(Alliance News) - Europa Oil & Gas Holdings PLC on Thursday announced it has raised GBP1.5 million in a share placing and has granted a broker option to raise up to a further GBP500,000 to fund multiple work programmes.
The UK, Ireland and Morocco focused oil and gas company said the placing was for 115.4 million shares at 1.3 pence per share and that it will take place in two tranches. The first tranche comprises 38.5 million shares to be admitted to AIM trading next Thursday and the second tranche comprises 76.9 million shares, to be approved by shareholders at a general meeting on March 4.
Shares in Europa were down 18% at 1.34 pence in London on Thursday.
Europa's Chief Executive Simon Oddie, Chair Brian O'Cathain and Non-Executive Director William Ahlefeldt-Laurvig all took part in the placing. Ahlefeldt-Laurvig took 33.8 million shares, investing GBP15,000, while Oddie took 500,000 and O'Cathain 250,000.
Additionally, Europa has granted a broker option to Turner Pope Investments Ltd to raise up to GBP500,000 through the issue of 38.5 million shares. This also will be approved at the general meeting, it added, after which the shares will be admitted to AIM trading on March 8.
The placing shares will represent 19% of Europa's enlarged share capital, it said.
Proceeds will be used to finance work to identify a new asset for acquisition, to improve recovery at Europa's existing onshore UK fields including potential workovers on WF2 and WF9 wells at the West Firsby field, and to strengthen its balance sheet, reduce debt and provide additional working capital.
"We have previously said that we are seeking an appraisal or development asset that would complement our existing production and exploration assets and this fundraise will enable us to accelerate this process. It will also allow us to advance a number of growth opportunities within our current portfolio. These include evaluating the potential to increase production at our existing UK onshore fields, as well as further delineating the prospectivity of the Inezgane licence offshore Morocco, where to date we have identified in excess of one billion barrels of unrisked resources and where we are looking to launch a farm-out process," said Oddie.
By Zoe Wickens; zoewickens@alliancenews.com
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Europa Oil & Gas (EOG)