Europa Oil & Gas Regulatory News (EOG)

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas 8 January 2015 Europa Oil & Gas (Holdings) plc (`Europa' or `the Company') Update on UK Onshore Licences Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas exploration anddevelopment company with a combination of producing and exploration assets inEurope, provides an update on its activities across its UK onshore licenceslocated in the established East Midlands Petroleum Province. Europa produces hydrocarbons from six wells across three fields: Crosby Warren(100% interest); Whisby (65% interest); and West Firsby (100% interest). Fiveof the wells are producing in line with expectations, year to date, althoughthe lowest producer of the six, WF9 is currently shut-in and requires arecompletion. WF9 was producing around 8 bopd. At current oil prices however,the Directors have concluded it would not be economic to undertake arecompletion of WF9, which as a result will remain shut-in for the foreseeablefuture. The Directors will reconsider this course of action should the oilprice recover to a level at which the recompletion of WF9 would becomeeconomic. With WF9 remaining offline, the Company now expects average production for the12 month period to 31 July 2015 to be approximately 144 boepd, compared toprevious guidance of 150 boepd. Europa's oil production is sold at a smalldiscount to Brent crude prices, and consequently the Company's revenues andprofitability for the current financial year will be impacted by the recentfall in oil prices, with a revised revenue expectation for the full year ofapproximately £2.1 million. As the majority of costs associated with theCompany's production are fixed, there will be a corresponding impact on fullyear profitability. Operations at Europa's 33% owned Wressle discovery in PEDL 180 and 50% owned2.9 mmboe Kiln Lane prospect on PEDL 181 continue as previously disclosed.Further updates will be provided as and when it is appropriate to do so. Europa's CEO, Hugh Mackay said, "The decision not to recomplete WF9 in light ofcurrent oil prices demonstrates our focus on ensuring capital is prioritisedfor developing projects that have the potential to generate significant valuefor shareholders. Thanks to having a portfolio of licences at various stages ofdevelopment, we have a number of near term opportunities to transform Europa'sproduction and revenues. I look forward to providing further updates on ourprogress during what promises to be an exciting year for Europa." * * 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 Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance 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 (recently drilled and scheduled fortesting) and Kiln Lane prospects (due to be drilled this year) in the UK; 100%owned gas exploration prospect (107 bcf) and appraisal project (CPR 277 bcf) inonshore France; and a joint venture with leading independent Kosmos to exploretwo licences in offshore Ireland with the potential to host large oilresources.