UK, Ireland and France-focused oil and gas explorer Europa Oil & Gas has raised £2.86m from a placing at 6p a share and hopes to raise up to £1.16m from an open offer at the same price.
The 1.4024-for-10 open offer closes on 17 January and shareholders can apply for more than their entitlement. The directorsí have stated that they will invest £160,000 via the open offer.
The cash will be used to finance an exploration well on the PEDL-181 licence in the UK, where Europa has a 50% working interest, which will cost around £1.9m. It will also help fund expenses for the interests in Ireland and France plus the costs of applying for additional Irish licences.
Europa has interest in three producing fields in the UK and this generates enough cash to cover overheads. The Kiln Lane prospect on PEDL-181 is in the north Humber basin region.
At 6.13p a share, Europa is valued at £11.5m. House broker finnCap has reduced its estimated NAV by 12.1p a share due to the fundraising but, at 45.3p a share, the NAV is still well above the share price.
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