Production Update - Bilca-2 Well Test

25th July 2006 - 7am

                          Europa Oil & Gas (Holdings)                          

                               Bilca-2 Well Test                               

Europa Oil & Gas, the AIM-listed production and exploration company (AIM: EOG),
is pleased to announce that the Bilca-2 well, which encountered gas whilst
drilling in early 2005 but was suspended without testing, has now been
perforated, tested and completed as a production well. A short clean-up test on
a restricted choke has demonstrated commercial gas production.

A clean-up rate of approximately 1 mmscfpd, achieved through an 8mm choke, is
comparable to the flow rates obtained on a similar choke on the Bilca-1 well,
which went on to test at 6.3 mmscfpd (1,050 boepd) through a 20mm choke. The
well has now been temporarily shut-in in preparation for commercial field
production which is due to commence at the end of August.

The Bilca project lies in the northern part of the Romanian Carpathians, a
prolific oil and gas province. Europa and its partners(1) drilled Bilca-2 on the
western extension of the Bilca seismic anomaly in early 2005 following the
success of Bilca-1, and the well was cased without being tested.

Paul Barrett, Managing Director of Europa Oil & Gas, said:

"We are pleased with these initial results for the Bilca-2 well. This will
ensure we have a full complement of production wells ready to supply the
start-up of the Bilca production facilities in a little over a month's time."

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(1) Falcon Oil & Gas srl (a subsidiary of Aurelian Oil & Gas plc), Romgaz SA and
Millennium IRL (a subsidiary of Ascent Resources plc).


About Europa Oil & Gas (Holdings) plc

Europa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production and
exploration of hydrocarbons in Europe and North Africa. It currently produces
210 barrels of oil per day from UK onshore fields and 25 barrels of oil
equivalent from the Ukraine. Production is expected to rise significantly after
its Romanian Bilca Gas Project comes on-stream later this year. Operating a
balanced portfolio, Europa currently has field appraisal activity on projects
in the UK Southern Gas Basin and onshore Romania and exploration activity on a
further eight licences across the Europe - North Africa region. For more
information please visit www.europaoil.com.


Further information:

Paul Barrett, Managing Director, Europa O&G [phone]

Jonathan Wright / Parimal Kumar, Seymour Pierce Ltd [phone]

Jade Mamarbachi / Toby Hall, gth media relations [phone]