REG - Europa Oil & Gas - GM Statement

Europa Oil & Gas (Holdings)Announcement

25/03/2022 07:17

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RNS Number : 9607F  Europa Oil & Gas (Holdings) PLC  25 March 2022

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil
& Gas

 

25 March 2022

Europa Oil & Gas (Holdings) plc

('Europa' or 'the Company')

 

General Meeting Statement

 

Europa Oil & Gas (Holdings) plc, the AIM quoted UK, Ireland and Morocco
focused oil and gas exploration and production company, is holding a General
Meeting ('GM') later today. At the meeting, Brian O'Cathain, Chairman of
Europa will issue the following statement:

 

"I would like to warmly welcome all attendees to this General Meeting of
Europa Oil & Gas. Today, we are asking shareholders to vote on the
conditional raising of £7.02 million - and the subsequent issuing of
390,000,000 new ordinary shares priced at 1.8 pence each - to fund the
acquisition of Serenity, UKCS Block 13/23c.

 

Located in the Central North Sea, the Serenity acquisition is for a 25% stake
in a discovered oil field, which is majority owned by i3 Energy and requires
further appraisal to delineate the field and progress the Serenity field to
the development phase. An appraisal well is scheduled to be drilled in the
late summer this year, and should it be successful, it will add material value
to existing shareholders as it will de-risk a large volume of hydrocarbons
located close to existing infrastructure. This acquisition allows Europa to
deliver on its promise to diversity its portfolio by adding an appraisal asset
and strengthen Europa's existing producing and high impact exploration assets.

 

To this end, the board and I firmly believe that the opportunity to acquire
the stake in Serenity is ideal, not just from a growth perspective but also
from a strategic perspective as it complements our existing asset base.

 

In addition, the timing of this proposed acquisition is also highly
appropriate, given the recent political focus on the development of North Sea
oil and gas resources and the securing of UK domestic energy supplies in light
of recent geopolitical events. Oil is considered essential to the global
energy transition to Net Zero, a theme which is at the forefront of the
current UK and international energy policy agenda.

 

With drilling set to start in the late summer, we regard Serenity to be a
highly exciting asset with the potential to deliver significant near-term
value to our shareholders and could provide sufficient recoverable volumes for
a standalone development. The well planning for the appraisal well has already
been completed by i3 Energy, which has extensive regional subsurface knowledge
and operational experience, and is thus an excellent partner and operator to
deliver on Serenity's potential.

 

As previously outlined, the proposed acquisition of Serenity would see Europa
earn a 25% interest by paying 46.25% of the appraisal well cost, equating to a
1.85 to 1 carry. The Carry is capped at a gross well cost of £15 million, of
which our interest would total £6.94 million. Following this initial capital
injection, each party would thereafter fund its interests proportionally.

 

I would like to thank our brokers, Tennyson Securities and Tuner Pope, who
acted as brokers to the £7.02m fundraise, and as such, will be awarded broker
warrants as part of their fees. Following shareholder approval of the
fundraise, Tennyson will receive 11,725,000 warrants and Turner Pope 417,667
warrants, both with a price of 1.8 pence and valid for three years.

 

Finally, I would like to note that our CEO, Simon Oddie, Director, William
Ahlefeldt-Laurvig and I all participated in the placing, which I hope marks an
unequivocal endorsement of our unerring confidence in the proposed acquisition
and the enormous potential it can deliver.

 

We hope you will show us your support as we seek to catapult Europa into the
next stage of its growth trajectory at a time when energy security and
stability of supply is of critical importance globally."

 

 

* * ENDS * *

 

For further information please visit www.europaoil.com or contact:

 

 Simon Oddie/Murray Johnson         Europa Oil & Gas      mail@europaoil.com
 Christopher Raggett / Simon Hicks  finnCap Ltd           +44 (0) 20 7220 0500
 James Pope / Andy Thacker          Turner Pope           +44 (0) 20 3657 0050
 Peter Krens/Pav Sanghera           Tennyson Securities   +44 (0) 20 7186 9030
 Oonagh Reidy/ Ana Ribeiro          St Brides Partners    +44 (0) 20 7236 1177

 

Notes to Editors

Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon and renewable energy assets, which includes production,
development and exploration interests, in countries that are politically
stable, have transparent licensing processes, and offer attractive terms. In
the year to 31 July 2021, Europa produced 93 boepd. Production has since
increased to over 200 boepd with the Wressle field production. The Company
holds two exploration licences offshore Ireland, which have the potential to
host gross mean un-risked prospective resources of 1.5 trillion cubic feet
('tcf') gas. Inishkea is a near field gas prospect in the Slyne Basin, which
the Company classifies as lower risk due to its close proximity to the
producing Corrib gas field and associated gas processing infrastructure. In
September 2019, Europa was awarded a 75% interest in the Inezgane permit
offshore Morocco. Initial results of technical work have identified 30
prospects and leads that have the potential to hold in excess of one billion
barrels of unrisked oil resources. In December 2021, Europa announced a
collaboration between Baker Hughes and CausewayGT to conduct a geothermal
clean heat project at the Company's West Firsby field. If this project is
successful, it will prove the operational ability to extract and use
geothermal heat from the site.

 

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