Hykeham-1 to be completed

Hykeham-1 to be completed

The Directors of Europa Oil & Gas (Holdings) plc are pleased to announce that
the Hykeham-1 exploration well has reached a final total depth of 1,110m in a
sidetracked wellbore, having encountered encouraging oil shows from 18m gross
thickness of Basal Sandstone reservoir. The well is located in the PEDL150
licence, southwest of Lincoln, where Europa holds a 75% working interest.

Live oil was encountered at the shakers during drilling and on the drillstring
during preparations for logging. Wireline log analysis indicates that
approximately 4m net thickness of Basal Sandstone is oil-bearing and the well
will be completed in preparation for production testing. The Basal Sandstone
unit calculating as oil pay is directly analogous to the producing interval in
the nearby Whisby Field, which has produced some 700,000 barrels of oil to
date.

The forward programme is to run and cement casing, then demobilise the drilling
unit. Following installation of temporary production equipment, the zone will
be perforated and an extended well test performed. This is expected to commence
in January.

Paul Barrett, Managing Director of Europa, said `This is certainly exciting
news and we look forward to testing this zone that will hopefully contribute
strongly to reaching our near-term production level target of 500bopd.'

For further information, please contact:

Paul Barrett Europa Oil & Gas [phone]

Jonathan Wright Seymour Pierce [phone]

The technical information and opinions contained in this announcement have been
reviewed by Dr. Erika Syba, Europa's Operations Director, who has 25 years of
experience in the oil exploration and production industry. She has consented to
the inclusion herein of such technical information and opinions.