Europa Oil & Gas (Holdings) plc has agreed to swap revenue from its share of the Wressle onshore oil joint venture for US$500,000, paid upfront.
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The payment to an unnamed Canadian investment company will equal 4.5% of the gross revenues from the Wressle 1 well in North Lincolnshire.
Europa said that the agreement is unsecured with payments effective from 1 May 2025.
Chief executive William Holland added: “I am pleased that we have concluded this pre-payment of a small proportion of our Wressle production.
“It brings forward a small part of our cashflows from the Wressle 1 well and is a financing method that is non-dilutive to our shareholders and will not impact our ability to secure project financing for the Wressle development, which will help unlock the substantial undeveloped resources and upside at Wressle.”
The JV comprises operator Egdon Resources UK Ltd with 30%, Europa 30% and Union Jack Oil plc 40%.