3rd Aug 2005 08:30
Europa Oil & Gas (Holdings) PLC03 August 2005 EUROPA OIL & GAS (HOLDINGS) PLC BILCA DEVELOPMENT APPROVAL The Directors of Europa Oil & Gas (Holdings) plc ("Europa"), the independent oiland gas exploration and production group with assets in the UK and ContinentalEurope, are pleased to announce that the Romanian National Agency for MineralResources has approved the development of the Bilca Area Gas Project. Thisproject, in which Europa has an interest of 28.75%, comprises the development ofthe Bilca East and West Fields and the Fratauti Field. Bilca East was discovered in 2004 with the successful Bilca-1 well, which flowed6.3 mmscfpd on test from a single interval. The Bilca-2 well was drilled inearly 2005 and confirmed a separate western extension to the Bilca East Field.Fratauti was discovered in April 2005 and flowed an aggregate of 13.5 mmscfpd ontest from three gas sands. The operator, Falcon Oil & Gas Limited, is anticipating first gas in early 2006.In order to evaluate reservoir performance, the wells will be produced for thefirst six months at reduced rates, at which point the production regime will bere-evaluated. Further gas prospects in the vicinity of Bilca have been identified. Elsewhereon the licence, seismic data is being acquired this year to evaluate theprospectivity to the south of Fratauti. Paul Barrett, Managing Director of Europa, said "The approval of the Bilcaproject is a major step forward in our plans to increase our production base.The cashflow generated by the Bilca project will enable the Company to continueto build its quality portfolio." For further information, contact: Europa Oil & Gas (00 33 563 33 18 97)Paul Barrett Citigate Dewe Rogerson (020 7638 9571)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 awaitingdevelopment. The current attributable production of around 240 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 InterestProducing UK West Firsby Oilfield Europa 100% UK Whisby-4, Whisby Oilfield Blackland Park 65% Ukraine Horodok Field Europa 70% Development UK 41/24 & 41/25 Europa 100% UK Whisby Area Europa 100% Romania Brodina EIII-1 (Bilca Discovery) Falcon 28.75% 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 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:
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