Europa Oil & Gas Regulatory News (EOG)

20 Apr 2005 09:03

Europa Oil & Gas (Holdings) PLC20 April 2005 20 April 2005 EUROPA OIL & GAS (HOLDINGS) PLC ("Europa" or the "Company") West Firsby Update The West Firsby 8 development well (WF8) was put into full-time production as aZone 1 producer on 10th April 2005, following a successful sidetrack of WestFirsby 1. Although it is difficult at this stage to be quantitative on volumesdue to poor oil-water separation, the well appears from early production data tobe performing below expectations. The well is producing a high water cutdespite the reservoir drain being 40 feet above the Zone 1 field oil-watercontact(1). It is thought that the lower part of the Zone 1A sandstones, whichshowed much lower gas readings whilst drilling, could be the source of themajority of the produced water. Such a situation would significantly mask oilproduction from the deeper Zone 1B sand as these wells are pumped. In order to diagnose and remedy this situation, wireline logs will be run toobtain reservoir saturation data. If the water is shown to be being producedpreferentially from the 1A sand, this will be mechanically isolated and the wellput back onto production from Zone 1B only. Drilling and completion of WF8 was achieved well within budget, which willenable this additional work to be undertaken within the original well budgetfigure. Paul Barrett, Managing Director, said "All the wells on West Firsby produce significant water. However, we expect tobe able to isolate the main water zone in WF8 with this remedial programme andincrease oil production from the well." For further information, contact: Europa Oil & Gas (00 33 563 33 18 97) Paul Barrett Citigate Dewe Rogerson (020 7638 9571) Martin Jackson / George Cazenove Westhouse Securities LLP (020 7601 6100) Bill Staple / Tim Feather (1) Troy Ikoda Reservoir Simulation Notes to Editors Europa began trading on the AiM market on 11 November 2004. Placing Statistics Placing Price per New Ordinary Share 25 pence Number of New Ordinary Shares placed 20,000,000 Total Proceeds from the Placing (before expenses) £5 million Number of Ordinary Shares in issue immediately following Admission 60,000,000 Number of Warrants in issue immediately following Admission 10,000,000 Market Capitalisation following the Placing at the Placing Price £15 million Production Three projects are currently in production and a further two are awaitingdevelopment. The current attributable production of around 330 boepd isforecast by independent consultants, Scott Pickford, to rise to up to 6,000boepd by 2007. Reserves Scott Pickford has undertaken a review of the oil and gas properties of Europaand concluded that the Group holds 2P reserves and contingent resources of 7million barrels of oil equivalent ("mmboe") and estimated additional unriskedprospective resources of 28 mmboe. Summary of Principal Assets Country Block / Field Operator Interest Producing UK West Firsby Oilfield Europa 100% UK Whisby-4, Whisby Oilfield Blackland Park 75% Ukraine Horodok Field Europa 70% Development UK 41/24 & 41/25 Europa 100% UK Whisby Area (pending) Europa 100% Romania Brodina EIII-1 (Bilca Discovery) Falcon 28.75% Exploration UK TQ14 Holmwood (pending) Europa 40% UK Whisby Area Exploration (pending) Europa 100% Romania EPI-8 Valeni de Munte Tullow Oil 15% Romania Epi-3 Costisa Prospect Tullow Oil 15% Romania EIII-3 Cuejdui Falcon 28.75% Romania EIII-4 Bacau Falcon 47.5% Poland Nowy Sacz Area Medusa 2.5% ORRI Strategy Europa has embarked on a strategy to build the Group into a significantEuropean-focused independent upstream oil and gas business. The strategy willbe to continue to grow a balanced exploration and production portfolio withproducing assets generating cashflow, development projects providing low riskpotential and exploration opportunities offering significant upside. Also see www.europaoil.com This information is provided by RNS The company news service from the London Stock Exchange