Europa Oil & Gas Regulatory News (EOG)

2 Jun 2006 07:00

For Release: 2nd June - 7am Europa Oil & Gas (Holdings) plc (`Europa') Financing Facility The Board of Europa Oil & Gas (Holdings) plc - AIM: EOG - the hydrocarbonproduction and exploration company, announces that Europa has entered into anagreement with the Headstart Group of funds under which a share financefacility of up to ‚£1.5 million will be made available. Any draw down of thefacility is at the sole discretion of Europa.The facility can be drawn down in monthly increments of up to ‚£100,000 inexchange for the issue of new ordinary shares and is available at any time upto 1 December 2008.In consideration for making the facility available Europa has agreed to payHeadstart a one-off fee of ‚£42,500. In addition, Europa has issued 300,000warrants to Headstart granting the right to subscribe for ordinary shares at31.20p per share. These warrants are exercisable at any time up to 31 May 2009.The cost of the Headstart financing compares extremely well with the cost ofthe IPO, being almost half the cost in percentage terms. The ‚£5mm raised at theIPO was at a cost of 14.05% of the proceeds, along with one warrant given forevery two shares issued. The ‚£1.5mm Headstart facility cost is 8.2% of theproceeds, at an equivalent share price, with one warrant for every twentyshares.Revenues are set to increase significantly in the next quarter when the BilcaGas Development comes onstream. The share finance facility gives Europa theflexibility to pursue additional acquisition opportunities and the increasedability to maintain the pace of development of existing projects.Ewen Ainsworth, Finance Director, commented"With the pace of Europa's commercial progress accelerating, particularly inthe light of planned testing of the gas shows encountered in the Costisa-1 welland positive results from the recent seismic acquisition in Romania, the Boarddecided it was prudent to secure funding in order to maintain this progress.The facility has the added benefit of being discretionary, and will only beused as required."About Europa Oil & Gas (Holdings) plcEuropa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production andexploration of hydrocarbons in Europe and North Africa. It currently produces210 barrels of oil per day from UK onshore fields and 25 barrels of oilequivalent from the Ukraine. Production is expected to rise significantly afterits Romanian Bilca Gas Project is on stream later this year. Operating abalanced portfolio, Europa currently has field appraisal activity on projectsin the UK Southern Gas Basin and onshore Romania and exploration activity on afurther eight licences across the Europe - North Africa region. For moreinformation please visit www.europaoil.com.Further information:Ewen Ainsworth, Finance Director, Europa Oil & Gas (Holdings) plc +44 208 9247227Jonathan Wright / Parimal Kumar, Seymour Pierce Limited +44 20 7107 8000Jade Mamarbachi / Toby Hall, gth media relations +44 20 7153 8035EUROPA OIL & GAS (HOLDINGS) PLC