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License Update
License Update.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nFor Release - 5 June 2006\n\n Europa Oil & Gas (Holdings) plc \n\n Licence Update \n\nThe Directors of Europa Oil & Gas (Holdings) plc, the production and\nexploration company, are pleased to announce that the Romanian National Agency\nfor Mineral Resources has approved an extension of up to three years and change\nof Operatorship for the EPI-3 concession. Europa will operate the concession,\nsituated in the East Carpathians, with a 33.3% working interest, Czech partner\nMND holding the remainder. A side agreement gives Europa an 80% beneficial\ninterest in the eastern part of the block, containing the Costisa-1Z well, and\na 20% interest in the western part of the block.\n\nBoth Europa and MND recognise further prospectivity in the Block, which lies\nimmediately north of the Moinesti oilfields and immediately west of the 600bcf\nRoman gasfield. Testing the Burdigalian gas shows encountered in Costisa-1Z is\nan initial priority with the re-entry and testing of these gas sands\nanticipated to take place in summer 2006. Further potential around the Geamana\nand Tazlaul Mare fields will also be assessed.\n\nCostisa-1Z was suspended for later re-entry in December 2005, following\nencountering strong gas shows in Burdigalian sands at a depth of approximately\n1,000 metres. It was not technically justifiable to test these sands in the\noriginal borehole, as they had been exposed to heavy drilling muds for over\nthree months before being logged and cased. Consequently, a short sidetrack\naway from the damaged zone is planned with a drill stem test.\n\nWhilst the logs were of poor quality due to excessive borehole size in the\noriginal hole, they confirmed the gas shows were from the upper 25 metres of a\n50 metre sandstone-prone unit with up to 20% porosity. If the initial test is\nsuccessful, it could be extended to provide detailed reservoir performance data\nand the gas exported into the nearby pipeline system.\n\nPaul Barrett, Managing Director, said \"I am personally looking forward to this\ntest with great anticipation. There are indications on the seismic data that\nthis play extends northwards from Costisa. If successful, its modest depth and\nproximity to the gas pipeline system will minimise development costs\".\n\nAbout Europa Oil & Gas (Holdings) plc\n\nEuropa Oil & Gas (Holdings) plc - AIM: EOG - focus...