Europa Oil & Gas (Holdings) plc, the AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, provides further clarifications on recent Company announcements in response to inbound queries.
Drilling activities at Serenity are ongoing and further to the announcement on 22 September 2022 these are expected to take 30 days to complete from spudding.
The SA02 appraisal well and contingent side-track will help establish the extent of the reservoir and the amount of oil in place. SA02 has been designed to gather information and samples and so be drilled quickly and cost- effectively and, as such, it is not designed to be converted into a producing well.
However, following a successful result, further wells at Serenity will likely be completed, as part of a full appraisal and development plan, to bring the field into production as quickly as possible.
Further to the announcement on 9 September 2022, Europa would like to confirm that the £1,000,000 loan facility (the “Loan”) that was entered into with Union Jack Oil plc, is to provide the Company with additional liquidity, over and above the existing monthly income, and reflects the Company’s prudent approach to cash management.
At current forecasts, the Company has more than sufficient funds to cover all of its ongoing obligations and the Loan will provide Europa with further contingent cash for additional corporate activities that may occur over the coming months, including drilling a success case side-track at Serenity.
If these additional corporate activities do not all materialise and the additional funds that the Loan provides are not required, then the Loan can immediately be repaid in full without penalty.
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For further information, please visit www.europaoil.com or contact:
Europa Oil & Gas (Holdings) plc
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