Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 23 February 2015 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Commencement of Drilling at Kiln Lane Prospect, onshore UK Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas exploration anddevelopment company with a combination of producing and exploration assets inEurope, is pleased to announce its Kiln Lane -1 conventional exploration well(`Kiln Lane') on Licence PEDL 181 in Northeast Lincolnshire spudded at 0706hours on 23 February 2015. The Company estimates Kiln Lane has mean grossun-risked recoverable resources of 2.9 million barrels of oil. Europa isoperator of and has a 50% working interest in PEDL 181, which covers an area ofover 540 km2 in the East Midlands Petroleum Province. Egdon Resources andCeltique Energie Petroleum Ltd each have a 25% interest in the Licence. The planned well will be drilled as a straight hole to a total depth ofapproximately 2,500 metres. Europa anticipates drilling operations will take 36days. The Kiln Lane prospect is a robust structural closure defined on 3-Dseismic data and the well has been designed to intersect a number ofprospective Upper Carboniferous age sandstone reservoirs in a structurallyfavourable position near the crest of the structure. Kiln Lane is located some25 km east of both Europa's Crosby Warren field, which has been producing oilfor almost 28 years, and the recent Egdon-operated Wressle-1 oil discovery inPEDL 180 in which Europa has a 33.3% interest. The prospect is a typical EastMidlands Petroleum Province oil play but in a comparatively underexplored partof the basin. In the event of exploration success Europa will suspend the well and returnwith a dedicated test rig for production testing operations in a similarfashion to the current testing operations at Wressle. Should production testingprove successful Europa will follow up with an extended well test with theintention of obtaining more detailed reservoir performance information toenable fast track development. Success at Kiln Lane also has the potential tosubstantially de-risk a number of other exploration leads in the licence areafor possible follow-up drilling. Kiln Lane is a conventional exploration welltargeting oil in Upper Carboniferous sandstone reservoirs. It is not a shalegas well and therefore operations at the site will not involve high volumeunconventional hydraulic fracturing. Europa's CEO, Hugh Mackay said, ""We are delighted to commence operations onthe Kiln Lane conventional oil prospect and we look forward to updatingshareholders with the results from this well towards the end of March. I wishto thank our geoscience, operations and permitting teams all of whom havedelivered excellent performance and have brought the well to spud on scheduleagainst a tight timeframe. We are encouraged by the recent discovery of oil atthe neighbouring Wressle well and we hope that Kiln Lane will be similarlysuccessful and provide another opportunity to build on our existing oilproduction and revenues from conventional oil fields in the East MidlandsPetroleum Province." * * ENDS * * For further information please visit www.europaoil.com or contact: Hugh Mackay Europa + 44 (0) 20 7224 3770 Phil Greenhalgh Europa + 44 (0) 20 7224 3770 Matt Goode finnCap Ltd +44 (0) 20 7220 0500 Simon Hicks finnCap Ltd +44 (0) 20 7220 0500 Frank Buhagiar St Brides Partners Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Partners 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 165 boepd in the UKduring the 2013/2014 financial year, generating sufficient revenues to covercorporate overheads and some exploration expenditure. Its highly prospectiveexploration projects include the Wressle (recently drilled and undergoingtesting) and Kiln Lane prospects in the UK; 100% owned gas exploration prospect(107 bcf) and appraisal project (CPR 277 bcf) in onshore Franc a joint venturewith Vermillion Energy also in onshore France; and a joint venture with leadingindependent Kosmos to explore two licences in offshore Ireland with thepotential to host gross mean unrisked prospective resources of 1.5 billionbarrels. 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.