Business
Announcement re: Placing
Announcement re: Placing.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n\n Europa Oil and Gas Holdings Plc \n\n (\"Europa\" or \"the Company\") \n\n £1.75 million Placing \n\nThe Company today announces that it has conditionally placed with new and\nexisting shareholders 12,500,000 new ordinary shares (\"Placing Shares\") of 1p\neach (\"Ordinary Shares\") at a price of 14p per share thereby raising gross\nproceeds of £1.75 million (the \"Placing\"). The net proceeds will provide the\nCompany with working capital for future growth and strengthen its balance\nsheet.\n\nThe New Shares, which have been placed with new and existing investors, by\nSeymour Pierce Limted, will represent approximately 16.6 per cent. of the\nCompany's Enlarged Share Capital.\n\nReasons for the Placing\n\nEuropa has several goals it wishes to achieve this year. These include:\nmaintaining its full working interest in the Voitinel well in Romania\n(currently drilling), increasing production from the West Firsby Oilfield,\ndrilling the Hykeham well (both onshore UK) and increasing the Company's market\nperception and liquidity of the shares. The placing of these shares should\nallow us to achieve these goals.\n\nBackground to Europa Oil & Gas' current operations\n\nEuropa is currently participating in the Voitinel exploration well, onshore\nRomania. This is a high impact well targeting approximately 200 millions of\nbarrels of oil in place on a proven fairway in a prolific hydrocarbon basin.\nThe well spudded on 21 August and is anticipated to take two months to reach\nfinal total depth.\n\nEuropa spudded the Hykeham well in Lincolnshire, UK in January 2009. The well\nwas drilled to approximately 100m and suspended for the duration of the bird\nbreeding season at the adjacent Whisby Nature Park. The prospect is relatively\nlow risk, with potential for 10 million of barrels of oil-in-place.\n\nThe Company produces oil from its operations in the East Midlands Petroleum\nBasin, onshore UK, currently generating wellhead revenues of approximately\n$350,000 per month. This production, which is derived from 3 producing\noilfields, is currently running at 170 bopd following a fire which damaged\nequipment at the West Firsby site and production is expected to be back to the\nfull rate of 220 bopd shortly. Continuing upgrades at West Firsby and further\nwork on the Crosby Warren wells are expected to increase production to over...