Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 23 March 2015 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Update on Kiln Lane-1 Well, onshore UK Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with acombination of producing and exploration assets in Europe, announces thecompletion of drilling operations at the Kiln Lane-1 conventional explorationwell (`Kiln Lane' or `the Well') on Licence PEDL 181 in Northeast Lincolnshire.The Well spudded on 23 February 2015 and reached a total depth (`TD') of 2,291metres on 19 March. Sandstones in the Westphalian and Namurian intervals werepenetrated in line with the pre-drill geological model and significant oil andgas shows were observed during drilling operations. However, wireline loggingand subsequent petrophysical analysis indicates that the sandstones encounteredare water wet. The Well will therefore be plugged and abandoned and the siterestored to agricultural use. Europa is operator of and has a 50% working interest in PEDL 181, which coversan area of over 540 km2 in the East Midlands Petroleum Province. EgdonResources and Celtique Energie Petroleum Ltd each have a 25% interest in theLicence. Europa and its partners will conduct a detailed post-drill technicalreview of all relevant well and seismic data to determine the way forward withthis large exploration licence. Europa's CEO, Hugh Mackay said, "While we are disappointed with the outcome,Kiln Lane was drilled on schedule, on budget and safely. This is testament tothe performance of both our own technical team and the engineering crew on theground. Kiln Lane was the first well to be drilled on this large licence wheremultiple leads have been identified. The presence of hydrocarbon shows isencouraging and the quality of data recovered will enable clear decision makinggoing forwards. Over the coming weeks and months more technical work will beconducted on all the data and geological samples recovered from the well as werefine our hydrocarbon system model and plan our next steps for the Licence. "Thanks to having a portfolio of licences at various stages of development, wewill not be short of potentially high impact news flow in the weeks and monthsahead. Ongoing testing operations at the Wressle discovery in PEDL 180 wherehydrocarbons have been recovered from all three payzones tested to date are dueto be completed shortly. This will be followed by an extended well test laterthis year. Perhaps most importantly, we have commissioned a Competent PersonsReport on our Irish licences in the South Porcupine Basin where gross meanunrisked prospective resources of up to 1.5 billion barrels of oil have alreadybeen identified by our partner Kosmos Energy. We expect to issue the CPR in H12015. With so much activity across our asset base, I look forward to providingfurther updates on our progress in due course." * * 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. The Company produced 165 boepd in the UKduring the 2013/2014 financial year, generating sufficient revenues to covercorporate overheads and some exploration expenditure. Its highly prospectiveexploration projects include the Wressle discovery (recently drilled andundergoing testing) in the UK; 100% owned gas exploration prospect (107 bcf)and appraisal 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 unrisked prospective resources of 1.5 billionbarrels. 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.