Europa Oil & Gas is to relinquish its 28.75% stake at the Brodina concession in Romania. The decision will mean the firm has to write off £2.7m that has already been sunk in to the project.
In today's update Europa also says production has resumed at the West Firsby 7 well in the East Midlands. The well was shut down in December because of a suspected hole in a section of the tubing.
Europa says despite the shut down production will still be around 185 barrels of oil per day in the six months to the end of January, which is in line with previous guidance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Europa's Chief Executive, Hugh Mackay, emphasised the importance of the Firsby well: "I am delighted that our workover programme for West Firsby 7 has been completed on schedule. Our UK producing assets generate considerable cash flow that covers our corporate overheads and at the same time underpins our market valuation."
On the withdrawal from Romania Mackay said: "We continually evaluate the risk/reward trade-off on all our licences and are committed to taking action, whether this involves progressing an individual project along the development curve or, in the case of Brodina, choosing to exit."
Shares in Europa had gained 5% by 08:24, over the last year, the stock has dropped 67.5%.
October’s NS&I Premium Bond winners revealed - have you scooped £1 million?
Two lucky NS&I Premium Bond winners are now millionaires this October. Find out here you are one of them
By Kalpana Fitzpatrick Published
Nationwide: House prices fall across the UK at fastest pace since 2009
House prices drop 5.3% on the year as high borrowing costs hit prospective buyers.
By Pedro Gonçalves Published