Annual Report and Financial Statements 
EUROPA OIL & GAS (HOLDINGS) plc 
 
 
 
 
 
 
 For the year ended 31 July 2012 
  
 Company registration number 5217946 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  Europa Oil & Gas (Holdings) plc   
 
 
 
Europa Oil & Gas (Holdings) plc is an AIM listed exploration and production company focused on 
Europe. It offers an attractive mix of highly prospective exploration assets, including the Berenx gas 
appraisal project onshore France, two substantial prospects in the Irish Atlantic margin as well as interests 
in three producing assets onshore UK. 
Contents 
 
Highlights ....................................................................................................................................................................... 1 
Where we operate ......................................................................................................................................................... 2 
New prospects in the Irish Atlantic Margin ............................................................................................................. 3 
Chairman's statement ................................................................................................................................................... 4 
Interview with CEO Hugh Mackay on the CPR ..................................................................................................... 7 
Operational review ........................................................................................................................................................ 9 
Financial review ........................................................................................................................................................... 14 
Directors’ profiles ....................................................................................................................................................... 17 
Directors' report .......................................................................................................................................................... 18 
Statement of directors’ responsibilities .................................................................................................................... 20 
Corporate governance statement .............................................................................................................................. 21 
Report of the independent auditors ......................................................................................................................... 23 
Consolidated statement of comprehensive income .............................................................................................. 25 
Consolidated statement of financial position ......................................................................................................... 26 
Consolidated statement of changes in equity ......................................................................................................... 27 
Company statement of financial position ............................................................................................................... 28 
Company statement of changes in equity ............................................................................................................... 29 
Consolidated statement of cash flows ..................................................................................................................... 30 
Company statement of cash flows ........................................................................................................................... 31 
Notes to the financial statements ............................................................................................................................. 32 
Notice of AGM ........................................................................................................................................................... 56 
Resolutions to be put to the AGM .......................................................................................................................... 57 
Form of proxy for the Europa Oil & Gas (Holdings) plc AGM ........................................................................ 58 
Notes re the form of proxy ....................................................................................................................................... 59 
Directors and advisers ................................................................................................................................................ 60 
Glossary ........................................................................................................................................................................ 61 
 
 
 
  Europa Oil & Gas (Holdings) plc   
 
1 
 
Highlights 
 
Operational highlights 
 Average daily UK production up 18% to 200 boepd (2011: 169 boepd) 
 CPR confirms 48.2 mmboe net mean unrisked resource for UK (excluding Holmwood) and 
Berenx deep in onshore France 
 Identified exciting shallow gas play in Béarn des Gaves Permit, France 
 
Financial performance 
 Revenue up 34% to £5.1m (2011: £3.8m) 
 Pre-tax profit before impairment and exploration write-down £1.2m (2011: £0.7m) 
 Net loss £11.3m (2011: £0.2m) after exploration write-down of £12.5m in respect of Romania 
and PEDL150  
 Cash generated from continuing operations £2.1m (2011: £0.7m) 
 Net cash £0.2m (2011: £1.9m) 
 Repaid £1m term loan 
 
Post reporting date events 
 Two large prospects identified in Irish South Porcupine Basin 
 Holmwood planning appeal in Surrey dismissed, next steps being considered 
 
 
 
GRAPHIC (Pretax profit for continuing 
operations, excluding exploration write-off and 
impairment) 
Year Revenue £m Adjusted pretax 
profit £m 
2009 2.9 0.7 
2010 3.1 0.3 
2011 3.8 0.7 
2012 5.1 1.2 
 
 
 
 
 
 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
2 
 
Where we operate 
 
 
EXPLORATION AND PRODUCTION COMPANY FOCUSED ON EUROPE, 
MEDITERRANEAN AND ATLANTIC MARGIN  
Europa holds a varied asset portfolio across four EU jurisdictions and in the Sahrawi 
Arab Democratic Republic (SADR). These range from oil producing assets through 
exciting discoveries at the appraisal stage, to exploration projects in both new and 
established oil and gas plays. 
 
  
Country Area Licence Field/ 
Prospect 
Operator Equity Status 
       
UK East 
Midlands 
DL003 West Firsby Europa 100% Production 
DL001 Crosby Warren Europa 100% Production 
PL199/215 Whisby-4 BPEL 65% Production 
PEDL150 West Whisby Europa 75% Exploration 
PEDL180 Wressle Egdon 33% Exploration 
PEDL181 Caister / shale Europa 50% Exploration 
PEDL182 Broughton Egdon 33% Exploration 
Weald PEDL143 Holmwood Europa 40% Exploration 
North Sea Holderness Offshore UCG Europa 90% Exploration 
Humber South Offshore UCG Europa 90% Exploration 
       
Ireland Porcupine LO 11/7 Mullen Europa 100% Exploration 
LO 11/8 Kiernan Europa 100% Exploration 
       
France Aquitaine Béarn des 
Gaves 
Berenx (deep 
and shallow) 
Europa 100% Exploration/Appraisal 
Tarbes val 
d'Adour 
Osmets/Jacque Europa 100% Exploration/Appraisal 
       
Romania Carpathians EIII-4 Bacau  Raffles 19% Exploration 
EPI-3 Brates Barchiz  Europa 100% Exploration 
       
SADR Tindouf Bir Lehlou  Europa 100% Exploration 
Aaiun Hagounia  Europa 100% Exploration   
Europa Oil & Gas (Holdings) plc 
 
3 
 
New prospects in the Irish Atlantic Margin 
Two sizeable prospects, Mullen and Kiernan, were identified in the Lower Cretatceous 
clastic play in the Irish Atlantic Margin in September 2012. Europa owns a 100% equity 
interest in Licencing Options 11/07 and 11/08 which cover these two prospects. 
 
The two Licensing Options cover two four-block parcels in Quads 43 and 54 situated off the west coast 
of Ireland in the South Porcupine Basin. The licences cover a total area of approximately 2,000 km
2
 in 
water depths of between 700 metres and 2,000 metres. 
The initial technical work and prospect mapping exercise has exceeded our expectations. Two prospects 
have been indentified in the South Porcupine basin: Mullen in LO 11/7 and Kiernan in LO 11/8. Seismic 
mapping shows potential for large stratigraphic closures of up to 120 km
2
 in size in the case of Mullen and 
244 km
2
 in the case of Kiernan. Both prospects are part of the Lower Cretaceous clastic play; a 
hydrocarbon play proven by the Burren oil discovery in the North Porcupine basin.  
The size of these prospects warrants further priority investigation. A work programme has been embarked 
upon that will provide volumetric estimates in due course. Additional seismic data will be required to 
further de-risk the prospects and upgrade Mullen and Kiernan to drillable status.  
The Mullen prospect lies in approximately 1,000 metres water depth with the Lower Cretaceous reservoir 
targets lying 2,850 metres below the mud line (bml). Mullen is located 200 km offshore from SW Ireland, 
140 km SSW from the Lower Cretaceous Burren oil discovery, 35/8-1 and 50 km NW from the 
ExxonMobil operated Dunquin exploration well which is due to be drilled in Q1 2013 to evaluate a 
Middle Cretaceous carbonate play. 
The Kiernan prospect lies in 1,780 metres water depth with the Lower Cretaceous reservoir targets at a 
depth of 4,220 metres bml. Kiernan is located 145 km offshore from SW Ireland, 200km SSE from the 
Burren oil discovery and 65 km SE from Dunquin. 
The Company’s current focus is to mature the large Lower Cretaceous stratigraphic prospects at the 
Mullen and Kiernan locations and to identify other submarine fan systems similar to those that have been 
proved to be successful elsewhere along the Atlantic Margins. A joint venture partner is being sought for 
both licences. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Europa Oil & Gas (Holdings) plc 
 
4 
 
Chairman's statement 
 
 
 
 
 
 
 
 
 
Dear shareholders, 
The year under review has served to highlight the significant benefits of being an oil and gas company 
focused on Europe with a multistage portfolio of licences, including both production in the UK as well as 
highly prospective exploration in France and the Irish Atlantic Margin.  While adverse macroeconomic 
conditions have prevailed for much of the last twelve months impacting business activity across a wide 
range of sectors, Europa’s UK producing assets have had an excellent year, averaging 200 boepd, an 18% 
increase on last year’s 169 boepd.  Together with a 10.5% increase in the average oil price achieved over 
the course of the year, our full year revenues show a 34% increase to £5.1 million.     
The wider financial conditions notwithstanding, the £5.1 million in revenues has allowed us to progress 
what we hope will become our future producing assets further along the development curve. In the UK, 
we funded our share of costs for acquisition and processing of 49 km
2
 of 3D seismic survey over our 33% 
owned PEDL180 and PEDL182 licences.  We rate the Wressle and Broughton prospects on the licences 
as both having a one in three chance of making a commercial discovery which would lead to a material 
increase in our production. The licences are operated by Egdon Resources and a well is expected to be 
drilled on one of the two prospects in the first quarter of 2013.  Thanks to the strong performance of our 
UK production, Europa is fully funded to cover its share of drilling costs. 
Progress has also been made on our French licences. Earlier in the year, re-evaluation of existing seismic 
and well data resulted in our in-house technical team identifying a previously unrecognised shallow gas 
play on the already highly prospective Béarn des Gaves Permit in South West France that lies adjacent to 
the giant gas fields of Lacq and Meillon.  This is a significant development for the Company with positive 
implications for the on-going farm out process for this 100% owned Permit.   
The prospectivity of the deep gas play in the Béarn des Gaves Permit (Berenx Deep) has been known for 
decades following the drilling of wells in the 1960s and 1970s combined with the existence of historic 
seismic data. However, at 5,500 metres below the surface, the cost of one well is estimated at €40-50 
million which has effectively limited the number of potential partners, an issue exacerbated by the 
challenging economic climate. By contrast, the cost of drilling the newly identified shallow prospect is 
considerably lower at €4-5 million and therefore affordable to a much larger pool of oil and gas 
companies. As a result, our strategy regarding Berenx has changed so that we are now looking to drill and 
prove up the shallow prospect first, which we estimate holds up to 59 bcf of gas, before addressing the 
deeper prospectivity. With this strategy in mind, we are in active discussions with regards to farming out 
Berenx, both shallow and deep.   
In October 2011, Europa was awarded two exploration Licensing Options in the Irish Atlantic Margin.  
The waters around Ireland have been generating much excitement recently following drilling success in 
the Celtic Sea and upcoming wells offshore West of Ireland. Since acquiring the acreage, our technical 
team has been busy mapping the two four-block parcels located in the Porcupine Basin which cover an 
area totalling 2,000 km
2
. This work has resulted in the identification of two potentially large prospects in 
Key Highlights 
• Production & revenue growth 
• Wressle has potential to transform Europa 
• Completed and published CPR 
• Strengthened technical team 
 
We are now well placed to progress 
our assets further along the 
development curve. 
   
Europa Oil & Gas (Holdings) plc 
 
5 
 
the Lower Cretaceous clastic play. Further work is required to mature these prospects to drillable status, 
however, we are very encouraged by our findings to date. As with our French permits, we are actively 
seeking to secure a farm-in partner.   
During the year, we published the findings of a Competent Person’s Report (‘CPR’) drafted by ERC 
Equipoise Limited (‘ERC’), which provides an independent assessment of Europa’s UK and French 
assets.  This was the first time a third party has reviewed the exploration assets and the results are highly 
encouraging.  ERC estimated our core recoverable reserves and potential resources at 48.2 mmboe. While 
we believe this figure to be on the conservative side, we are happy to accept this as a solid base from 
which we are confident we can build on as we progress our UK and French prospects along the 
development curve.   
During the period, Hugh Mackay took over as Chief Executive Officer.  Hugh is a geologist by profession 
with over 30 years’ experience having held senior posts at BP, Enterprise Oil, The Peak Group, AGR 
Petroleum and Avannaa Resources. Hugh is responsible for putting together the technical team on whose 
excellent work I have already commented.   
In addition to our exploration licences, the team has been working hard on our UK producing assets with 
the remit to increase production and where possible extend the life of the fields by implementing a series 
of initiatives aimed at improving operational efficiency and recovery rates.  While it is too early to gauge 
the long term effects, the results of the work by our operational team on the ground can nevertheless be 
seen in the 19% increase in year on year oil volumes. We are pleased to have delivered on our forecast 
production for the year of 200 boepd. 
Hugh has also spearheaded an in depth review of our entire asset base, a process that culminated in the 
commissioning of the CPR. Thanks to the review and CPR, our understanding of the potential of our 
licences and, by definition, the Company as a whole, has increased considerably. At the very least, the 
CPR serves as a benchmark in our on-going discussions with potential partners, particularly with regards 
to Berenx. 
Outlook  
Having an asset base at various stages of development is highly beneficial to the Company.  As a result of 
our existing production, our exploration activity in the next twelve months is not wholly dependent on 
our securing a farm-out deal. As mentioned earlier, we are fully funded to drill a well on PEDL180 or 
PEDL182 in the UK. In addition, our three producing fields in the East Midlands have been assigned 
mean recoverable reserves of 0.65 mmbo by ERC. We believe there is scope to build on this but as it 
stands this third party estimate is nevertheless a valuable asset. Meanwhile, ERC have estimated Berenx 
Deep has a net mean contingent resource of 277 bcf.  Combined, our UK and French assets provide 
tremendous asset backing to a Company of our size, which underpins our valuation. 
The actions taken over the course of the year under review have strengthened my own and the Board’s 
belief in the potential of Europa’s asset base and our ability to create substantial value for all shareholders.  
We recognise it is our task to realise this potential.  Drilling is key to the long term development of all oil 
and gas companies no matter what size they are and, with this in mind, the prospect of commencing 
drilling in the East Midlands in early 2013 is very much welcome. Subject to the results of this well, we, 
along with our partners, will consider drilling a follow up.  In the meantime, we continue to work hard to 
move all our licences forward and remain on the look out to add additional projects to our portfolio that 
meet our investment criteria.  Updates on our progress will be provided as and when it is appropriate to 
do so.   
Finally, I would like to thank the management team, directors and advisers for their hard work during the 
year and also to our shareholders for their support over the last twelve months.  
 
WH Adamson 
Chairman   
Europa Oil & Gas (Holdings) plc 
 
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Our strategy 
Europa's objective is to become listed in the top quartile on AIM within 5 years. The threshold for 
this quartile is a market capitalisation greater than £100 million. 
To achieve this objective Europa will drill up its existing exploration and appraisal portfolio in the 
UK, France and Ireland. Some of this activity will be funded from cashflow; others by farm-out.  
New ventures will be added to the portfolio. This will be a combination of ground floor licence 
application and, where appropriate, by farm-in. Strategic partnerships will be considered as a means 
of accelerating portfolio growth, drill up activity and achieving the objective. 
Europa’s areas of interest are Europe, the Mediterranean, and the Atlantic margin. Access to good 
prospectivity preferably on ground floor terms is key and opportunities outside the AOI will be 
considered. 
   
Europa Oil & Gas (Holdings) plc 
 
7 
 
Interview with CEO Hugh Mackay on the CPR 
On 1
st
 June 2012, Europa published a Competent Person’s Report (CPR) undertaken by 
ERC Equipoise. CEO Hugh Mackay discusses the findings of the CPR.  
 
 
Q: You commissioned a Competent Person’s Report (CPR) this year – what was the rationale for 
that? 
A: It’s natural that management believes in the Company’s assets – but it’s prudent to get a 3
rd
 party 
to review them and give their independent assessment of risk and reward. It is also our intent to provide 
the market with complete clarity on our asset base so we have made the entire CPR publicly available on 
our website. 
 
Q. Why were ERC Equipoise chosen to undertake the CPR?  
A.   ERC Equipoise is a well established provider of independent reserves and resources reports with 
a strong reputation in the upstream oil industry. 
 
Q: And what did the CPR say?  
A: At 48.2 mmboe the CPR's estimate of our core recoverable reserves and potential resources 
provides a solid asset backing to our current market valuation and will also play a key role in our ongoing 
negotiations with potential partners, specifically regarding our French Permits.  
 
Q: Were there any areas of disagreement with ERC Equipoise? 
A: The only significant difference in interpretation concerned resources for the Berenx deep 
structure. This was largely due to challenges mapping in a thrust belt using various vintages of seismic 
data. Europa had more confidence mapping in this complex terrain resulting in larger structural closures 
and consequently resources. The CPR estimates Berenx Deep holds a net mean contingent resource of 
277 bcf whereas we believe the figure to be 524 bcf. In the interests of consistency we have nonetheless 
elected to proceed with ERC’s more conservative reserves figures for Berenx in our public documents and 
in our subsequent net asset value calculations. 
 
 
Q.  The CPR covered the UK and French assets but why did the CPR not include volumetrics for 
Berenx shallow or the Tarbes Licences? 
A. Additional data would be required before these assets could be included in the CPR. ERC did 
suggest that the Berenx shallow structure is a lead with gas initially in place of 75 bcf. Europa considers 
this a prospect with gross mean unrisked resources of 59 bcf. 
 
Q.  ERC classified Berenx Deep as having 277 bcf of contingent resources, can you explain the 
significance of the term ‘contingent resources’? 
A. The SPE-PRMS Guidelines define contingent resources as “those quantities of petroleum 
estimated, as of a given date, to be potentially recoverable from known accumulations by application of 
development projects, but which are not considered currently recoverable due to one or more 
contingences.”    
Europa Oil & Gas (Holdings) plc 
 
8 
 
Berenx deep is a known accumulation that has flowed gas to surface. The definition of contingent 
resources is significant for Berenx since it acknowledges that geological risk has been eliminated, it is an 
appraisal project. Commercial recovery is dependent on the ability to predict and access natural fracture 
systems capable of delivering commercial rates of production. 
 
Q.  Did the CPR’s volumetrics for PEDL180/182 take account of the 3D seismic acquired earlier in 
the year? 
A. No they did not. The processed 3D seismic did not become available until May and was too late 
to include in the report, indeed interpretation of the dataset is ongoing. We anticipate confirming new 
resources based on the new 3D dataset later in 2012. 
 
Q.  The CPR estimate for remaining reserves at the three UK producing fields at 0.65 mmbo.  Is 
there scope to increase this? 
A. Yes there is. The CPR indicates 3P reserves of 1 million barrels; most of the additional 350,000 
barrels in the “possible” category is located in the West Firsby field. We are actively evaluating ways of 
accessing this upside.  
  
Q: What next? 
A I am delighted to have received this independent assessment of Europa's UK and French licences 
which supports our view that our UK exploration assets at Wressle and Broughton each have the 
potential to create significant value for shareholders, while Berenx in France could be the company maker 
we believe it is. Since completing the CPR two new prospects, Mullen and Kiernan, have been identified 
offshore Ireland. Technical work to de-risk the prospects is ongoing and additional seismic acquisition will 
be required to mature these prospects to drillable status. Mullen and Kiernan can be included in a future 
CPR either as individual projects or as part of a company-wide review.  
 
    
Europa Oil & Gas (Holdings) plc 
 
9 
 
Operational review 
A strong asset inventory ready to be unlocked 
 
Europa’s business comprises three core strands: production, appraisal and exploration and these activities 
take place in four European jurisdictions: UK, France, Ireland and Romania and in the Sahrawi Arab 
Democratic Repulic.  
The Company continues to evaluate new venture opportunities in the European and North African region 
to strengthen its asset base. The current licence portfolio is summarised in the table on page 3. 
United Kingdom 
Highlights 
• Achieved production target of 200 boepd. 
• Wressle well expected early 2013. 
United Kingdom – Exploration 
 
NE Lincolnshire  
 
PEDL180 33.3% (Wressle) 
PEDL180 covers an area of 100 km
2
 of the East Midlands Petroleum Province south of the Crosby 
Warren field. Europa has an equal working interest share in the block with its partners Egdon Resources 
& Celtique. The Wressle prospect has estimated mean gross unrisked recoverable resources of 2.41 
mmbo. 49 km
2
 of 3D seismic acquisition covering PEDL180 and PEDL182 has been processed. Drilling 
at either Wressle or Broughton is targeted for early 2013. 
 
PEDL182 33.3% (Broughton) 
To the north, PEDL182 is an area of 40 km
2
 with the same equity structure as that of PEDL180. The 
Broughton prospect was previously drilled by BP and flowed oil. Broughton has estimated mean gross 
unrisked recoverable resources of 1.85 mmbo.  
 
PEDL150 75% (Hykeham) 
To the south west of Lincoln, PEDL150 covers 110 km
2
. Europa has a 75% interest, the balance being 
held by Valhalla. The Hykeham well was drilled in 2010. Despite encountering potential oil pay, the well 
failed to flow oil on test. The well results have been comprehensively reviewed and it is clear that failure 
to flow is due to extremely poor reservoir quality and the well will be plugged and abandoned. The Board 
has further decided to write-down the carrying value of the PEDL150 block, resulting in an Income 
statement charge of £2.1 million. 
 
Dorking area PEDL143 40% (Holmwood) 
The PEDL143 licence covers an area of 92 km
2
 of the Weald Basin, Surrey. Europa has a 40% working 
interest in the licence with partners Egdon Resources 38.4%, Altwood Petroleum 1.6%, and Warwick 
Energy 20%. The Holmwood prospect is a Jurassic sandstone project with a relatively low geological risk 
profile. It has mean gross recoverable resources of 5.64 mmbo. Europa considers Holmwood to be one of 
the best undrilled exploration prospects onshore UK.   
The prospect lies south of Dorking within the Surrey Hills AONB and an unsuccessful application to 
construct a temporary exploration well on the site was made in 2011. An appeal to overturn the decision 
was heard at a public inquiry in July 2012. The appeal was dismissed on 26 September 2012. The 
partnership is considering future steps with the licence.  
 
United Kingdom - Production 
 West Firsby (WF) 100%   
Europa Oil & Gas (Holdings) plc 
 
10 
 
 Crosby Warren (CW) 100% 
 Whisby W4 well 65% 
 
The three UK fields produced an average of 200 boepd in the period. The 19% increase in full year oil 
volumes to 72,360 barrels compared to the previous year is partly a result of the WF-9 well at West Firsby 
coming on stream. In addition, our operations team has implemented a series of initiatives aimed at 
improving operational efficiency that have contributed to a reduction in downtime and in turn, a 
significant increase in the number of barrels recovered during the year.  
This strong performance was achieved despite unscheduled downtime in December 2011 caused by a hole 
in a section of the WF-7 tubing. The workover programme was completed on schedule, keeping the effect 
of the shut-in on overall production to a minimum. 
In connection with our review of assets, the Company considered the potential value in fracking the CW-1 
well. A technical review of pressure data recovered from the well in early 2012 indicated that the risks 
clearly outweighed possible increases in production and it was therefore decided not to frack the well. The 
Board further decided to record a £785,000 impairment charge against the Crosby Warren assets. 
Current 2P producing reserves are estimated at 0.65 mmbo. 
United Kingdom – Unconventional recources 
Underground Coal Gasification (UCG) 90% 
In August 2010, Europa was awarded two licences by the UK Coal Authority to investigate the potential 
for underground coal gasification ('UCG') of virgin coals located near offshore, along the eastern coast of 
England. Europa has a 90% interest in the licence with Oxford Energy Consulting Limited holding the 
remaining 10%.  
 
PEDL181 50% NE Lincolnshire  
Europa holds licences covering an area of over 600 km
2
 in the Humber Basin that have the potential for 
both conventional oil and gas resources at Caister and possibly also for shale gas resources held in 
Carboniferous basinal black marine shales known to be 120m thick in the region.  
France 
Highlights 
• CPR assesses Berenx deep prospect at 277 bcf mean contingent resource 
• Berenx shallow gas prospect identified with 75 bcf gas in place 
 
Europa holds 100% interests in two permits with both appraisal and exploration potential in the Aquitaine 
Basin, adjacent to the producing Lacq-Meillon gas fields. The permit renewal process started during the 
financial year and the Company is actively engaged with the relevant French authorities. We did not fully 
meet our expenditure commitments in the first phase of either permit, and as a result there is a risk that 
they will not be renewed. But, based on correspondence received to date from the authorities, we have a 
reasonable expectation that both permits will be renewed. 
Béarn des Gaves 100%   
The Berenx appraisal project, located in the heartland of the French oil industry in the Aquitaine basin, 
has previously been explored and drilled by EssoRep. Two wells, Berenx-1 (1969) and Berenx-2 (1972), 
both encountered strong gas shows over a 500m thick gas bearing zone. In 1975 Berenx-2 was re-entered, 
drill stem tested and flowed gas flow to surface. The carbonate reservoir is similar to the nearby 9 tcf Lacq 
Field and 2 tcf Meillon Field.  
Europa possesses all data connected to both wells. Good quality 2D seismic exists for the licence as well 
as a reprocessed 3D seismic dataset covering the area between Berenx and Lacq. Europa’s technical work 
indicates that the original Berenx wells were drilled on the western edge of a sizeable structure which 
could hold in excess of 500 bcf of recoverable gas resources. In the recent Competent Person's Report, 
ERC Equipoise estimated gross mean unrisked resources of 277 bcf for the deep Berenx gas play. The 
difference between Europa’s and ERC's assessment of resources reflects the confidence of each party in   
Europa Oil & Gas (Holdings) plc 
 
11 
 
mapping in a geologically complex terrain, Europa was able to map a larger area of closure and as a 
consequence larger resources. 
The project also benefits from being located only 20 km from the Lacq Field, which potentially provides a 
straightforward export route, allowing gas to be processed in an existing facility with spare capacity. 
Re-evaluation and interpretation of existing seismic and well data on the permit has resulted in the 
identification of a previously unknown shallow gas play. Previous exploration on the concession had 
focused only on deep lying gas prospects.  
In the CPR, ERC Equipoise suggested gas in place at Berenx shallow of 75 bcf. Europa estimates gross 
mean unrisked gas resources of 59 bcf. We have identified new shallow prospectivity in the Permit area 
and information about these additional prospects will be released in due course. 
Current activity on the licence is focused on undertaking a detailed structural analysis and geological 
modelling which will provide a predictive model for the orientation and density of fracture systems in the 
carbonate reservoirs.  
Our strategy for the Béarn des Gaves Permit is to target the shallow gas play and drill a well to deliver a 
commercial flowrate and on the back of success to further explore shallow prospectivity and undertake 
work to de-risk the Berenx deep appraisal project. 
Tarbes Val d'Adour 100% 
The Tarbes Val d'Adour  contains several oil accumulations that were previously licensed by Elf but were 
abandoned in 1985 due to low oil prices. Two fields, Jacque and Osmets, were drilled using vertical wells 
which generated modest production. At its peak in 1982, Osmets produced up to 50 bopd while peak 
production at Jacque reached almost 30bopd in 1981. Europa commissioned the French Geological 
Survey to map the potential re-development area of the Osmets and Jacque fields from a reprocessed 2D 
data set. This work is now complete. 
Europa intends to farm out this  and, with a partner, drill a re-development well on one of these fields in 
2013.  
Ireland 
Exploration 
Porcupine Basin LO 11/7 and LO 11/8 (100%)  
In October 2011, Europa was awarded two exploration Licensing Options 11/7 and 11/8 in the Irish 
Atlantic Margin licensing round. These cover two four-block parcels in the South Porcupine Basin 
situated off the west coast of Ireland with a total area of approximately 2,000 km
2
.  Previous drilling in the 
North Porcupine basin led to the discovery of Connemara, Spanish Point and Burren, providing evidence 
for the existence of a viable petroleum system.  Burren in particular flowed ~700 bopd from a Lower 
Cretaceous sandstone reservoir. We have identified two large stratigraphic traps at prospects Mullen and 
Kiernan in Lower Cretaceous submarine fan systems similar to those that have been proved to be 
successful elsewhere along the Atlantic Margins.    
The areas are situated on the flanks of the South Porcupine Basin in water depths of between 700 metres 
and 2,000 metres.  There are modest work programmes attached to the licences over a two year period 
requiring reprocessing and interpretation of seismic data, and, subject to approval of the Irish 
Government, an option to convert into a 15 year Frontier Exploration Licence with associated obligations 
to undertake seismic and drilling operations.  
Since acquiring the licences, the Company’s in house technical team has been working to map the 
prospectivity of the Licencing Options with a view to securing a farm-out.   
Romania 
Highlights 
• Exited Brodina and Cuejdiu concessions 
• Elected to write-down investment in Bacau and Brates   
Europa Oil & Gas (Holdings) plc 
 
12 
 
 
At the beginning of the year, the Company held interests in four exploration licences in Romania.   
In January 2012, Europa announced its decision to withdraw from one of these, the Brodina licence 
(Europa 28.75%) in northern Romania, following the unsuccessful Horodnic-1 appraisal well which failed 
to indicate the presence of potentially hydrocarbon bearing intervals. The withdrawal from the concession 
resulted in a write-off of previously incurred drilling and other exploration expenses of £4 million. 
In March 2012 Europa, with its partners Aurelian and Romgaz, announced the withdrawal of its 
involvement from the Cuejdiu licence (Europa’s interest having been 17.5%).  As with all its licences, an 
extensive review of the Cuejdiu concession both in isolation and within the context of the Company’s 
portfolio as a whole had been undertaken.  This involved a detailed technical and commercial evaluation 
of all aspects of the licence including the prospectivity of the project, anticipated costs attributable to 
Europa’s continued participation, associated commitments, timetable and geologic risk.  The result of this 
analysis led to the Company’s decision to withdraw resulting in a write-off of previously incurred drilling 
and other exploration expenses of £1.3 million. 
Following its withdrawal from the Cuejdiu licence, Europa has interests in two further concessions in 
Romania, Brates (100%) and Bacau (19%).  The Bacau licence is operated by Raffles Energy and a review 
of existing data is currently underway.  The Company is looking to farm out its 100% interest in the 
Brates licence. The Company has elected to write-off £5.1 million previously incurred drilling and other 
exploration expenses in the Brates and Bacau licences, making a total Romanian write-off of £10.4 
million. 
In September 2011, the Company was notified by the Romanian tax authorities that the sum of £0.6 
million (including penalties) is payable in settlement of a VAT liability triggered by the sale of the 
Company's Bilca Gas field in 2007. Europa vigorously disputes the legal basis for the VAT liability. In July 
2012 the Romanian authorities reduced the liability to £0.4 million. Europa will continue to appeal the 
decision with the objective of having the VAT liability reduced to zero and Europa’s VAT claim of £0.2 
million repaid by the Romanian authorities. 
Sahrawi Arab Democratic Republic  
Exploration 
Bir Lehlou and Hagounia (100%) 
 
Europa holds interests in the Bir Lehlou and Hagounia blocks of the Sahrawi Arab Democratic Republic.  
The 100% interest in the licences covers almost 80,000 km
2
 of exploration acreage and crosses the 
Tindouf and Aaiun basins. The concession has significant potential for both conventional and 
unconventional gas resources, specifically shale gas. The Tindouf Basin is geologically similar to the 
prolific Algerian Palaeozoic basins.  Meanwhile, the Aaiun Basin is an Atlantic margin basin similar to that 
developed along the West African margin.   
Conclusion 
In the last twelve months Europa has conducted a detailed technical review of its entire exploration, 
appraisal and production portfolio. As a consequence of this work we have identified an exciting new 
shallow gas play in our Béarn des Gaves Permit in France and confirmed Berenx Deep as a gas appraisal 
project with mean gross contingent resources of at least 277 bcf. In May we delivered a CPR to the 
market providing clarity on the risk and value in our UK and French assets. We have identified two new 
and potentially very large prospects in the South Porcupine Basin offshore Ireland. Whilst at the high risk 
and high reward end of the exploration spectrum they are part of the Lower Cretaceous clastic play that 
has proved very successful elsewhere in the Atlantic Margin and further work will be undertaken to de-
risk the prospects.  
We chose to exit the Brodina and Cuejdiu licences in Romania and will continue to rationalise our 
portfolio on the basis of the technical and commercial case. In July we mounted a very strong planning 
appeal for the Holmwood exploration well, a prospect that we regard as the best undrilled exploration   
Europa Oil & Gas (Holdings) plc 
 
13 
 
prospect in onshore UK. Though the appeal was dismissed by the planning inspector, we continue to 
believe our case is strong and we are considering our options to contest the decision. Our UK production 
had an excellent year generating £2.1 million cash to the Company and I am delighted to report that we 
delivered on our production promise of 200 boepd.  
The next twelve months will see at least one exploration well drilled in PEDL180 or PEDL182 in the UK 
with the possibility of a follow up exploration well contingent on success.  We are seeking to joint venture 
our Irish and French assets. In particular we wish to test the shallow gas play in the Béarn des Gaves 
Permit as a matter of priority as we believe the Aquitaine basin has the potential to provide rapid 
commercialisation of any gas discovery. Offshore Ireland is beginning to receive renewed interest from 
the upstream oil industry, we have prime acreage in an exciting play and we wish to accelerate the process 
of de-risking our prospects and taking them to drillable status. It is also our intent to add new 
opportunities to our portfolio. Europa is in the deal flow and additional projects will be added in due 
course. We will work our UK producing assets hard and continue with initiatives to reduce opex, augment 
production and hit our production targets.  
 
Hugh Mackay 
CEO 
 
    
Europa Oil & Gas (Holdings) plc 
 
14 
 
Financial review 
Results for the year 
Group revenue for the year to 31 July 2012 was £5,080,000 (2011: £3,766,000).  
Oil produced and sold during the year amounted to 72,360 barrels or 198 bopd (2011: 60,956 barrels or 
167 bopd). The 19% increase in production volumes arose at West Fisby where reduced downtime and a 
full year contribution from the WF-9 well were positive factors. 
In addition, higher crude oil prices helped increase revenue. The average price per barrel achieved in the 
year was $110.03 (2011: $99.43).  
A stronger US Dollar in the year to 31 July 2012 also meant that sales were translated to Sterling at an 
average rate of $1.5845 (2011: $1.6106). 
The Crosby Warren field sells a small quantity of gas 3 boepd (2011: 3 boepd) to the nearby Tata 
steelworks. 
Other cost of sales were higher in line with the increased volume. Following the CPR assessment of UK 
reserves, the book value of the producing assets were written down by £785,000 (2011: £425,000). An 
exploration write-off of £12,451,000 represented previously incurred expenditure in Romania and UK 
PEDL150. 
Pre tax loss from continuing operations for the year was £12,055,000 (2011: profit £291,000). 
Taxation 
The total tax credit (current and deferred) for the year was £739,000 (2011: a charge of £523,000). The 
write-down of producing assets and the intangible assets in PEDL150 allowed a previously recognised 
deferred tax liability to be released. 
Loss after tax 
The results for 2012 show a loss from continuing operations after taxation of £11,316,000 (2011: loss 
£232,000). 
Discontinued operations 
In September 2011, the Company received notification from the Romanian tax authorities that VAT had 
been assessed on a sale of a business in 2007. An accrual of £616,000 was recorded in 2011. Europa 
continues to contest the VAT assessment, and in June 2012 received confirmation that one element of the 
tax authorities claim had been rejected, thereby reducing the total liability to £420,000.  
 
 
 
 
 
 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
15 
 
 
Financial review (continued) 
Cash 
Net cash generated from operating activities was £2,059,000 (2011: £985,000). Net cash used in investing 
activities was £3,033,000 (2011: £5,021,000) and included the Horodnik-1 well (2011: Barchiz-1 and WF-9 
wells). Net cash from financing activities was an outflow of £764,000 (2011: an inflow of £6,408,000) and 
included one share placing which raised a total of £665,000 of cash net of broker commission and the 
repayment of the Yorkville loan. The net cash balance at the end of the year was £230,000 (2011: 
£1,876,000). 
Primary risks and uncertainties 
Europa’s activities are subject to a range of financial risks including commodity prices, liquidity within the 
business and of counterparties, exchange rates and loss of operational equipment or wells. These risks are 
managed through ongoing review taking into account the operational, business and economic 
circumstances at that time.  
Commodity price, credit and currency 
The Board has considered the use of financial instruments to hedge oil price and US Dollar exchange rate 
movements. To date, the Board has not hedged against price or exchange rate movements, but intends to 
regularly review this policy.  
Sales revenue is generated primarily in US Dollars and these funds are matched where possible against 
expenditures within the business. However, most capital and operating expenditures are Euro and Sterling 
denominated which results in a currency exposure. US Dollar receipts have been sold to purchase Euros 
and Sterling.  
Crude oil is sold to one multinational oil company. Credit risk is considered to be minimal. 
Liquidity 
Detailed cash forecasts are prepared frequently and reviewed by management and the Board.  
The Group’s production provides a monthly inflow of cash and is the main source of working capital and 
project finance. Additional cash is available througha £700,000 overdraft facilitythe placing of Europa 
shares in the market 
 
Overdraft Facility 
The Royal Bank of Scotland (RBS) multi-currency facility signed on 5 March 2012 provides an overdraft 
of up to £700,000 (2011: £700,000). Interest is charged at 3% over base rate (2011: 3% over base rate). 
The facility is due to be renewed 31 January 2013. The principal interest rate risk for the Group is the 
interest charge arising from utilisation of the multi-currency facility.  
 
 
 
 
 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
16 
 
Financial review (continued) 
Financial and business risk (continued) 
Placing of Shares 
During the year, Europa issued 7,777,776 shares at 9p raising £665,000 net of broker commission (2011: a 
total of 47,871,141 shares at an average 13.3p raising £5,920,000 net of broker commission). 
The SEDA facility 
On 15 July 2011 Europa entered into an agreement with YA Global Master SPV (Yorkville) under which 
Yorkville provided a £5 million Standby Equity Distribution Agreement (SEDA). Yorkville is an 
investment fund managed by Yorkville Advisors UK LLP. To date there have been no draw downs 
against the SEDA. Because uncertainty over future use of the facility, Europa elected to write-off the 
SEDA arrangement fee in the year. 
Loan note 
Also on 15 July 2011 Europa agreed a $1.6 million (approx £1 million) loan note with Yorkville. The loan 
was repayable in tranches over 12 months and attracted interest at a rate of 8% per annum.  The loan note 
was fully repaid during the year in accordance with the agreed terms. 
Exploration, drilling and operational risk 
The business of exploration and production of oil and gas involves a high degree of risk. Few prospects 
that are explored are ultimately developed into producing oil and gas fields.  
Significant expenditure is required to establish the extent of oil and gas reserves through seismic surveys 
and drilling and there can be no certainty that oil and gas reserves will be found. The exploration and 
development of oil and gas assets may be curtailed, delayed or cancelled by unusual or unexpected 
geological formation pressures, hazardous weather conditions or other factors. 
There are numerous risks inherent in drilling and operating wells, many of which are beyond the 
Company’s control. The Group’s operations may be curtailed, delayed or cancelled as a result of 
environmental hazards, industrial accidents, occupational and health hazards, technical failures, shortage 
or delays in the delivery of rigs and/or other equipment, labour disputes and compliance with 
governmental requirements.  
Drilling may involve unprofitable efforts, not only with respect to dry wells, but also to wells which, 
though yielding some oil or gas, are not sufficiently productive to justify commercial development. 
Completion of a well does not assure a profit on the investment or recovery of drilling, completion and 
operating costs. 
Appropriate insurance cover is obtained annually for all of Europa’s exploration, development and 
production activities. 
Accounting policies 
The Group has not made any material changes to its accounting policies in the year to 31 July 2012 
 
 
Phil Greenhalgh, Finance Director 
    
Europa Oil & Gas (Holdings) plc 
 
17 
 
Directors’ profiles 
WH Adamson OBE - Non-Executive Chairman 
Bill has had a longstanding career in the energy industry with BG Group plc managing all aspects of large 
gas businesses including CNG, power generation, joint venture management, corporate governance and 
risk and safety management. He was the Chairman and CEO of MetroGas S.A., Argentina's post-
privatisation leading gas utility, Vice President and General Manager of BG Group's UK downstream 
business and most recently Managing Director BG India where he managed a portfolio of upstream and 
downstream businesses. Bill is a Chartered Engineer and holds an honours degree in gas engineering from 
the University of Salford. 
CW Ahlefeldt-Laurvig - Non-Executive Director 
William received an MSc in civil engineering from the Danish Technical University in 1981. Following 
national service, he worked for Maersk as a petroleum engineer followed, in 1987, by IPEC, a London 
based consultancy company, where he was responsible for field reserves estimations. In 1990, he became 
an independent consultant, undertaking field and portfolio evaluations for acquisitions and field 
development work on a range of projects in the North Sea, former Soviet Union and Middle East. In 
2001 he became the major investor in Europa at the time earning 60% of the Company shares through 
capital investment.  He has been a non executive director of the Company since its float in 2004.  William 
has continued to be active in petroleum engineering consulting doing portfolio evaluations and project 
management in the Middle East. 
RJHM Corrie - Non-Executive Director. 
Roderick is a graduate of Cambridge University, an Associate of the Chartered Institute of Banking and a 
Member of the Securities Institute. He is a strategic adviser and financier with a variety of companies. He 
holds or has held executive or non-executive roles in corporate finance, strategic advice, financial services, 
health, property, mineral exploration, investment and manufacturing companies, and previously held 
senior positions in the banking industry. He is Chief Financial Officer of the Toronto listed gold  
exploration and development company Lydian International Ltd. 
P Greenhalgh - Finance Director 
Phil graduated from Imperial College with a BEng in chemical engineering and subsequently became a 
member of the Chartered Institute of Management Accountants. He began his financial career as 
Financial Controller with Kelco International, a subsidiary of Merck & Co.  He moved to Monsanto plc 
where he was UK Finance Director before becoming Finance Director with Pharmacia Ltd. He moved to 
Whatman plc, a FTSE 250 company, where he had extensive dealings with the City of London, lead the 
financing of a €50m company acquisition and oversaw a substantial share price recovery. 
HGD Mackay - Chief Executive Officer  
Hugh was most recently founding Chairman of Avannaa Resources, a mineral exploration company 
focused on grass roots exploration in Greenland.  He has a wealth of experience in the oil and gas sector, 
including eight years at BP in a variety of roles in the UK, Oman and Egypt, then 10 years at Enterprise 
Oil in leadership roles, culminating as head of the SE Asia division. He played a pivotal role in the 
development of the Peak Group and its eventual sale to AGR Petroleum Services where he was Group 
Business Development Manager.  He has a BSc in Geology from the University of Edinburgh and a Sloan 
MSc in Management from London Business School. 
    
Europa Oil & Gas (Holdings) plc 
 
18 
 
Directors' report 
 
The directors present their report and the audited financial statements for the year ended 31 July 2012. 
Principal activities 
The principal activity of the Group is investment in oil and gas exploration, development and production. 
The Group’s assets and activities are located in the United Kingdom, Ireland, France, Romania and the 
Sahrawi Arab Democratic Republic. The Board has considered and will continue to consider investments 
in Europe, Mediterranean and Atlantic Margin. 
Business review 
A detailed review of the Group’s business and prospects is set out in the Chairman’s statement (page 6) 
and Operational review (page 11). The Financial review (page 16) and Corporate governance statement 
(page 21) detail the risks to which the Group is exposed and how these risks are managed with the 
oversight of the Board and the Audit Committee. The directors consider that the combination of 
production and exploration activities is a key strength of the Group. All activities are closely managed 
from the head office.  
Results for the year and dividends 
The Group loss for the year after taxation was £11,316,000 (2011 loss: £1,020,000). The directors do not 
recommend the payment of a dividend (2011: £nil). 
Policy and practice on payment of suppliers 
The Group’s policy on payment of suppliers is to settle amounts due on a timely basis taking into account 
the credit period given. At 31 July 2012, the Group had 47 days of purchases outstanding (2011: 41 days) 
and the Company had 25 days of purchases outstanding (2011: 32 days). 
Directors and their interests 
Directors holding office through the year were as follows: 
WH Adamson  
CW Ahlefeldt-Laurvig   
PA Barrett  resigned 21 October 2011 
RJHM Corrie   
P Greenhalgh   
HGD Mackay  appointed 6 September 2011  
 
The directors’ interests in the share capital of the Company at 31 July were:  
      Number of ordinary 
shares 
Number of ordinary 
share options 
 2012 2011 2012 2011 
WH Adamson 475,000 175,000 500,000 250,000 
CW Ahlefeldt-Laurvig 
1
 25,502,442 25,502,442 - - 
RJHM Corrie 
2
 87,500 87,500 500,000 500,000 
P Greenhalgh  250,000 250,000 1,875,000 1,875,000 
HGD Mackay 786,863 455,615 5,000,000 - 
1. CW Ahlefeldt-Laurvig holds shares through HSBC Global Custody Nominee (UK) Limited. 
2. RJHM Corrie has a 50% interest in RT Property Investments Limited which holds 50,000 shares. 
Corrie Limited, of which Mr Corrie is a director, holds 62,500 shares. 
   
Europa Oil & Gas (Holdings) plc 
 
19 
 
Directors' report (continued) 
Directors and their interests (continued) 
Details of the vesting conditions of the directors’ stock options are included in Note 22.  
Director’s interests in transactions 
No director had, during the year or at the end of the year, other than disclosed below, a material interest 
in any contract in relation to the Group’s activities except in respect of service agreements. 
Subject to the conditions set out in the Companies Act 2006, the Company has arranged appropriate 
Directors’ and Officers’ insurance to indemnify the directors against liability in respect of proceedings 
brought by third parties. Such provisions remain in force at the date of this report.  
Post reporting date events 
Details of post reporting date events are included in Note 27 to the financial statements. 
Capital structure and going concern 
The directors took the opportunity to raise £665,000 of new equity financing in October 2011, net of 
broker commission.  
After making enquiries, the directors have formed a judgement at the time of approving the financial 
statements that there is a reasonable expectation that the Group can continue in operational existence for 
the foreseeable future. This judgement is based on,the performance of its existing oil production and 
correspondence with its bankers.  
Further details on the Group’s capital structure are included in Note 23. 
Accounting policies 
A full list of accounting policies is set out in Note 1 to the financial statements.  
Disclosure of information to the auditors 
In the case of each person who was a director at the time this report was approved: 
 So far as that director was aware there was no relevant available information of which the 
Company’s auditors were unaware. 
 That director had taken all necessary steps to make themselves aware of any relevant audit 
information, and to establish that the Company’s auditors were aware of that information. 
Auditors 
A resolution to re-appoint the auditors, BDO LLP will be proposed at the next Annual General Meeting. 
On behalf of the Board 15 October 2012 
 
 
P Greenhalgh 
Finance Director   
Europa Oil & Gas (Holdings) plc 
 
20 
 
Statement of directors’ responsibilities 
Directors’ responsibilities 
The directors are responsible for preparing the annual report and the financial statements in accordance with 
applicable law and regulations.  
Company law requires the directors to prepare financial statements for each financial year. Under that law the 
directors have prepared the Group and have elected to prepare the Company financial statements in 
accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. 
Under Company law the directors must not approve the financial statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the 
Group for that year. The directors are also required to prepare financial statements in accordance with the 
rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.  
In preparing these financial statements, the directors are required to: 
 select suitable accounting policies and then apply them consistently; 
 make judgements and accounting estimates that are reasonable and prudent; 
 state whether they have been prepared in accordance with IFRSs as adopted by the European Union, 
subject to any material departures disclosed and explained in the financial statements; 
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that 
the Company will continue in business. 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain 
the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with the requirements of the 
Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for 
taking reasonable steps for the prevention and detection of fraud and other irregularities. 
Website publication 
The directors are responsible for ensuring the annual report and the financial statements are made available on 
a website. Financial statements are published on the Company's website in accordance with legislation in the 
United Kingdom governing the preparation and dissemination of financial statements, which may vary from 
legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility 
of the directors. The directors' responsibility also extends to the ongoing integrity of the financial statements 
contained therein. 
 
 
 
 
    
Europa Oil & Gas (Holdings) plc 
 
21 
 
Corporate governance statement 
 
The UK corporate governance code is not mandatory for companies on AIM; however, the directors support 
the principles and are applying the requirements where they are considered appropriate to the size and nature 
of the Group. Where practice differs from the code, the Board will explain to shareholders why it considers it 
is in the Group’s best interest not to have applied the code. The Board will consider on a regular basis changes 
to those areas in which there is not full compliance.   
The Board 
At 31 July 2012, the Board consisted of three non-executive and two executive directors.  
The role of Chairman is held by a non-executive and the role of CEO is held by an executive director. This 
creates a clear distinction and division of responsibilities at the head of the Group.  
The Board is responsible to the shareholders of the Company for all significant financial and operational issues 
which include strategy, reviewing and approving budgets, ensuring adequate cash resources, approval of capital 
expenditure and acquisition and divestment opportunities. Matters for consideration at formal meetings are 
clearly laid out. A record is kept of proceedings and any decisions taken.       
Each director retires and stands for re-election by shareholders at least once every three years. All directors are 
subject to election by shareholders at the first opportunity following their appointment.    
All directors have full access to management and employees, the Company Secretary and independent 
professional advice in order to execute their duties.  
During the year, the Board held eleven meetings (2011: eleven). RJHM Corrie was unable to attend one 
meeting. 
The Board has considered the independence of CW Ahlefeldt-Laurvig given his 18.5% shareholding and 
length of tenure as a director of the Company. The Board considers that he is independent in character and 
judgment as he has other significant commercial and professional commitments and brings his own level of 
senior experience gained as a petroleum engineer. When arriving at this decision, the Board has taken into 
account the comments made by the Financial Reporting Council in their 2009 report on the impact and 
effectiveness of the Combined Code, in particular their comment that independence is not the primary 
consideration when assessing the composition of the Board, and that the over-riding consideration should be 
that the Board is fit for purpose.  
In addition to their interest in the ordinary shares of the Company, WH Adamson and RJHM Corrie hold 
stock options. These options were awarded in connection with their appointment to the Board and full details 
of the options are included in Note 22. The Board has listened to comments raised by certain investors and 
discussed the subject with advisers. Whilst recognising that the granting of options to non-executive directors 
is contrary to UK corporate governance code the Board considers that the quantum of options granted is not 
so significant as to raise any issue concerning their independence. In addition, the Board wishes to retain the 
ability to grant stock options to non-executive directors in future.  
Remuneration Committee 
The Remuneration Committee consists of the three non-executive directors and is chaired by CW Ahlefeldt-
Laurvig. It is responsible for establishing and developing the Group’s policy on director and senior 
management remuneration and contracts. 
The Board as a whole decides on the remuneration and contracts of the non-executive directors. 
No director is involved in deciding their own remuneration.   
Audit Committee 
The Audit Committee consists of the three non-executive directors and is chaired by  
RJHM Corrie. The Group’s auditors and executive directors attend meetings by invitation. For at least one 
meeting, or part thereof, the committee meets the auditors without executive Board members present.  
The Audit Committee is responsible for reviewing the annual and interim accounts, annual audit, accounting 
policies, internal control and compliance procedures, and decision making processes, particularly with regard 
to the management of risk.   
Europa Oil & Gas (Holdings) plc 
 
22 
 
During the year the committee considered the need for an internal audit function. Given the nature and 
current size of the Group, it is not considered appropriate to have a dedicated internal audit function.     
Internal control 
The directors are responsible for the process and system of internal controls and reviewing their effectiveness. 
The process and system of internal controls is designed to manage, rather than eliminate, the risk of failure to 
achieve business objectives and can only provide reasonable and not absolute assurance against material 
misstatement or loss. 
Internal controls along with business risks were monitored during the course of the year.  
Communication with shareholders 
The Company provides information to shareholders about the Group’s activities in the annual report and 
accounts and the interim report. This is complemented with information available through regulatory 
announcements of the London Stock Exchange and the Company’s website at www.europaoil.com. 
Shareholders may register on the website to receive news releases issued by the Group directly to their email. 
Shareholders are encouraged to attend the Annual General Meeting at which directors are introduced and 
available for questions. 
   
    
Europa Oil & Gas (Holdings) plc 
 
23 
 
Report of the independent auditors 
Independent auditor’s report to the members of Europa Oil & Gas (Holdings) plc 
We have audited the financial statements of Europa Oil and Gas (Holdings) plc for the year ended 31 July 
2012 which comprise the consolidated statement of comprehensive income, the consolidated and Company 
statement of financial position, the consolidated and Company statement of changes in equity, the 
consolidated and Company statement of cashflows and the related Notes. The financial reporting framework 
that has been applied in their preparation is applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union and, as regards the parent Company financial statements, as 
applied in accordance with the provisions of the Companies Act 2006.  
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of 
the Companies Act 2006.  Our audit work has been undertaken so that we might state to the Company’s 
members those matters we are required to state to them in an auditor’s report and for no other purpose.  To 
the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we 
have formed. 
Respective responsibilities of directors and auditors 
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view.  Our 
responsibility is to audit and express an opinion on the financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland).  Those standards require us to comply with the 
Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.  
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/private.cfm.  
Opinion on financial statements 
In our opinion:  
 the financial statements give a true and fair view of the state of the Group’s and the parent Company’s 
affairs as at 31 July 2012 and of the Group’s loss for the year then ended; 
 the group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union; 
 the parent Company financial statements have been properly prepared in accordance with IFRSs as 
adopted by the European Union and as applied in accordance with the provisions of the Companies Act 
2006; and 
 the financial statements have been prepared in accordance with the requirements of the Companies Act 
2006. 
Emphasis of matter – renewal of French Permits 
In forming our opinion on the financial statements which is not modified we draw your attention to the 
disclosures made in Note 11 of the financial statements concerning the renewal of the French exploration 
Permits. 
As disclosed in Note 11, the Group’s French exploration Permits are currently in the renewal phase with the 
French authorities. The Group did not meet its expenditure commitments on those Permits and therefore 
there is a risk that the Permits will not be renewed by the French authorities. Although the directors are 
confident that the Permits will be renewed, there can be no guarantee. Should the Permits not be renewed, the 
impact on the financial statements will be the impairment of the French intangible assets disclosed in Note 11. 
These financial statements do not include the adjustments that would result if the Permits are not renewed. 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
24 
 
Report of the independent auditors (continued) 
Opinion on other matters prescribed by the Companies Act 2006 
In our opinion the information given in the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements.  
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to 
report to you if, in our opinion: 
 adequate accounting records have not been kept by the parent company, or returns adequate for our audit 
have not been received from branches not visited by us; or 
 the parent Company financial statements are not in agreement with the accounting records and returns; or 
 certain disclosures of directors’ remuneration specified by law are not made; or 
 we have not received all the information and explanations we require for our audit. 
 
 
 
 
 
Anne Sayers (senior statutory auditor) 
For and on behalf of BDO LLP, statutory auditor 
London, United Kingdom 
15 October 2012 
 
BDO LLP is a limited liability partnership registered in England and Wales (with registered number 
OC305127). 
    
Europa Oil & Gas (Holdings) plc 
 
25 
 
Consolidated statement of comprehensive income  
 
 
 
Loss per share (LPS) attributable to the equity  
shareholders of the parent 
 
Note Pence per 
share 
Pence per 
share 
Basic and diluted LPS from continuing operations 10 (8.33)p (0.22)p 
Basic and diluted LPS from discontinued operations 10 - (0.74)p 
Basic and diluted LPS from continuing and discontinued operations 10 (8.33)p (0.96)p 
    
 
 
 
 
 
 
 
The accompanying notes form part of these financial statements. 
  
For the year ended 31 July   2012 2011 
 Note £000 £000 
    
Revenue 2 5,080 3,766 
Other cost of sales 2 (2,692) (2,216) 
Exploration write-off 11 (12,451) - 
Impairment of producing fields 
12 (785) (425) 
Total cost of sales  (15,928) (2,641) 
  
--------------- ---------- --------- ----------- - - - - - - - - - - - - - - - - - - - - - - - 
Gross (loss) / profit  (10,848) 1,125 
    
Administrative expenses  (755) (646) 
Finance income 7 - 1 
Finance expense 8 (452) (189) 
  
--------------- ---------- ---------- - --------------- ---------- --------- 
(Loss) / profit before taxation 3 (12,055) 291 
    
Taxation credit / (charge) 9 739 (523) 
  
--------------- ---------- ---------- - --------------- ---------- --------- 
Loss for the year from continuing operations  (11,316) (232) 
    
Discontinued operations    
Loss for the year from discontinued operations 6 - (788) 
    
Loss for the year attributable to the equity shareholders 
of the parent 10 (11,316) (1,020) 
  
--------------- ---------- ---------- - --------------- ---------- --------- 
    
Other comprehensive (loss) / income    
Exchange (loss) / gain arising on translation of foreign operations  (36) 8 
  
--------------- ---------- ---------- - --------------- ---------- --------- 
Total comprehensive loss for the year attributable to the 
equity shareholders of the parent  (11,352) (1,012) 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =    
Europa Oil & Gas (Holdings) plc 
 
26 
 
Consolidated statement of financial position  
As at 31 July  2012 2011 
 Note £000 £000 
Assets  
  
Non-current assets 
 
  
Intangible assets    11 2,127 11,348 
Property, plant and equipment 12 4,959 6,742 
Deferred tax asset 19 14 930 
 
 
------- -------- ---------- --------- --------------- ---------- ---------- - 
Total non-current assets  7,100 19,020 
 
 
--------------- ---------- --------- --------------- ---------- ---------- - 
Current assets  
  
Inventories 14 56 43 
Trade and other receivables 15 1,250 795 
Cash and cash equivalents  230 1,876 
 
 
--------------- ---------- --------- --------------- ---------- ---------- -- 
  1,536 2,714 
 
 
--------------- ---------- --------- --------------- ---------- ---------- --- 
Other current assets 
Assets classified as held for sale 
 
16 338 - 
  
--------------- ---------- --------- --------------- ---------- ---------- -- 
Total assets  8,974 21,734 
 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Liabilities    
Current liabilities    
Trade and other payables 17 (1,880) (1,757) 
Current tax liabilities  (87) - 
Derivative 17 (64) (56) 
Short-term borrowings 18 (230) (996) 
  --------------- ---------- ---------- - --------------- ---------- ---------- --- 
Total current liabilities  (2,261) (2,809) 
  --------------- ---------- ---------- - --------------- ---------- ---------- --- 
Non-current liabilities 
 
  
Long-term borrowings 18 - (230) 
Deferred tax liabilities 19 (2,948) (4,686) 
Long-term provisions 20 (1,950) (1,570) 
  --------------- ---------- ----- ---- --------------- ---------- ---------- -- 
Total non-current liabilities  (4,898) (6,486) 
  --------------- ---------- --------- --------------- ---------- ---------- -- 
Total liabilities 
 
(7,159) (9,295) 
  --------------- ---------- ---------- -------------- - - - - - - - - - - - - - - - - - - - - - - - 
Net assets  1,815 12,439 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
  
Capital and reserves attributable to equity holders  
of the parent  
 
  
Share capital 21 1,379 1,301 
Share premium  21 13,160 12,573 
Merger reserve 21 2,868 2,868 
Foreign exchange reserve 21 380 416 
Retained deficit 21 (15,972) (4,719) 
  --------------- ---------- --------- --------------- ---------- ---------- -- 
Total equity  1,815 12,439 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
 
These financial statements were approved by the Board of directors and authorised for issue on 15 October 
2012 and signed on its behalf by:    
 
 
P Greenhalgh, Finance Director 
Company registration number 5217946 
The accompanying notes form part of these financial statements. 
   
Europa Oil & Gas (Holdings) plc 
 
27 
 
Consolidated statement of changes in equity  
 
Attributable to the equity holders of the parent 
 Share  
capital 
Share 
premium 
Merger 
 reserve 
Foreign 
exchange 
reserve 
Retained 
deficit 
Total  
equity 
 £000 £000 £000 £000 £000 £000 
       
Balance at 1 August 2010 822 7,132 2,868 408 (3,752) 7,478 
Total comprehensive 
income/(loss) for the year 
 
- 
 
- 
- 
 
 
8 
 
(1,020) 
 
(1,012) 
Share based payment - - - - 53 53 
Issue of share capital (net 
of issue costs) 
 
479 
 
5,441 - 
 
- 
 
- 
 
5,920 
 --------------- ---------- ---------- --------------- ---------- --------- --------------- ---------- -------- --------------- ---------- --------- --------------- ---------- --------- --------------- ---------- ---------- -- - 
Balance at 31 July 2011 1,301 12,573 2,868 416 (4,719) 12,439 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
  
 
 Share  
capital 
Share 
premium 
Merger 
 reserve 
Foreign 
exchange 
reserve 
Retained 
deficit 
Total  
equity 
 £000 £000 £000 £000 £000 £000 
       
Balance at 1 August 2011 1,301 12,573 2,868 416 (4,719) 12,439 
Total comprehensive loss 
for the year 
 
- 
 
- - 
 
(36) 
 
(11,316) 
 
(11,352) 
Share based payment - - - - 63 63 
Issue of share capital (net 
of issue costs) 
 
78 
 
587 
 
- 
 
- 
 
- 
 
665 
 --------------- ---------- ---------- --------------- ---------- --------- --------------- ------- - - - - - - - - - - - --------------- ---------- --------- --------------- ---------- --------- --------------- ---------- ---------- --- 
Balance at 31 July 2012 1,379 13,160 2,868 380 (15,972) 1,815 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = == = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes form part of these financial statements.   
Europa Oil & Gas (Holdings) plc 
 
28 
 
Company statement of financial position 
As at 31 July  2012 2011 
  £000 £000 
 Note   
Assets    
Non-current assets    
Property, plant and equipment 12 22 369 
Investments 13 3,316 3,315 
Loans to Group companies 15 - 12,472 
  --------------- ---------- ---------- - --- ------------ ---------- ---------- - 
Total non-current assets  3,338 16,156 
  --------------- ---------- ---------- - --------------- ---------- ---------- - 
Current assets 
Other receivables 15 61 246 
Cash and cash equivalents 
 
27 1,578 
  --------------- ---------- ---------- --- --------------- -- -- - - - - - - - - - - - - - - - - - - 
  88 1,824 
  --------------- ---------- ---------- ---- --------------- ------- -- - - - - - - - - - - - - - - 
Other current assets 
Assets classified as held for sale 15 62 246 
 
 
 
16 338 
 
- 
 
 
--------------- - --------- ---------- --- --------------- ---------- ---------- -- 
Total assets 
 
3,764 17,980 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
Liabilities    
Current liabilities    
Trade and other payables 17 (162) (262) 
Current tax liabilities  - - 
Derivative 17 (64) (56) 
Short-term borrowing 18 (230) (996) 
  --------------- ---------- ---------- - --------------- ---------- ---------- --- 
Total current liabilities  (456) (1,314) 
  --------------- ---------- ---------- - - -------------- ---------- ---------- ---- 
Non-current liabilities 
 
 
 
Long-term borrowings 18 - (230) 
  --------------- ---------- ---------- - --------------- ---------- ---------- - 
Total non-current liabilities  - (230) 
  --------------- ---------- ---------- - - --------------- ---------- ---------- - 
    
Total liabilities 
 
(456) (1,544) 
  --------------- ---------- ---------- - --------------- ---------- ---------- - 
Net assets  3,308 16,436 
  =================== ============== === = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
Capital and reserves attributable to equity holders of the 
parent    
Share capital 21 1,379 1,301 
Share premium 21 13,160 12,573 
Merger reserve 21 2,868 2,868 
Retained deficit 21 (14,099) (306) 
  --------------- ---------- ---------- - -- --------------- ---------- ---------- ---- 
Total equity  3,308 16,436 
 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
These financial statements were approved by the Board of directors and authorised for issue on 15 October 
2012 and signed on their behalf by:  
 
 
P Greenhalgh  
Finance Director 
Company registration number 5217946 
The accompanying notes form part of these financial statements.    
Europa Oil & Gas (Holdings) plc 
 
29 
 
Company statement of changes in equity  
 
 Share  
capital 
Share 
premium 
Merger 
 reserve 
Retained 
deficit 
Total  
equity 
 £000 £000 £000 £000 £000 
Balance at 1 August 2010 822 7,132 2,868 (630) 10,192 
Total comprehensive 
income for the year 
 
- 
 
- - 
 
271 
 
271 
Share based payment - - - 53 53 
Issue of share capital (net 
of issue costs) 
 
479 
 
5,441 - 
 
- 
 
5,920 
 --------------- ---------- --------- --------------- ---------- --------- --------------- ---------- -------- --------------- ---------- ----- --------------- ---------- ------ 
Balance at 31 July 2011 1,301 12,573 2,868 (306) 16,436 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes form part of these financial statements 
  
 Share  
capital 
Share 
premium 
Merger 
 reserve 
Retained 
deficit 
Total  
equity 
 £000 £000 £000 £000 £000 
Balance at 1 August 2011 1,301 12,573 2,868 (306) 16,436 
Total comprehensive loss 
for the year 
 
- 
 
- - 
 
(13,856) 
 
(13,856) 
Share based payment - - - 63 63 
Issue of share capital (net 
of issue costs) 
 
78 
 
587 - 
 
- 
 
665 
 --------------- ---------- --------- --------------- ---------- --------- --------------- ---------- -------- --------------- ---------- ----- --------------- ---------- ------ 
Balance at 31 July 2012 1,379 13,160 2,868 (14,099) 3,308 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =   
Europa Oil & Gas (Holdings) plc 
 
30 
 
Consolidated statement of cash flows  
For the year ended 31 July  2012 2011 
 Note £000 £000 
Cash flows from operating activities  
  
Loss after tax  (11,316) (232) 
Adjustments for:    
Share based payments 22 63 53 
Depreciation  12 673 354 
Exploration write-off 11 12,451 - 
Impairment of property, plant & equipment 12 785 425 
Finance income 7 - (1) 
Finance expense 8 452 189 
Taxation (credit) /expense 9 (739) 523 
Increase in trade and other receivables  (647) (412) 
Increase in inventories  (13) (5) 
Increase / (decrease) in trade and other payables  350 (239) 
  --------------- ---------- ---------- - --------------- ---------- ---------- 
Cash generated from continuing operations  2,059 655 
    
Loss after taxation from discontinued operations  - (788) 
Adjustments for:    
        Decrease in trade and other receivables  - 193 
        Increase in trade payables  - 617 
        Non cash increase in intangible assets  - (22) 
  ------------ ---------- ---------- ---- --------------- ---------- ----- ----- 
Cash used in discontinued operations  - - 
    
Income taxes repayment received  - 330 
  --------------- ---------- ---------- --------------- ---------- --------- 
Net cash from operating activities  2,059 985 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash flows from investing activities  
  
Purchase of property, plant and equipment  (78) (3,213) 
Purchase of intangible assets  (2,955) (1,809) 
Interest received  - 1 
  
--------------- ------- - - - - - - - - - - - - - --------------- ---------- --------- 
Net cash used in investing activities  (3,033) (5,021) 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash flows from financing activities    
Proceeds from issue of share capital (net of issue costs)  665 5,920 
Increase/(decrease) in payables related to the issue of share capital  (115) 115 
Proceeds from short-term borrowings  - 1,065 
Repayment of borrowings  (1,025) (612) 
Finance costs  (289) (80) 
  
--------------- ----- - - - - - - - - - - - - - - - --------------- ---------- --------- 
Net cash from financing activities  (764) 6,408 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
Net  (decrease)/increase in cash and cash equivalents  (1,738) 2,372 
Exchange gain/(loss) on cash and cash equivalents  92 (21) 
Cash and cash equivalents at beginning of year  1,876 (475) 
  
--------------- ---------- ---------- --------------- ---------- --------- 
Cash and cash equivalents at end of year  230 1,876 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash and cash equivalents comprise:    
Cash  230 1,876 
  
--------------- ---------- ---------- --------------- ---------- --------- 
Net cash and cash equivalents  230 1,876 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
The accompanying notes form part of these financial statements.   
Europa Oil & Gas (Holdings) plc 
 
31 
 
Company statement of cash flows  
For the year ended 31 July 
  
2012 2011 
  £000 £000 
Cash flows from operating activities Note   
(Loss)/profit after tax 3 (13,856) 271 
Adjustments for:    
Share based payments  63 53 
Depreciation 12 22 24 
Write-off of intercompany loan  13,096 - 
Finance income  (377) (476) 
Finance expense  844 49 
Decrease/(increase) in trade and other receivables  185 (197) 
Increase/(decrease) in trade and other payables  36 (336) 
  --------------- ---------- ---------- --------------- ---------- --------- 
Net cash from operating activities  13 (612) 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash flows from investing activities    
Purchase of property, plant and equipment  (16) (11) 
Movement on loan to Group companies  (834) (4,745) 
Interest received  - 1 
  
--------------- ------ - - - - - - - - - - - - - - --------------- ---------- --------- 
Net cash used in investing activities  (850) (4,755) 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash flows from financing activities  
  
Proceeds from issue of share capital (net of issue costs)  665 5,920 
(Decrease)/increase in payables related to the issue of share capital  (115) 115 
Proceeds from short term borrowings  - 1,065 
Repayment of borrowings  (1,025) (112) 
Finance costs  (275) (48) 
  
--------------- ------ - - - - - - - - - - - - - - --------------- ---------- --------- 
Net cash from financing activities  (750) 6,940 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
Net (decrease)/increase in cash and cash equivalents  (1,587) 1,573 
Exchange gain/(loss) on cash and cash equivalents  36 (16) 
Cash and cash equivalents at beginning of year  1,578 21 
  
--------------- ---------- ---------- --------------- ---------- --------- 
Cash and cash equivalents at end of year  27 1,578 
  
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes form part of these financial statements   
Europa Oil & Gas (Holdings) plc 
 
32 
 
Notes to the financial statements  
 
1 Accounting Policies 
 
 General information 
Europa Oil & Gas (Holdings) plc is a Company incorporated and domiciled in England and Wales with 
registered number 5217946. The address of the registered office is 6 Porter Street, London, W1U 6DD. The 
Company’s administrative office is at the same address. 
The functional and presentational currency of the Company is Sterling (UK£). 
 Basis of accounting 
The consolidated financial statements have been prepared in accordance with applicable International 
Financial Reporting Standards (IFRS) as adopted by the EU. The policies have not changed from the previous 
year. 
The accounting policies that have been applied in the opening statement of financial position have also been 
applied throughout all periods presented in these financial statements. These accounting policies comply with 
each IFRS that is mandatory for accounting periods ending on 31 July 2012. 
 Going concern 
After making enquiries, the directors have formed a judgement at the time of approving the financial 
statements that there is a reasonable expectation, based on the Group’s cash flow forecasts that the Group can 
continue in operational existence for the foreseeable future, which is deemed to be at least 12 months from the 
date of signing these financial statements. This judgement is based on the performance of existing oil 
production and correspondence with our bankers,. 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
33 
 
Notes to the financial statements (continued) 
 
1 Accounting Policies (continued)  
 
Future changes in accounting standards 
The IFRS financial information has been drawn up on the basis of accounting standards, interpretations and 
amendments effective at the beginning of the accounting period. The IASB and IFRIC have issued the 
following standards and interpretations: 
There were no amendments to published standards and interpretations to existing standards effective in the 
year adopted by the Group. 
Various amendments to published standards and interpretations to existing standards were made effective in 
the year. None of these were relevant to the Group. 
The following are amendments to existing standards and new standards which may apply to the Group in 
future accounting periods. Except for the disclosure requirements of IAS 24 and the impact of IFRS 9 and 
IFRS 11, which the directors are continuing to assess, none of the following are considered to affect the 
Company.     
  Effective date 
(periods 
beginning 
on or after) 
IAS 12 *  Deferred Tax: Recovery of Underlying Assets  1 Jan 2012 
IFRS 9 * Financial instruments 1 Jan 2013 
 
Items marked * had not yet been endorsed by the European Union at the date that these financial statements 
were approved and authorised for issue by the Board. 
 Basis of consolidation 
The Group financial statements consolidate those of the Company and all of its material subsidiary 
undertakings drawn up to 31 July 2012. Subsidiaries are entities over which the Group has the power to 
control the financial and operating policies so as to obtain benefits from its activities. The Group obtains and 
exercises control through voting rights. 
Intra Group balances are eliminated on consolidation. Unrealised gains on transactions between the Group 
and its subsidiaries are eliminated. Unrealised losses are also eliminated unless the transaction provides 
evidence of an impairment of the asset transferred. Amounts reported in the financial statements of 
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by 
the Group. 
The Group is engaged in oil and gas exploration, development and production through unincorporated joint 
ventures. The accounting for the Groups share of the results and net assets of these joint arrangements is 
described below.  
Revenue Recognition 
Revenue, excluding value added tax and similar taxes, represents net invoiced sales of the Group’s share of oil 
and gas revenues in the year. Revenue is recognised at the end of each month based upon the quantity and 
price of oil and gas delivered to the customer.  
 
 
 
 
 
    
Europa Oil & Gas (Holdings) plc 
 
34 
 
Notes to the financial statements (continued) 
 
1 Accounting Policies (continued) 
 
Non-current assets 
 
Oil and gas interests 
The financial statements with regard to oil and gas exploration and appraisal expenditure have been prepared 
under the full cost basis. This accords with IFRS 6 which permits the continued application of a previously 
adopted accounting policy. 
Pre-production assets 
Pre-production assets are categorized as intangible assets on the statement of financial position. Pre-licence 
expenditure is expensed as directed by IFRS 6. Expenditure on licence acquisition costs, geological and 
geophysical costs, costs of drilling exploration, appraisal and development wells, and an appropriate share of 
overheads (including directors’ costs) are capitalised and accumulated in cost pools on a geographical basis. 
These costs which relate to the exploration, appraisal and development of oil and gas interests are initially held 
as intangible non-current assets pending determination of commercial viability. On commencement of 
production these costs are transferred to Production assets. 
Production assets 
Production assets are categorized within property, plant and equipment on the statement of financial position. 
With the determination of commercial viability and approval of an oil and gas project the related pre-
production assets are transferred from intangible non-current assets to tangible non-current assets and 
depreciated upon commencement of production within the appropriate cash generating unit.  
Impairment tests 
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash generating units) as disclosed in Notes 11 and 12. As a result, some assets are 
tested individually for impairment and some are tested at cash generating unit level. 
An impairment loss is recognised for the amount by which the asset's or cash generating unit's carrying 
amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market 
conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation. Impairment 
losses recognised for cash-generating units, to which goodwill has been allocated, are credited initially to the 
carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash 
generating unit. With the exception of goodwill, all assets are subsequently reassessed for indications that an 
impairment loss previously recognised may no longer exist. 
Property, plant and equipment 
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost 
includes directly attributable costs and the estimated present value of any future unavoidable costs of 
dismantling and removing items. The corresponding liability is recognised within provisions. 
Depreciation – production assets 
All expenditure within each cost pool is depreciated from the commencement of production, on a unit of 
production basis, which is the ratio of oil and gas production in the period to the estimated quantities of 
proven plus probable commercial reserves at the end of the period, plus the production in the period. Costs 
used in the unit of production calculation comprise the net book value of capitalised costs plus the estimated 
future field development costs within each cost pool. Changes in the estimates of commercial reserves or 
future field development costs are dealt with prospectively.  
Furniture and computers are depreciated on a 25% per annum straight line basis. 
Leasehold buildings are depreciated on a 2% per annum straight line basis. 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
35 
 
Notes to the financial statements (continued) 
 
1 Accounting Policies (continued) 
 
 Non-current assets (continued) 
 
Reserves 
Proven and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons 
which the existing geological, geophysical and engineering data shows to be recoverable in future years. The 
proven reserves included herein conform to the definition approved by the Society of Petroleum Engineers 
(SPE) and the World Petroleum Congress (WPC). The probable and possible reserves conform to definitions 
of probable and possible approved by the SPE/WPC using the deterministic methodology. Reserves used in 
accounting estimates for depreciation are updated periodically to reflect management’s view of reserves in 
conjunction with third party formal reports. Reserves are reviewed at the time of formal updates or as a 
consequence of operational performance, plans and the business environment at that time. 
Reserves are adjusted, in the year that formal updates are undertaken or as a consequence of operational 
performance and plans, and the business environment at that time, with any resulting changes not applied 
retrospectively.    
Future decommissioning costs 
A provision for decommissioning is recognised in full at the point that the Group has an obligation to 
decommission an appraisal, development or producing well. A corresponding non-current asset (included 
within producing fields in note 12) of an amount equivalent to the provision is also created. The amount 
recognised is the estimated cost of decommissioning, discounted to its net present value and is reassessed each 
year in accordance with local conditions and requirements. For producing wells, the asset is subsequently 
depreciated as part of the capital costs of production facilities within tangible non current assets, on a unit of 
production basis. Any decommissioning obligation in respect of a pre-production asset is carried forward as 
part of its cost and tested annually for impairment in accordance with the above policy. 
Changes in the estimates of commercial reserves or decommissioning cost estimates are dealt with 
prospectively by recording an adjustment to the provision, and a corresponding adjustment to the 
decommissioning asset. The unwinding of the discount on the decommissioning provision is included within 
finance expense. 
Taxation 
Current tax is the tax payable based on taxable profit for the year. 
Deferred income taxes are calculated using the balance sheet liability method on temporary differences. 
Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and 
their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial 
recognition of an asset or liability unless the related transaction is a business combination or affects tax or 
accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint 
ventures is not provided if reversal of these temporary differences can be controlled by the Group and it is 
probable that reversal will not occur in the foreseeable future. Tax losses available to be carried forward as well 
as other income tax credits to the Group are assessed for recognition as deferred tax assets. 
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the 
extent that it is probable that the underlying deductible temporary difference will be able to be offset against 
future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected 
to apply to their respective period of realisation, provided they are enacted or substantively enacted at the 
reporting date. 
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the statement of 
comprehensive income, except where they relate to items that are charged or credited directly to equity in 
which case the related deferred tax is also charged or credited directly to equity. 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
36 
 
Notes to the financial statements (continued) 
 
1 Accounting Policies (continued) 
 
Foreign currency 
The Group and Company prepare their financial statements in Sterling.  
Transactions denominated in foreign currencies are translated at the rates of exchange ruling at the date of the 
transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at 
the reporting date. Non-monetary items that are measured at historical cost in a foreign currency are translated 
at the exchange rate at the date of transaction. Non-monetary items that are measured at fair value in a foreign 
currency are translated using the exchange rates at the date the fair value was determined. 
Any exchange differences arising on the settlement of items or on translating items at rates different from 
those at which they were initially recorded are recognised in the Statement of comprehensive income in the 
period in which they arise. Exchange differences on non-monetary items are recognised in the Statement of 
Changes in Equity to the extent that they relate to a gain or loss on that non-monetary item taken to the 
Statement of Changes in Equity, otherwise such gains and losses are recognised in the Statement of 
comprehensive income. 
The monetary assets and liabilities in the financial statements of foreign subsidiaries are translated at the rate of 
exchange ruling at the reporting date. Income and expenses are translated at monthly average rates providing 
there is no significant change in the month. The exchange differences arising from the retranslation of the 
opening net investment in subsidiaries are taken directly to the foreign exchange reserve in equity. On disposal 
of a foreign operation the cumulative translation differences are transferred to the statement of comprehensive 
income as part of the gain or loss on disposal. 
Europa Oil and Gas (Holdings) plc is domiciled in the UK, which is its primary economic environment and 
the Company’s functional currency is Sterling. The Group’s current operations are based in the UK, Romania, 
France and Sahrawi Arab Democratic Republic, and the functional currencies of the Group's entities are the 
prevailing local currencies in each jurisdiction. Given that the functional currency of the Company is Sterling, 
management has elected to continue to present the consolidated financial statements of the Group and 
Company in Sterling. 
Investments 
Investments, which are only investments in subsidiaries, are carried at cost less any impairment.  
Financial instruments 
Financial assets and liabilities are recognised on the statement of financial position when the Group becomes a 
party to the contractual provisions of the instrument. The Group and Company classifies its financial assets 
into loans and receivables, which comprise trade and other receivables and cash and cash equivalents. The 
Group has not classified any of its financial assets as held to maturity or available for sale or fair value through 
profit or loss. 
Trade and other receivables are measured initially at fair value plus directly attributable transaction costs, and 
subsequently at amortised cost using the effective interest rate method, less provision for impairment. A 
provision is established when there is objective evidence that the Group will not be able to collect all amounts 
due. The amount of any provision is recognised in the Statement of comprehensive income. 
Cash and cash equivalents comprise cash held by the Group, short-term bank deposits with an original 
maturity of three months or less and bank overdrafts. Within the consolidated statement of cash flows, cash 
and cash equivalents includes the overdraft drawn against the multi-currency facility described in note 18. 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
37 
 
Notes to the financial statements (continued) 
1 Accounting Policies (continued) 
 
Financial instruments (continued) 
The Group and Company classify financial liabilities into one of two categories, depending on the purpose for 
which the asset was acquired. The accounting policy for each category is as follows: 
Fair value through profit or loss. 
This category comprises only out-of-the-money derivatives. They are carried in the statement of financial 
position at fair value with changes in fair value recognised in the consolidated Statement of comprehensive 
income. Other than these derivative financial instruments, the Group does not have any liabilities held for 
trading nor has it designated any financial liabilities as being at fair value through profit or loss.  
Other financial liabilities. 
Include the following items: 
Bank and other borrowings are initially recognised at fair value net of any transaction costs directly 
attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at 
amortised cost using the effective interest rate method, which ensures that any interest expense over the 
period to repayment is at a constant rate on the balance of the liability carried in the statement of financial 
position. Interest expense in this context includes initial transaction costs and any interest or coupon 
payable while the liability is outstanding. 
Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and 
subsequently carried at amortised cost using the effective interest method. 
Financial liabilities and equity instruments issued by the Group are classified in accordance with the substance 
of the contractual arrangements entered into and the definitions of a financial liability and an equity 
instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group 
after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds 
received, net of direct issue costs. 
Leased assets 
In accordance with IAS 17, the economic ownership of a leased asset is transferred to the lessee if the lessee 
bears substantially all the risks and rewards related to the ownership of the leased asset. The related asset is 
recognised at the time of inception of the lease at the fair value of the leased asset or, if lower, the present 
value of the minimum lease payments plus incidental payments, if any, to be borne by the lessee. A 
corresponding amount is recognised as a finance leasing liability.  
The interest element of leasing payments represents a constant proportion of the capital balance outstanding 
and is charged to the statement of comprehensive income over the period of the lease. All other leases are 
regarded as operating leases and the payments made under them are charged to the statement of 
comprehensive income on a straight line basis over the lease term. Lease incentives are spread over the term of 
the lease.  
During the current and prior year the Group and Company did not have any finance leases. 
Defined contribution pension schemes 
The pension costs charged against profits are the contributions payable to the scheme in respect of the 
accounting period. 
Inventories 
Inventories comprise oil in tanks stated at the lower of cost and net realisable value.  
Joint ventures 
Joint ventures are those ventures in which the Group holds an interest on a long term basis which are jointly 
controlled by the Group and one or more venturers under a contractual arrangement. When these 
arrangements do not constitute entities in their own right, the consolidated financial statements reflect the 
relevant proportion of costs, revenues, assets and liabilities applicable to the Group’s interests in accordance 
with IAS 31. The Group’s exploration, development and production activities are generally conducted jointly 
with other companies in this way.   
Europa Oil & Gas (Holdings) plc 
 
38 
 
Notes to the financial statements (continued) 
1 Accounting Policies (continued) 
 
Share-based payments 
All goods and services received in exchange for the grant of any share-based payment are measured at their 
fair values. Where employees are rewarded using share-based payments, the fair values of employees' services 
are determined indirectly by reference to the fair value of the instrument granted to the employee. This fair 
value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, 
profitability and sales growth targets). 
All equity-settled share-based payments are ultimately recognised as an expense in the statement of 
comprehensive income with a corresponding credit to reserves. Where options over the parent Company’s 
shares are granted to employees of subsidiaries of the parent, the charge is recognised in the statement of 
comprehensive income of the subsidiary. In the parent Company accounts there is an increase in the cost of 
the investment in the subsidiary receiving the benefit.  
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting 
period, based on the best available estimate of the number of share options expected to vest. Estimates are 
subsequently revised if there is any indication that the number of share options expected to vest differs from 
previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No 
adjustment is made to any expense recognised in prior periods if the number of share options ultimately 
exercised is different to that initially estimated. 
Upon exercise of share options the proceeds received, net of attributable transaction costs, are credited to 
share capital, and where appropriate share premium. 
Critical accounting judgements and key sources of estimation uncertainty 
Details of the Group’s significant accounting judgements and critical accounting estimates are set out in these 
financial statements and include: 
Accounting judgements and estimates: 
 Carrying value of intangible assets (Note 11) – carrying values are justified by reference to future 
estimates of cash flows  
 Carrying value of property, plant and equipment (Note 12) – carrying values are justified by reference 
to future estimates of cash flows 
 Decommissioning provision (Note 20) – inflation and discount rate estimates are used in calculating 
the provision 
 Share-based payments (Note 22) – various estimates are used in determining the fair value of options 
2 Business segment analysis  
In the opinion of the directors the Group has five reportable segments as reported to the chief operating 
decision maker, being the UK, Ireland, Romania, France and North Africa. 
The reporting on these segments to management focuses on revenue, operating costs and capital expenditure. 
The impact of such criteria is discussed further in the Chairman’s Statement, Operational Review and Financial 
Review of this annual report.  
 
    
Europa Oil & Gas (Holdings) plc 
 
39 
 
Notes to the financial statements (continued) 
2 Business segment analysis (continued) 
Income statement for the year ended 31 July 2012 
 
UK Ireland Romania France 
North  
Africa 
Total 
 £000 £000 £000 £000 £000 £000 
Continuing operations       
Revenue 5,080 - - - - 5,080 
Other cost of sales (2,692) - - - - (2,692) 
Exploration write-off (2,056) - (10,395) - - (12,451) 
Impairment of producing fields (785) - - - - (785) 
Cost of sales (5,533) - (10,395) - - (15,928) 
 
--------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- 
Gross loss (453) - (10,395) - - (10,848) 
       
Administrative expenses (675) - (39) - (41) (755) 
Finance income - - - - - - 
Finance costs ((358)  (94) - - (452) 
 
--------------- ---------- ---------- --------------- ---------- -------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
Loss before tax (1,486) - (10,528) - (41) (12,055) 
       
Taxation 739 - - - - 739 
 
--------------- ---------- ---------- --------------- ---------- -------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- --------- - - - - - - - - - - - --------------- ---------- ---------- 
Loss for the year from 
continuing operations 
(747) - (10,528) - (41) (11,316) 
       
Discontinued operations       
Loss for the year from 
discontinued operation 
- - - - - - 
Loss for the year (747) - (10,528) - (41) (11,316) 
Segmental assets and liabilities as at 31 July 2012      
    
 
 
 
 
 
 
UK Ireland Romania France 
North  
Africa 
Total 
 £000 £000 £000 £000 £000 £000 
Total non-current assets 5,995 66 - 1,039 - 7,100 
Total current assets 1,868 - 6 - - 1,874 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
Total assets 7,863 66 6 1,039 - 8,974 
 
--------------- ---------- ---------- -------------- - - - - - - - - - - - - - - - - - - - - - --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
       
Total non-current liabilities (4,648) - (250) - - (4,898) 
Total current liabilities (1,573) - (688) - - (2,261) 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
Total liabilities (6,221) - (938) - - (7,159) 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- --- ------- 
       
Other segment items       
Capital expenditure 583 66 1,863 521 - 3,033 
Depreciation 674 - - - - 674 
Share based payments 63 - - - - 63   
Europa Oil & Gas (Holdings) plc 
 
40 
 
Notes to the financial statements (continued) 
2 Business segment analysis (continued) 
Income statement for the year ended 31 July 2011 
 
UK Ireland Romania France 
North  
Africa 
Total 
 £000 £000 £000 £000 £000 £000 
Continuing operations       
Revenue 3,766 - - - - 3,766 
Other cost of sales (2,216) - - - - (2,216) 
Exploration write-off - - - - - - 
Impairment of producing fields (425) - - - - (425) 
Cost of sales (2,641) - - - - (2,641) 
 
------------ - - - - --------- -------- ------------ - - - - --------- -------- ------------ - - - - --------- ----- --- ------------ - - - - --------- -------- ------------ - - - - --------- -------- ------------ - - - - --------- -------- 
Gross profit/ (loss) 1,125  - - - 1,125 
       
Administrative expenses (556) - (53) - (37) (646) 
Finance income 1 - - - - 1 
Finance costs (187) - (2) - - (189) 
 
--------------- ---------- ---------- ------------ - - - - --------- -------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
(Profit) / loss before tax 383  (55) - (37) 291 
       
Taxation (523) - - - - (523) 
 
--------------- ---------- ---------- ------------ - - - - --------- -------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- ----- ---------- ---------- ---------- 
Loss for the year  (140) - (55) - (37) (232) 
       
Discontinued operations       
Loss for the year from 
discontinued operation 
- - (788) - - (788) 
Loss for the year (140) - (843) - (37) (1,020) 
Segmental assets and liabilities as at 31 July 2011 
 
 
UK Ireland Romania France 
North  
Africa 
Total 
 £000 £000 £000 £000 £000 £000 
Total non-current assets 10,082 - 8,412 526 - 19,020 
Total current assets 2,699 - 15 - - 2,714 
 
--------------- ---------- ---------- --- ------------ ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
Total assets 12,781 - 8,427 526 - 21,734 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
       
Total non-current liabilities (6,486) - - - - (6,486) 
Total current liabilities (2,095) - (714) - - (2,809) 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ------ ---- 
Total liabilities (8,581) - (714) - - (9,295) 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ------- - - - - - - - - - - - - - 
       
Other segment items       
Capital expenditure 3,243 - 1,608 171 - 5,022 
Depreciation 354 - - - - 354 
Share based payments 53 - - - - 53 
 
100% of the total revenue (2011: 100%) relates to UK based customers.  Of this figure, one single customer 
(2011: one) commands more than 99% of the total. 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
41 
 
Notes to the financial statements (continued) 
3 Profit / (loss) before taxation 
(Loss)/profit from continuing operations is stated after charging: 
  2012 2011 
 Note £000 £000 
Depreciation 12 673 354 
Staff costs including directors 5 1,022 744 
Exploration write-off 11 12,451 - 
Impairment of property, plant and equipment 12 785 425 
Fees payable to the auditor for the Company audit  13 15 
Fees payable to the auditor for the audit of subsidiaries  29 29 
Fees payable to the auditor in respect of corporate finance 
services 
 
- 
 
34 
Operating leases – land and buildings  37 35 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The Company has taken advantage of the exemption provided under Section 408 of the Companies Act 2006 
not to publish its individual statement of comprehensive income and related notes. The loss dealt with in the 
financial statements of the parent Company is £13,856,000 (2011: profit £271,000).  
4 Directors’ emoluments 
Directors’ salaries and fees 2012 2011 
 £000 £000 
WH Adamson 40 40 
CW Ahlefeldt-Laurvig 21 18 
PA Barrett (to 22 April 2012) 96 127 
RJHM Corrie 21 18 
P Greenhalgh 129 129 
HGD Mackay (from 10 October 2011) 149 - 
ES Syba (to 31 August 2010) - 6 
 ------------ - - - - - - - - - - - - - - - - - - - - - - - --------------- ---------- ---------- 
 456 338 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Directors’ pensions   
   
PA Barrett 16 19 
P Greenhalgh 17 16 
ES Syba 6 11 
 --------------- ---------- ----- ----- --------------- ---------- ---------- 
 
39 46 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
The above charge represents premiums paid to money purchase pension plans during the year. Under the 
terms of a compromise agreement dated 12 August 2010, the Company continued to pay pension 
contributions in respect of ES Syba until February 2012. PA Barrett resigned as a director on 21 October 2011 
and remained an employee until 22 April 2012. 
Social security costs in relation to directors’ remuneration were £57,000 (£2011: £41,000). 
 
  
 
 
   
 
 
   
Europa Oil & Gas (Holdings) plc 
 
42 
 
Notes to the financial statements (continued) 
4 Directors’ emoluments (continued) 
 
The above represents the accounting charge in respect of stock options with vesting periods during the year. 
No share options were exercised during the period (2011: none).  
 
5 Employee information 
Average monthly number of employees including directors 2012 2011 
 Number Number 
Management and technical 8 6 
Field exploration and production 4 4 
 --------------- ---------- ------ ------ --------- ---------- ----- 
 12 10 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Staff costs 2012 2011 
 £000 £000 
Wages and salaries 785 550 
Social security 100 68 
Pensions 74 73 
Share based payment (Note 22) 63 53 
 ------------- - - - - - - - - - - - - - - - - - --------------- ---------- ----- 
 
1,022 744 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Total staff costs for the Company were £793,000 (2011: £517,000). 
6 Loss from discontinued operations 
  2012 2011 
 £000 £000 
VAT on Valenii de Munte exploration costs - 62 
VAT assessed on the sale of the Bilca gas business - 357 
Penalties for late payment of VAT - 369 
 
--------------- ---------- ----- --------------- ---------- ----- 
Loss for the year from discontinued operations - 788 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The loss for discontinued operations arises from the September 2011 notification from the Romanian tax 
authorities that VAT had been assessed on the transfer of two businesses in 2007.  
  
Directors’ share based payments 2012 2011 
 £000 £000 
WH Adamson 11 9 
RJHM Corrie  1 7 
P Greenhalgh  11 33 
HGD Mackay 39 - 
 --------------- ---------- ---------- --------------- ---- - - - - - - - - - - - - - - - - 
 
62 49 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Directors’ total emoluments 2012 2011 
 £000 £000 
Salaries and fees 456 338 
Pensions 39 46 
Share based payments 62 49 
 --------------- ---------- ---------- --------------- ---------- ---------- 
 
557 433 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =   
Europa Oil & Gas (Holdings) plc 
 
43 
 
Notes to the financial statements (continued) 
7 Finance income 
 2012 2011 
 £000 £000 
Interest receivable - 1 
 --------------- ---------- ----- --------------- ---------- ----- 
 - 1 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = ===== = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
8 Finance expense 
 2012 2011 
 £000 £000 
Bank interest payable 28 44 
Loan interest payable 32 10 
Interest on tax payment 1 - 
Unwinding of discount on decommissioning provision (Note 20) 130 92 
Exchange rate losses 24 14 
Bank charges 10 18 
Loan arrangement fee 219 10 
Interest rate swap fair value charge (Note 23) 8 1 
 --------------- ---------- ----- --------------- ---------- ----- 
 452 189 
 = = = = = = = = = = = = = = = = = = = = = = = = = = == = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
9 Taxation 
 2012 2011 
 £000 £000 
Current tax liability  83 - 
Deferred tax asset (Note 19)  916 (923) 
Release deferred tax liability (Note 19) (1,738) 1,446 
 --------------- ---------- ------- --------------- ------- - - - - - - - - - - 
Tax (credit) / charge (739) 523 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 UK corporation tax is calculated at 30% (2011: 30%) of the estimated assessable profit for the year. Taxation 
in other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. 
 2012 2011 
 £000 £000 
(Loss)/profit on ordinary activities per the accounts (12,114) 291 
Tax reconciliation   
(Loss)/profit on ordinary activities multiplied by the standard rate of 
corporation tax in the UK of 30% (2010: 30%) (3,634) 87 
Expenses not deductible for tax purposes 3,990 28 
Other reconciling items including tax payable at a higher rate in the UK (1,095) 408 
 --------------- ---------- -------- --------------- ---------- -------- 
Total tax charge (739) 523 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
10 Loss per share  
Basic loss per share (LPS) has been calculated on the loss or profit after taxation divided by the weighted 
average number of shares in issue during the period. Diluted LPS uses an average number of shares adjusted 
to allow for the issue of shares, on the assumed conversion of all in-the-money options.  
The Company’s average share price for the year to 31 July 2012 was 8.97p (2011: 20.29p), which was below the 
exercise price of all of the 8,275,000 outstanding share options. As a there was a loss in the period for both 
years the options are not considered dilutive.  
   
Europa Oil & Gas (Holdings) plc 
 
44 
 
Notes to the financial statements (continued) 
10 Loss per share (continued) 
The calculation of the basic and diluted (loss) per share is based on the following: 
 2012 2011 
 £000 £000 
Losses   
Loss after tax from continuing activities (11,316) (232) 
Loss for the year from discontinued operations - (788) 
 --------------- ---------- ---------- -------------- -- --------- --------- 
Loss for the year from continuing and discontinued operations  (11,316) (1,020) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
   
Weighted average number of shares   
for the purposes of basic eps 135,921,685 105,418,814 
for the purposes of diluted eps 135,921,685 105,929,247 
11 Intangible assets  
 2012 2011 
 £000 £000 
At 1 August 11,348 9,751 
Additions 3,230 1,597 
Exploration write-off (12,451) - 
 --------------- ---------- ---------- -------------- -- --------- --------- 
At 31 July 2,127 11,348 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
Intangible assets comprise the Group’s pre-production expenditure on licence interests as follows: 
 
 
 2012 
£000 
2011 
£000 
Exploration write-off   
UK PEDL150 (Hykeham) 2,057 - 
Romania 10,394 - 
 --- ------------ ---------- ---------- --------------- ---------- ------- 
Total 12,451 - 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 2012 
£000 
2011 
£000 
Romania - 8,433 
France 1,039 523 
Ireland 66 - 
UK PEDL143 (Holmwood) 437 199 
UK PEDL150 (Hykeham) - 2,020 
UK PEDL180 (Wressle) 279 68 
UK PEDL181 (Caister) 113 105 
UK PEDL182 (Broughton) 193 - 
 
--------------- ---------- ------- --------------- ---------- ------- 
Total 2,127 11,348 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =   
Europa Oil & Gas (Holdings) plc 
 
45 
 
Notes to the financial statements (continued) 
11 Intangible assets (continued) 
As highlighted in the Operational review, the renewal process for the Béarn des Gaves and Tarbes Permits is 
underway. The Group did not meet its expenditure commitments in the first phase of the Permits and as a 
result there is a risk that the Permits will not be renewed by the French authorities. Based on correspondence 
received to date from the authorities, the directors have a reasonable expectation that the Permits will be 
renewed. Should the Permits not be renewed, then there would be an impairment of the French intangible 
assets.  
12 Property, plant and equipment  
Property, plant & equipment - Group 
 Furniture & 
computers 
Leasehold 
building 
Producing 
fields 
Total 
 £000 £000 £000 £000 
Cost     
At 1 August 2010 55 437 7,779 8,271 
Additions 11 - 3,006 3,017 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2011 66 437 10,785 11,288 
     
Additions 16 - - 16 
Transfer to assets for sale - (437) - (437) 
Disposals (39) - - (39) 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2012 43 - 10,785 10,828 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Depreciation, depletion and 
impairment 
 
 
 
 
At 1 August 2010 25 85 3,657 3,767 
Charge for year 17 7 330 354 
Impairment - - 425 425 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2011 42 92 4,412 4,546 
     
Charge for year 14 8 651 673 
Transfer to assets for sale - (100) - (100) 
Disposal (35) - - (35) 
Impairment - - 785 785 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2012 21 - 5,848 5,869 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
     
Net Book Value     
At 31 July 2010 30 352 4,122 4,504 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
At 31 July 2011 24 345 6,373 6,742 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
At 31 July 2012 22 - 4,937 4,959 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
The producing fields referred to in the table above are the production assets of the Group, namely the oilfields 
at Crosby Warren and West Firsby, and the Group’s interest in the Whisby W4 well, representing three of the 
Group’s cash generating units.  
The carrying value of each producing field was tested for impairment by comparing the carrying value with the 
value in use. The value in use was calculated using a discount rate of 10%. In 2012, as a result of the reduction 
in reserves following the CPR, there was an impairment at Crosby Warren of £785,000 (2011: £257,000). 
There was no impairment at West Firsby (2011: £168,000) or Whisby W4 well.   
Europa Oil & Gas (Holdings) plc 
 
46 
 
Notes to the financial statements (continued) 
12 Property, plant and equipment (continued) 
Property, plant and equipment - Company 
  Furniture & 
computers 
Leasehold 
Building 
Total 
 £000 £000 £000 
Cost    
At 1 August 2010 55 437 492 
Additions 11 - 11 
 
--------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2011 66 437 503 
Additions 16 - 16 
Transfer to assets held for sale - (437)    (437) 
Disposals (39) - (39) 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2012 43 - 43 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Depreciation 
   
At 1 August 2010 25 85 110 
Charge for the year 17 7 24 
 
--------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2011 42 92 134 
Charge for year 14 8 22 
Transfer to assts held for sale - (100) (100) 
On disposals (35) - (35) 
 --------------- ---------- ------ --------------- ---------- ------ --------------- ---------- ------ 
At 31 July 2012 21 - 21 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Net Book Value    
At 31 July 2010 30 352 382 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
At 31 July 2011 24 345 369 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
At 31 July 2012 22 - 22 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
The Abingdon property has been vacated and has been put up for sale. The the net book value has been 
transferred to current assets (see Note 16). The property loan of £230,000 (2011: £251,000) described in Note 
18 is secured against this building. 
13 Investments - Company  
 
Investment in subsidiaries 
 
2012 
 
2011 
 £000 £000 
At 1 August 3,315 3,312 
Current year additions 1 3 
 --------------- ---------- ---------- ------ --------------- ---------- ---------- -- 
31 July 3,316 3,315 
 ================ =========== ================ ========= 
 
 The Company’s investments at the reporting date in the share capital of unlisted companies include 100% of 
Europa Oil & Gas Limited (this company undertakes oil and gas exploration, development and production) 
and 100% of Europa Oil & Gas (West Firsby) Limited (this company is non-trading). These two companies 
are registered in England and Wales. 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
47 
 
Notes to the financial statements (continued) 
13 Investments – Company (continued) 
The results of the two companies have been included in the consolidated accounts. Europa Oil & Gas Limited 
owns 100% of the ordinary share capital of each of: Europa Oil & Gas Resources Limited (this UK company 
undertakes exploration in the area of underground coal gasification); Europa Oil & Gas SRL registered in 
Romania; Europa Nafta & Gas Ukraine registered in Ukraine and Malopolska Oil & Gas Company Sp.z.o.o., 
registered in Poland. The result of the Polish company has not been consolidated on the grounds that it is not 
material to the Group. 
Additions to the cost of investments represents the net value of options over the shares of the Company 
issued to employees of subsidiary companies less any lapsed, unvested options  
14 Inventories - Group 
 2012 2011 
 £000 £000 
Oil in tanks 56 43 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
15 Trade and other receivables   
 Group Company 
 2012 2011 2012 2011 
Current trade and other receivables £000 £000 £000 £000 
Trade receivables 1,057 438 - - 
Other receivables 109 128 17 38 
Prepayments 84 229 44 208 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- --- - - - - - - - - - - - - - - - - - --------------- ---------- ---------- 
 1,250 795 61 246 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
     
Non current other receivables 
    
Owed by Group undertakings (Note 26) - - - 12,472 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Loans to subsidiaries have been fully written down in the Company accounts. 
16 Assets classified as held for sale 
In January 2012 the Group relocated its head office from Abingdon to London. The vacated leasehold 
property in Abingdon has been classified as an asset held for sale. The property loan of £230,000 (2011: 
£251,000) described in Note 18 is secured against this building and will be repaid out of the sale proceeds. 
 Group Company 
 2012 2011 2012 2011 
 £000 £000 £000 £000 
Property, plant & equipment 338 - 338 - 
 
--------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- --------------- ---------- ---------- 
Total net assets 338 - 338 - 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
   
Europa Oil & Gas (Holdings) plc 
 
48 
 
Notes to the financial statements (continued) 
17 Trade and other payables  
 Group Company 
 2012 2011 2012 2011 
 £000 £000 £000 £000 
Trade payables 1,032 967 105 226 
Other payables 14 50 - - 
Accruals 834 740 57 36 
 --------------- ---------- --- - ----- --------------- ---------- ------- --------------- ---------- ---------- -- ------------- ---------- ---------- 
 1,880 1,757 162 262 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Derivative liability     
Interest rate swap 64 56 64 56 
Group other payables includes advances received from partners on projects in UK. More information on the 
interest rate swap is included in Note 23. 
18 Borrowings  
The Royal Bank of Scotland (RBS) multi-currency facility signed on 5 March 2012 provides an overdraft of up 
to £700,000. At 31 July 2012 and at 31 July 2011 the facility was not used. The facility is due to be renewed 31 
January 2013. 
A term loan also provided by RBS was fully repaid on 31 January 2011.   
The £975,000 ($1,600,000) Yorkville loan note was issued on 15 July 2011 and was repayable in tranches over 
12 months.  As at 31 July 2012 the loan was fully repaid (July 2011 balance: £975,000).A loan of £230,000 
(2011: £251,000) secured against the Abingdon property is repayable over 11 years but will be fully repaid with 
proceeds from the sale of the property which is in current assets for sale (see Note 16).  As the Group 
anticipates the property selling within a year the property loan has all been shown in short term borrowings. 
     Group            Company 
Loans repayable in less than 1 year 2012 
£000 
2011 
£000 
2012 
£000 
2011 
£000 
Multi-currency facility - - - - 
Term loan - - - - 
Property loan 230 21 230 21 
Loan note (Yorkville) - 975 - 975 
 
-------------------- ------------- - - ------------ -------- --- ---- - - - - - - - - - - - - -------------------- ------------- -- -------------------- ------------- -- 
Total short term borrowing 230 996 230 996 
 
= = = == == == = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Loans repayable in 1 to 2 years 
    
Term loan - - - - 
Property loan - 22 - 22 
 
-------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- 
Total loans repayable in 1 to 2 years - 22 - 22 
 
    
Loans repayable in 2 to 5 years 
    
Term loan - - - - 
Property loan - 68 - 68 
 
-------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- 
Total loans repayable in 2 to 5 years - 68 - 68 
 
    
Loans repayable after 5 years 
    
Property loan - 140 - 140 
 
-------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- 
Total loans repayable after 5 years - 140 - 140 
 
-------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- -------------------- ------------- -- 
Total long term borrowing - 230 - 230 
 
= = = == == == = = = = = = == == == = = = = = = == == == = = = = = = == == == = = = 
 
    
Europa Oil & Gas (Holdings) plc 
 
49 
 
Notes to the financial statements (continued) 
19 Deferred Tax – Group 
The Group recognized a non-current deferred tax asset of £14,000 (2011: £930,000) in respect of losses 
arising in the year, within the UK ring fence. It is expected that these losses will be utilised against profits 
arising in the 2013 financial year. 
Recognised deferred tax liability:  2012 2011 
 £000 £000 
As at 1 August  4,686 3,240 
(Credited) / charged to statement of comprehensive income (1,738) 1,446 
 ------------ -------- -------- ------- - - - - - - - ------------ -------- -------- -------- ----- 
At 31 July  2,948 4,686 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
The Group has a net deferred tax liability of £2,948,000 (2011: £4,686,000) arising from accelerated capital 
allowances. 
Unrecognised deferred tax asset: 2012 2011 
 £000 £000 
Accelerated capital allowances (335) (158) 
Trading losses 1,279 1,181 
 --------------- ---------- ---------- - ------------ -- - - - - - - - - - - - - - - - - - - - - - 
Net deferred tax asset 944 1,023 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The Group has a net deferred tax asset of £944,000 (2011: £1,023,000), which arises mainly in relation to 
overseas trading losses of £3.7 million and Holding Company losses of £0.6 million, that have not been 
recognised in the accounts as the timing of the utilisation of the losses is considered uncertain.   
20 Long term provision - Group 
 2012 2011 
 £000 £000 
As at 1 August 1,570 1,395 
Charged to statement of comprehensive income 130 92 
Added to exploration write-off 250 - 
Added to property, plant & equipment non current assets - 83 
 --------------- ---------- ------- --------------- ---------- ---- - -- 
At 31 July 1,950 1,570 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Decommissioning provisions are based on third party estimates of work which will be required and the 
judgement of directors. By its nature, the detailed scope of work required and timing is uncertain. Hykeham 
and Barchiz are the the only wells where decommissioning is anticipated before 2020. 
21 Called up share capital 
   2012 2011 
 £000 £000 
Allotted, called up and fully paid   
137,855,504 ordinary shares of 1p each (2011: 130,077,728) 1,379 1,301 
 = = = = = = = = = = = , == = = = = = = = = = = = = = 
All the allotted shares are of the same class and rank pari passu.  
On 31 October 2011 the Company issued 7,777,776 shares at 9p, raising £665,000 net of broker commission 
(2011: a total of 47,871,141 shares at an average 13.3p raising £5,920,000 net of broker commission). 
In 2005, the Company issued 39,999,998 ordinary shares of 1p at a nil premium in exchange for the entire 
shareholding of Europa Oil & Gas Limited. This gave rise to the merger reserve at 31 July 2012 of £2,868,000 
(2011: £2,868,000). 
   
Europa Oil & Gas (Holdings) plc 
 
50 
 
Notes to the financial statements (continued) 
21 Called up share capital (continued) 
 
The following describes the purpose of each reserve within owners’ equity: 
Reserve Description and purpose 
Share premium Amount subscribed for share capital in excess of nominal value 
Merger reserve Reserve created on issue of shares on acquisition of subsidiaries in prior years 
Foreign exchange 
reserve 
Reserve arising on translation of foreign subsidiaries 
Retained deficit Cumulative net gains and losses recognised in the consolidated statement of 
comprehensive income. 
22 Share based payments  
There are 8,275,000 ordinary 1p share options outstanding (2011: 3,382,142). These are held by certain 
members of the Board: WH Adamson 500,000; RJHM Corrie 500,000; P Greenhalgh 1,875,000; HGD Mackay 
5,000,000, and employees of the Group 400,000. 
Of the outstanding options, 3,275,000 are exercisable: one third 18 months after grant; a further third 30 
months after grant and the balance 42 months after grant, with no further vesting conditions.  
The remaining 5,000,000 options held by HGD Mackay are exercisable after 24 months, subject to the 
Company’s share price trading above a target level for at least 30 consecutive business days. The options are 
exercisable as follows: 
 
 
 
 
 
The latest date at which all options can be exercised is the 10th anniversary from the grant date.  
The fair values of all options were determined using a Black Scholes Merton model. The inputs used to 
determine the values of the 3,275,000 options are detailed in the table below: 
Grant date 11 Nov 
2004 
1 Dec 
 2006 
8 May 
2008 
23 Oct 
 2009 
17 Apr  
2010 
24 Oct  
2011 
Number of options 160,000 80,000 1,750,000 785,000 250,000 250,000 
Share price at grant 32.5p 21.5p 21.5p 13.3p 14p 9.5p 
Exercise price 25p 25p 20p 16p 14p 10p 
        
Volatility 40% 50% 50% 60% 70% 90% 
Dividend yield nil nil nil nil nil nil 
Risk free investment rate 4.80% 4.90% 4.42% 2.74% 2.82% 1.58% 
Option life (years) 6.25 6.25 6 6 5 5 
Fair value per share 16.76p 10.16p 10.96p 6.58p 7.79p 6.15p 
 
 
 
 
 
 
 
Number of 
options 
Target  
price 
1,000,000 25p 
1,000,000 35p 
1,000,000 45p 
1,000,000 50p 
1,000,000 60p   
Europa Oil & Gas (Holdings) plc 
 
51 
 
Notes to the financial statements (continued) 
22 Share based payments (continued) 
The inputs used to determine the values of the 5,000,000 options are detailed in the table below: 
 
 
 
 
 
 
 
 
Volatility is based on the Company's share price volatility since flotation. 
Based on the above fair values the charge arising from employee share options was £63,000 (2011: £53,000). 
In the year 5,250,000 options were granted, 357,142 expired, and none were forfeited or exercised (2011: all 
nil). 
 2012 
Number of 
options 
2012 
Average 
exercise 
price 
2011 
Number of 
options 
2011 
Average 
exercise 
price 
Outstanding at the  
start of the year 
3,382,142 18.35p 3,382,142 18.35p 
Granted 5,250,000 12.86p - - 
Forfeited - - - - 
Expired (357,142) 14p - - 
 
------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------------- - - - - - - - - - - - - - - - - - - - - - - --------------- - --------- ---------- ---------- ---- --------------- -- ----- - - - - - - - - - - - - - 
Outstanding at the  
end of the year 
8,525,000 15.05p 3,382,142 18.35p 
     
Exercisable at the  
end of the year 
2,953,805 18.80p 2,025,473 19.02p 
 
23 Financial instruments  
The Group’s and Company’s financial instruments comprise cash and cash equivalents, bank borrowings, 
loans, interest rate derivatives, and items such as trade and other receivables and trade and other payables 
which arise directly from its operations. Europa’s activities are subject to a range of financial risks the main 
ones being, liquidity, interest rates, commodity prices, foreign exchange and capital. These risks are managed 
through ongoing review taking into account the operational, business and economic circumstances at that 
time. 
 
Credit risk 
The Group is exposed to credit risk as all crude oil production is sold to one multinational oil company. The 
customer is invoiced monthly for the oil delivered to the refinery in the previous month and invoices are 
settled in full on the 15th of the following month. At 31 July 2012 trade receivables were £1,057,000 (2011: 
£438,000) representing one month of oil revenue (2011: one month). The fair value of trade receivables and 
payables approximates to their carrying value because of their short maturity. Any surplus cash is held on short 
term deposit with Royal Bank of Scotland. The maximum credit exposure in the year was £513,000 (2011: 
£479,000). 
The Company exposure to credit risk is negligible. 
 
 
Grant date 10 Oct  
2011 
10 Oct  
2011 
10 Oct  
2011 
10 Oct  
2011 
10 Oct  
2011 
Number of options 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 
Share price at grant 10.25p 10.25p 10.25p 10.25p 10.25p 
Exercise price 13p 13p 13p 13p 13p 
Target price 25p 35p 45p 50p 60p 
       
Volatility 90% 90% 90% 90% 90% 
Dividend yield nil nil nil nil nil 
Risk free investment rate 1.73% 1.73% 1.73% 1.73% 1.73% 
Option life (years) 5 6 7 8 9 
Fair value per share 3.18p 2.74p 2.18p 1.52p 0.79p   
Europa Oil & Gas (Holdings) plc 
 
52 
 
Notes to the financial statements (continued) 
23 Financial instruments (continued) 
Liquidity risk 
Though the Group has the benefit of a regular revenue stream, there is still a need for bank financing. The 
Company has in place a £0.7 million flexible multi-currency facility with its bankers which can be utilised in 
either Sterling or foreign currency via an overdraft. At the year end there was no overdraft (2011: no 
overdraft). At July 2012 the Yorkville SEDA backed loan had been fully repaid (2011: £975,000 payable). 
As explained in Note 1, the directors have not yet secured the necessary funds to meet the Group’s liabilities, 
including the planned forward work programme (see Note 24). The directors consider that based upon income 
projections, the efforts being made to reduce liabilities through trade arrangements, use of the SEDA facility 
and an expectation to renew the bank facility, the Company and the Group will be going concerns for twelve 
months from the date of approval of these financial statements. 
If it is not possible for the directors to secure adequate resources, the carrying value of the assets of the Group 
including intangible exploration assets and the investment of the Company in its subsidiaries are likely to be 
impaired. In addition, other costs and write-downs may arise in the course of seeking to fund the liabilities of 
the Group.The Group and Company monitor their levels of working capital to ensure they can meet liabilities 
as they fall due. The following table shows the contractual maturities of the Group’s financial assets and 
liabilities.  
 
 
 
At 31 July 2012 
Trade and  
other 
receivables 
£000 
Trade and  
other 
payables 
£000 
 
 
Derivative 
£000 
 
Short term 
borrowings 
£000 
 
Long term 
borrowings 
£000 
6 months or less 1,213 (1,763) (6) - - 
6-12 months 8 (117) (6) (230) - 
1-2 years - - (11) - - 
2-5 years 29 - (25) - - 
Over 5 years - - (16) - - 
 
--------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- 
Total 1,250 (1,880) (64) (230) - 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
      
At 31 July 2011      
6 months or less 682 (1,684) (6) (925) - 
6-12 months 113 (73) (6) (71) - 
1-2 years - - (10) - (22) 
2-5 years - - (20) - (67) 
Over 5 years - - (14) - (141) 
 
-------------- - - - - - - - - - - - - - - - - - - - --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- 
Total 795 (1,757) (56) (996) (230) 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
 
 
 
 
 
 
    
Europa Oil & Gas (Holdings) plc 
 
53 
 
Notes to the financial statements (continued) 
23 Financial instruments (continued) 
The following table shows the contractual maturities of the Company’s financial assets and liabilities, all of 
which are measured at amortised cost. 
  
Other 
receivables 
£000 
Trade and  
other 
payables 
£000 
 
 
Derivative 
£000 
 
Short term 
borrowings 
£000 
 
Long term 
borrowings 
£000 
At 31 July 2012      
6 months or less 40 (162) (6) - - 
6-12 months 2 - (6) (230) - 
1-2 years - - (11) - - 
2-5 years - - (25) - - 
Over 5 years 19 - (16) - - 
 
--------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- 
Total 61 (162) (64) (230) - 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
At 31 July 2011 
6 months or less 154 (262) (6) (925) - 
6-12 months 92 - (6) (71) - 
1-2 years - - (10) - (22) 
2-5 years - - (20) - (67) 
Over 5 years - - (14) - (141) 
 
--------------- ---------- - ------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- --------------- ---------- -------- 
Total 246 (262) (56) (996) (230) 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Cash and cash equivalents in both Group and Company are all available at short notice. 
Trade and other payables do not normally incur interest charges. There is no difference between the fair value 
of the trade and other payables and their carrying amounts. Borrowings bear interest at variable rates, except 
for the property loan of £230,000 (2011: £251,000) which was swapped for a fixed rate of interest. 
Interest rate risk 
The Group has interest bearing liabilities as described in Note 18. The £700,000 multi-currency facility is 
secured over the assets of Europa Oil & Gas (Holdings) plc and Europa Oil & Gas Limited. Interest is 
charged on the multi-currency facility at base rate plus 3%.  
A loan of £230,000 (2011: £251,000) is secured over a long lease property and is repayable over 11 years, 
although it will be fully repaid on sale of the property. At the time of the purchase of the property in 2007, the 
Company considered it prudent to enter into an interest rate swap which fixed the interest rate for the life of 
the loan (until May 2022) at 7.02%. The fair value of the swap at 31 July was £64,000 (2011: £56,000) and this 
has been recorded as a current liability of the Company. The table below shows the sensitivity of the swap to 
changes in interest rates. There would be a corresponding charge or credit to the statement of comprehensive 
income. 
Fair value of swap 
 
 
 
 
 
 
 
Long term 
forward 
Sterling 
base rate 
 
2012 
£000 
 
 
 
1% 62 56 
3% 36 33 
5% 10 10   
Europa Oil & Gas (Holdings) plc 
 
54 
 
Notes to the financial statements (continued) 
23 Financial instruments (continued) 
Interest rate risk (continued) 
The fair value of the interest rate swap has been based on an estimate provided by the Company’s bankers 
which meets the definition of tier 2 disclosures under the provisions of International Financial Reporting 
Standard 7 “Financial Instruments: Disclosures”. 
Commodity price risk 
The selling price of the Group’s production of crude oil is set at a small discount to Brent prices. The table 
below shows the range of prices achieved in the year and the sensitivity of the Group’s Profit / (Loss) Before 
Taxation (PBT) to such movements in oil price. There would be a corresponding increase or decrease to net 
assets. There is no commodity price risk in the Company. 
 
 
Oil price 
 
 
Month 
Price  
2012 
$/bbl 
PBT 
2012 
£000 
Price  
2011 
$/bbl 
PBT 
2011 
£000 
Highest  Mar 2012 123.80 1,822 121.70 1,131 
Average  109.60 1,177 99.43 291 
Lowest  June 2012 93.30 431 75.60 (614) 
Foreign exchange risk 
The Group’s production of crude oil is invoiced in US Dollars. Revenue is translated into Sterling using a 
monthly exchange rate set by reference to the market rate. The table below shows the range of average 
monthly US Dollar exchange rates used in the year and the sensitivity of the Group’s PBT to similar 
movements in US Dollar exchange. There would be a corresponding increase or decrease to net assets. 
  2012 2012 2011 2011 
 
US Dollar 
 
Month 
Rate  
$/£ 
PBT  
£000 
Rate  
$/£ 
PBT  
£000 
Highest Aug 2011 1.628 (104) 1.6478 (1,874) 
Average  1.585 - 1.5584 (1,699) 
Lowest May 2012 1.528 140 1.4459 (1,467) 
 
The table below shows the Group’s currency exposures. Exposures comprise the net financial assets and 
liabilities of the Group that are not denominated in the functional currency. 
  Group Company 
  2012 2011 2012 2011 
Currency  Item £000 £000 £000 £000 
Euro Cash and cash equivalents (1) 9 (1) 9 
 Trade and other receivables - 7 - 7 
 Trade and other payables (15) (182) (8) (7) 
US Dollar Cash and cash equivalents 159 486 (4) - 
 Trade and other receivables 879 611 - - 
 Trade and other payables (562) (63) - - 
 Yorkville loan note - (975) - (975) 
  --------------- ---------- --- --------------- ---------- --- --------------- ---------- --- --------------- --- - - - - - - - - - - 
Total  460 (107) (13) (966) 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =================== ========= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Capital risk management 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going 
concern in order to provide returns for shareholders and maintain an optimal capital structure to reduce the 
cost of capital. The Group defines capital as being the consolidated shareholder equity and bank borrowings. 
The Board monitors the level of capital as compared to the Group’s long term debt commitments and adjusts 
the ratio of debt to capital as is determined to be necessary, by issuing new shares, reducing or increasing debt, 
paying dividends and returning capital to shareholders. The Group is not subject to any externally imposed 
capital requirements. 
   
Europa Oil & Gas (Holdings) plc 
 
55 
 
Notes to the financial statements (continued) 
24 Capital commitments and guarantees 
As at the 31 July 2012 the Group had contractual commitments to drill 2 wells and acquire seismic in the UK.  
Europa’s share of costs for these wells and other exploration activities over the next year is approximately £1.7 
million. This commitment is expected to be met from cash generated from production and borrowings 
referred to in Note 18. 
An appraisal/production well at Osmets (Tarbes Val d’Adour, France) would be drilled in 2013 subject to 
reaching agreement with a partner. In the Sahrawi Arab Democratic Republic a further £3 million is 
committed pending a resolution of the political situation in the country. 
25 Operating lease commitments 
Europa Oil & Gas Limited pays an annual site rental for the land upon which the West Firsby and Crosby 
Warren oil field facilities are located. The West Firsby lease runs until September 2022 and can be determined 
upon giving 2 months notice. The annual cost is currently £18,000 and increases annually in line with the retail 
price index. The Crosby Warren lease runs until December 2022 and can be determined on 3 months notice. 
The annual cost is currently £20,000. 
26 Related party transactions 
Key management are those persons having authority and responsibility for planning, controlling and directing 
the activities of the Group. In the opinion of the Board, the Group’s and the Company’s key management are 
the directors of Europa Oil & Gas (Holdings) plc. Information regarding their compensation is given in Note 
4. 
At the year end the balances owed by subsidiary companies the Company amounting to £8,520,000 were 
written off to Income statement. Those balances are included in the services figure below. 
During the year, the Company provided services to subsidiary companies as follows: 
 2012 
£000 
2011 
£000 
Europa Oil & Gas Limited 9,576 881 
Europa Oil & Gas SRL 4,613 40 
Europa Oil & Gas Resources Limited 46        3 
 
--- ---- -------- ---------- ------ --------------- ---------- ------ 
Total 14,235 924 
 
= = = = = = = = = = = = = = = = = = = == === = = = 
  
At the end of the year the Company was owed the following amounts by subsidiaries: 
 
 
 
 
 
27 Post reporting date events 
On 19 September, Europa announced it had identified two large prospects in the Irish South Porcupine Basin. 
On 27 September it was announced that the Holmwood planning appeal had been dismissed. A contestation if 
being considered. 
 
  
 2012 
£000 
2011 
£000 
Europa Oil & Gas Limited  9,240 
Europa Oil & Gas SRL - 3,203 
Europa Oil & Gas Resources Limited - 29 
 
--------------- ---------- ------ --------------- ---------- ------ 
Total - 12,472 
 
= = = = = = = = = = = = = = = = = = = = = = == = = =   
Europa Oil & Gas (Holdings) plc 
 
56 
 
Notice of AGM 
 
Notice is hereby given that the 2012 Annual General Meeting (AGM) of Europa Oil & Gas (Holdings) plc 
(the “Company”) will be held at the offices of BDO LLP, 55 Baker Street, London, W1U 7EU at 11.00am on 
Tuesday 11 December 2012. 
Entitlement to attend and vote 
Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only 
those members registered on the Company's register of members at 10.30am on 10 December 2012 shall be 
entitled to attend and vote at the Meeting. 
Appointment of proxies 
If you are a member of the Company at the time set out in note 1 above, you are entitled to appoint a proxy to 
exercise all or any of your rights to attend, speak and vote at the Meeting and you have received a proxy form 
with this Notice of Meeting.  You can only appoint a proxy using the procedures set out in these notes and the 
notes to the proxy form. 
A member of the Company entitled to attend and vote at the meeting may appoint one or more proxies to 
attend, speak and vote on a poll or a show of hands on his/her behalf, provided that each proxy is appointed 
to exercise the rights attached to a different share or shares held. A proxy need not be a member of the 
Company.  To be valid any form of proxy must be returned to the registered office of the Company being 6  
Porter Street, London, W1U 6DD, in hard copy form by post or courier or by hand.  In each case, the proxy 
appointment must be received not later than 10.30am on Sunday 9 December 2012 or otherwise no later than 
48 hours before any adjourned meeting together with any authority (or a notarially certified copy of such 
authority) under which it is signed. 
Completion of a Form of Proxy will not preclude a member from attending and voting in person at the 
meeting should he/she so wish. 
In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at 
the meeting so that (i) if a corporate shareholder has appointed the chairman of the meeting as its corporate 
representative with instructions to vote on a poll in accordance with the directors of all of the other corporate 
representatives for the shareholder at the meeting, then on a poll those corporate representatives will give 
voting directions to the chairman and the chairman will vote (or withhold a vote) as corporate representative 
in accordance with those directions; and (ii) if more than one corporate representative for the same corporate 
shareholder attends the meeting but the corporate shareholder has not appointed the chairman of the meeting 
as its corporate representative, a designated corporate representative will be nominated, from those corporate 
representatives who attend, who will vote on a poll and the other corporate representatives will give voting 
directions to that designated corporate representative.  Corporate shareholders are referred to the guidance 
issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives 
(www.icsa.org.uk) for further details of this procedure.  The guidance includes a sample form of representation 
letter if the chairman is being appointed as described in (i) above. 
Inspection of documents 
The following will be available for inspection at the registered office of the Company during usual business 
hours on any weekday (public holidays excepted) from the date of this Notice until the date of the Meeting, 
and at the place of the Meeting prior to and during the Meeting. 
 The register of the interests of each director and his family in the share capital of the Company 
 Copies of service contracts and letters of appointment in respect of each director of the Company 
 
 
 
 
 
    
Europa Oil & Gas (Holdings) plc 
 
57 
 
Resolutions to be put to the AGM 
As ordinary business: 
1. THAT the Annual Report and Accounts for the year ended 31 July 2012 be received and adopted. 
2. THAT the auditors of the Company BDO LLP be re-appointed to hold office until the conclusion of the 
next AGM at which the accounts are laid before the Company and that the directors be authorised to fix 
their remuneration. 
3. THAT Mr WH Adamson, who retires in accordance with the Articles of Association be re-elected as a 
director of the Company 
4. THAT Mr RJHM Corrie who retires in accordance with the Articles of Association be re-elected as a 
director of the Company. 
5. THAT in accordance with section 551 of the Companies Act 2006 (the “Act”) the directors be and are 
hereby generally and unconditionally authorised to exercise all powers of the Company to allot shares and 
to grant such subscription and conversion rights as are contemplated by sections 551(1)(a) and (b) of the 
Act respectively up to a maximum aggregate nominal amount of £695,000 to such persons and at such 
times and on such terms as they think fit provided that this authority shall: 
5.1. operate in substitution for and to the exclusion of any previous authority given to the directors 
pursuant to section 551 of the Act to the extent unused; and 
5.2. expire on whichever is earlier of the conclusion of the Company's next AGM following the passing 
of this Resolution and the date which is 15 months from the date of the passing of this Resolution 
unless such authority is renewed, varied or revoked by the Company in general meeting, save that the 
Company may prior to such expiry make any offer or agreement which would or might require such 
shares or rights to be allotted or granted after the expiry of the said period and the directors may allot 
such shares or grant such rights in pursuance of any such offer or agreement as if the authority 
hereby conferred had not expired. 
As special business: 
6. THAT, subject to the passing of Resolution 5, the directors be and are hereby generally and 
unconditionally empowered in accordance with sections 570 and 573 of the Act to allot equity securities 
(as defined in section 560 of the Act) for cash, pursuant to the authority conferred on them by Resolution 
5 or by way of the sale of treasury shares, as if section 561 of the Act did not apply to any such allotment 
provided that this power shall operate in substitution for and to the exclusion of any previous authority 
given to the directors pursuant to sections 570 or 573 of the Act to the extent unused and be limited to: 
6.1. the allotment of equity securities in connection with an issue in favour of holders of ordinary shares 
in the capital of the Company in proportion (as nearly as maybe) to their existing holdings of 
ordinary shares as at the record date of such allotment but subject only to such exclusions or other 
arrangements as the directors deem necessary or expedient in relation to fractional entitlements or 
any legal or practical problems under the laws of, or the requirements of any recognised regulatory 
body or stock exchange in, any territory; and 
6.2. the allotment (otherwise than pursuant to paragraphs 6.1) of equity securities for cash up to an 
aggregate nominal amount of £200,000. 
The authority granted by this Resolution 6 shall expire on whichever is earlier of the conclusion of the 
Company's next AGM following the passing of this Resolution and the date which is 15 months from the 
date of the passing of this Resolution unless such authority is renewed, varied or revoked by the Company 
in general meeting, save that the Company may prior to such expiry make any offer or agreement which 
would or might require equity securities to be allotted or granted after the expiry of the said period and the 
directors may allot such equity securities in pursuance of any such offer or agreement as if the authority 
hereby conferred had not expired. 
BY ORDER OF THE BOARD 
 
P Greenhalgh, Company Secretary  
15 October 2012  
 
 
 
 
58 
Form of proxy for the Europa Oil & Gas (Holdings) plc 
AGM 
 
Please print in BLOCK CAPITALS 
 
I/we, the undersigned . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
of . . . . . . . . . . . . . . . . . . . .  .. . . . . . . . . . . . ……... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Being a holder of Ordinary Shares of 1p each of Europa Oil & Gas (Holdings) plc hereby appoint the 
Chairman of the Meeting, or (note 2) 
 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
as my/our proxy to attend, speak and vote for me/us and on my/our behalf at the AGM of Europa Oil & Gas 
(Holdings) plc to be held at the offices of BDO LLP, 55 Baker Street, London, W1U 7EU at 11.00am on 
Tuesday 11 December 2012 and at any adjournment thereof. 
I/we direct my/our proxy to vote on the following Resolutions as I/we have indicated by marking the 
appropriate box with an 'X'.  If no indication is given, my/our proxy will vote or abstain from voting at his or 
her discretion and I/we authorise my/our proxy to vote (or abstain from voting) as he/she thinks fit in 
relation to any other matter which is put before the Meeting. 
 
ORDINARY BUSINESS For Against 
1. Adoption of the Annual Report and Accounts for the year 
ended 31 July 2012 
  
2. Appointment and remuneration of the Auditors   
3. Re-election of Mr WH Adamson   
4. Re-election of Mr RJHM Corrie   
5. Authority to allot Ordinary Shares   
SPECIAL BUSINESS For Against 
6. Disapplication of pre-emption rights 
  
 
 
Date . . . . . . .  . . . . . . . . . .       .  .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signature(s) 
 
This form of proxy may be returned in hard copy form by post, courier or by hand to the Company’s 
registered office being 6 Porter Street, London, W1U 6DD. 
 
In each case the proxy appointment must be received not less than 48 hours before the time for the holding 
of the meeting or adjourned meeting together (except in the case of appointments made electronically) with 
any authority (or a notarially certified copy of such authority) under which it is signed.  Europa Oil & Gas (Holdings) plc 
 
 
 
59 
Notes re the form of proxy 
 
1. Please indicate how you wish your votes to be cast in respect of the Resolutions to be proposed at 
the said meeting. If you do not indicate how you wish your proxy to use your votes, the proxy will 
exercise discretion both as to how he/she votes and as to whether or not he/she abstains from 
voting. Your proxy will have the authority to vote at his/her discretion on any amendment or other 
motion proposed at the meeting, including any motion to adjourn the meeting. 
2. If you prefer to appoint some other person or persons as your proxy, strike out the words “the 
Chairman of the Meeting” and insert in the blank space the name or names preferred and initial the 
alteration. A proxy need not be a member of the Company. Completion of a form of proxy will not 
preclude a member from attending and voting in person. Where you appoint as your proxy someone 
other than the Chairman, you are responsible for ensuring that they attend the meeting and are aware 
of your voting instructions. If you wish your proxy to make any comments on your behalf, you will 
need to appoint someone other than the Chairman and provide them the relevant instructions 
directly. 
3. In the case of joint holders, the signature of the holder whose name stands first in the relevant 
register of members will suffice as the vote of such holder and shall be accepted to the exclusion of 
the votes of the other joint holders. The names of all joint holders should, however, be shown. 
4. If a member is a corporation, this form must be executed either under its common seal or under the 
hand of an officer or agent duly authorised in writing. In the case of an individual the proxy must be 
signed by the appointor or his agent, duly authorised in writing.   
5. If you submit more than one valid proxy appointment, the appointment received last before the 
latest time for the receipt of proxies will take precedence. 
 
 
 
   Europa Oil & Gas (Holdings) plc 
 
 
 
60 
Directors and advisers  
 
Company registration number 5217946 
 
Registered office 6 Porter Street 
 London 
 W1U 6DD 
 
Directors WH Adamson - Non Executive Chairman 
  CW Ahlefeldt-Laurvig – Non Executive 
 RJHM Corrie – Non Executive 
 P Greenhalgh – Finance Director 
 HGD Mackay – Chief Executive Officer 
  
Secretary P Greenhalgh 
 
Banker Royal Bank of Scotland plc 
 1 Albyn Place 
 Aberdeen 
 AB10 1BR 
 
Solicitor Charles Russell LLP 
 5 Fleet Place 
 London 
 EC4M 7RD 
 
Auditor BDO LLP 
 55 Baker Street 
 London 
 W1U 7EU 
 
Nominated advisor and broker finnCap Limited 
 60 New Broad Street    
 London 
 EC2M 1JJ 
 
Registrar Computershare Investor Services plc 
 PO Box 82 
 The Pavilions 
 Bridgwater Road 
 Bristol  
 BS99 7NH 
 
   Europa Oil & Gas (Holdings) plc 
 
 
 
61 
Glossary 
 
AOI Area of interest 
AONB Area of Outstanding Natural Beauty 
APB Auditing practices board 
bbl A US barrel (equivalent to 159 litres) 
bcf Billion cubic feet 
bml Below mud line (depth below the sea bed) 
bopd Barrels of oil per day 
BPEL Blackland Park Exploration Limited 
CEO Chief Executive Officer 
CGU Cash generating unit 
CNG Compressed natural gas 
CPR Competent person’s report 
Company Europa Oil & Gas (Holdings) plc 
CW Crosby Warren wellsite 
Frack Hydraulic fracturing – a method to increase oil extraction rates 
Group Company and its subsidiaries 
HPHT High pressure, high temperature 
IAS International Accounting Standard 
IFRS International Financial Reporting Standard  
LPS Loss per share 
mmbo Million barrels of oil 
mmboe Million barrels of oil equivalent 
mmscfpd Million standard cubic feet per day   
PEDL Petroleum Exploration and Development Licence 
RBS Royal Bank of Scotland 
Ring Fence 
The area of the UK and UK Continental Shelf within which profits from oil 
extraction activities are subject to additional tax charges  
SEDA Standby Equity Distribution Agreement 
SIPP Self invested pension plan 
SPE-PRMS Society of Petroleum Engineers - Petroleum Resources Management System 
Spud To commence drilling a well 
tcf Trillion cubic feet 
UCG Underground Coal Gasification 
SADR Sahrawi Arab Democratic Republic 
WF West Firsby Wellsite 
Yorkville An investment fund managed by Yorkville Advisors UK LLP