Europa Oil & Gas (Holdings) plc has agreed a £1 million loan from Wressle onshore hydrocarbon partner Union Jack Oil plc for its developments that could include the Serenity offshore oil discovery.
TERMS
The loan is for 18 months and secured against an unencumbered 10% interest in the Wressle field (PEDL180, and PEDL182), with associated infrastructure.
Union Jack holds a 40% interest in Wressle and Europa owns a 30% stake.
Interest on the loan will accrue daily at 11% per annum and is payable quarterly in arrears.
SCENARIOS
“The loan will provide us with additional liquidity and reflects the prudent cash management philosophy that we adopt at Europa when looking at the various development settings that we could face in the near term,” added chief executive Simon Oddie.
“One of these scenarios includes a 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.”
SHAREHOLDERS
Union Jack executive chairman David Bramhill added that the company would ensure its capital and investments generated an attractive commercial return for shareholders.
“That also applies to deploying any surplus cash balances currently on deposit to ensure they work as hard as possible and attract optimum interest rates to generate additional revenues.”