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