REG - Europa Oil & Gas - Loan Facility Secured

Europa Oil & Gas (Holdings)Announcement

09/09/2022 07:00

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RNS Number : 8549Y  Europa Oil & Gas (Holdings) PLC  09 September 2022

 

 

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

 

9 September 2022

 

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

 

Loan Facility Secured

 

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 secured a £1,000,000 loan facility (the
"Loan") with Union Jack Oil plc ("UJO"). The key terms of the Loan are:

 

·    18 month term;

·    Principal sum payable at end of the term or in part or in full at any
earlier time at Europa's discretion;

·    Interest accrues on a daily basis on the outstanding loan amount at
an interest rate of 11% per annum and is payable quarterly in cash;

·    The loan is secured against an unencumbered 10% interest in the
Wressle field (PEDL180, and PEDL182), including the associated infrastructure;
and

·    The loan includes restrictions on further borrowings and security
over the secured assets and other customary security arrangements.

 

Simon Oddie, CEO of Europa, said:

 

"We are pleased to have secured this source of debt financing from UJO, which
is one of our joint venture partners at Wressle. The loan will provide us with
additional liquidity and reflects the prudent cash management philosophy that
we adopt at Europa when looking at the various development settings that we
could face in the near term. One of these scenarios includes a success case
side-track that may be drilled in the upcoming Serenity appraisal well. The
side-track could prove up further volumes in addition to those proven by the
main wellbore and these additional funds will ensure that we have sufficient
working capital to progress all of our assets under the potential growth
scenarios that we are modelling."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014, as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

 

* * 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 in the half-year
to 31 January 2022 was 208 boepd. 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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