Europa Oil & Gas Regulatory News (EOG)

3 Apr 2006 07:00

EUROPA OIL & GAS HOLDINGS PLC OPERATIONAL UPDATE The Directors of Europa Oil & Gas (Holdings) plc ("Europa") are pleased toprovide an operational update on a number of projects in three of its areas ofactivity - Romania, UK and Western Sahara.RomaniaSeismic Acquisition ProgrammesSeismic acquisition in the Bacau Concession (EIII-4) commenced on 27 March. Theprogramme is designed to mature two leads identified on an earlier survey fordrilling in late 2006 or early 2007. The survey crew will move onto a similarsurvey on the Cuejdui Concession (EIII-3) later in April and then on to acquirea major survey south of Europa's Bilca-Fratauti development in the BrodinaConcession (EIII-1).Field DevelopmentWork progresses on the Bilca-Fratauti Development. The Operator, Aurelian Oil &Gas, has informed the group that the current estimate for production start-upis late July 2006. This development will significantly increase Europa'sproduction levels during the second part of 2006.Appraisal DrillingEuropa and its Czech co-venturer, MND, are in the advanced stages ofnegotiating the terms of an extension to the Brates Concession (EPI-3) of up tothree years. The work programme will provide for the appraisal of theBurdigalian gas sands encountered in the Costisa-1 well and further evaluationof exploration potential of the remainder of the concession area.UKNorth SeaEuropa has begun, with the services of Aberdeen-based Peak Group, to plan thedrilling of 41/24-D, a gas condensate appraisal well anticipated to be drilledin mid-2007. Peak brings a highly competent engineering team to the project.Europa is planning to utilise underbalanced drilling technology to drill a 500mreservoir section which will be tested and potentially retained as a futureproducer.OnshoreThe seismic reprocessing on PEDL150, the exploration acreage surrounding theWhisby Field, Lincolnshire, is almost complete. The results to date show adramatic improvement in data quality and prospectivity. Under the terms of thefarm-out with Valhalla Oil & Gas, prospect-specific seismic acquisition will beundertaken if necessary prior to selecting a drilling location.Planning work continues on the Holmwood prospect in PEDL143, Surrey. Europa istaking a deliberately cautious approach to this project, fine-tuning siteselection and environmental issues prior to a formal submission in the next fewweeks.Western SaharaEuropa was part of a delegation visiting Western Sahara, where its twoConcession agreements, signed in London on 16 March, were ratified by theGovernment on 27 March. A reconnaissance of Europa's Bir Lehlou Block, on theAlgerian border, indicated the potential for undertaking geological fieldworkin the liberated area perhaps as early as late 2006.For further information, please contact:Europa Oil & Gas (Holdings) plc +33 5 63 33 18 97 Paul Barrett Westhouse Securities LLP +44 161 838 9140 Tim Feather ENDEUROPA OIL & GAS (HOLDINGS) PLC