Europa to Use Drawdown for Crosby Warren Upgrade

Europa Oil & Gas has drawn down a further £95,000 of the share finance facility entered into with the Headstart Group in exchange for 501,253 new ordinary shares.

Following the allotment, the total number of shares in issue will be 62,023,919 ordinary shares. Application will be made for the new shares to be admitted to AIM. It is expected that dealings in the new shares will commence on 12th December 2006.

The funds will be used to upgrade the facilities at the newly acquired Crosby Warren Oilfield in the East Midlands Oil Province. It is expected that production at the field, which produced on average 35 bopd last year, will increase significantly once the upgrade and operational synergies with the West Firsby Oilfield, operated by Europa, are completed.

The Company is not anticipating further drawdown of the finance facility in the near future. The Company is currently generating strong cash flow from its East Midlands and Romanian production, which will be used to fund its 2007 drilling program comprising up to 6 wells.

Paul Barrett, Managing Director, commented, "The Headstart finance facility enabled the Company to take advantage of an opportunity without calling on funds earmarked for exploration and appraisal drilling. The Company is moving steadily closer to its 1,000 boepd near-term production target."

Europa Oil & Gas (Holdings) plc focuses on the production and exploration of hydrocarbons in Europe and North Africa. Europa currently produces over 600 barrels of oil equivalent per day from its operations in the UK, Romania and the Ukraine. Operating a balanced portfolio, Europa also has field appraisal and exploration activity on a number of projects in the UK and Romania and a new ventures program across Europe and the North African region.