Europa CEO Hugh Mackay on the 2nd round of licensing awards: Europa CEO Hugh Mackay said, 'We are delighted with the offer of four Licensing Options in phase two of the 2015 Atlantic Ireland round against strong competition and further building our Irish licence portfolio. Subject to formal award, we will have a diversified portfolio of seven high impact exploration licences across three basins in offshore Ireland and representing a range of geological risk, hydrocarbon plays and exploration maturity. We look forward to providing technical information to the market once our offers have been formally accepted. Europa has a leading position in the Atlantic basins of Ireland; a region that has now emerged as a global exploration hotspot with major and mid-cap oil companies taking substantial acreage positions and associated work programmes. 'Europa was one of the pioneer companies who have played a role in reactivating industry interest in Atlantic Ireland and we feel that the entry of majors and super-majors is providing validation of our belief in Ireland's exploration potential. This is a hugely exciting moment for Europa and for the rest of the industry and we hope that exploration momentum continues to build and that at some point in the not too distant future the exploration potential is realised with a significant discovery.'
One of the last things that was mentioned before the share were suspended was that they were trying to put together a group of investors that would drill at Barryroe, so I would say that Barryroe is the most likely place that the new money will be used. The new investors must be fairly sure that they will be some return on their investment in the short term, as they would be fully aware of the history of Barryroe. As mentioned before perhaps some play with the natural gas. Whatever it is the case for investing must be good as one hundred million is a lot of money to be putting into a oil exploration company at this time. Also worth mentioning that when they said that they were trying to put a group of investors together to drill at Barryroe, they forgot to mention that the farmout terms would be eighty five percent of the entire company.
That is right Haribo, but if the new share issue goes through we will have very little say in future, if any at all.
I do not see Richard Jennings winning a court case on the issue that he is suggesting. I would imagine that even though Providence said that they were the final costs, and it turned out that they were not, I would think that a judge would say that it was within reason to state that the figure given in the Annual Report would be the final figure, and that they reasonably could not have excepted it to be different. I think it would be a waste of money to take any legal action, and we would of course be paying for it.
Thank you for your comment Desperate, and you make a excellent point, as painful as it is. I am afraid I am one of those on the wrong side of the share price, and feel very sick about it, but time is a great thing really to help you get over it, but I am sure I am going to feel very sick again once they post a RNS
If the current deal on offer goes through the existing shareholders will have around 15% of the shares which is valued at around twenty sometime million dollars if the deal goes through and the shares are priced at 11p. I suppose the point I am wondering about is, do your shares get wiped out, or are they included in the new share capital with each share being worth 11p?
Perhaps we have some hope as more than half the shares at the moment are held by big investors, so I am hoping that they will want their investment to date to be protected.
That is bad news Sharemate. We can only hope that the newspaper reports are wrong, and that they will get some sort of farmout to help pay down their debts.
As far as I understand it new investors are being offered new shares that will make up 85% of the entire shares in issue, at a discount of 11 pence. That will make the number of shares in issue around a billion shares, and they will be priced at 11p, so the shares we have at the moment will be worth 11p when they begin to trade again. So we will have lost 3p since the suspension. So we start again with one billion shares or so, each worth 11p but with one hundred million dollar in the bank. I suppose the investors that are buying the new shares are expecting them to go up, so hopefully that will be the case for all our sakes.