Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 12 May 2015 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Gross Mean Un-risked Prospective Resources of up to 1.5 billion boe (net toEuropa 225 million boe) Identified by CPR on Irish Atlantic Margin Licence FEL 3/13 Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with acombination of producing and exploration assets in Europe, is pleased toannounce the completion of a Competent Persons Report (`CPR') by ERC EquipoiseLtd (`ERCE') on the Prospective Resources in Frontier Exploration Licence(`FEL') 3/13 located in the Porcupine Basin, offshore West Ireland. Europaholds a 15% interest in FEL 3/13, with the operator Kosmos Energy (`Kosmos')holding the remaining 85%. Overview * Europa's in-house technical team has conducted its own independent prospect mapping based on proprietary 3-D seismic data acquired in 2013 and which was provided to ERCE, who have undertaken their own independent assessment of the Prospective Resources associated with the Wilde, Beckett and Shaw prospects * The CPR details total gross un-risked mean Prospective Resources of 1.49 billion barrels of oil equivalent (`bboe') on FEL 3/13 * + Net 225 million barrels of oil equivalent (`mmboe') to Europa + The CPR has upgraded Shaw, previously classified as a lead, into a prospect with gross mean un-risked Prospective Resources of 315 mmboe FEL 3/13 Gross Un-risked Prospective Resources (mmboe*) Geological Chance ofProspect Low Best High Mean Success Wilde 61 239 952 428 19% Beckett 109 424 1,661 749 15% Shaw 57 198 681 315 13% Deterministic 227 861 3,294 1,492 Total *million barrels of oil equivalent, Prospective Resources are recoverable. Thehydrocarbon system is considered an oil play and mmboe is used to take accountof associated gas. However, due to the significant uncertainties in theavailable geological information, there is a possibility of gas charge. * Europa has identified both a prospect and shotpoint location for what would be a play-opening first well in FEL 3/13 - Europa will review this with the operator, Kosmos. * New prospects and leads identified by Europa on FEL 2/13 at additional stratigraphic levels to those previously identified by Kosmos in the prospect inventory delivered to Europa in December 2014 - Europa is consulting with Kosmos to advance these new prospects to a point where they can be included in a complete CPR for FEL 2/13 - further announcements will be made in due course Europa's CEO, Hugh Mackay said, "This CPR represents the culmination ofsubstantial work by three very experienced technical teams: Kosmos, Europa andERCE. The work has been subjected to robust and in-depth technical challenge. Ihave utmost confidence in the quality of the work and the Prospective Resourcesand risks derived from the work. The new CPR identifies gross mean un-riskedProspective Resources of approximately 1.5 billion barrels of oil equivalentacross three prospects in FEL 3/13, with Europa's 15% equity interest equatingto net mean Prospective Resources of 225 million boe. These are verysignificant volumes of hydrocarbons. Europa considers the prospects to be atdrillable prospect status and we will update the markets when the operatorKosmos provides more clarity with respect to drilling plans. This CPR providesa strong endorsement to our long held view that the Porcupine Basin has thepotential to become a major new North Atlantic hydrocarbon province." FEL 3/13 The CPR builds on the prospect inventory provided to Europa by Kosmos Energy(`Kosmos') and previously announced on 8 December 2014. Europa's in-housetechnical team has conducted its own independent prospect mapping and this wasprovided to ERCE, who in turn also performed their own independent mapping. Thework is derived from interpretation of proprietary 3-D seismic data acquired in2013 and processed in 2014, analysis of historic well data and consideration ofrelevant analogues from the North and South Atlantic basins. The CPR representsthe culmination of a substantial body of in depth technical work and has beensubject to thorough independent peer review. The CPR details total gross un-risked mean Prospective Resources of 1.49 bboeacross three prospects. The three prospects Beckett, Wilde and Shaw have Cretaceous submarine fansandstone reservoirs and are part of the Cretaceous submarine fan hydrocarbonplay discussed in previous RNS releases. As a consequence of its detailed workin preparation for the CPR Europa has identified both a prospect and shotpointlocation for what would be a play-opening first well in FEL 3/13. Europa willreview this with the operator Kosmos. Under the terms of the farm-out agreement announced on 18 April 2013 Kosmoswill incur 100 percent of the costs of the first exploration well on FEL 3/13subject to an investment cap of US$110 million. Costs in excess of theinvestment cap would be shared between Kosmos (85%) and Europa (15%). The main CPR document will not be released into the public domain at this stage forreasons of confidentiality arising from the ongoing 2015 Atlantic MarginLicensing Round that closes in September 2015 and for which awards areanticipated in H1 2016. FEL 2/13 During the course of its independent mapping of FEL 2/13 Europa has identifiednew prospects and leads at additional stratigraphic levels to those previouslyidentified in the RNS of 8 December 2014. Europa is consulting with theoperator Kosmos Energy regarding technical work to advance these prospects to apoint where they can be included in a complete CPR for FEL 2/13. Furtherannouncements will be made in due course. Kosmos has suggested drilling on a prospect in either FEL 2/13 or FEL 3/13 maytake place in 2017, and has also confirmed that it will seek to farm down someof its interest in the licences. Europa understands that the farm-out processmay commence after the Atlantic Margin Licensing Round closes. * * ENDS * * For further information please visit www.europaoil.com or contact: Hugh Mackay Europa + 44 (0) 20 7224 3770 Phil Greenhalgh Europa + 44 (0) 20 7224 3770 Matt Goode finnCap Ltd + 44 (0) 20 7220 0500 Simon Hicks finnCap Ltd + 44 (0) 20 7220 0500 Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Partners Ltd + 44 (0) 20 7236 1177 Notes Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stagehydrocarbon assets that includes production, exploration and developmentinterests, in countries that are politically stable, have transparent licensingprocesses, and offer attractive terms. In H1/2015 Europa produced 144bopdgenerating sufficient revenues to cover corporate overheads and someexploration expenditure. Its highly prospective exploration projects includethe Wressle discovery (recently drilled and tested at an aggregate of 710 boepdfrom 4 zones) in the UK; 100% owned gas exploration prospect (107 bcf) andappraisal project (CPR 277 bcf) in onshore France a joint venture withVermillion Energy also in onshore France; and a joint venture with leadingindependent Kosmos to explore two licences in offshore Ireland with thepotential to host gross mean un-risked Prospective Resources approximately 1.7billion barrels across both licences. Qualified Person Review This release has been reviewed by Hugh Mackay, Chief Executive of Europa, whois a petroleum geologist with 30 years' experience in petroleum exploration anda member of the Petroleum Exploration Society of Great Britain, AmericanAssociation of Petroleum Geologists and Fellow of the Geological Society. MrMackay has consented to the inclusion of the technical information in thisrelease in the form and context in which it appears.