Business
Financing Facility
Financing Facility.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nFor Release: 2nd June - 7am \n\n Europa Oil & Gas (Holdings) plc \n\n (`Europa') \n\n Financing Facility \n\nThe Board of Europa Oil & Gas (Holdings) plc - AIM: EOG - the hydrocarbon\nproduction and exploration company, announces that Europa has entered into an\nagreement with the Headstart Group of funds under which a share finance\nfacility of up to £1.5 million will be made available. Any draw down of the\nfacility is at the sole discretion of Europa.\n\nThe facility can be drawn down in monthly increments of up to £100,000 in\nexchange for the issue of new ordinary shares and is available at any time up\nto 1 December 2008.\n\nIn consideration for making the facility available Europa has agreed to pay\nHeadstart a one-off fee of £42,500. In addition, Europa has issued 300,000\nwarrants to Headstart granting the right to subscribe for ordinary shares at\n31.20p per share. These warrants are exercisable at any time up to 31 May 2009.\n\nThe cost of the Headstart financing compares extremely well with the cost of\nthe IPO, being almost half the cost in percentage terms. The £5mm raised at the\nIPO was at a cost of 14.05% of the proceeds, along with one warrant given for\nevery two shares issued. The £1.5mm Headstart facility cost is 8.2% of the\nproceeds, at an equivalent share price, with one warrant for every twenty\nshares.\n\nRevenues are set to increase significantly in the next quarter when the Bilca\nGas Development comes onstream. The share finance facility gives Europa the\nflexibility to pursue additional acquisition opportunities and the increased\nability to maintain the pace of development of existing projects.\n\nEwen Ainsworth, Finance Director, commented\n\n\"With the pace of Europa's commercial progress accelerating, particularly in\nthe light of planned testing of the gas shows encountered in the Costisa-1 well\nand positive results from the recent seismic acquisition in Romania, the Board\ndecided it was prudent to secure funding in order to maintain this progress.\nThe facility has the added benefit of being discretionary, and will only be\nused as required.\"\n\nAbout Europa Oil & Gas (Holdings) plc\n\nEuropa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production and\nexploration of hydrocarbons in Europe and North Africa. It currently produces\n210 barrels of oil per day ...