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Europa Oil & Gas raises additional £1.3mln as it advances projects in UK and Ireland

Institutional and retail investors have gained exposure to an industry-leading licence position in Ireland's 'emerging exploration hotspot', says chief executive Hugh Mackay.
offshore oil platform
“In our view, [the investor's] timing could not be better. “

Europa Oil & Gas (Holdings) PLC (LON:EOG) confirmed that it has raised £1.3mln through the issue of new shares via a fund-raising.

The latest open offer, following a separate £2.1mln share placing last month, gave the group’s shareholders the opportunity to pick up a total of 24.48mln new shares priced at 6p each. Some 21.5mln shares were picked up, equating to 87.8% of the offer.

Oil sector commentator, Malcolm Graham-Wood said: "Shareholders are wise to do such a thing as one way or another things are beginning to take shape primarily in offshore Ireland but also with some excitement upcoming onshore UK."

In late afternoon trading, Europa Oil & gas shares were changing hands at 6.75p each, up 12.5% or 0.75p on Friday's close and the open offer price.

WATCH: 'We're in a great position', says Europa Oil & Gas boss after additional £1.3mln raise

Europa chief executive Hugh Mackay said: “The institutional and retail investors who have participated in the placing and open offer have gained exposure to an industry-leading licence position in the emerging hydrocarbon hotspot that is offshore Ireland, as well as the existing production of UK onshore’s third largest oil producer. 

“In our view, their timing could not be better.“

Mackay highlighted an expectation that this summer will see the first of a number of new wells to be drilled offshore Ireland, and that any success will “significantly de-risk” Europa’s portfolio of 32 exploration prospects which could potentially host an estimated 4.7bn barrels of oil resources.

READ: Europa Oil says placing demand highlights rising interest in offshore Ireland

The company is partnered in one Irish project with Cairn Energy PLC (LON:CNE), and it is due to acquire new 3D seismic data this summer.

At the same time, the group is continuing farm-out talks with potential new partners for its other Irish assets.

Meanwhile, the Europa boss also noted upside potential onshore UK too.

“In the UK, later this year we will be drilling a potentially high impact conventional well at Holmwood which lies adjacent to the Horse Hill discovery in the Weald and, subject to planning approval, see production commence at Wressle which will almost double our daily output to over 200 bopd,” Mackay added.

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