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