
–
–
–
–
The Group’s right of use asset comprises the lease of one vehicle (note 12). The corresponding lease liability for the right to use leased asset is
included within trade and other payables in the statement of financial position (note 17).
18. Deferred tax – Group
2024
£000
2023
£000
Recognised deferred tax asset:
As at 1 August
–
–
Charged to statement of comprehensive income
–
–
At 31 July
–
–
The Group has a deferred tax liability of £833,000 (2023: £2,935,000) arising from accelerated capital allowances and a deferred tax asset of
£833,000 (2023: £2,935,000) arising from trading losses which will be utilised against future taxable profits. These were offset against each
other resulting in a £nil net asset/liability (2023: £nil net asset/liability). This offsetting was required because the Group settles current tax assets
and liabilities on a net basis.
Non-recognised long-term deferred tax asset
The Group has a non-recognised deferred tax asset of £11.8 million (2023: £7.3 million), which arises in relation to ring-fenced UK trading losses
of £14.4 million (2023: £13.1 million), STC losses (including investment allowances) of £14.3 million (2023: £13.1 million), non-ring-fenced UK trading
losses of £11.7 million (2023: £11.7 million), EPL losses of £5.8 million (2023: £4.1) and subsidiary losses and carried forward capital expenditure of
£7.9 million (2023: £7.3 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.
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
71
19. Provisions – Group
Decommissioning provisions are based on third-party estimates of work which will be required and the judgement of directors. By their nature,
timing and the detailed scope of work required are uncertain.
Long-term provisions
2024
£000
2023
£000
As at 1 August
4,368
4,164
Charged to statement of comprehensive income (note 7)
437
416
Change in estimated phasing of cash flows
(198)
(212)
At 31 July
4,607
4,368
The change in the estimated decommissioning provision resulted mainly from a reassessment of the estimated timings of when such
decommissioning activities are undertaken at the end of their economic lives.
Sensitivity to key assumption changes
Variations to the key assumptions used in the decommissioning provision estimates would cause increases/(reductions) to the provision as follows:
Further
decommissioning
provision
£000
Inflation rate (current assumption 3%)
2%
(716)
5%
836
Discount rate (current assumption 10%)
5%
1,549
15%
(1,102)
No provisions have been recognised in the Company.
20. Called up share capital
2024
£000
2023
£000
Allotted, called up and fully paid ordinary shares of 1p
At 1 August 2023: 959,184,193 shares (1 August 2022: 956,466,985)
9,592
9,565
Issued in the year: nil shares (2023: 2,717,193 shares)
–
27
At 31 July 2024: 959,184,178 shares (2023: 959,184,178)
9,592
9,592
The following describes the purpose of each reserve within owners’ equity:
Reserve
Description and purpose
Share premium
Amount subscribed for share capital in excess of nominal value
Merger reserve
Reserve created on issue of shares on acquisition of subsidiaries in prior years
Retained deficit
Cumulative net gains and losses recognised in the consolidated statement of comprehensive income
Foreign currency translation reserve
(“FCTR”)
Component of equity that arises from the translation of foreign operations’ financial statements into the
reporting currency of the parent entity
21. Share-based payments
The Group operates an approved Enterprise Management Incentive (“EMI”) share option scheme for employees and an unapproved scheme
for grants in excess of EMI limits and for non-employees. Both schemes are equity-settled share-based payments as defined in IFRS 2 Share-
based payments. A recognised valuation methodology is employed to determine the fair value of options granted as set out in the standard.
The charge incurred relating to these options is recognised within operating costs.
Combined information for the two schemes operated by the Group is set out below.
There are 60,265,474 ordinary 1p share options/warrants outstanding (2023: 41,550,628).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
72
21. Share-based payments (continued)
These are held as follows:
Holder
31 July
2024
31 July
2023
B O’Cathain
–
2,950,000
S Oddie
–
9,200,000
S Williams
–
2,500,000
W Holland
20,000,000
7,721,000
A Stuart
15,000,000
–
Employees of the Group
15,840,000
3,800,000
Consultants and advisers
9,425,474
15,379,628
Total
60,265,474
41,550,628
The fair values of options were determined using a Black Scholes Merton model or, in the case of those issued to advisers as part of the share
issue, the fair value was deemed to be the share issue price. Volatility is based on the Company’s share price volatility since flotation.
During the year Company cancelled 13,191,000 existing EMI options (“Historical EMI Options”) and replaced them with 50,000,000 new EMI
options. As the new EMI options were in part to replace the Historical EMI Options, this grant constitutes a “modification” and as such there is
no acceleration of the costs related to the cancelled options, but instead the incremental fair value of the new EMI options is estimated and
recognised over the period of the new options, with the expense relating to the original (cancelled) options continuing to be recognised over
the remainder of the original vesting period.
In total 14,114,154 options expired and 17,171,000 were cancelled, inclusive of the Historical EMI Options (2023: 6,520,000 granted, 2,280,000
expired, 1,180,000 forfeited, and 2,717,193 exercised).
2024
Number
of options
2024
Average
exercise price
2023
Number
of options
2023
Average
exercise price
Outstanding at the start of the year
41,550,628
2.04p
41,207,821
2.23p
Granted – employees/directors
50,000,000
1.08p
6,520,000
1.14p
Exercised
–
(2,717,193)
1.80p
Expired
(14,114,154)
1.35p
(2,280,000)
2.31p
Forfeited
–
(1,180,000)
3.66p
Cancelled
(17,171,000)
2.70p
Outstanding at the end of the year
60,265,474
1.21p
41,550,628
2.04p
Exercisable at the end of the year
10,145,474
1.82p
23,599,628
1.56p
The 50,000,000 new EMI options granted in January 2024 vest in three years, and are exercisable conditional upon the Europa Oil & Gas
(Holdings) plc volume weighted average share price over the last 20 trading days prior to the Vesting Date to be greater than or equal to
1.25 times the volume weighted average share price over the last 20 trading days prior to the Grant Date, and expire on the tenth anniversary
of the grant date. The inputs used to determine their values are detailed in the table:
Grant date
17 January 2024
Number of options
50,000,000
Share price at grant
1.025p
Exercise price
1.075p
Volatility
70.81%
Dividend yield
Nil
Risk free investment rate
4.02%
Option life in years
10
Fair value per option
0.8p
Based on the fair values above, the charge arising from employee share options was £98,000 (2023: £48,000). The charge relating to non-
employee share options was £nil (2023: £nil). The charge allocated directly to equity, relating to the issue of options on the issue of share
capital, was £nil (2023: £nil).
Share options/warrants outstanding at the end of the period have exercise prices ranging from 1.075p to 8p and the weighted average
remaining contractual life at the end of the period was 8 years (2023: 2.7 years).
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
73
22. Financial instruments
The Group’s and Company’s financial instruments comprise cash and cash equivalents, bank borrowings, loans, 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 considering the operational, business and economic circumstances at that time.
Financial assets – Group
Amortised cost
2024
£000
Amortised cost
2023
£000
Fair value
through other
comprehensive
income
2024
£000
Fair value
through other
comprehensive
income
2023
£000
Trade and other receivables
1,085
709
–
–
Cash and cash equivalents
1,463
5,165
–
–
Total financial assets
2,548
5,874
–
–
Financial assets – Company
Amortised cost
2024
£000
Amortised cost
2023
£000
Fair value
through other
comprehensive
income
2024
£000
Fair value
through other
comprehensive
income
2023
£000
Investments
2,343
2,343
–
–
Amounts due from Group companies
5,502
22,143
–
–
Trade and other receivables
145
30
–
–
Cash and cash equivalents
164
121
–
–
Total financial assets
8,154
24,637
–
–
Financial liabilities – Group
Amortised cost
2024
£000
Amortised cost
2023
£000
Fair value
through other
comprehensive
income
2024
£000
Fair value
through other
comprehensive
income
2023
£000
Trade and other payables
(1,381)
(771)
–
–
Lease liabilities
(12)
(22)
–
–
Total financial liabilities
(1,393)
(793)
–
–
Financial liabilities – Company
Amortised cost
2024
£000
Amortised cost
2023
£000
Fair value
through other
comprehensive
income
2024
£000
Fair value
through other
comprehensive
income
2023
£000
Trade and other payables
(430)
(242)
–
–
Lease liabilities
(12)
(20)
–
–
Total financial liabilities
(442)
(262)
–
–
Credit risk
The Group is exposed to credit risk as all crude oil production is effectively 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 generally settled in full within the same month that
invoices are issued. At 31 July 2024 trade receivables were £1,002,000 (2023: £556,000). 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 £1,002,000 comprising July 2024 oil sales and recharges to joint ventures (2023 maximum
exposure: £1,574,000). The Company exposure to third-party credit risk is negligible. The intercompany balances with its subsidiaries have
been appropriately provided for to account for potential impairments.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
74
22. Financial instruments (continued)
Liquidity risk
The Company currently has no overdraft or overdraft facility with its bankers.
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 (representing the undiscounted cash flows) of the Group’s and Company’s financial liabilities.
Group
Trade and other payables
Company
Trade and other payables
At 31 July
2024
£000
2023
£000
2024
£000
2023
£000
6 months or less
1,387
781
436
250
Total
1,387
781
436
250
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.
Interest rate risk
The Group has no interest-bearing liabilities (note 18) and immaterial leases (note 19). All loans and leases are at fixed rates of interest and the
Group and Company are not exposed to changes in interest rates.
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 loss before taxation (“LBT”) or profit before tax (“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
Month
2024
Price
US$/bbl
2024
PBT
£000
2023
Price
US$/bbl
2023
PBT
£000
Highest
April 2024
88.90
250
$98.70
1,227
Average
82.40
(9)
$83.30
(2)
Lowest
December 2023
76.60
(239)
$73.40
(791)
Foreign exchange risk
The Group’s production of crude oil is invoiced in US$. 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$ exchange rates used in the year and the sensitivity of the Group’s
PBT/LBT to similar movements in US$ exchange. There would be a corresponding increase or decrease in net assets.
US Dollar
Month
2024
Rate
US$/£
2024
PBT
£000
2023
Rate
US$/£
2023
PBT
£000
Highest
July 2024
1.284
(187)
1.286
(410)
Average
1.260
(127)
1.212
(30)
Lowest
October 2023
1.218
(17)
1.117
535
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.
Group
Company
Currency
Item
2024
£000
2023
£000
2024
£000
2023
£000
Euro
Cash and cash equivalents
2
18
2
–
Trade and other payables
(5)
(9)
(5)
(9)
US Dollar
Cash and cash equivalents
1,219
5,102
68
75
Trade and other receivables
–
556
–
–
Trade and other payables
869
(47)
133
(47)
Total
2,085
5,620
198
(19)
Financial Statements
Governance
Strategic Report
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
75
22. Financial instruments (continued)
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 22) and third-party borrowings (£nil at 31 July 2024). 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.
Intercompany loans
The loans to the subsidiaries are not classified as repayable on demand. IFRS 9 requires consideration of the expected credit risk associated
with the loan. As the subsidiary company does not have any liquid assets to sell to repay the loan, should it be recalled, the conclusion reached
was that the loan should be categorised as stage 3.
As part of the assessment of expected credit losses of the intercompany loan receivable, the directors have considered the published chance
of success for Inishkea, and applying the 33% general wildcat exploration success rate, the loans to Europa Oil & Gas Inishkea have thus been
deemed 67% provided.
The loans to Europa Oil & Gas New Ventures, Europa Oil & Gas (Ireland West) and Europa Oil & Gas (Ireland East) have been provided in full
due to the relinquishment of the licences held by the subsidiaries.
During the year to 31 July 2024 there has been a decrease in the expected recoverable value of the Group’s Crosby Warren producing asset,
mainly as a result of a significant reduction in the anticipated water handling revenues connected to the Wressle producing field. The cause of
this is that updated production simulations from the CPR indicate much reduced water production as the reservoir becomes supported by gas
break-out. Additionally, the estimated recoverable value of the Wressle producing field was adversely impacted by the reduction in forecast UK
gas prices during the year. These factors led to an increase in the provisions for impairment that had been made in relation to loans to
Europa Oil & Gas Ltd.
The movement in the provision was as follows:
Europa
Oil & Gas
Limited
£000
Europa
Oil & Gas
(Ireland West)
Limited
£000
Europa
Oil & Gas
(Ireland East)
Limited
£000
Europa
Oil & Gas
(Inishkea)
Limited
£000
Europa
Oil & Gas
(New Ventures)
Limited
£000
Total
£000
Gross loan balances
Loan balance at 31 July 2022
26,535
781
1,495
1,168
1,190
31,169
Movement in loan
1,027
(76)
(153)
223
(145)
876
Loan balance at 31 July 2023
27,562
705
1,342
1,391
1,045
32,045
Movement in loan
(1,255)
–
–
181
–
(1,074)
Loan balance at 31 July 2024
26,307
705
1,342
1,572
1,045
30,971
Provisions
Provision at 31 July 2022
(14,043)
(781)
(1,495)
(783)
(797)
(17,899)
Movement in provision
8,165
76
153
(149)
(248)
7,997
Provision at 31 July 2023
(5,878)
(705)
(1,342)
(932)
(1,045)
(9,902)
Movement in provision
(15,446)
–
–
(121)
–
(15,567)
Provision at 31 July 2024
(21,324)
(705)
(1,342)
(1,053)
(1,045)
(25,469)
Net loan balance at 31 July 2022
12,492
–
–
385
393
13,270
Net loan balance at 31 July 2023
21,684
–
–
459
–
22,143
Net loan balance at 31 July 2024
4,983
–
–
519
5,502
23. Capital commitments and guarantees
For PEDL181 the partners have agreed to drill two development wells and to construct a gas export line. These activities remain contingent
upon planning permission being granted, the budget being approved by the JV partnership and the availability of a suitable rig. The total net
cost to Europa for the work programme is estimated to be £1.3 million in 2025 and £2.5 million in 2026.
The final instalment of the Antler consideration was due on 1 October 2024 for $369,000 (£289,000). This was paid on time after the reporting date.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
Europa Oil & Gas (Holdings) plc Annual Report and Financial Statements 2024
76
24. Lease commitments
Europa Oil & Gas Limited pays annual site rentals for the land upon which the West Firsby and Crosby Warren oil field facilities are located.
Future minimum lease payments are as follows:
2024
£000
2023
£000
Less than 1 year
63
–
2-5 years
90
–
Total
153
–
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.
During the year, the Company provided services to subsidiary companies as follows:
2024
£000
2023
£000
Europa Oil & Gas Limited
319
336
Europa Oil & Gas (Inishkea) Limited
64
102
Europa Oil & Gas (New Ventures) Limited
–
26
Total
383
464
At the end of the year, after provisions, the Company was owed the following amounts by subsidiaries:
2024
£000
2023
£000
Europa Oil & Gas Limited
4,983
21,684
Europa Oil & Gas (Inishkea) Limited
518
459
Total
5,501
22,143
26. Post reporting date events
On 13 September 2024 the Company announced that it does not intend to apply to the North Sea Transition Authority for an extension to
the Serenity licence, which expired on 30 September 2024. As a result, the incurred costs associated with Serenity that the Company has
capitalised were written off during the year.
On 16 September 2024 the Company announced that planning consent has been received from North Lincolnshire Council for the further
development of the Wressle well site. As a result of the Finch Supreme Court ruling and a proposed legal challenge to the granting of planning
permission for the next phase of the Wressle development, it is expected that the planning consent will be rescinded once the court process
has concluded. The Wressle Joint Venture plans to submit further information that covers potential scope 3 emissions such that a future
planning process could be approved. The works will include extending the existing site to accommodate the drilling of two new wells and
construction of gas processing facilities and an underground gas pipeline to connect Wressle to the local gas distribution network.
Financial Statements
Governance
Strategic Report
Design and Production
www.carrkamasa.co.uk
Europa Oil & Gas Holdings Plc
Europa Oil & Gas (Holdings) plc
UK Office
30 Newman Street
London W1T 1PT
T: +44 (0)20 7224 3770
E: mail@europaoil.com
europaoil.com