Spudding of Bilca-2, Romania

Europa Oil & Gas (Holdings) PLC
24 January 2005



                        EUROPA OIL & GAS (HOLDINGS) PLC
                                   ('EUROPA')
                          SPUDDING OF BILCA-2, ROMANIA

                                                                 24 January 2005

Europa Oil & Gas (Holdings) plc, the independent oil & gas exploration and
production group with assets in the UK and continental Europe, today announces
the spudding of the Bilca-2 well in northern Romania.  The well, situated on the
Brodina Block, is an appraisal of the western part of the 2004 gas discovery
which flowed in excess of 6mmscfd.  If successful, this well will be suspended
as a future producer and along with Bilca-1 will form the core of a field
development programme due to come onstream in late 2005.

Paul Barrett, Managing Director of Europa, said:

'Brodina lies in the prospective Carpathian Oil Province, which spans Poland,
Ukraine and Romania, occupying a key strategic location close to European
markets.  We expect to follow Bilca-2 with further exploratory drilling in the
Carpathians.'


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



See also see www.europaoil.com


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




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