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
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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%.
BS
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
