Europa Oil & Gas (LON:EOG) today confirmed it has closed the initial portion of its recently announced share placing.
As a result 20mln new shares will now be issued and admitted to trading on AIM.
On Monday the company announced it would raise up to £3.4mln through an equity placing and an open offer. The sale of placing shares, each priced at 6p, raised £1.4mln and the open offer shares will also be priced at 6p.
Cash proceeds from the share issue are earmarked for Europa’s share of start-up costs at the Wressle field, onshore UK, as well as covering it share of admin costs associated with the large exploration venture off Ireland’s west coast.
“We are seeking to grow our licence holdings in onshore UK and offshore Ireland and the funds raised will enable Europa to undertake new exploration investment as well as funding work on existing projects such as the Wressle oil and gas discovery in PEDL 180,” chief executive Hugh Mackay said in a statement on Monday.