Major Increase in Full Year Production and Reve...

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

15 August 2012

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

  UK Operations Update Including Major Increase in Full Year Production and    
                                   Revenues                                    

Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,
development and production company focussed on Europe, is pleased to provide
the following trading statement and operations update which includes a
significant improvement in full year UK production and revenues for the twelve
months ending 31 July 2012. The Company currently has three producing assets in
the UK, all located onshore in the East Midlands: West Firsby (100% working
interest); Crosby Warren (100% working interest); and the Whisby 4 well (65%
working interest).

Overview:

  * Full year revenue up 34% to £5.1 million (2011: £3.8 million)
   
  * Increase in revenue due to:
   
  * 
      + 19% growth in oil volumes to 72,360 barrels (2011: 60,956 barrels) -
        average daily production including gas sales of 200 barrels of oil
        equivalent per day ("boepd") (2011: 169 boepd) in line with management
        expectations
       
      + 10.5% increase in average oil price achieved to US$110.0 per barrel
        (2011: US$99.4)
       
  * Drilling at either Wressle or Broughton prospects in the UK now expected to
    commence in Q1 2013
   
  * Holmwood prospect planning appeal completed 19 July 2012 - result expected
    in Q4 2012
   
  * 3.7 MMbbl net mean un-risked prospective oil resources for Broughton,
    Wressle and Holmwood as estimated in the recently published Competent
    Person's Report
   
Europa's CEO, Hugh Mackay commented, "I am delighted with the full year
performance of our UK producing assets which, having produced an average of 200
boepd, has hit our production target. The 19% increase in full year volumes to
72,360 barrels compared to the previous year is partly a result of the WF-9
well at West Firsby coming on stream. In addition, our operations team has
implemented a series of initiatives aimed at improving operational efficiency
that have contributed to a reduction in downtime and in turn, a significant
increase in the number of barrels recovered during the year. The higher average
oil price over the period has also undoubtedly been a positive factor in the
34% increase in our revenues.

"In addition to covering the Company's day to day expenses, the revenue
generated by our three fields also funds some of our exploration activity,
including our share of drilling costs at either Wressle or Broughton in the UK
early next year. Whilst drilling will be slightly later than originally
forecast, we continue to rate each prospect as having a one in three chance of
increasing our current production of 200 boepd.

"In the meantime, notwithstanding the wider macroeconomic uncertainties,
negotiations with potential partners looking to participate in our highly
prospective licences, including the potentially large Berenx gas plays in the
Aquitaine basin and our Irish Atlantic Margin interests, are on-going. We look
forward to providing further updates to the market in due course."

Further Information

Our full year audited results are scheduled to be announced during the week
commencing 15 October 2012. These will include full write-offs relating to our
exploration assets in Romania and the Hykeham well in PEDL 150 in the UK,
anticipated to total around £6 million.

Both the Wressle and Broughton prospects in PEDL 180 and 182 are operated by
Egdon Resources who will determine the exact timing of the spud date. It is
expected that the operator will provide further information on these prospects
later this year, following which Europa will also update the market, if
appropriate.

                                 * * ENDS * *                                  

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

Hugh Mackay         Europa                          + 44 (0) 20 7224 3770
                                                                         
Phil Greenhalgh     Europa                          + 44 (0) 20 7224 3770
                                                                         
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 currently produces
approximately 200 barrels per day of oil in the UK, generating sufficient
revenues to cover corporate overheads. In addition, it has highly prospective
exploration projects in the UK, Ireland France and Romania, the most
significant asset being the Berenx gas appraisal project in onshore France.

Qualified Person Review

This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 29 years' experience in petroleum exploration and
management. Mr Mackay has consented to the inclusion of the technical
information in this release in the form and context in which it appears