Industry

Union Jack lends £1m to Europa Oil & Gas

One of the investors in the Wressle oil field in North Lincolnshire is lending £1m to another.

Union Jack Oil announced today that it was providing the loan to Europa Oil & Gas Holdings plc.

The loan is for 18 months and interest will be charged at 11% per year.

It is secured against a 10% stake in Europa’s interest in the Wressle licences, PEDL180 and PEDL183, and infrastructure.

Europa’s chief executive, Simon Oddie, said the loan would provide “additional liquidity”. The company may need to contribute to drilling a sidetrack from the upcoming Serenity appraisal well in the North Sea.

Europa’s half-year results to the end of January 2022 reported a pre-tax profit of £0.7m, compared with a loss of £0.7m at the same time a year earlier, largely because of revenue from Wressle.

Union Jack announced last week that it had cash balances of £10.5m. It said today its planned capital expenditure was covered for work at Wressle, and other projects at West Newton in East Yorkshire and Keddington and Biscathorpe in Lincolnshire.

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