Europa Oil & Gas’s big strategy is to use revenues from oil fields in the East Midlands to help finance exploration and development of energy plays on the Continent. Last year this strategy did not work because UK output fell 16 per cent to an average daily production of 178 barrels of oil. The drop is blamed on unscheduled well shut-ins at the company’s three oilfields.
But poor-performing oil fields are also an accounting curse for Europa and the latest results include a £1m write-down of the value of the Crosby Warren oilfield in the grounds of the Scunthorpe steelworks. Production continues at a rate of 40 barrels of oil a day but that’s much less than expected. And if you are going to report one bit of bad news, why not also take a similar hit on ending an interest in onshore Egypt - so the latest results include over £2m of one-off debits.
But there is good news from the Continent. Good gas flows from the Voitinel discovery in the Carpathians (Europa has a 29 per cent stake) should be followed by two appraisal wells in 2011.
EUROPA OIL & GAS (EOG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 12.75p | MARKET VALUE: | £10.5m | |
| TOUCH: | 12-13.5p | 12-MONTH HIGH: | 18.75p | LOW: 11.25p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 9p* | NET DEBT: | 17% | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 2.83 | 0.84 | -1.05 | nil |
| 2007 | 2.50 | 0.35 | -0.10 | nil |
| 2008 | 4.42 | 2.05 | 0.71 | nil |
| 2009 | 2.94 | 0.38 | 0.03 | nil |
| 2010 | 3.09 | -1.70 | -2.60 | nil |
| % change | +5 | - | - | - |
Aim: Oil and gas exploration and production. *Including intangibles of £9.75m, or 12p a share | ||||
