Highlights

• Raising up to £2million via £1.5million Placing and £500,000 Broker Option primarily to fund multiple work programmes focused on:
  • Evaluating late-stage appraisal/development projects that would rebalance existing portfolio of production and exploration assets
  • Improving recovery from existing onshore UK fields including potential workovers on WF2 and WF9 wells at the West Firsby field
  • Continuing technical analysis and seismic reprocessing on the Inezgane Licence in Morocco in preparation for farm-out
• Turner Pope Investments to be appointed joint broker and granted Broker Option to provide the opportunity for shareholders to participate in the Placing at the Placing Price
• Fundraise in line with strategy focused on building a portfolio of multistage assets that can generate sustainable growth and value for shareholders

Europa Oil & Gas has conditionally raised a total of £1.5 million (before expenses), through the issue of a total of 115,384,616 new ordinary shares in the Company at a price of 1.3 pence per Placing Share via a proposed placing by Turner Pope Investments.

EOG has also granted Turner Pope a broker option to conditionally raise up to a further £500,000 (before expenses) through the issue of up to 38,461,538 new ordinary shares in the Company. The Broker Option provides the opportunity for interested shareholders to participate in the Placing at the Placing Price.

The Placing will take place in two tranches, the first tranche of which, comprising 38,461,538 new ordinary shares in the Company (the 'First Tranche'), is not conditional upon any shareholder approvals and application will be made for the First Tranche to be admitted to trading on AIM on 18 February 2021. The second tranche of the Placing, comprising 76,923,077 new ordinary shares in the Company (the 'Second Tranche'), is conditional upon the approval of shareholders at a general meeting of the Company which is expected to be held on 4 March 2021. The Broker Option, comprising up to 38,461,538 new ordinary shares in the Company, is also conditional upon the approval of shareholders at the General Meeting. Application will be made for the Second Tranche and any Broker Option Shares issued to be admitted to trading on AIM on 8 March 2021.

Simon Oddie, CEO of Europa, said: 
"We have previously said that we are seeking an appraisal/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 1 billion barrels of unrisked resources and where we are looking to launch a farm-out process.

"Together with the recent commencement of oil flow at the Wressle field, which has the potential to more than double our production to over 200bopd and in the process transform our financial profile, the fundraise will further strengthen our balance sheet. We are well placed to achieve our corporate objectives and I look forward to providing further updates on progress made as we look to embark on a period of responsible, sustainable growth and value creation for both our new and existing shareholders."

 KeyFacts Energy: Europa Oil & Gas UK country profile