Business
Director's Loan
Director's Loan.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2339M\n Europa Oil & Gas (Holdings) PLC\n 20 January 2021\n \n \n \n \n Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas\n \n \n \n \n \n Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')\n \n \n Director's Loan\n \n \n \n \n \n Europa Oil & Gas (Holdings) plc, the UK, Ireland and Morocco focused oil and gas exploration, development and production company, announces that it has entered into a £225,000 unsecured loan facility with William Ahlefeldt, Non-Executive Director of the Company ('Loan Facility'). \n \n \n \n \n \n Background to the Loan Facility\n \n \n In November 2020, the Company announced that the partners in the Wressle development had elected to defer the workover operations and final commissioning of the oil field until January 2021 in order to eliminate any possible operating and supply chain issues associated with the December festive period shutdown. Following this, the Company undertook an evaluation of the effect of the new schedule on its cashflow. The Board concluded that it would be prudent to increase the Company's headroom to fund any cost overruns or funding shortfalls that may arise. With the above in mind, the Board has elected to enter into the Loan Facility.\n \n \n \n \n \n Wressle set to transform Europa's production and financial profile\n \n \n Operations to recomplete and reperforate the existing Wressle-1 well are underway and are expected to be completed to enable the Ashover Grit reservoir to be flowed prior to the end of January 2021 in line with the revised schedule (see announcement of 11 January 2021 for further details).\n \n \n \n \n \n Wressle is expected to commence production from the Ashover Grit reservoir at a constrained gross rate of 500 barrels of oil per day ('bopd'). At this rate, Europa's existing UK onshore production would more than double to over 200bopd. With an estimated breakeven oil price of US$17.6 per barrel, production at Wressle is expected to be very profitable at current oil prices of over US$50 per barrel.\n \n \n \n \n \n Terms of the Loan Facility\n \n \n The Loan Facility is an unsecured loan for a total of £225,000. The Loan Facility has a four-month term with the principal sum payable at the end of the term or in part (subject to a £...