Europa Oil & Gas (Holdings) PLC (AIM:EOG) reassured investors the Serenity appraisal well in the North Sea is designed to be drilled “quickly and cost-effectively” and it “has more than sufficient funds to cover all of its ongoing obligations”.
The Serenity well is not designed to be converted into a production well once the data gathering programme is complete, the group said in a stock market statement
“However, following a successful result, further wells at Serenity will likely be completed, as part of a full appraisal and development plan, to bring the field into production as quickly as possible,” the company added.
The Serenity well programme, operated by partner i3 Energy, is intended to establish the extent of the field’s reservoir and help confirm the amount of oil in place.
Europa also used the stock market statement to tell investors it “has more than sufficient funds to cover all of its ongoing obligations”, clarifying that a recent £1mln loan from Wressle field partner Union Jack Oil was taken to ‘provide additional liquidity, over and above the existing monthly income, and reflects the company's prudent approach to cash management.’
"The loan will provide Europa with further contingent cash for additional corporate activities that may occur over the coming months, including drilling a success case side-track at Serenity. If these additional corporate activities do not all materialise and the additional funds that the loan provides are not required, then the Loan can immediately be repaid in full without penalty,” the group said.