Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 21 July 2014 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Commencement of Drilling at Wressle Prospect, onshore UK & Operations Update 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 that it has been notified by Egdon Resources(`Egdon' or the `Operator'), the operator of Licence PEDL 180 in Lincolnshire(`PEDL 180' or the `Licence'), that the Wressle-1 conventional exploration wellspudded on 19 July 2014. Egdon estimates Wressle has mean gross un-riskedrecoverable resources of 2.1mmbo. Europa has a 33.3% working interest in PEDL180 with its partners Egdon (operator, 25%), Celtique Energie Petroleum Ltd(33.3%) and Union Jack Oil (8.3%). Wressle is a conventional hydrocarbon prospect located in the East MidlandsPetroleum Province, 5 km southeast of and along the same structural trend asthe Europa operated, Crosby Warren field which has been producing for almost 28years. As a result, Europa rates Wressle as a relatively low risk well with aone in three chance of success. The Operator anticipates drilling operationswill take 38 days. The planned well will be drilled as a deviated well to atotal depth of approximately 2300m (ca. 1,850 metres TVDSS). Europa expects thewell results to become known towards the end of August 2014 and in the event ofexploration success the intention will be to put Wressle on an extended welltest. Offshore Ireland The Directors are encouraged by what they have seen on the 3D seismic acquiredin H2 2013 over prospects in Europa's two licences in the South PorcupineBasin. The Operator, Kosmos, has recently advised the Company that a newprospect inventory will be delivered in Q4 2014 after which management intendsto issue a CPR for the Irish prospects also in Q4 2014. The guidance receivedfrom the Operator remains that a first well offshore Ireland could be spuddedin 2015 or 2016. New Ventures The Company intends to add to its pipeline of prospects through participationin the recently announced 2015 Atlantic Margin Oil and Gas Licensing Round inIreland and in the UK's upcoming 14th Onshore (Landward) Oil and Gas LicensingRound. Romania The Company announces the completion of the sale of its entire holding in theissued share capital of its Romanian subsidiary Europa Oil & Gas SRL for anominal sum. The subsidiary held interests in onshore concessions in Romaniawhich have been relinquished, or are in the process of receiving governmentapproval for such relinquishment. The assets were written down to nil value inthe Group's financial statements for the year to 31 July 2012. The sale marksthe termination of the Company's formal involvement in Romania. Europa's CEO, Hugh Mackay said, "With a one in three chance of materiallyadding to our existing production, Wressle has been long anticipated and we aredelighted that it has spudded. Thanks to the progress made across our portfolioin recent months, Wressle is the first of what we believe will be a multi-welldrilling programme over the course of the next eighteen months. Wressle will befollowed by the 2.9 mmbo Kiln Lane prospect on the neighbouring licence PEDL181 which remains on track to spud in Q4 2014. Work undertaken to date includesthe submission of the relevant planning application, negotiations completed anda lease signed for a suitable well site, engagement with the Environment Agencyto secure a mining waste permit and procurement of long lead items of drillingequipment. "The two UK onshore wells as well as potential drilling offshore Ireland in2015/16 are funded. Drilling success at either of the two UK wells can bebrought onto production and monetised quickly. Success in Ireland would be acompany maker. This is an exciting period for the Company and I look forward toproviding further updates on our progress as and when it is appropriate to doso." * * 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 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 170 boepd in the UKduring the first half of the 2013/2014 financial year, generating sufficientrevenues to cover corporate overheads and some exploration expenditure. Itshighly prospective exploration projects include the Wressle and Kiln Laneprospects in the UK where wells are due to be drilled this year; 100% owned gasexploration prospect (416 bcf) and appraisal project (CPR 277 bcf) in onshoreFrance; and a joint venture with leading independent Kosmos to explore twolicences in offshore Ireland in which Europa had previously identified twoprospects with estimated gross mean un-risked indicative resources of 482million barrels oil and 1.6 billion barrels oil respectively.