Consolidated statement of comprehensive income

For the year ended 31 July		2023	2022
	Note	£000	£000
Continuing operations
Revenue	2	6,653	6,584
Cost of sales	2	(3,448)	(3,806)
Impairment of producing fields	12	177	(570)
Total cost of sales		(3,271)	(4,376)
		----------------------------------	----------------------------------
Gross profit		3,382	2,208
Exploration write-off	11	(1,686)	-
Administrative expenses		(1,872)	(821)
Finance income	6	9	239
Finance expense	7	(717)	(238)
		------------------------------------	------------------------------------
(Loss) / profit before taxation	3	(884)	1,388
Taxation expense	8	32	(32)
		------------------------------------	------------------------------------
(Loss) / profit for the year		(852)	1,356
		====================	====================
Other comprehensive profit / (loss)
Items which will not be reclassified to profit /(loss)
Profit / (loss) on investment revaluation	9	5	(18)
		------------------------------------	------------------------------------
Total other comprehensive profit /(loss)		5	(18)
		====================	====================
Total comprehensive (loss) / income for the year attributable to the equity shareholders of the parent		(847)	1,338
		===================	===================

 

 

 

Earnings per share (EPS) attributable to the equity shareholders of the parent from continuing operations	Note	Pence per share	Pence per share
Basic EPS	10	(0.09p)	0.19p
Diluted EPS		(0.09p)	0.18p

 

 

 

 

 

 

 

The accompanying notes form part of these financial statements.

 

Consolidated statement of financial position

As at 31 July		2023	2022
	Note	£000	£000
Assets
Non-current assets
Intangible assets	11	7,146	3,785
Property, plant and equipment	12	2,417	3,021
		----------------------------------	----------------------------------
Total non-current assets		9,563	6,806
		----------------------------------	----------------------------------
Current assets
Investments	13	-	24
Inventories	14	19	36
Trade and other receivables	15	893	1,866
Restricted cash	16	-	6,884
Cash and cash equivalents		5,165	1,394
		----------------------------------	----------------------------------
Total current assets		6,077	10,204
		----------------------------------	----------------------------------
Total assets		15,640	17,010
		====================	====================
Liabilities
Current liabilities
Loans	18	-	(40)
Trade and other payables	17	(781)	(1,573)
		------------------------------------	------------------------------------
Total current liabilities		(781)	(1,613)
		------------------------------------	------------------------------------
Non-current liabilities
Trade and other payables	17	(12)	(4)
Long-term provisions	21	(4,368)	(4,164)
		----------------------------------	----------------------------------
Total non-current liabilities		(4,380)	(4,168)
		----------------------------------	----------------------------------
Total liabilities		(5,161)	(5,781)
		-----------------------------------	-----------------------------------
Net assets		10,479	11,229
		====================	====================
Capital and reserves attributable to equity holders of the parent
Share capital	22	9,592	9,565
Share premium	22	23,682	23,660
Merger reserve	22	2,868	2,868
Retained deficit		(25,663)	(24,864)
		----------------------------------	----------------------------------
Total equity		10,479	11,229
		======================	======================

 

These financial statements were approved by the board of directors and authorised for issue on 20 October 2023 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 changes in equity

Attributable to the equity holders of the parent

	Share capital	Share premium	Merger  reserve	Retained deficit	Total equity
	£000	£000	£000	£000	£000
Balance at 1 August 2021	5,665	21,157	2,868	(26,441)	3,249
Comprehensive loss for the year
Profit for the year attributable to the equity shareholders of the parent	-	-	-	1,356	1,356
Other comprehensive loss attributable to the equity shareholders of the parent	-	-	-	(18)	(18)
	----------------------------------	----------------------------------	---------------------------------	------------------------------	-------------------------------
Total comprehensive profit for the year	-	-	-	1,338	1,338
	----------------------------------	----------------------------------	---------------------------------	------------------------------	-------------------------------
Contributions by and distributions to owners
Issue of share capital (net of issue costs)	3,900	2,722	-	-	6,622
Issue of share warrants(note 23)	-	(219)	-	219	-
Share-based payments (note 23)	-	-	-	20	20
	----------------------------------	----------------------------------	----------------------------------	---------------------------------	------------------------------
Total contributions by and distributions to owners	3,900	2,503	-	239	6,642
	----------------------------------	----------------------------------	---------------------------------	------------------------------	-------------------------------
Balance at 31 July 2022	9,565	23,660	2,868	(24,864)	11,229
	===================	===================	===================	=====================	==================

 

 

	Share capital	Share premium	Merger  reserve	Retained deficit	Total equity
	£000	£000	£000	£000	£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 23)	-	-	-	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
	===================	===================	===================	=====================	==================

 

The accompanying notes form part of these financial statements.

Company statement of financial position

As at 31 July		2023	2022
		£000	£000
	Note
Assets
Non-current assets
Property, plant and equipment	12	49	26
Investments	13	2,343	2,343
Amounts due from Group companies	15,24	22,143	13,270
		------------------------------------	------------------------------------
Total non-current assets		24,535	15,639
		------------------------------------	------------------------------------

Current assets

Other receivables	15	129	163
Cash and cash equivalents		121	249
		--------------------------------------	--------------------------------------
Total current assets		250	412
		---------------------------------------	---------------------------------------
Total assets		24,785	16,051
		======================	=====================

 

Liabilities
Current liabilities
Loans	18	-	(40)
Trade and other payables	17	(250)	(546)
		------------------------------------	------------------------------------
Total current liabilities		(250)	(586)
		------------------------------------	------------------------------------
Trade and other payables	17	(12)	(3)
		------------------------------------	------------------------------------
Total non-current liabilities		(12)	(3)
		----------------------------------	----------------------------------
Total liabilities		(262)	(589)
		------------------------------------	------------------------------------
Net assets		24,523	15,462
		====================	====================
Capital and reserves attributable to equity holders of the parent
Share capital	22	9,592	9,565
Share premium	22	23,682	23,660
Merger reserve	22	2,868	2,868
Retained deficit		(11,619)	(20,631)
		--------------------------------------	--------------------------------------
Total equity		24,523	15,462
		======================	======================

 

The Company has taken advantage of the exemption provided under Section 408 of the Companies Act 2006 not to publish its individual statement of comprehensive income and related notes. The profit dealt with in the financial statements of the parent Company is £8,964,000 (2022: £6,238,000).

 

These financial statements were approved by the board of directors and authorised for issue on 20 October 2023, 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 changes in equity

 

	Share capital	Share premium	Merger  reserve	Retained deficit	Total equity
	£000	£000	£000	£000	£000
Balance at 1 August 2021 originally stated	5,665	21,157	2,868	(27,108)	2,582
Comprehensive profit for the year
Profit for the year attributable to the equity shareholders of the parent	-	-	-	6,238	6,238
	----------------------------------	----------------------------------	---------------------------------	------------------------------	-------------------------------
Total comprehensive profit for the year	-	-	-	6,238	6,238
Contributions by and distributions to owners
Issue of share capital (net of issue costs)	3,900	2,722	-	-	6,622
Issue of share warrants(note 23)	-	(219)	-	219	-
Share-based payments (note 23)	-	-	-	20	20
	----------------------------------	----------------------------------	----------------------------------	---------------------------------	------------------------------
Total contributions by and distributions to owners	3,900	2,503	-	239	6,642
	----------------------------------	----------------------------------	--------------------------------	------------------------------	----------------------------
Balance at 31 July 2022	9,565	23,660	2,868	(20,631)	15,462
	====================	===================	==================	=======================	=================

 

 

 

	Share capital	Share premium	Merger  reserve	Retained deficit	Total equity
	£000	£000	£000	£000	£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 23)	-	-	-	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
	====================	===================	==================	=======================	=================

 

 

 

The accompanying notes form part of these financial statements

 

 

 

 

 

 

 

 

Consolidated statement of cash flows

For the year ended 31 July		2023	2022
	Note	£000	£000
Cash flows from / (used in) operating activities
(Loss) / Profit after tax from continuing operations		(852)	1,356
Adjustments for:
Share-based payments	23	48	20
Depreciation	12	1,133	1,618
(Reversal) / impairment of producing field	12	(177)	570
Exploration write-off	11	1,686	-
Finance expense	7	717	238
Taxation expense recognised in profit and loss	8	(32)	32
Decrease / (increase) in trade and other receivables		973	(1,344)
Decrease / (increase) in inventories		17	(13)
(Decrease) / increase in trade and other payables		(765)	18
		------------------------------------	------------------------------------
Net cash generated by operations		2,748	2,495
Income taxes paid		32	(32)
		------------------------------------	------------------------------------
Net cash generated by operating activities		2,780	2,463
		=======================	=======================
Cash flows from / (used in) investing activities
Purchase of property, plant and equipment		(564)	(403)
Purchase of intangible assets		(5,047)	(1,246)
Cash escrow release re Morocco		263	-
Cash escrow release / (deposit) re Serenity	16	6,622	(6,621)
		-----------------------------------	-----------------------------------
Net cash from / (used in) investing activities		1,274	(8,270)
		====================	====================
Cash flows (used in) / from financing activities
Gross proceeds from issue of share capital	22	49	7,020
Costs incurred on issue of share capital		-	(398)
Proceeds from borrowings		1,000	-
Repayment of borrowings		(1,040)	(10)
Lease liability payments		(20)	(14)
Lease liability interest payments		(2)	(2)
Finance costs		(35)	(3)
Disposal of listed shares		29	-
		-----------------------------------	-----------------------------------
Net cash (used in) / from financing activities		(19)	6,593
		=====================	=====================
Net increase in cash and cash equivalents		4,035	786
Exchange loss on cash and cash equivalents		(264)	(33)
Cash and cash equivalents at beginning of year		1,394	641
		-----------------------------------	-----------------------------------
Cash and cash equivalents at end of year		5,165	1,394
		=====================	=====================

 

 

 

 

 

 

 

 

 

 

The accompanying notes form part of these financial statements.

Company statement of cash flows

For the year ended 31 July		2023	2022
		£000	£000
Cash flows used in operating activities	Note
Profit after tax from continuing operations		8,964	6,238
Adjustments for:
Share-based payments	23	48	20
Depreciation	12	38	10
Movement in intercompany loan provision	24	(7,997)	(5,720)
Finance income		(1,928)	(810)
Finance expense		13	2
Decrease/(increase) in trade and other receivables		36	(93)
Decrease in trade and other payables		(273)	(106)
		-----------------------------------	-----------------------------------
Net cash used in operating activities		(1,099)	(459)
		=======================	=======================
Cash flows from / (used in) investing activities
Purchase of property, plant and equipment		(61)	(13)
Movement on loans to Group companies		1,052	(6,152)
		-----------------------------------	-----------------------------------
Net cash flows from / (used in) investing activities		991	(6,165)
		=======================	=======================
Cash flows (used in)/ from financing activities
Gross proceeds from issue of share capital	22	49	7,020
Costs incurred on issue of share capital		-	(398)
Proceeds from borrowings		1,000	-
Repayment of borrowings		(1,040)	(10)
Lease liability principal payment (75) -		(15)	(8)
Lease liability interest payment		(1)	(1)
Finance costs		(13)	(2)
		-----------------------------------	-----------------------------------
Net cash (used in) / from financing activities		(20)	6,601
		=======================	=======================
Net decrease in cash and cash equivalents		(128)	(23)
Cash and cash equivalents at beginning of year		249	272
		-----------------------------------	-----------------------------------
Cash and cash equivalents at end of year		121	249
		=====================	=====================

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes form part of these financial statements.

 

Notes to the financial statements

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£).

                   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 2023.

                   Going concern

The directors have prepared a cash flow forecast for the period ending 31 December 2024, which considers the continuing and forecast cash inflow from the Group's producing assets, the cash held by the Group at October 2023, less administrative expenses and planned capital expenditure. Oil price estimates for the base case cash flow forecast are based upon a flat $75 per barrel, whilst production estimates are sourced from the Group's internal modelling for Wressle and recent actual production.

 

The directors have performed sensitivities allowing for reasonably possible simultaneous falls in oil price and in Wressle production, and the Group and Company had sufficient cash resources to meet their obligations.

 

The directors have also performed sensitivities on the cashflow allowing for various severe downside scenarios including:

·    a fall in the expected oil price from a base case price of $75 per barrel to as low as $65 per barrel

·    incurring development spend on two additional Wressle development wells but with no production until 2025

·    a deterioration of the US$ against the Pound Sterling to 1.50

 

These sensitivities have been modelled as a reverse stress test, and the directors consider the likelihood of such movements to be very low. However, should these scenarios occur, the Group would have to employ certain predefined mitigations to remain cash positive.

 

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 on page 7) a joint arrangement exists. The equity and voting interest of the Group is disclosed in the table, 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.

 

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 re?ects 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 farmout 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.

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.

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. Any gain or loss on derecognition is taken to the statement of comprehensive income.

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 2023 there was £1,686k write off (2022: £Nil). The licence in Morocco expired in November 2022 and was not renewed. Resultantly the full carrying value of the intangible asset of £1,686k was impaired.

 

The Serenity appraisal well, drilled in the last quarter of 2022, did not find oil bearing sands and as such the well was plugged and abandoned during the year. All well costs have been capitalised within intangible assets. Well data provided valuable insights into the reservoir structure and active work is now being performed by the Company and the operator to assess the various development options for the Serenity field. The directors considered the unsuccessful appraisal well as a potential indicator of impairment. In the directors' judgment the potential value of reserves that were discovered by the discovery well, based on management's best estimate calculated on a discounted cash flow basis, exceeds the carrying amount of the related capitalised Serenity intangible asset as at 31 July 2023. There cannot however be certainty that at the end of the evaluation period a commercial development of Serenity volumes can be achieved.

 

The licence period for FEL 4/19 (Inishkea) expires on 31 January 2024. The Company is presently in the process of applying for an extension to the license. These financial statements do not include the adjustments that would result if the licence was not renewed.

 

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 estimates variables like 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 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 2023 there was a reversal of amounts previously impaired of £177k (2022: £570k impairment). This predominantly related to the effect of the reduction in the estimated decommissioning liability for Crosby Warren.

 

·    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.

 

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, Morocco and new ventures.

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 strategic report of this annual report.

Income statement for the year ended 31 July 2023

	UK	Ireland	Morocco	New ventures	Total
	£000	£000	£'000	£000	£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 write-off	-	-	(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	Ireland	Morocco	New Ventures	Total
	£000	£000	£000	£'000	£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

 

 

 

Income statement for the year ended 31 July 2022

	UK	Ireland	Morocco	New ventures	Total
	£000	£000	£'000	£000	£000
Revenue	6,584	-	-	-	6,584
Cost of sales	(3,806)	-	-	-	(3,806)
Impairment of producing fields	(570)	-	-	-	(570)
Cost of sales	(4,376)	-	-	-	(4,376)
	---------------------------------	---------------------------------	---------------------------------	---------------------------------	---------------------------------
Gross profit	2,208	-	-	-	2,208
Exploration write-off	-	-	-	-	-
Administrative expenses	(1,082)	268	-	(7)	(821)
Finance income	205	1	33	-	239
Finance costs	(238)	-	-	-	(238)
	-----------------------------------	---------------------------------	---------------------------------	---------------------------------	-----------------------------------
Profit before tax	1,093	269	33	(7)	1,388
Taxation	(32)	-	-	-	(32)
	-----------------------------------	---------------------------------	---------------------------------	---------------------------------	-----------------------------------
Profit for the year	1,061	269	33	(7)	1,356

 

 

Segmental assets and liabilities as at 31 July 2022

	UK	Ireland	Morocco	New Ventures	Total
	£000	£000	£000	£'000	£000
Non-current assets	3,624	1,796	1,386	-	6,806
Current assets	9,941	-	263	-	10,204
	-----------------------------------	---------------------------------	-----------------------------------	--------------------------------	-----------------------------------
Total assets	13,565	1,796	1,649	-	17,010
	-----------------------------------	-----------------------------------	-----------------------------------	--------------------------------	-----------------------------------
Non-current liabilities	(4,168)	-	-	-	(4,168)
Current liabilities	(1,594)	(19)	-	-	(1,613)
	-----------------------------------	-----------------------------------	-----------------------------------	---------------------------------	-----------------------------------
Total liabilities	(5,762)	(19)	-	-	(5,781)
	-----------------------------------	-----------------------------------	-----------------------------------	--------------------------------	-----------------------------------
Other segment items
Capital expenditure	795	129	725	-	1,649
Depreciation	1,618	-	-	-	1,618
Share-based payments	20	-	-	-	20

 

100% of the total revenue (2022: 100%) relates to UK-based customers.  Of this figure, one end customer (2022: one) commands more than 99% of the total, including sales made through operators to the end customer. UK revenue by site was as follows: West Firsby £489,000 (2022: £353,000); Crosby Warren £447,000 (2022: £651,000); Whisby £387,000 (2022: £696,000 ); and Wressle £5,330,000 (2022:£4,884,000 ).

 

Positive values for administrative expenditure in the Ireland segment in both 2023 and 2022 relate to the reversal of certain accrued licence expenditure which had previously been impaired.

 

 

3              Profit / loss before taxation

Profit / loss before taxation is stated after charging/ (crediting):

		2023	2022
		£000	£000
Depreciation and amortisation on property, plant & equipment	12	1,133	1,618
Staff costs including directors	5	1,371	806
Diesel		174	163
Business rates		37	43
Site safety and security		98	89
Exploration write-off	11	1,686	-
Impairment reversal / impairment	12	(177)	570
Fees payable to the auditor for the audit		78	70
Operating leases - land and buildings		44	43
		==========	=========

4              Directors' emoluments

Directors' salaries and fees - Company and Group	2023	2022
	£000	£000
C Ahlefeldt-Laurvig (resigned 27 April 2023)	18	26
B O'Cathain	44	41
S Oddie	344	258
S Williams	33	31
W Holland	230	27
A Stuart (appointed 3 April 2023)	53	-
	-----------------------------------	-----------------------------------
	722	383
	=====================	===================

 

 

 

	2023	2022
Directors' pensions	£000	£000
W Holland	18	3
A Stuart (appointed 3 April 2023)	5	-
	-----------------------------------	-----------------------------------
	23	3
	=====================	=====================

 

The above charge represents premiums paid to money purchase pension plans during the year.

 

Directors' share-based payments	2023	2022
	£000	£000
SG Oddie	4	9
BJ O'Cathain	1	2
S Williams	1	2
W Holland	38	6
	-----------------------------------	-----------------------------------
	44	19
	==================	================

 

The above represents the accounting charge in respect of share options. No share options were exercised during the period (2022: none).

 

Directors' total emoluments

 

	Salaries and fees	Social security costs	Pensions	Share-based payments	Total 2023
	£000	£000	£000	£000	£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
	==================	==================	==================	==================	==================

 

 

	Salaries and fees	Social security costs	Pensions	Share-based payments	Total 2022
	£000	£000	£000	£000	£000
CW Ahlefeldt-Laurvig (resigned 27 April 2023)	26	2	-	-	28
BJ O'Cathain	41	5	-	2	48
SG Oddie	258	36	-	9	303
S Williams	31	3	-	2	36
W Holland	27	4	3	6	40
	----------------------------------	----------------------------------	----------------------------------	----------------------------------	----------------------------------
	383	50	3	19	455
	==================	==================	==================	==================	==================

 

5              Employee information

Average monthly number of employees including directors - Group	2023	2022
	Number	Number
Management and technical	7	6
Field exploration and production	5	4
	----------------------------------	----------------------------------
	12	10
	===================	===================

 

Staff costs - Group	2023	2022
	£000	£000
Wages and salaries (including directors' emoluments)	1,133	676
Social security	137	83
Pensions	53	27
Share-based payments (note 23)	48	20
	-----------------------------------	-----------------------------------
	1,371	806
	===================	====================

 

Average monthly number of employees including directors - Company	2023 Number	2022 Number
Management and technical	7	6
	----------------------------------	----------------------------------
	7	6
	====================	==================

 

Staff costs - Company	2023	2022
	£000	£000
Wages and salaries (including directors' emoluments)	881	463
Social security	113	60
Pensions	37	12
Share-based payment	48	20
	-----------------------------------	-----------------------------------
	1,079	555
	====================	==================

6              Finance income

	2023	2022
	£000	£000
Bank interest received	9	-
Foreign exchange gains	-	239
	------------------------------	------------------------------
	9	239
	==================	===================

 

7              Finance expense

	2023	2022
	£000	£000
Unwinding of discount on decommissioning provision (note 21)	416	233
Foreign exchange loss	264	-
Other finance expense	37	5
	------------------------------------	------------------------------------
	717	238
	===================	====================

 

8              Taxation

	2023	2022
	£000	£000
Movement in deferred tax asset (note 20)	1,503	318
Movement in deferred tax liability (note 20)	(1,503)	(318)
Current tax - UK	32	(32)
	------------------------------------	------------------------------------
Tax credit/(expense)	32	(32)
	====================	==================

                   UK corporation tax is calculated at 40% (2022: 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 current tax credit for the year ended 31 July 2023 related exclusively to carry back of current year EPL losses against the prior year EPL profit.

	2023	2022
	£000	£000
(Loss)/profit before tax	(884)	1,388
	==================	==================
Tax reconciliation
Loss / (profit) multiplied by the standard rate of corporation tax in the UK including Supplementary Charge of 40% (2022: 40%)	(354)	555
Expenses not deductible for tax purposes	1,003	430
Deferred tax asset not recognised	192	235
Accelerated capital allowances	(1,802)	-
Taxed at a different rate	(3,995)	-
Losses carried forward	5,172	-
Previously unrecognised tax losses utilised	(266)	(1,187)
Prior year adjustment	18	-
Other reconciling items	-	(1)
	---------------------------------	---------------------------------
Total tax (credit)/expense	(32)	32
	===================	=================

 

9              Other comprehensive income

	2023	2022
	£000	£000
Loss on investment revaluation	5	(18)
	===================	================

 

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 has been 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 the year 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 2023 there were 19,724,154 (2022: £37,607,821 ) potentially dilutive instruments in issue.

The calculation of the basic and diluted earnings per share is based on the following:

	2023	2022
	£000	£000
(Loss)/Profit for the year attributable to the equity shareholders of the parent	(852)	1,356
	=======================	=======================
Weighted average number of shares
For the purposes of basic EPS	958,804,515	700,028,629
For the purpose of diluted EPS	958,804,515	737,636,450

11            Intangible assets

Intangible assets - Group	2023	2022
	£000	£000
At 1 August	3,785	6,438
Additions	5,047	1,246
Transferred to property, plant and equipment (note 12)	-	(3,899)
Exploration write-off	(1,686)	-
	--------------------------------------	-----------------------------------
At 31 July	7,146	3,785
	=======================	=====================

Intangible assets comprise the Group's pre-production expenditure on licence interests as follows:

	2023 £000	2022 £000
Ireland FEL 4/19 (Inishkea)	2,166	1,789
UK PEDL181	112	81
UK PEDL182 (Broughton North)	34	34
UK PEDL343 (Cloughton)	108	92
Morocco (Inezgane)	-	1,379
Serenity	4,726	410
	--------------------------------	--------------------------------
Total	7,146	3,785
	=======================	===================
Exploration write-off	2023 £000	2022 £000
Morocco (Inezgane)	1,686	-

 

The licence in Morocco expired in November 2022 and was not renewed. Resultantly the full carrying value of the intangible asset of £1,686k was impaired.

If the Group elects not to continue in any other licence, then the impact on the financial statements will be the impairment of some or all of the intangible assets disclosed above. Details of commitments are included in note 25.

12            Property, plant & equipment

Property, plant & equipment - Group

	Furniture & computers	Producing fields	Right of use assets	Total
	£000	£000	£000	£000
Cost
At 31 July 2021	5	10,887	67	10,959
Additions	13	928	-	941
Transferred from intangible assets (note 11)	-	3,899	-	3,899
	-------------------------------	-------------------------------	-------------------------------	-------------------------------
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
	====================	====================	=================	======================
Depreciation, depletion and impairment
At 31 July 2021	3	10,552	35	10,590
Charge for year	1	1,601	16	1,618
Impairment in year	-	570	-	570
	-------------------------------	-------------------------------	-------------------------------	-------------------------------
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
	===================	======================	=================	====================
Net Book Value
At 31 July 2021	2	335	32	369
	===============================	===============================	===============================	===============================
At 31 July 2022	14	2,991	16	3,021
	===============================	===============================	===============================	===============================
At 31 July 2023	28	2,368	21	2,417
	===============================	===============================	===============================	===============================

 

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 a flat rate of $75 per barrel.

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, a net impairment reversal of £177,000 (2022: impairment of £570,000) was required. This was made up of a reversal of amounts previously impaired in relation to Crosby Warren due to a downward revision of the decommissioning liability, offset by an additional impairment in relation to West Firsby due to an upward revision in the decommissioning liability. The recoverable amount was calculated at a discount rate of 10% (2022: 10%).

 

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 & equipment - Company

	Furniture & computers	Right of use assets	Total
	£000	£000	£000
Cost
At 31 July 2021	5	37	42
Disposals	(1)	(80)	(81)
	-------------------------------	-------------------------------	-------------------------------
At 31 July 2022	18	37	55
Additions	37	24	61
	-------------------------------	-------------------------------	-------------------------------
At 31 July 2023	55	61	116
	====================	======================	=======================
Depreciation
At 31 July 2021	3	16	19
Charge for year	1	9	10
	-------------------------------	-------------------------------	-------------------------------
At 31 July 2022	4	25	29
Charge for year	24	14	38
	-------------------------------	-------------------------------	-------------------------------
At 31 July 2023	28	39	67
	====================	==================	===================
Net Book Value
At 31 July 2021	2	21	23
	===============================	===============================	===============================
At 31 July 2022	14	12	26
	===============================	===============================	===============================
At 31 July 2023	27	22	49
	===============================	===============================	===============================

 

 

 

 

 

 

 

 

13            Investments - Group           

Investment in shares	2023	2022
	£000	£000
At 1 August	24	42
Write back/(write off) on revaluation	5	(18)
Disposal	(29)
	-----------------------------------------	-----------------------------------------
At 31 July	-	24
	===================	===================

 

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, which it still holds.  At the time of the sale the shares were worth 1.156p each, resulting in a total value of £300,000.  The entire investment was disposed of during the current year. The investment was revalued on the date of the disposal to the realised value of £29,000 (0.11p per share) (2022 year-end value: £24,000 (0.09p per share) with the profit being recorded in Other Comprehensive Income (note 9). 

 

Investments - Company         

Investment in subsidiaries	2023	2022
	£000	£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

	2023	2022
	£000	£000
Oil in tanks	19	36
	======================================	======================================

 

 

 

15            Trade and other receivables

	Group		Company
	2023	2022	2023	2022
Current trade and other receivables	£000	£000	£000	£000
Trade receivables	556	1,476	-	-
Other receivables	103	185	30	43
Corporation tax receivable	50	-	-	-
Prepayments	184	205	99	120
	--------------------------------	--------------------------------	-----------------------------------	-----------------------------------
	893	1,866	129	163
	=================	=================	====================	====================
Non-current other receivables
Owed by Group undertakings (note 24)	-	-	22,143	13,270
	===================	===================	==================	===================

16            Restricted cash     

	Group		Company
	2023	2022	2023	2022
	£000	£000	£000	£000
Cash guarantee	-	263	-	-
Security escrow funds	-	6,621	-	-
	--------------------------------	--------------------------------	-----------------------------------	-----------------------------------
	-	6,884	-	-
	=================	====================	====================	===================

In the prior year, pursuant to the requirements of the farm-in agreement with i3 Energy plc in relation to UK offshore licence P.2358, Block 13/23c ("Serenity"), the Group deposited into an escrow account the full remaining committed funding requirement for its paying share of the 2023 appraisal well. During the current year funds were released from the escrow account in relation to expenditure incurred on the Serenity well. Upon completion of well operations all remaining escrow funds were released and transferred to the Group's unrestricted cash accounts, and the escrow account was closed. The escrow account was treated as restricted cash in the prior year.

The guarantee that was required by the petroleum agreement with the National Office of Hydrocarbons and Mines ('ONHYM') in Morocco for $315,000 (£263,000) (2022: $315,000 (£263,000)) was released and transferred to the Group's unrestricted cash accounts during the year upon expiry of the licence. This account was treated as restricted cash in the prior year.

 

17            Trade and other payables

	Group		Company
Current trade and other payables	2023	2022	2023	2022
	£000	£000	£000	£000
Trade payables	454	1,234	175	480
Lease liabilities	10	13	8	8
Corporation tax payable	-	32	-	-
Other payables	317	294	67	58
	--------------------------------------	--------------------------------------	---------------------------------------	---------------------------------------
	781	1,573	250	546
	===================	===================	====================	====================
Non-current trade and other payables
Lease liabilities	12	4	12	3

 

 

 

18            Borrowings

	Group		Company
	2023	2022	2023	2022
	£000	£000	£000	£000
Loans repayable in less than 1 year
Bounce Back Loan	-	40	-	40
	--------------------------------------	--------------------------------------	---------------------------------------	---------------------------------------
Total short-term borrowing	40	40	40	40
	==================	==================	======================	======================

In June 2020 the Group drew down on a Bounce Back loan for £50,000 under the Government's Covid 19 policies.  The loan is repayable within 6 years of drawdown but with a 12-month holiday and repayments started in July 2021.  The annual rate of interest is 2.5%. The loan was repaid in full in August 2022.

On 8 September 2022 the Company entered into a loan agreement with Union Jack Oil plc ("UJO"). The key features of the loan were: £1 million loan amount, 18-month term, interest rate of 11% per annum, repayable at any point during the term without penalty and secured against 10% interest in the Wressle field (PEDL180, and PEDL182). The loan was to provide additional liquidity during the drilling of the Serenity appraisal well. The loan was repaid in full on 18 October 2022.

 

 

19            Leases

	Group		Company
	2023	2022	2023	2022
	£000	£000	£000	£000
Amounts recognised in the statement of comprehensive income:
Interest on right of use liabilities	(1)	(2)	(1)	(1)
Amounts recognised in the statement of cash flows:
Repayment of lease liabilities - principal	(20)	(14)	(15)	(8)
Repayment of lease liabilities - interest	(2)	(2)	(1)	(1)
Maturity analysis (undiscounted):
Amounts due within one year	(9)	(14)	(8)	(8)
Amounts due after more than 1 year & less than 5 years	(12)	(2)	(12)	(2)
Amounts due after more than 5 years	-	-	-	-

The Group's right of use asset comprises the lease of 4 vehicles (note 12). The corresponding lease liability for the right to use leased assets is included within trade and other payables in the statement of financial position (note 17).

 

 

 

20            Deferred Tax - Group

	2023	2022
Recognised deferred tax asset:	£000	£000
As at 1 August	-	-
Charged to statement of comprehensive income	-	-
	------------------------------------------	------------------------------------------
At 31 July	-	-
	======================	=======================

The Group has a deferred tax liability of £2,935,000 (2022: £1,433,000) arising from accelerated capital allowances and a deferred tax asset of £2,935,000 (2022: £1,433,000) 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 (2022: £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 £7.3 million (2022: £5.2 million), which arises in relation to ring-fenced UK trading losses of £13.1 million (2022: £8.9 million), non-ring-fenced UK trading losses of £11.7 million (2022: £5.2 million), EPL losses of £4.1 million (2022: £nil) and subsidiary losses and carried forward capital expenditure of £7.3 million (2022: £6.7 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.

 

21            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	2023	2022
	£000	£000
As at 1 August	4,164	3,393
Charged to statement of comprehensive income (note 7)	416	233
Change in estimated phasing of cash flows	(212)	538
	--------------------------------	--------------------------------
At 31 July	4,368	4,164
	===================	====================

The decrease 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%	(386)
5%	740
Discount rate (current assumption 10%) 5%	1,489
15%	(890)

 

 

 

 

 

 

 

No provisions have been recognised in the Company.

 

22            Called up share capital

	2023	2022
	£000	£000
Allotted, called up and fully paid ordinary shares of 1p
At 1 August 2022: 956,466,985 shares (1 August 2021: 566,466,985)	9,565	5,665
Issued in the year: 2,717,193 shares (2022: 390,000,000 shares)	27	3,900
	--------------------------------	--------------------------------
At 31 July 2023: 959,184,178 shares (2022: 956,466,985)	9,592	9,565
	============	=============

 

Ordinary shares issued

Date	Type of Issue	Number of shares	Issue price	Raised gross	Raised net of costs	Nominal value
				£000	£000	£000
20 September 2022	Placing	2,717,193	0.018	49	49	27
		---------------------------------------------------------		--------------------------------	--------------------------------	--------------------------------
	Total	2,717,193		49	49	27
		=================		=========	=========	=========

 

The placing of ordinary shares during the year was to satisfy an exercise of warrants. All of the allotted shares are ordinary shares of the same class and rank pari passu. 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

23            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 41,550,628 ordinary 1p share options/warrants outstanding (2022: 41,207,821 ).

These are held as follows:

Holder	31 July 2023	31 July 2022
BJ O'Cathain	2,950,000	2,950,000
SG Oddie	9,200,000	9,200,000
SA Williams	2,500,000	2,500,000
W Holland	7,721,000	3,721,000
Employees of the Group	3,800,000	2,740,000
Consultants and advisers	15,379,628	20,096,821
	---------------------------------------------------	---------------------------------------------------
Total	41,550,628	41,207,821
	====================	====================

 

The fair values of options were determined using a Black Scholes Merton model or, in the case of those issued to advisors 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.

In the year 6,520,000 options/warrants were granted, 2,280,000 expired, 1,180,000 were forfeited, and 2,717,193 were exercised (2022: 15,863,667 granted, 2,223,458 expired, 685,000 forfeited, none exercised).

 

 

	2023 Number of options	2023 Average exercise price	2022 Number of options	2022 Average exercise price
Outstanding at the start of the year	41,207,821	2.23p	26,029,154	2.37p
Granted - employees/directors	6,520,000	1.14p	3,721,000	2.31p
Granted - advisors	-	-	12,142,667	1.80p
Exercised	(2,717,193)	1.80p	-	-
Expired	(2,280,000)	2.31p	-	-
Forfeited	(1,180,000)	3.66p	(685,000)	7.00p
	-------------------------------------------------	-----------------------------------	-------------------------------------------------	-----------------------------------
Outstanding at the end of the year	41,550,628	2.04p	41,207,821	2.02p
Exercisable at the end of the year	23,599,628	1.56p	18,096,821	1.64p

The 6,250,000 options granted in June 2023 vest in three tranches of 2,083,333, one tranche after each of 12, 24 and 36 months, and are exercisable conditional upon the Europa Oil & Gas (Holdings) plc closing average mid-market share price being above 2.836p for 30 consecutive trading days, and expire on the sixth anniversary of the grant date. The inputs used to determine their values are detailed in the table:

Grant date	22 March 2023
Number of options	6,250,000
Share price at grant	1.1p
Exercise price	1.25p
Volatility	70.81%
Dividend yield	Nil
Risk free investment rate	3.326%
Option life in years	6
Fair value per option	0.71p

Based on the fair values above, the charge arising from employee share options was £48,000 (2022: £20,000). The charge relating to non-employee share options was £Nil (2022: £Nil). The charge allocated directly to equity, relating to the issue of options on the issue of share capital, was £Nil (2022: £219,000).

Share options/warrants outstanding at the end of the period have exercise prices ranging from 1.14p to 8.9p and the weighted average remaining contractual life at the end of the period was 2.7 years (2022: 3.4 years).

24            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	Amortised cost	Fair value through other comprehensive income	Fair value through other comprehensive income
	2023	2022	2023	2022
	£000	£000	£000	£000
Investments	-	-	-	24
Trade and other receivables	709	1,661	-	-
Restricted cash	-	6,884	-	-
Cash and cash equivalents	5,165	1,394	-	-
	--------------------	--------------------	-----------------------	-----------------------
Total financial assets	5,874	9,939	-	24
	================================	================================	=====================================	=====================================

 

Financial assets - Company

	Amortised cost	Amortised cost	Fair value through other comprehensive income	Fair value through other comprehensive income
	2023	2022	2023	2022
	£000	£000	£000	£000
Investments	2,343	2,343	-	24
Trade and other receivables	30	43	-	-
Restricted cash	-	-	-	-
Cash and cash equivalents	121	249	-	-
	--------------------	--------------------	-----------------------	-----------------------
Total financial assets	2,494	2,635	-	24
	================================	================================	=====================================	=====================================

 

Financial liabilities - Group

	Amortised cost	Amortised cost	Fair value through other comprehensive income	Fair value through other comprehensive income
	2023	2022	2023	2022
	£000	£000	£000	£000
Trade and other payables	(771)	(1,556)	-	-
Lease liabilities	(22)	(17)	-	-
Loans	-	(44)	-	-
	--------------------	--------------------	---------------------	-----------------------
Total financial liabilities	(793)	(1,617)	-	-
	================================	================================	=====================================	=====================================

 

Financial liabilities - Company

	Amortised cost	Amortised cost	Fair value through other comprehensive income	Fair value through other comprehensive income
	2023	2022	2023	2022
	£000	£000	£000	£000
Trade and other payables	(242)	(538)	-	-
Lease liabilities	(20)	(11)	-	-
Loans	-	(40)	-	-
	--------------------	--------------------	---------------------	-----------------------
Total financial liabilities	(262)	(589)	-	-
	================================	================================	=====================================	=====================================

 

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 2023 trade receivables were £556,000 (2022: £1,476,000 ). 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 £1,574,000 comprising mainly of two months of Wressle sales as at the end of February 2023 (2022 maximum exposure: £1,433,000 ). 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.

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		Company
	Trade and other payables		Trade and other payables
At 31 July	2023	2022	2023	2022
	£000	£000	£000	£000
6 months or less	781	1,573	250	546
	--------------------------------------	--------------------------------------	---------------------------------------	---------------------------------------
Total	781	1,573	250	546
	================================	================================	=====================================	=====================================

 

	Group		Company
	Loans		Loans
At 31 July	2023	2022	2023	2022
	£000	£000	£000	£000
6 to 12 months	-	40	-	40
1 to 2 years	-	-	-	-
2 to 5 years	-	-	-	-
Over 5 years	-	-	-	-
	--------------------------------------	--------------------------------------	--------------------------------------	---------------------------------------
Total	-	40	-	40
	=====================	======================	=========================	========================

 

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 is 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	2023 Price US$/bbl	2023 PBT £000	2022 Price US$/bbl	2022 PBT £000
Highest	August 2022	$98.70	1,227	$122.40	1,723
Average		$83.30	(2)	$93.90	(208)
Lowest	June 2023	$73.40	(791)	$69.50	(1,864)

 

 

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.

		2023	2023	2022	2022
US Dollar	Month	Rate US$/£	PBT £000	Rate US$/£	PBT £000
Highest	July 2023	1.286	(410)	1.376	(373)
Average		1.212	(30)	1.313	(76)
Lowest	September 2022	1.117	535	1.216	443

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
		2023	2022	2023	2022
Currency	Item	£000	£000	£000	£000
Euro	Cash and cash equivalents	18	92	-	3
	Trade and other payables	(9)	(13)	(9)	(13)
US Dollar	Cash and cash equivalents	5,102	1,322	75	3
	Trade and other receivables	556	1,435	-	-
	Trade and other payables	(47)	(5)	(47)	(5)
		----------------------------	----------------------------	----------------------------	----------------------------
Total		5,620	2,831	(19)	(12)
		====================	===================	======================	======================

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 2023). 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. As a consequence of the Inezgane licence expiring and not being extended, the loans to Europa Oil & Gas New Ventures have been provided for in full (2022: provided 67%).

The loan to Europa Oil & Gas (Ireland West) and Europa Oil & Gas (Ireland East) have been provided in full due to the relinquishment of the licence held by the subsidiaries.

During the year to 31 July 2023 there has been a marked increase in the expected recoverable value of the Group's Crosby Warren producing asset, mainly as a result of an anticipated new revenue stream from handling water produced by the Wressle producing field. This led to a further partial reversal of previous 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	Europa Oil & Gas (Ireland West) Limited	Europa Oil & Gas (Ireland East) Limited	Europa Oil & Gas (Inishkea) Limited	Europa Oil & Gas (New Ventures) Limited	Total
	£000	£000	£000	£000	£000	£000
	=============	=============	=============	=============	=============	=============
Gross loan balances
Loan balance at 31 July 2021	20,178	763	1,480	1,024	762	24,207
Movement in loan	6,357	18	15	144	428	6,962
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
Provisions
Provision at 31 July 2021	(20,178)	(763)	(1,480)	(687)	(511)	(23,619)
Movement in provision	6,135	(18)	(15)	(96)	(286)	5,720
Provision at 31 July 2022	(14,043)	(781)	(1,495)	(783)	(797)	(17,899)
Movement in provision	8,165	76	153	(149)	(248)	7,947
Provision at 31 July 2023	(5,878)	(705)	(1,342)	(932)	(1,045)	(9,952)
Net loan balance at 1 August 2021 2012018	-	-	-	337	251	588
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

25            Capital commitments and guarantees

As part of the licence extension for FEL 4/19 there is an outstanding commitment totalling ?0.1 million that relates primarily to seismic reprocessing.

For PEDL181 the partners have agreed to drill two development wells and to construct a gas export line. These activities are contingent upon the budget being approved by the JV partnership, the timing of environmental permitting and the availability of a suitable rig. The total net cost to Europa for the work programme is estimated to be £0.5 million in 2023 and £3.7 million in 2024.

26            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:

	2023 £000	2022 £000
Less than 1 year	-	9
2-5 years	-	-
	---------------------------------	---------------------------------
Total	-	9
	============	=============

27            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:

	2023 £000	2022 £000
Europa Oil & Gas Limited	336	236
Europa Oil & Gas (Inishkea) Limited	102	42
Europa Oil & Gas (New Ventures) Limited	26	19
	---------------------------------	---------------------------------
Total	464	297
	============	==========

 

At the end of the year, after provisions, the Company was owed the following amounts by subsidiaries:

	2023 £000	2022 £000
Europa Oil & Gas Limited	21,684	12,492
Europa Oil & Gas (Inishkea) Limited	459	385
Europa Oil & Gas (New Ventures) Limited	-	393
	---------------------------------	---------------------------------
Total	22,143	13,270
	============	=============

 

28         Post reporting date events

·    Operations to install a jet pump for artificial lift on the Wressle-1 well are underway. The original completion was removed from the well and a new completion, including the sub-surface pump, has been successfully run in the well as of early October 2023. All that remains is for the required surface pump and associated flowlines and electrics to be installed, which is expected to be completed before the end of October 2023.

 

·    PEDL 181 was relinquished during September 2023. The asset was not deemed to be adequately attractive. It had zero carrying value on the balance sheet.

 

·    Applied to DECC to extend licence FEL 4/19 from 31 January 2024 to undertake further reprocessing and secure a farm-in partners.