Europa Oil & Gas (Holdings) PLC (AIM:EOG) chief executive William Holland speaks to Thomas Warner from Proactive after the exploration and production company published an update on production at its 30% owned Wressle oilfield and its cash position.
Holland discusses Europa's production at the Wressle field, noting that while it is meeting expectations at around 650 bpd, careful reservoir management is essential to maximize output and avoid excessive water production.
He goes on to say that the company's 2023 cash flow fell short of forecasts, primarily due to delays in drilling the Penistone well and shutting down Wressle 1 for jet pump installation, which impacted revenue and free cash flow. However, these setbacks saved expenditure, leaving Europa well-funded for 2024.
Holland outlines Europa's priorities for 2024, emphasising the expansion of the Wressle site upon receiving planning and Environmental Agency (EA) approvals. The company aims to drill two additional wells at Wressle by year-end, subject to necessary approvals expected by Q3 2024.
Other significant projects include finalising the work program and budget for their onshore UK Cloughton asset, progressing stakeholder engagement, and planning activities in Equatorial Guinea and on Ireland’s Atlantic Margin.
Holland stresses the importance of these developments in strengthening Europa's position in the industry and ensuring robust performance in the coming year.
