EOG Europa Oil & Gas (holdings) Plc

RNS Number:2751L
Europa Oil & Gas (Holdings) PLC
20 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 a
Zone 1 producer on 10th April 2005, following a successful sidetrack of West
Firsby 1.  Although it is difficult at this stage to be quantitative on volumes
due to poor oil-water separation, the well appears from early production data to
be performing below expectations.  The well is producing a high water cut
despite the reservoir drain being 40 feet above the Zone 1 field oil-water
contact(1).  It is thought that the lower part of the Zone 1A sandstones, which
showed much lower gas readings whilst drilling, could be the source of the
majority of the produced water.  Such a situation would significantly mask oil
production from the deeper Zone 1B sand as these wells are pumped.


In order to diagnose and remedy this situation, wireline logs will be run to
obtain reservoir saturation data.  If the water is shown to be being produced
preferentially from the 1A sand, this will be mechanically isolated and the well
put back onto production from Zone 1B only.


Drilling and completion of WF8 was achieved well within budget, which will
enable this additional work to be undertaken within the original well budget
figure.


Paul Barrett, Managing Director, said


"All the wells on West Firsby produce significant water.  However, we expect to
be able to isolate the main water zone in WF8 with this remedial programme and
increase 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 awaiting
development.  The current attributable production of around 330 boepd is
forecast by independent consultants, Scott Pickford, to rise to up to 6,000
boepd by 2007.


Reserves


Scott Pickford has undertaken a review of the oil and gas properties of Europa
and concluded that the Group holds 2P reserves and contingent resources of 7
million barrels of oil equivalent ("mmboe") and estimated additional unrisked
prospective 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 significant
European-focused independent upstream oil and gas business.  The strategy will
be to continue to grow a balanced exploration and production portfolio with
producing assets generating cashflow, development projects providing low risk
potential 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
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