Europa Oil & Gas Regulatory News (EOG)

29 Mar 2005 10:40

Europa Oil & Gas (Holdings) PLC29 March 2005 EUROPA OIL & GAS (HOLDINGS) PLC ("EUROPA") OPERATIONAL UPDATE SPUDDING OF FRATAUTI-1, ROMANIA AND COMPLETION OF WEST-FIRSBY-8, UK 29 MARCH 2005 Europa Oil & Gas (Holdings) plc, the independent oil & gas exploration andproduction group with assets in the UK and continental Europe, is pleased toannounce the spudding of the Fratauti-1 exploration well (Europa operatinginterest: 28.75%) by group operator Falcon Oil & Gas, located 6km from Radautiin northern Romania. The Fratauti prospect comprises three seismic anomaliessimilar to those containing commercial gas in the nearby Bilca-1 and Bilca-2wells. If successful, Fratauti-1 will be suspended for incorporation into thedevelopment of the Bilca gas accumulation, due onstream at the end of 2005. In the UK, the West Firsby 8 well (Europa operating interest: 100%) has beensuccessfully completed. The well reached a measured depth of 6,297 ft. and wascompleted as per programme in Zone 1 of the reservoir with a total drilled netreservoir section of 330 ft. The jet pump assembly will be installed later thisweek and the well put onto production. Paul Barrett, Managing Director of Europa, said: "This operational update demonstrates that the company is delivering on itsstrategy outlined at the time of its initial public offering. By exploringfurther in Romania and adding more production in the UK, we are continuing todevelop a balanced exploration and production portfolio." For further information, contact: Europa Oil & Gas (00 33 563 33 18 97) Paul Barrett Citigate Dewe Rogerson (020 7638 9571) George Cazenove Westhouse Securities LLP (020 7601 6100) Tim Feather Notes to Editors Europa began trading on the AiM market on 11 November 2004. Placing StatisticsPlacing Price per New Ordinary Share 25 penceNumber of New Ordinary Shares placed 20,000,000Total Proceeds from the Placing (before expenses) £5 millionNumber of Ordinary Shares in issue immediately following Admission 60,000,000Number of Warrants in issue immediately following Admission 10,000,000Market Capitalisation following the Placing at the Placing Price £15 million Production Three projects are currently in production and a further two are awaitingdevelopment. The current attributable production of around 330 boepd isforecast by independent consultants, Scott Pickford, to rise to up to 6,000boepd by 2007. Reserves Scott Pickford has undertaken a review of the oil and gas properties of Europaand concluded that the Group holds 2P reserves and contingent resources of 7million barrels of oil equivalent ("mmboe") and estimated additional unriskedprospective resources of 28 mmboe. Summary of Principal Assets Country Block / Field Operator InterestProducing UK West Firsby Oilfield Europa 100% UK Whisby-4, Whisby Oilfield Blackland Park 75% Ukraine Horodok Field Europa 70% Development UK 41/24 & 41/25 Europa 100% UK Whisby Area (pending) Europa 100% Romania Brodina EIII-1 (Bilca Discovery) Falcon 28.75% Exploration UK TQ14 Holmwood (pending) Europa 40% UK Whisby Area Exploration (pending) Europa 100% Romania EPI-8 Valeni de Munte Tullow Oil 15% Romania Epi-3 Costisa Prospect Tullow Oil 15% Romania EIII-3 Cuejdui Falcon 28.75% Romania EIII-4 Bacau Falcon 47.5% Poland Nowy Sacz Area Medusa 2.5% ORRI Strategy Europa has embarked on a strategy to build the Group into a significantEuropean-focused independent upstream oil and gas business. The strategy willbe to continue to grow a balanced exploration and production portfolio withproducing assets generating cashflow, development projects providing low riskpotential and exploration opportunities offering significant upside. Also see www.europaoil.com This information is provided by RNS The company news service from the London Stock Exchange