Europa Oil & Gas Regulatory News (EOG)

24 Aug 2010 09:21

Key Projects Update

Summary

The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a brief update on several of the Company's key projects:

* Progress has been made in quantifying the reserves potential in Voitinel (Romania); * Initial mapping of the Berenx structure (France) confirms its potential for gas reserves in excess of 1TCF; * The well workover programme is complete on the UK producing assets and subsurface work on the West Firsby Field has identified potential for a significant increase in reserves.

Romania

The Voitinel discovery in Romania is likely to benefit from an appraisal well in early 2011. Current estimates of gas-in-place range from 250 to 410bcf across the `Greater Voitinel' area, equating to up to 250 bcf recoverable (70 bcf net). The Paltinu-103 well on the edge of Solca drilled by Romgaz produced gas on extended test at rates of 5 mmscfpd. This provides confidence that both gas and reservoir sands are developed in the undrilled Solca part of the `Greater Voitinel' play.

The Barchiz exploration well, targeting a structure immediately to the north of the prolific thrust belt oil play trend, is anticipated to spud in Q4 2010. Barchiz is the Company's first thrust belt oil play well which remains poorly explored despite having yielded over 5 billion barrels along trend. The Barchiz structure has the reserves potential for up to 30 mmbo gross (6 mmbo net) and is one of several similar structures identified in the Brates block.

The 2010 seismic programme is nearing completion, having acquired new data over the thrust belt oil play as well as infill data to better define well locations for Voitinel-Solca appraisal and development.

France

The focus of attention is the Berenx structure, where gas was proven in 1969 but was not tested. An initial analysis of the recently available 3D seismic survey over Berenx supports the conclusion that the original wells drilled the western edge of a structure with potential for in excess of 1TCF of recoverable reserves. The combination of proven gas and substantial reserves potential close to existing infrastructure at the Lacq Field makes for a compelling investment proposition and drilling success would have a transformational impact on the Company. Detailed mapping is now being undertaken and the Company will subsequently seek partners to drill Berenx-3.

UK

A reservoir engineering study on the West Firsby Field is now complete. The work undertaken on West Firsby has highlighted the potential for significant unswept oil. These additional reserves will be targeted by the next well.

The workover programme on Crosby Warren and West Firsby is now complete with WF6 remaining to come back onstream in the near future. An update on production will be provided in September along with a reserves update for West Firsby.

Following the production testing of the Hykeham-1 well, it is anticipated the well will be plugged and abandoned.

For more information, contact:

Europa Oil & Gas Paul Barrett +44 1235 467 360

Astaire Securities Shane Gallwey/Toby Gibbs +44 20 7492 4750 Astaire Securities Charles Vaughan +44 20 7492 4763

The contents of this news release have been reviewed and approved by Paul Barrett, MSc., a geologist with over 30 years oil, gas and coal experience.