Europa Oil & Gas Regulatory News (EOG)

6 Oct 2005 07:00

Europa Oil & Gas (Holdings) PLC06 October 2005 Europa Oil & Gas (Holdings) plc Licence Update - Blocks 41/24 and 41/25, UK North Sea The Directors of Europa Oil & Gas (Holdings) plc ("Europa") are pleased toannounce that the UK Department of Trade and Industry has confirmed that theconditions for the continuation of Licence P1131, covering UK North Sea Blocks41/24 and 41/25, have been satisfied. Licence P1131, which is held 100 percent. by Europa, contains two gas condensate discoveries with combined potentialgas reserves of 93 billion cubic feet, located 9 km off the Yorkshire coast. The continuation of the licence, originally awarded as a Promote Licence, willenable Europa as Exploration Operator to proceed with the drilling of anappraisal well on the 41/24 gas condensate discovery. The well is planned toevaluate the long term performance of the reservoir, which in an earlier test,flowed at 35 million cubic feet per day. This flow rate is comparable to testresults achieved by producing North Sea gasfields and equates to 6,000 barrelsof oil equivalent per day. The well, if successful, will be retained as afuture production well. Europa is currently in discussions with a number ofpotential partners to assist in the development of the field. Paul Barrett, Managing Director of Europa, said "We look forward to drilling theappraisal well, so that we can proceed to develop the reserves. The economicsof this project were assessed as favourable a year ago using a gas price of 25pper therm. Since then, prices have risen to 60p per therm, substantiallyimproving the net present value of the project." For further information, contact: Europa Oil & Gas (00 33 563 33 18 97)Paul Barrett Citigate Dewe Rogerson (020 7638 9571)Martin Jackson / George Cazenove Westhouse Securities LLP (0161 838 9140)Tim Feather This information is provided by RNS The company news service from the London Stock Exchange