Europa Oil & Gas (Holdings) plc (AIM:EOG)'s binding farm‑out of a 40% interest in the EG‑08 licence to Fuhai funds 95% of the Barracuda well costs (capped at US$53m) and gives Europa a 17.2% net attributable interest in results for the 17 months to 31 December 2025.
Revenue for the 17‑month period rose to £3.9m from £3.6m in the prior comparable period and the pre‑tax loss narrowed to £2.7m from £6.8m.
Cash at 31 December was £0.3m versus £1.5m at 31 July 2024, operating cash used fell to £0.2m from £0.6m, and post‑period Europa raised £4.1m (including a £3.5m placing) to fund Barracuda and working capital.
Operational highlights included Wressle averaging 281 bopd gross (Europa net 84 bopd), a 100% interest in the FEL 4/19 Inishkea West prospect (1.5 TCF Pmean, post‑tax NPV10 US$2bn) with the licence extended to 31 January 2028, and an anticipated Barracuda spud in late 2026 or early 2027.
Administrative expenses were £2.4m (12 months to 31 July 2024: £1.9m) but were lower on a pro‑rata basis, and planning permission for the Cloughton appraisal was refused in May 2026 and is under review for appeal.
"We remain debt‑free, our UK production continues to generate cash, and we now have a funded pathway to drilling a well that could genuinely change the scale of the business," William Holland, CEO, said.
Drilling of Barracuda is expected to commence in late 2026 or early 2027 subject to regulatory approvals.
