Farm-in Agreement

Europa Oil & Gas (Holdings) PLC
13 October 2005



                        Europa Oil & Gas (Holdings) plc

                   Farm-in agreement with Valhalla Oil & Gas


The Directors of Europa Oil & Gas (Holdings) plc ('Europa') are pleased to
announce that they have entered into a farm-in agreement with Valhalla Oil & Gas
Limited ('Valhalla') in connection with UK onshore licence PEDL 150, which is
currently wholly owned by Europa.

PEDL 150 covers an area to the south and west of Lincoln and surrounds the
producing Whisby Oilfield, in which Europa also has a significant interest.

Under the farm-in agreement, Valhalla will undertake the reprocessing of the
existing seismic database on the licence and fund the acquisition of 40 km of
new 2D seismic data, which is likely to take place in early 2006.  By
undertaking this work, Valhalla will earn a 25 per cent. interest in the licence
with an option to earn a further 25 per cent. by funding 50 per cent. of the
cost of an exploration well.

Europa and Valhalla both recognise the exploration potential of the licence,
primarily based on a prospecting model developed from the results of the
production well drilled on the Whisby Oilfield in 2003.  A geochemical survey,
acquired by Europa earlier this year, has high-graded areas of prospectivity on
the licence which will be the focus of the 2006 seismic programme.

Europa will remain Operator of the licence.  The transaction is subject to DTI
consent.

Paul Barrett, Europa's Managing Director said 'We believe this is a compelling
deal for both parties: Valhalla gains an entry into quality exploration in a
proven oil province whilst Europa can participate in an exciting exploration
programme at a much reduced cost.'


Editor's note:

Valhalla Oil & Gas Limited is a wholly-owned subsidiary of Valhalla Oil & Gas
AS, a private Norwegian oil and gas exploration and production company.  It
currently has interests in the UK North Sea and offshore West of Ireland.


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