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Mackay is confident that Europa can begin to deliver these joint venture deals soon – although he remains coy about the ones closest to completion.Ī deal for the French assets could make a big difference to the scope of Europa’s immediate plans as it could pave the way for two more drilling projects, if agreed soon. Meanwhile Mackay says talks are underway over 5 potential farm-outs that could greatly enhance Europa’s portfolio – over its assets in France, offshore Ireland, Romania and Western Sahara. This is likely to be the Egdon Resources operated Wressle prospect, in Lincolnshire, targeting the primary Chatsworth Grit reservoir.Īnd it is the first of three potential wells that Europa could participate in over the next 18 months or so – the other being the appraisal of the Broughton oil discovery (made by BP in the 1984) and the Holmwood exploration asset, which is currently awaiting a planning appeal.Įach of these projects has the potential to add approximately 10p a share to Europa’s current share price, according to Mackay. Indeed, a combination of slightly better production and higher than forecast oil prices already mean that Europa has recently been generating over US$150,000 in extra monthly revenue in the first two months of 2012.Įuropa is fully funded for its share of drilling costs for a new potentially high impact well in the UK in September this year. “Small wins can have a big impact on production, and therefore cashflow.” Some initiatives are ongoing to achieve this, and output has shown signs of improvement. The fields are in decline and the emphasis is on managing costs and the rate of decline. There is no magic bullet that is going to double production here, he says.

Production is currently on target to meet management’s budgeted expectations, set at 200 barrels per day.īut Mackay gives a frank assessment of the current crop of Europa’s production assets.

Its modest production base is a cash generating engine that gives Europa a head start in terms of funding its growth ambitions. “We really want to make sure that we deliver on our promises and do what we say we’re going to do, that we ‘walk the talk’.Īt the moment the group’s core is a UK onshore operation and appraisal assets in France. And along with a recently announced exploration and appraisal strategy he hopes it will provide investors with a clearer picture of what Europa is trying to achieve. Mackay says the new CPR report is expected next month. “The CPR will give us a strong insight into the value of the assets we currently have, and enable us to communicate realistically with the investment community.”Īlso the completion of farm-out talks and future acquisitions will be central to Europa’s future development, he explains. “So I could make the decisions about the company’s future based on a realistic understanding of the assets, and what they are actually worth.” “I needed to properly understand what Europa has really got in the portfolio,” he said, speaking with Proactive.

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Mackay initiated a full review of the company’s assets and commissioned a new competent person’s report to establish an independent valuation, which he hopes will anchor the share price going forward. The stock had fallen 85 per cent in the seven months prior to his appointment as a difficult period took its toll on investors' confidence. That’s the bold statement of new chief executive Hugh Mackay, who admits that when he joined the group in October it had an image problem. Europa Oil & Gas ( LON:EOG) intends to deliver on its promises and “walk the talk”.

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