While Europa has a number of onshore UK assets, Ireland is its main focus, since it owns seven licences in waters off the west coast.
An independent study last month showed Europa has prospective reserves of 4.7bn barrels of oil equivalent and 1.5trn cubic feet of gas across its Irish offshore assets; up from a previous figure of 4bn barrels.
The company yesterday confirmed the raising of £1.3m in gross proceeds through the issue of new shares via open offer. This funding follows on from a separate £2.1m share placing completed last month.
Hugh Mackay, Europa Oil’s chief executive, said that the institutional and retail investors who participated in the placing and open offer have gained exposure to “an industry-leading licence position in the emerging hydrocarbon hotspot that is offshore Ireland”, as well as the existing production of UK onshore’s third largest oil producer.
“In our view, their timing could not be better. Offshore Ireland, the first of what we believe will be a number of new wells is due to be drilled this summer,” said Mr Mackay.
“Thanks to our diversified licence position, we are exposed to all the various play types being targeted.”
Providence Resources last week signed up French oil ‘super-major’ Total as a development partner for a number of its Irish assets.
Along with its partners it is due to turn the drill bit at the Druid/Drombeg prospects off the west coast later this month.