Production Update

Production Update

Europa Oil & Gas, the AIM-listed production and exploration company (AIM: EOG)
is pleased to provide an update of its oil & gas production as at the end of
2006:

Total net oil and gas production for December 2006 was 587 boepd, comparing
extremely favourably to that in the same period in 2005, when production
totalled 235 boepd. Total net production volume in oil equivalent for the 2006
calendar year was 114,000 boe, of which 75% was UK oil production.

In Romania, production continued at a steady 6.2 mmscfpd from the Bilca
production facilities, resulting in a net production to Europa of 1.8 mmscfpd
(300 boepd). Cumulative gross production since start-up has been almost 500
mmscf (83,000 boe).

Net production from the Company's three UK onshore oil developments totalled
265 bopd in December, comprising 106 bopd from West Firsby, 89 bopd from Whisby
and 70 boepd from Crosby Warren. Production at Crosby Warren is more than
double that for the same period in 2005 prior to Europa's acquisition of the
field. A combination of 24 hour operations and more rigorous oilfield working
practice is responsible for this increase and represents the first phase of
field re-development.

In Ukraine, the company is producing at approximately 22 boepd into underground
gas storage, where it currently holds 25 mmscf of gas.

Managing Director, Paul Barrett, said "I am particularly pleased with these
increased revenues from our production operations which will support our
near-term drilling programme going into 2007. We are anticipating a strong
drilling programme through 2007 in our Romania and UK core areas."

Reviewed by a Qualified Person

The technical information and opinions contained in this announcement have been
reviewed by Paul Barrett, Managing Director of Europa Oil & Gas, who is a
geologist with 26 years of relevant experience in the upstream oil and gas
industry.

For further information, contact:

Paul Barrett, Managing Director, Europa Oil & Gas [phone]

Jonathan Wright or Parimal Kumar, Seymour Pierce [phone]