Europa Oil & Gas Regulatory News (EOG)

3 Sep 2007 07:00

Europa Oil & Gas (Holdings) plc (the `Company' or `Europa') Costisa-2Y reaches TD, prepares to test. Boistea-1 spuds.

The Directors of Europa Oil & Gas (Holdings) plc are pleased to announce that the second sidetrack of the Costisa-2 well, Costisa-2Y, has reached final total depth of 1,155 metres and has now been cased. The well, situated in the EPI-3 concession in the Romanian Carpathians, recorded strong gas shows of up to 58% in the primary target and is being prepared for testing.

The target Burdigalian Sandstones were encountered between 1,083 and 1,110 metres measured depth and exhibited strong drilling gas readings throughout. Additional thinner sandstones with gas shows were encountered above the main sand. A 2-3 week testing programme is scheduled to commence this week.

The top of the main sandstone is approximately 10 metres higher in true vertical depth than in the Costisa-1 well. Hole problems were encountered throughout the drilling of this well, leading to two sidetracks. However, as the majority of the well operations were undertaken under a fixed price turnkey contract, the cost implication for these delays was minimised.

The EPI-3 concession has been divided such that Europa's working interest in the eastern Costisa area (EPI-3 East) is 80% and Moravske naftove doly's (MND's) interest is 20%. Under the terms of a farm-in agreement, Aurelian Oil & Gas plc is funding 60% of Europa's 80% to earn up to 27.4% working interest and being granted an option to operate any development in EPI-3 East, subject to any necessary consents. As a result, if Aurelian fully exercises its option under this agreement, the subsequent working interest split will be Europa 52.6%, Aurelian 27.4% and MND 20%.

In the Romanian Cuejdiu Block EIII-3, some 50km north of Costisa, the Boistea-1 well spudded on the 29th August. This well is targeting a Sarmatian gas prospect with multiple targets and is anticipated to take around 35 days to drill to a programmed total depth of 2,400 metres.

Paul Barrett Managing director of Europa, said, "The strategy of a turnkey contract for Costisa-2 was a good decision which has protected the partnership from the majority of cost overruns associated with the drilling phase. The very strong drilling gas readings in this confirmation well are highly encouraging. As we move into the testing phase we hope to be able to report positive results within a month."

About Europa Oil & Gas (Holdings) plc

Europa Oil & Gas focuses on the production and exploration of hydrocarbons in Europe and North Africa. Europa currently produces oil from three fields in the UK. Operating over two-thirds of its portfolio with an average working interest of 60%, Europa also has field appraisal and exploration activity on a number of projects in the UK and Romania and a strong new ventures programme across Europe and the North African region.

Reviewed by a Qualified Person

The technical information and opinions contained in this announcement have been reviewed by Paul Barrett, Managing Director of Europa Oil & Gas, who is a geologist with over 26 years of relevant experience in the upstream oil and gas industry.

For more information please visit www.europaoil.com

For further information, contact:

Paul Barrett, Managing Director, Europa Oil & Gas +33 5 63 33 18 97

Jonathan Wright or Parimal Kumar, Seymour Pierce +44 20 7107 8000