Europa Oil & Gas Closer to Approval for the Bearn des Gaves Permit

Europa Oil & Gas reports that their application for an exploration permit in the Aquitaine Basin of southwest France, the Bearn des Gaves permit, has now passed the 90 day period allowed for competitive bids. The exclusive award of the exploration license to Europa is now subject to government approval and is expected early in 2007.

The application, which covers an area of 928 km2, lies immediately west of the Lacq and Meillon Gasfields, the discoveries that made Elf Aquitaine over 50 years ago, which contain combined estimated initial recoverable gas reserves of 12 trillion cubic feet. Europa plans to investigate the western continuation of the Lacq play, evidence for this coming from a gas discovery in the permit area at Berenx. In addition, there is potential for oil accumulations in the northern part of the permit area.

The vast majority of wells drilled in the area were drilled in the 1950's and 1960's and were based on now obsolete exploration concepts. Modern exploration methods will greatly improve the chances of finding significant hydrocarbon reserves in an area close to markets and with a well-developed infrastructure.

Paul Barrett, Managing Director, said 'With this award, we will have the potential for substantial gas reserves in an area of onshore western Europe. Proximity to existing processing and export infrastructure would allow a short lag time between discovery and cashflow. We are looking forward to working this acreage with great anticipation'.

Europa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production and exploration of hydrocarbons in Europe and North Africa. It currently produces 210 barrels of oil per day from UK onshore fields and 25 barrels of oil equivalent from the Ukraine. Production will rise significantly after its Romanian Bilca Gas Project comes onstream in September 2006. Operating a balanced portfolio, Europa currently has field appraisal activity on projects in the UK Southern Gas Basin and onshore Romania and exploration activity on a further eight licenses across the Europe - North Africa region.