Junior explorer Europa Oil & Gas reported Monday that it has raised $6.5 million to help it fund an exploration well onshore UK and further exploration work in Ireland.
Europa said the funds would allow it to drill the Kiln Lane prospect on the PEDL-181 license in the East Midlands region of England as well as another well during 2014.
The funds would also allow it to conduct work in respect of its existing interests in two "exciting" exploration licenses in Ireland and help it participate in that country's next licensing round. They will also cover farm-out costs and initial well planning at Europa's Berenx shallow gas prospect, onshore France, the firm said.
Europa CEO Hugh Mackay said in a statement:
"Significantly, as a result of the placing, we are now in a position to drill two exploration wells in the UK in 2014, each of which has a one in three chance of materially adding to our production. Revenues generated from our three producing fields in the UK will fund our share of drilling the Wressle prospect in early 2014. However the funds raised today will allow us to drill the Kiln Lane prospect on PEDL-181, which is located in a working hydrocarbon system where a number of discoveries have been made in adjacent licenses.
"We estimate Kiln Lane has gross mean un-risked resources of 2.9 million barrels of oil and with a 50-percent interest and operatorship of the license, we will be looking to drill a well in 2H 2014. At the same time, we are now well funded to advance our plans to farm-out and drill the 416 billion cubic feet (per company estimates only) Berenx Shallow gas prospect onshore France, as well as fund our participation in the next Irish licensing round, as we look to add to our two existing licenses in the Irish Atlantic Margin where we are in partnership with Kosmos Energy. 2014 is shaping up to be an exciting year for Europa and I look forward to providing further updates on our progress in due course."
In a brief research note, analysts at London-based investment bank FinnCap commented:
"Work undertaken in Ireland and France will mature multiple higher-impact opportunities that provide company-changing potential in the medium term."
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