Europa Oil & Gas Regulatory News (EOG)

EUROPA OIL & GAS (HOLDINGS) PLC - Relinquishment of Licences in Romania & the SADR

PR Newswire

London, May 20

21 May 2013

Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration anddevelopment company with a combination of producing and exploration assets inEurope, announces that it is relinquishing the EPI-3 Brates Licence in Romania(`Brates') and the Bir Lahlou and Hagunia Licence Areas in the Saharawi ArabDemocratic Republic (`SADR'). This is in line with the Company's strategy tofocus on offshore West Ireland where it has a joint venture with leadingindependent oil and gas company Kosmos Energy to explore two Licensing Optionsin the South Porcupine Basin; a 100% interest in a deep gas appraisal projectonshore France; and a combination of production and exploration assets inonshore UK.

On 20 May 2013 the Company served a Notice of Withdrawal regarding Brates inRomania to the National Agency for Mineral Resources. Formal withdrawalprocedures are currently being completed. Previous exploration costs associatedwith Brates were included in the 2012 Final Results as announced on 16 October2012 and, as a result, no further exploration write downs are anticipated. Inaddition the Directors do not expect any material write downs to be taken withregard to the relinquishment of the SADR licences.

Europa's CEO Hugh Mackay said: "Our withdrawal from Romania and the SaharawiArab Democratic Republic ought to be seen in the context of last year'sin-depth portfolio review, the conclusions of which led to these two countriesbeing considered non-core to Europa. As a result, our current focus is onproduction and exploration in the UK; exploration in the South Porcupine Basin,offshore Ireland; and a gas appraisal project in onshore France.

"We expect to report progress across our asset base during the second half ofthe year including our participation in an exploration well at the WressleProspect onshore UK, which we rate as having a one in three chance ofmaterially adding to our existing production. Offshore Ireland, following therecent farm down to Kosmos Energy of an 85% interest in our two LicensingOptions in the South Porcupine Basin, the next steps involve their conversioninto full Frontier Licences and a 3D seismic acquisition programme to furtherevaluate the prospectivity. Onshore France we are awaiting the renewal of theBearn des Gaves permit, home to Berenx, a deep gas appraisal project with a CPRassigned contingent resource of 277BCF. I look forward to providing furtherupdates in due course, as we look to advance our assets and in the processgenerate value for shareholders."

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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. The Company currently producesapproximately 180 boepd in the UK, generating sufficient revenues to covercorporate overheads. Its highly prospective exploration projects include theWressle prospect in the UK where a well is due to be drilled later this year; a100% owned deep gas appraisal project with a CPR assigned contingent resourceof 277bcf in onshore France; and a joint venture with leading independentKosmos to explore two licences in offshore Ireland in which Europa hasidentified two prospects with estimated gross mean un-risked indicativeresources of 482 million barrels oil and 1.6 billion barrels oil respectively.