Europa Oil & Gas Regulatory News (EOG)

2 Sep 2009 14:55

Europa Oil and Gas Holdings Plc ("Europa" or "the Company") GBP1.75 million Placing

The Company today announces that it has conditionally placed with new and existing shareholders 12,500,000 new ordinary shares ("Placing Shares") of 1p each ("Ordinary Shares") at a price of 14p per share thereby raising gross proceeds of 1.75 million (the "Placing"). The net proceeds will provide the Company with working capital for future growth and strengthen its balance sheet.

The New Shares, which have been placed with new and existing investors, by Seymour Pierce Limted, will represent approximately 16.6 per cent. of the Company's Enlarged Share Capital.

Reasons for the Placing

Europa has several goals it wishes to achieve this year. These include: maintaining its full working interest in the Voitinel well in Romania (currently drilling), increasing production from the West Firsby Oilfield, drilling the Hykeham well (both onshore UK) and increasing the Company's market perception and liquidity of the shares. The placing of these shares should allow us to achieve these goals.

Background to Europa Oil & Gas' current operations

Europa is currently participating in the Voitinel exploration well, onshore Romania. This is a high impact well targeting approximately 200 millions of barrels of oil in place on a proven fairway in a prolific hydrocarbon basin. The well spudded on 21 August and is anticipated to take two months to reach final total depth.

Europa spudded the Hykeham well in Lincolnshire, UK in January 2009. The well was drilled to approximately 100m and suspended for the duration of the bird breeding season at the adjacent Whisby Nature Park. The prospect is relatively low risk, with potential for 10 million of barrels of oil-in-place.

The Company produces oil from its operations in the East Midlands Petroleum Basin, onshore UK, currently generating wellhead revenues of approximately $350,000 per month. This production, which is derived from 3 producing oilfields, is currently running at 170 bopd following a fire which damaged equipment at the West Firsby site and production is expected to be back to the full rate of 220 bopd shortly. Continuing upgrades at West Firsby and further work on the Crosby Warren wells are expected to increase production to over 350 bopd and success at Hykeham will push this to over 500bopd.

Paul Barrett, Managing Director of Europa said,

"The Directors have recognised for some time that the Company's Shares are held by relatively few investors and that there is a need to broaden the shareholder base. The issuing of new shares will go some way to remedying this with only modest dilution for existing shareholders. The Directors have subscribed to approximately 20% of the placing, demonstrating their firm belief in the quality of the assets. Notwithstanding the Company's existing production revenue stream, the cash injection will allow the Company to participate in key projects such as Voitinel at full working interest and move forward at a faster pace on the production growth in the UK"

Issue of New Shares

The Placing is conditional upon Admission of the Placing Shares to AIM. Application will be made to the London Stock Exchange for the New Shares to be admitted to trading on AIM. It is expected that such Admission will become effective and that dealings will commence 11 September 2009.

The New Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared following Admission.

Directors' participation in the Placing

The table below shows the following Directors participation in, and their resulting holdings following, the Placing.

Name Number of Per Number of Number of shares Per cent. of Shares cent. of Placing following Enlarged Share issued shares completion of the Capital share Placing capital Erika Syba/Paul 16,832,929 26.91% 357,142 17,190,071 22.9% Barrett* Phil Greenhalgh 100,000 0.16% 150,000 250,000 0.33%

Christian 23,252,442 37.17% 1,750,000 25,002,442 33.31% Ahlefeldt-Laurvig

* Paul Barrett is the registered owner of 6,537,758 ordinary shares and Erika Syba is the registered owner of 7,623,732 ordinary shares. The number of shares held in SIPPs for Paul Barrett and Erika Syba total 2,671,439

Enquiries:

Europa Oil and Gas Plc +44 (0) 1235 553 266 Paul Barrett - Managing Director Seymour Pierce Limited + 44 (0) 207 107 8000 Jonathan Wright Christopher Wren

Seymour Pierce Limited, which is regulated by the Financial Services Authority and is a member of the London Stock Exchange, is acting as nominated adviser and broker exclusively for the Company in connection with the Placing. Its responsibilities as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or to any Director or any other person in respect of his decision to acquire ordinary shares in the Company in reliance on any part of this announcement. No representation or warranty, express or implied, is made by Seymour Pierce Limited as to any of the contents of this announcement for which the Directors and the Company are responsible (without limiting the statutory rights of any person to whom this announcement is issued). Seymour Pierce Limited has not authorised the contents of, or any part of, this announcement, and no liability whatsoever is accepted by Seymour Pierce Limited for the accuracy of information or opinions contained in this announcement or for the omission of any material information. Seymour Pierce Limited will not be offering advice and will not otherwise be responsible for providing customer protections to recipients of this announcement in respect of the Placing or any acquisition of shares in the Company.