Europa Oil raises £4m, plans to wrangle another £1m

Europa Oil & Gas has conditionally raised total gross proceeds of about £4m, it announced on Tuesday, by the placing of 133,333,338 new ordinary shares at an issue price of 3p each.

The AIM-traded company also proposed to raise up to a further £1m by the issue of up to 33,487,597 more new ordinary shares in an open offer to qualifying shareholders, also at an issue price of 3p apiece.

It said the fundraising was being undertaken to provide funding for its near-term work programme, to fund new venture opportunities and to provide working capital to the company.

The net placing proceeds would be used to fund the ongoing planning, surveying and other pre-drilling licence development costs associated with certain of the firm’s assets offshore Atlantic Ireland, the board explained, to aid the company in securing suitable farm=in partners.

In that regard, Europa said it was currently negotiating farm-in agreements with an unnamed “major” international oil and gas company, in respect of LO 16/20, FEL 1/17 and FEL 3/13.

Europa said that in addition, it intended to use part of the net placing proceeds to exploit a new venture opportunity in Morocco.

The net open offer proceeds would be used, if sufficient, to fund the purchase of further 3D seismic survey data covering the company's Kiely East and Edgeworth prospects in FEL 2/13 and FEL 1/17, Europa said.

“We are delighted to have completed a fully subscribed placing and are pleased to welcome new institutional investors as significant shareholders in Europa,” said chief executive officer Hugh Mackay.

“The funds raised will enable the company to continue to advance its high impact exploration portfolio in Atlantic Ireland and in particular to bring our high-graded prospects to the point of being ready to drill. Atlantic Ireland is entering a new drilling phase and the funds raised will help Europa become part of that.

“The funds raised will enable us to deliver the work programme for a potential new licence in Morocco and to screen and land other new ventures.”