1st Feb 2005 07:00
Europa Oil & Gas (Holdings) PLC01 February 2005 EUROPA OIL & GAS (HOLDINGS) PLC ("EUROPA") BILCA-2 WELL SUCCESSFUL 01 February 2005 Further to the announcement of 24 January 2005 concerning the spudding of theBilca-2 appraisal well, the Directors of Europa are pleased to announce thatthis well, in Block EIII-1, northern Romania, was successful and is beingcompleted as a gas producer. Bilca-2 is located some 2.5 km west of the 2004 discovery well, Bilca-1. Thesame reservoir sand was encountered in Bilca-2 at a depth of 598 metres and wasfound to have similar electric log characteristics to those in Bilca-1, whichflowed 99.4% methane gas at rates up to 6.4 mmcfd. The area of Bilca-1 & -2 is located approximately 15km north of the city ofRadauti which is connected to the Transgaz regional gas transmission system.Transgaz is currently extending the pipeline towards Bilca and it is expectedthat the two Bilca wells will be tied in via central production facilities laterthis year. Following completion of the Bilca-2 well, the Dafora F100 rig will be moved tothe Fratauti location, also on Block EIII-1, to drill a well on a similarseismic feature to that which identified the Bilca Field. Fratauti is locatedapproximately 7 km south of the Bilca wells and lies close to the extension ofthe pipeline from Radauti. Paul Barrett, Managing Director of Europa, commented: 'The successful result of the second Bilca well allows us to press ahead withthe development of this field and also provides us with the impetus for furtherexploration'. For further information, contact: Europa Oil & Gas (00 33 563 33 18 97)Paul Barrett Citigate Dewe Rogerson (020 7638 9571)Martin Jackson Westhouse Securities LLP (020 7601 6100)Bill Staple / Tim Feather See also see www.europaoil.com Notes to Editors Europa began trading on the AiM market on 11 November 2004. Placing Statistics Placing Price per New Ordinary Share 25 penceNumber of New Ordinary Shares placed 20,000,000Total Proceeds from the Placing (before expenses) £5 millionNumber of Ordinary Shares in issue immediately following Admission 60,000,000Number of Warrants in issue immediately following Admission 10,000,000Market Capitalisation following the Placing at the Placing Price £15 million Production Three projects are currently in production and a further two are awaitingdevelopment. The current attributable production of around 330 boepd isforecast by independent consultants, Scott Pickford, to rise to up to 6,000boepd by 2007. Reserves Scott Pickford has undertaken a review of the oil and gas properties of Europaand concluded that the Group holds 2P reserves and contingent resources of 7million barrels of oil equivalent ("mmboe") and estimated additional unriskedprospective 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 significantEuropean-focused independent upstream oil and gas business. The strategy willbe to continue to grow a balanced exploration and production portfolio withproducing assets generating cashflow, development projects providing low riskpotential 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 ExchangeRelated Shares:
Europa Oil & Gas