Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 10 December 2013 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Annual General Meeting Statement Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,development and production company focused on Europe, is holding its AnnualGeneral Meeting (`AGM') later today. At the meeting, Chairman Bill Adamson willmake the following statement: "Twelve months ago at the 2012 AGM, we reported that our high impactexploration licences in the Irish Atlantic Margin; appraisal and explorationpermit onshore France; and production and exploration assets onshore UK hadcombined net mean risked resources of 27 million barrels of oil equivalent*(`mmboe'). A year on, the equivalent figure now stands at 43 mmboe*, a morethan 50% increase, thanks to the addition of gross mean unrisked resources of1.6 billion barrels* for the Kiernan prospect offshore Ireland and a six foldjump to 416 bcf* for the shallow gas prospect at Berenx, onshore Francefollowing a detailed mapping exercise on both licence areas. "Offshore Ireland, our partner Kosmos Energy, the pioneer of the CretaceousAtlantic Margin plays, recently funded the acquisition of 3D seismic coveringboth our Irish blocks in the South Porcupine Basin, thereby fulfilling Phase 1commitments well in advance of the July 2016 deadline. We believe the speedwith which Kosmos has acted since farming into an 85% interest in April 2013demonstrates their commitment. Moreover we expect the progress made to date tocontinue in 2014, including the interpretation of the 3D data which couldsignificantly de-risk the prospectivity already identified and potentially leadto a decision to drill a well on one or both blocks in 2015/16. Under the termsof the farm-out, 100% of the cost of the first exploration well on each blockwill be borne by Kosmos, subject to a combined cap of US$200 million. Europaeffectively has a free carry on a 15% interest in potentially two high impactwells, should they be drilled, each of which, subject to a positive outcome, webelieve would be transformational for the Company. "We are also confident that 2014 may see a number of key value triggers for our100% owned French permit. In tandem with launching a farm-out, we have alreadycommenced the planning process to drill a well to test the 416 bcf* BerenxShallow gas prospect. Subject to completing a farm out agreement or similarfunding, we could be drilling a well to test the shallow gas prospectivitywithin the next 18 months. At an estimated drill cost of US$6m we believedrilling the Shallow prospect offers a clear route to monetising the potentialof this permit. "Our UK portfolio offers a combination of production along with a number of lowrisk/ potentially material reward exploration targets. Our three producingfields, which generated approximately £4.5m in revenues in the last financialyear, continue to help fund exploration work, most recently our share of 2Dseismic acquisition costs on the 50% owned PEDL 181 licence. We will shortly bereleasing an updated geological model as well as a forward plan for this largeundrilled licence onshore UK. In addition we are funded to cover our share ofdrilling costs at the Wressle prospect in the East Midlands where a well isexpected to spud early in 2014. This is later than envisaged due to Wresslebeing among the first conventional wells to have to comply with new EAregulations which has led to what we believe will be a short delay in thecommencement of drilling. "Our in-house technical work over the last eighteen months has exposed ourshareholders to considerable potential value upside. In addition to evaluatingnew ventures, we are now moving into the next phase of our strategy which is tode-risk and prove up our substantial resource base. 2014 will not only see usdrill Wressle, which has a one in three chance of materially adding to ourexisting production, but we believe will also see progress made in advancingour projects offshore Ireland and onshore France, as we look to deliver on ourobjective and build substantial value for shareholders." * - Europa management estimates * * ENDS * * For further information please visit www.europaoil.com or contact: Hugh Mackay Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770 Phil Greenhalgh Europa Oil & Gas (Holdings) plc +44 (0) 20 7224 3770 Matt Goode finnCap Ltd +44 (0) 20 7220 0500 Henrik Persson finnCap Ltd +44 (0) 20 7220 0500 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Notes Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stagehydrocarbon assets that includes production, exploration and developmentinterests, in countries that are politically stable, have transparent licensingprocesses, and offer attractive terms. The Company produced 182 boepd in the UKduring the 2012/2013 financial year, generating sufficient revenues to covercorporate overheads. Its highly prospective exploration projects include theWressle prospect in the UK where a well is due to be drilled later in the nearterm; 100% owned gas exploration prospect (416 bcf) and appraisal project (CPR277 bcf) in onshore France; and a joint venture with leading independent Kosmosto explore two licences in offshore Ireland in which Europa has identified twoprospects with estimated gross mean un-risked indicative resources of 482million barrels oil and 1.6 billion barrels oil respectively. Qualified Person Review This release has been reviewed by Hugh Mackay, Chief Executive of Europa, whois a petroleum geologist with 30 years' experience in petroleum exploration anda member of the Petroleum Exploration Society of Great Britain, AmericanAssociation of Petroleum Geologists and Fellow of the Geological Society. MrMackay has consented to the inclusion of the technical information in thisrelease in the form and context in which it appears.