Spudding of Costisa-1

Europa Oil & Gas (Holdings) PLC 07 February 2005 EUROPA OIL & GAS (HOLDINGS) PLC ('EUROPA') SPUDDING OF COSTISA-1, ROMANIA 07 FEBRUARY 2005 Europa Oil & Gas (Holdings) plc, the independent oil & gas exploration and production group with assets in the UK and continental Europe, today announces the spudding of the Tullow-operated Costisa-1 exploration well in Block EPI-3, situated in the Eastern Carpathians of Romania. This well is anticipated to go to a depth of 4,100 metres and will investigate a prospect at both Sarmatian and Badenian levels with potential combined reserves of up to 105 mmboe (16 mmboe net to Europa)*. The Badenian play has been proven in the Frasin Gasfield (30mmboe), situated 70km north of the Block, whereas the Sarmatian play has been very successful in the area of the nearby giant Roman Gasfield complex (150mmboe). Additional potential in the underlying Mesozoic section will also be investigated with this well. The Mesozoic platform play has been proven to the north in Ukraine with the Lopushna Oilfield (50mmbo). The Costisa-1 well will take an estimated 3 months to reach these objectives. * Operator's estimate Paul Barrett, Managing Director of Europa, said: 'The Costisa-1 well is the culmination of intensive exploration efforts involving the acquisition of substantial seismic and geochemical data. The Costisa prospect is a large structural closure and there is the potential to more than double the company's reserve base.' 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 (020 7601 6100) Bill Staple / Tim Feather Notes to Editors Europa began trading on the AiM market 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 330 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 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 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