Costisa well update

Europa Oil & Gas (Holdings) PLC
01 August 2005



                        EUROPA OIL & GAS (HOLDINGS) PLC

                        COSTISA EXPLORATION WELL UPDATE


The Costisa-1 exploration well, situated in the Brates Exploration Block (Europa
interest 15%) in northern Romania, has reached a depth of 3,239m (10,626 feet)
and 9 5/8' casing has been run and cemented to a depth of 3,228m.

Paul Barrett, Managing Director, said, 'With the long section of open hole
(2,500m) now safely behind casing, we are confident that progress will now be
easier as we approach the main target horizons, estimated to lie between 3,500
and 4,100m.'


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 (0161 838 9140)
Tim Feather


Notes to Editors

Europa began trading on AiM 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 260 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            65%
                                                       Park
              Ukraine   Horodok Field                  Europa               70%

Development   UK        41/24 & 41/25                  Europa              100%
              Romania   Brodina EIII-1 (Bilca          Falcon            28.75%
                        Discovery)

Exploration   UK        TQ14 Holmwood                  Europa               40%
              UK        Whisby Area Exploration        Europa              100%
              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                 RWE            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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