Europa Oil & Gas (Holdings) has secured a £1mln loan facility with fellow British oil and gas group Union Jack.
Terms of the loan, which runs for 18 months, are interest at 11% pa with the loan secured on unencumbered 10% interest in the Wressle field, where Europa and UJO are joint venture partners.
Simon Oddie, Europa’s chief executive, said: "We are pleased to have secured this source of debt financing from UJO, which is one of our joint venture partners at Wressle.
He added the money would also provide it with an additional liquidity buffer for a range of scenarios, including the 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, " he said.