Europa raising funds to drill UK well and participate in Irish licencing round

Europa Oil & Gas aims to raise £4m to drill an exploration well at Kiln Lane, PEDL-181 in the East Midlands, and to explore licences in Ireland and participate in the next licence round.

The company has conditionally raised £2.86m by issuing around 48 million new ordinary shares through an open offer.

In addition, the company plans to raise approximately £1.16m through the issue of around 19 million new ordinary shares, pursuant to the open offer, at an issue price of £0.06 per new ordinary share.

The company will use funds for its near-term work programme and projects, including contribution to expected drilling of an exploration well onshore UK, and to encourage its work in Ireland, which includes the commissioning of a competent person’s report (CPR) on its existing assets in the region.

Europa Oil and Gas CEO Hugh Mackay said that the successful placing shows the potential of the company’s balanced portfolio of high-impact exploration offshore Ireland and onshore France prospects and low-risk exploration and production of onshore UK assets.

"The Board is at all times mindful of its responsibilities to existing shareholders and, as a result, the decision has been made to initiate an open offer to qualifying shareholders to provide them with the opportunity to participate on the same terms as those offered to the institutions under the placing," Mackay added.

"Significantly, as a result of the placing, we are now in a position to drill two exploration wells in the UK in 2014, each of which has a one-in-three chance of materially adding to our production."