Extension of Licence PEDL 181, East Lincolnshire

Europa Oil & Gas plc / Index: AIM / Epic: EOG / Sector: Oil & Gas       

13 January 2014

          Europa Oil & Gas (Holdings) plc (`Europa' or `the Company')          

               Extension of Licence PEDL 181, East Lincolnshire                

Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,
development and production company focused on Europe, is pleased to announce it
has received notification from the Department of Energy and Climate Change
(`DECC') that phase 1 of the PEDL 181 Licence (`the Licence' or `PEDL 181') has
been extended by one year until 30 June 2015. This will enable Europa to drill
the 2.9 mmbo Kiln Lane-1 prospect in the second half of 2014. Europa holds a
50% interest and is operator of PEDL 181 which covers 540 sq km in East
Lincolnshire, a known oil producing region.

Overview:

  * PEDL 181 is a large and previously undrilled licence located in a working
    hydrocarbon system where a number of other discoveries have been made in
    adjacent licences
   
  * Kiln Lane-1 is a drillable conventional oil and gas prospect on the PEDL
    181 Licence area lying 28 km from Europa's producing Crosby Warren oil
    field and is a robust structural closure prospective for Carboniferous
    sandstone reservoirs
   
  * Kiln Lane-1 is estimated to hold gross mean un-risked resources of 2.9 mmbo
    with a 1 in 3 chance of success
   
  * Exploration success at Kiln Lane-1 would substantially de-risk a number of
    leads identified on the Licence
   
  * Well planning and permitting has commenced with a view to drilling in H2
    2014
   
  * Europa's share of drilling costs is fully funded following the recent
    placing
   
Europa's CEO, Hugh Mackay commented, "Thanks to this licence extension and our
recent placing, Europa is funded to drill two onshore UK prospects in 2014 with
combined gross prospective resources of 5 mmbo and each with a 1 in 3 chance of
success. We are particularly excited about Kiln Lane-1. Not only does it have a
highly prospective address near to previous discoveries and existing
production, but it is also a potential playmaker which, in the event of
success, would substantially de-risk a number of additional leads and prospects
we have identified on the licence over the last 18 months.

"With well planning and permitting already underway, we intend to drill Kiln
Lane-1 in H2 2014. Ahead of Kiln Lane, Europa will be participating with a 33%
interest in the drilling of the Wressle prospect in the East Midlands Petroleum
Province where the operator, Egdon Resources, expects to commence operations in
Q1 2014. Combined with expected news flow at our projects in onshore France,
where we recently launched a farm-out and commenced well permitting, and
offshore Ireland, where interpretation of the 3-D seismic recently acquired by
the operator Kosmos Energy may lead to a decision in summer 2014 to drill a
well as early as 2015, the year ahead promises to be a highly exciting one for
Europa."

PEDL-181 (Kiln Lane-1), East Lincolnshire

Europa has a 50% interest in and is the operator of PEDL 181 in the Humber
Basin, with Egdon Resources UK Limited and Celtique Energie Petroleum Ltd, each
holding a 25% interest. PEDL 181 is located in the Carboniferous petroleum play
and covers an area of over 540 km2 in a working hydrocarbon system where a
number of other discoveries have been made in adjacent licences. Though PEDL
181 itself has not been previously drilled, the Board considers that the
Licence has good potential for conventional oil and gas and is also aware that
the area may have potential as a shale gas resource.

During the last 18 months, Europa has carried out considerable technical work
on PEDL 181 including the acquisition of 78 km 2-D seismic in Q1 2013,
reprocessing of an existing 150 km2 3-D dataset together with detailed regional
evaluation and prospect specific mapping. This work led to the identification
of a drillable conventional oil and gas prospect at the Kiln Lane location in
the east of the Licence, approximately 28 km from Europa's producing Crosby
Warren oil field. This previously unknown prospect is a robust structural
closure prospective for Carboniferous sandstone reservoirs. Europa's research
indicates that the Kiln Lane prospect has gross mean un-risked resources of 2.9
mmbo and a chance of success of 36 per cent. In the event of exploration
success Europa intends to conduct an extended well test for the purpose of
enabling a fast track development. Exploration success at this location would
be a significant milestone and would substantially de-risk a number of leads
for possible follow-up drilling.

The table below sets out the indicative gross and net un-risked resources of
Kiln Lane

Kiln Lane Un-risked Resources           
                                        
             Gross         Net to EOG   
                                        
P90          0.50          0.25         
                                        
P50          1.80          0.90         
                                        
P10          6.70          3.35         
                                        
Mean         2.90          1.45         

Europa, along with its partners, has commenced the site selection process and
expects to submit a planning application in March 2014 for the drilling of an
exploration well. It is currently expected that this well will spud in the
second half of 2014. The hydrocarbon play type being targeted is the classic
East Midlands play. Lower Westphalian and Upper Namurian aged sandstones are
the principal targets. Sourcing of the leads is expected from Bowland Shale
equivalents in the South Humber Basin located to the south and east of PEDL
181. Intra Carboniferous shales will provide the seals.

                                   **ENDS**                                    

For further information please visit www.europaoil.com or contact:

Hugh Mackay           Europa                           [phone]   
                                                                               
Phil Greenhalgh       Europa                           [phone]   
                                                                               
Matt Goode            finnCap Ltd                      [phone]    
                                                                               
Henrik Persson        finnCap Ltd                      [phone]    
                                                                               
Frank Buhagiar        St Brides Media and Finance Ltd  [phone]    
                                                                               
Lottie Brocklehurst   St Brides Media and Finance Ltd  [phone]    

Notes

Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets that includes production, exploration and development
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. The Company produced 182 boepd in the UK
during the 2012/2013 financial year, generating sufficient revenues to cover
corporate overheads. Its highly prospective exploration projects include the
Wressle prospect in the UK where a well is due to be drilled later in the near
term; 100% owned gas exploration prospect (416 bcf) and appraisal project (CPR
277 bcf) in onshore France; and a joint venture with leading independent Kosmos
to explore two licences in offshore Ireland in which Europa has identified two
prospects with estimated gross mean un-risked indicative resources of 482
million barrels oil and 1.6 billion barrels oil respectively.