Europa Oil & Gas (Holdings) Plc (AIM:EOG) has agreed a ‘revenue swap’ deal with a Canadian investment firm, giving the AIM-quoted small cap an upfront injection of $500,000.
In return, Europa will pay 4.5% of gross revenues from the Wressle 1 well to the investor.
"I am pleased that we have concluded this pre-payment of a small proportion of our Wressle production,” chief executive William Holland said.
“It brings forward a small part of our cash flows from the Wressle 1 well and is a financing method that is non-dilutive to our shareholders and will not impact our ability to secure project financing for the Wressle development, which will help unlock the substantial undeveloped resources and upside at Wressle."