Spudding of Costisa-1

Europa Oil & Gas (Holdings) PLC
07 February 2005


                        EUROPA OIL & GAS (HOLDINGS) PLC
                                   ('EUROPA')

                         SPUDDING OF COSTISA-1, ROMANIA


                                                                07 FEBRUARY 2005

Europa Oil & Gas (Holdings) plc, the independent oil & gas exploration and
production group with assets in the UK and continental Europe, today announces
the spudding of the Tullow-operated Costisa-1 exploration well in Block EPI-3,
situated in the Eastern Carpathians of Romania.  This well is anticipated to go
to a depth of 4,100 metres and will investigate a prospect at both Sarmatian and
Badenian levels with potential combined reserves of up to 105 mmboe (16 mmboe
net to Europa)*.  The Badenian play has been proven in the Frasin Gasfield
(30mmboe), situated 70km north of the Block, whereas the Sarmatian play has been
very successful in the area of the nearby giant Roman Gasfield complex
(150mmboe).


Additional potential in the underlying Mesozoic section will also be
investigated with this well.  The Mesozoic platform play has been proven to the
north in Ukraine with the Lopushna Oilfield (50mmbo).


The Costisa-1 well will take an estimated 3 months to reach these objectives.


* Operator's estimate


Paul Barrett, Managing Director of Europa, said:


'The Costisa-1 well is the culmination of intensive exploration efforts
involving the acquisition of substantial seismic and geochemical data.  The
Costisa prospect is a large structural closure and there is the potential to
more than double the company's reserve base.'


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 (020 7601 6100)

Bill Staple / Tim Feather

Notes to Editors


Europa began trading on the AiM market 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 330 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 Park      75%
                    Ukraine      Horodok Field                               Europa              70%

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

Exploration         UK           TQ14 Holmwood (pending)                     Europa              40%
                    UK           Whisby Area Exploration (pending)           Europa              100%
                    Romania      EPI-8 Valeni de Munte                       Tullow Oil          15%
                    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                              Medusa              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


                      This information is provided by RNS
            The company news service from the London Stock Exchange