Europa Oil & Gas Plans £3.5m Fundraise to Advance Barracuda Drilling and Maintain Operations

Europa Oil & Gas (Holdings) plc (LSE:EOG) has proposed a fundraising of up to £3.5m via a discounted placing of new shares at 1.2p on AIM, alongside the issue of warrants and a separate retail offer for existing investors through the WRAP platform. The transaction, which is being led by Tennyson Securities, is conditional on shareholder approval at a general meeting expected to take place around 27 February 2026, with admission of the new shares targeted for early March.

Approximately £1.5m of the proceeds is earmarked to fund Europa’s 42.9% interest in Antler Global, enabling progress toward drilling and testing at the Barracuda gas prospect within the EG-08 licence offshore Equatorial Guinea, where the company holds an effective 40% interest. The Barracuda structure is estimated to contain 893 BCF of gas. The remaining £2m is intended to provide general working capital support across Europa’s wider asset base. Management has cautioned that failure to secure shareholder approval for the fundraising would leave the company without sufficient resources to retain its EG-08 position or continue other operations, highlighting the importance of the raise to both its going-concern status and strategic objectives.

The investment outlook continues to be shaped by weak recent financial performance, including sharp declines in revenue and profitability. This is partly offset by supportive corporate developments and some constructive technical signals, which suggest scope for improvement if funding is secured. Valuation metrics remain under pressure due to ongoing losses, although insider support and the strategic significance of the Barracuda project provide a degree of longer-term optimism.

More about Europa Oil & Gas (Holdings) plc

Europa Oil & Gas (Holdings) plc is an AIM-listed exploration, development and production company with a portfolio of oil and gas assets in West Africa, the UK and Ireland. The group focuses on high-impact opportunities such as the EG-08 licence in Equatorial Guinea, alongside a range of additional licences that require continued investment and working capital support.