REG - Europa Oil & Gas - Loan Facility Repayment

Europa Oil & Gas (Holdings)Announcement

19/10/2022 07:00

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RNS Number : 3241D  Europa Oil & Gas (Holdings) PLC  19 October 2022

 

 

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

 

19 October 2022

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Loan Facility Repayment

 

Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland and Morocco
focused oil and gas exploration, development, and production company, is
pleased to announce that it has repaid in full the £1,000,000 loan facility
(the "Loan") provided by Union Jack Oil plc ("UJO") which was announced on 9
September 2022. In accordance with the terms of the Loan, the principal and
accrued interest has been repaid without penalty and following repayment the
Loan will be cancelled. The Loan was secured against a 10% interest in the
Wressle field (PEDL180 and PEDL182), including the associated infrastructure;
this security will now be released at which point the Company will be
completely unencumbered and debt-free.

 

As announced on 10 October 2022, following drilling of the Serenity well the
Company expects to receive in the coming months, once all of invoices for the
SA02 well have been received and a final well cost has been established, a
repayment of approximately £2 million from the escrow account.

 

Simon Oddie, CEO of Europa, said:

 

"I would like to thank UJO for providing us with this loan, which provided
Europa with additional liquidity as part of our prudent cash management
philosophy pertaining to our short-term capital requirements. Although the
results were disappointing, the Serenity well was drilled significantly under
budget and the £2 million, when added to our existing cash balance and
ongoing net income from our onshore production, provide us with a strong
balance sheet to fund the ongoing assessment of the Serenity development,
development activity at Wressle and also to continue with our stated efforts
to add additional appraisal assets to the portfolio. I look forward to
providing further updates as each of these exciting facets of the Europa
business progresses."

 

 

* * ENDS * *

For further information, please visit www.europaoil.com
(http://www.europaoil.com/)  or contact:

 Simon Oddie       Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 William Holland   Europa Oil & Gas (Holdings) plc                            mail@europaoil.com
 Murray Johnson    Europa Oil & Gas (Holdings) plc                            mail@europaoil.com

 James Dance       Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494
 James Spinney     Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494

 Peter Krens       Tennyson Securities                                        +44 (0) 20 7186 9033

 Patrick d'Ancona  Vigo Consulting                                            + 44 (0) 20 7390 0230
 Finlay Thomson    Vigo Consulting                                            + 44 (0) 20 7390 0230
 Kendall Hill      Vigo Consulting                                            + 44 (0) 20 7390 0230

 

Notes to Editors

Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets which includes production, development and exploration
interests, in countries that are politically stable, have transparent
licensing processes, and offer attractive terms. Production for the year
ending 31 July 2022 was 245 bopd. In April 2022, Europa farmed into P.2358,
Block 13/23c ("Serenity") in the Outer Moray Firth area of the North Sea. The
licence contains the 2019 Serenity oil discovery, in which Europa now has a
25% interest. The Company holds one exploration licence offshore Ireland,
which has 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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