Climate Change Data

Europa Oil & Gas (Holdings) plc

Climate Impact & Sustainability Data (2022-08-01 to 2023-07-31, 2023, 2024)

Reporting Period: 2022-08-01 to 2023-07-31

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Energy Transition
  • Energy Security

Environmental Achievements

  • Power generation installed at Wressle, reducing gas flaring by roughly 10%
  • Wressle partners’ community fund supported more than twenty projects, awarding over £60,000 in funding
  • Circa 50% of employees cycling to work, reducing emissions

Social Achievements

  • Wressle partners’ community fund supported more than twenty projects, awarding over £60,000 in funding
  • Participation in the UK government's cycle to work scheme

Governance Achievements

  • Established a Risk Committee
  • Appointed a new statutory auditor (PKF Littlejohn LLP)
  • Conducted an independent Board evaluation review

Climate Goals & Targets

Long-term Goals:
  • Cement Wressle's position as a leading UK onshore oilfield
  • Drill and develop the Inishkea West prospect
Medium-term Goals:
  • Accelerate long-term production rates at Wressle
  • Progress licence PEDL343 to appraisal drilling
  • Assess options for developing the discovered reserve at Serenity via the Tain field
  • Complete the reprocessing work at FEL 4/19 and find a farm-in partner
Short-term Goals:
  • Develop a full GHG inventory
  • Develop performance metrics to measure current performance across material topics

Environmental Challenges

  • Fluctuating oil prices
  • Uncertainty around the availability of capital
  • Instability in the fiscal environment
  • Securing planning consent for onshore wells
  • Changes in government policy
  • Climate change and the transition to a low-carbon economy
Mitigation Strategies
  • Regularly review hedging strategy against price and exchange rate movements
  • Detailed cash forecasts are prepared regularly and reviewed by management and the board
  • Engages planning and legal specialists
  • Monitors changes and proposed changes in government policy
  • Taking various actions and initiatives to reduce emissions whilst also contributing to energy security

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks
  • Adverse effects on commodity prices
  • Limited access to funding
  • Higher cost of capital
Opportunities
  • Producing hydrocarbons in the most emissions-efficient manner possible
  • Producing hydrocarbons locally to the demand centres

Reporting Standards

Frameworks Used: TCFD, GRI

UN Sustainable Development Goals

  • Reduced Inequalities
  • Good Health and Wellbeing

Supporting community projects and employee wellbeing initiatives.

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate adaptation, energy transition and emissions
  • Non-discrimination and equal opportunity
  • Water and waste management
  • Ecological impact
  • Health and safety, asset integrity
  • Policy engagement
  • Anti-corruption and strong governance
  • Land and resource rights
  • Freedom of association and collective bargaining
  • Anti-competitive behaviour
  • Closure and rehabilitation
  • Local communities and economic impacts
  • Stakeholder benefits, support and equality

Environmental Achievements

  • Reduced flaring at Wressle by roughly 10% with power generation from produced gas.
  • Planning for a 600m pipeline to connect Wressle to the local gas grid to eliminate routine flaring by end of 2024 (subject to regulatory approvals).
  • ~50% of employees commuting to the London office now cycle to work.

Social Achievements

  • Wressle partners’ community fund supported over 20 projects, awarding over £60,000 in funding.
  • Participation in the UK Government’s cycle to work scheme.

Governance Achievements

  • Established a Risk Committee to develop a formalized risk management framework.
  • Appointed PKF Littlejohn LLP as auditor.

Climate Goals & Targets

Long-term Goals:
  • Realise the full potential of the Wressle field (including drilling the Penistone horizon).
Medium-term Goals:
  • Accelerate long-term production rates at Wressle.
  • Access additional reserves within the Wressle field.
  • Progress licence PEDL343 to appraisal drilling.
  • Secure a farm-in partner for FEL 4/19.

Environmental Challenges

  • Funding/liquidity for exploration and drilling.
  • Commodity price and foreign exchange fluctuations.
  • Risks inherent in drilling and operating wells.
  • Securing planning consent for onshore wells.
  • Political risk from changing government policies.
  • Climate risk affecting commodity prices, funding, and cost of capital.
Mitigation Strategies
  • Regular cash forecasts, reviewed by management and the board; additional cash through share placement and asset trading.
  • Conservative oil price views in cash flow models; potential hedging strategies.
  • Appropriate insurance; non-operating partners' technical assessment of operations.
  • Engagement with planning and legal specialists.
  • Monitoring changes in government policy.
  • Actions and initiatives to reduce emissions and contribute to energy security.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks
  • Adverse effects on commodity prices
  • Limited access to funding
  • Higher cost of capital
Opportunities
  • Development of energy-efficient products
  • Providing low emissions intensity gas supply

Reporting Standards

Frameworks Used: TCFD (working towards), GRI (aligning data collection)

UN Sustainable Development Goals

  • Reduced Inequalities
  • Good Health and Wellbeing

Community fund contributions.

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Steady progress towards Zero Flaring goal at Wressle; awarded £41,000 to 11 local projects through Wressle partners’ community fund; over 50% of employees in London office cycle to work.

Social Achievements

  • Wressle partners’ community fund awarded £41,000 to 11 local projects; supports flexible working arrangements; supports employee physical and mental health; participates in UK Government’s cycle to work scheme.

Governance Achievements

  • Established a Risk Committee; appointed Simon Ashby-Rudd and Eleanor Rowley as non-executive directors; ESG Committee oversight on ESG strategy integration; adopted QCA Corporate Governance Code; fully independent Audit and Remuneration Committees.

Climate Goals & Targets

Long-term Goals:
  • Contribute to UK and European gas markets through EG-08, FEL 4/19, and Cloughton; continue to develop and produce from Wressle.
Medium-term Goals:
  • Drill exploration well at EG-08; drill appraisal well at Cloughton; develop the gassy Penistone Flags reservoir at Wressle with two back-to-back wells; connect Wressle to local gas distribution network.
Short-term Goals:
  • Secure farm-in partner for EG-08 by early 2025; secure farm-in partner for FEL 4/19; obtain necessary permits and consents to drill appraisal well at Cloughton in 2025; obtain planning permission for Wressle development.

Environmental Challenges

  • Lower oil production due to planned downtime and increased water cut at Wressle; lower oil prices; legal challenge to planning permission for Wressle development due to Finch Supreme Court ruling on Scope 3 emissions; uncertainty of UK regulatory and fiscal environment impacting Serenity project; access to finance for expansion.
Mitigation Strategies
  • Installation of a jet pump at Wressle; submission of further information covering potential Scope 3 emissions for Wressle; decision to allow Serenity licence to lapse; careful management of cost base and cash flow; focus on projects with competitive advantage and value-added diversification; seeking farm-in partners for EG and Irish assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks
  • Adverse effects on commodity prices, limited access to funding and higher cost of capital
Opportunities
  • Development of energy-efficient products; domestic gas supply which minimises transportation and emissions associated with importing hydrocarbons.

Reporting Standards

Frameworks Used: TCFD, GRI

UN Sustainable Development Goals

  • Reduced Inequalities
  • Good Health and Wellbeing

Community fund contributions; employee wellbeing initiatives.