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Europa reviews Irish assets after slump in oil price

 

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Oil prices have fallen as a result of Covid-19

Oil prices have fallen as a result of Covid-19

Oil prices have fallen as a result of Covid-19

Europa Oil and Gas, an explorer with interests in Ireland, has carried out a review of its assets here due to the current low price of oil.

In a Covid-19 market update, the Aim-listed company said that the review could lead to further relinquishments and the writing-off of certain assets off the shores of Ireland. It would carry out such measures to avoid unnecessary licence costs.

A spokesman for Europa said its interim results would be published on April 15 and the company expected there would be an update on its review of Irish licences and assets within them.

Simon Oddie, interim chief executive and executive chairman of Europa, said it had made appropriate cost savings and would consider making more should conditions not improve.

"These are challenging times for the oil and gas exploration and production industry, with the combination of market turbulence and depressed oil prices," he said.

In the update, it said it had carried out a review and cost-reduction programme across the business.

It noted existing cash reserves are expected to be sufficient to finance current and upcoming activity, including ongoing farm-out activities and reduced work programmes off the shores of Ireland, Morocco and the UK.

Europa owns the Inishkea site, which is near the Corrib gas field. The company estimates the site holds 1.5 trillion cubic feet of gas.

Sunday Indo Business