License Update

For Release - 5 June 2006

                        Europa Oil & Gas (Holdings) plc                        

                                Licence Update                                 

The Directors of Europa Oil & Gas (Holdings) plc, the production and
exploration company, are pleased to announce that the Romanian National Agency
for Mineral Resources has approved an extension of up to three years and change
of Operatorship for the EPI-3 concession. Europa will operate the concession,
situated in the East Carpathians, with a 33.3% working interest, Czech partner
MND holding the remainder. A side agreement gives Europa an 80% beneficial
interest in the eastern part of the block, containing the Costisa-1Z well, and
a 20% interest in the western part of the block.

Both Europa and MND recognise further prospectivity in the Block, which lies
immediately north of the Moinesti oilfields and immediately west of the 600bcf
Roman gasfield. Testing the Burdigalian gas shows encountered in Costisa-1Z is
an initial priority with the re-entry and testing of these gas sands
anticipated to take place in summer 2006. Further potential around the Geamana
and Tazlaul Mare fields will also be assessed.

Costisa-1Z was suspended for later re-entry in December 2005, following
encountering strong gas shows in Burdigalian sands at a depth of approximately
1,000 metres. It was not technically justifiable to test these sands in the
original borehole, as they had been exposed to heavy drilling muds for over
three months before being logged and cased. Consequently, a short sidetrack
away from the damaged zone is planned with a drill stem test.

Whilst the logs were of poor quality due to excessive borehole size in the
original hole, they confirmed the gas shows were from the upper 25 metres of a
50 metre sandstone-prone unit with up to 20% porosity. If the initial test is
successful, it could be extended to provide detailed reservoir performance data
and the gas exported into the nearby pipeline system.

Paul Barrett, Managing Director, said "I am personally looking forward to this
test with great anticipation. There are indications on the seismic data that
this play extends northwards from Costisa. If successful, its modest depth and
proximity to the gas pipeline system will minimise development costs".

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 onstream 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 Oil & Gas (Holdings) plc [phone]

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

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