Europa Oil & Gas, the AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, has secured a £1,000,000 loan facility with Union Jack Oil (“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.”

KeyFacts Energy: Europa Oil & Gas UK country profile   l   Union Jack Oil UK country profile