Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas  

    27 September 2016

              Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')          

                         Sale of Interest in Wressle Discovery                     

    Europa Oil & Gas (Holdings) plc, the AIM traded oil and gas exploration,
    development and production company focused on Europe, is pleased to announce it
    has signed a Sale and Purchase Agreement (`SPA') in relation to its 33.34%
    interest in PEDL180 and PEDL182 ('the Licences') in North Lincolnshire with
    Union Jack Oil plc ('UJO').  The Licences cover the Wressle discovery (PEDL180)
    and the Broughton North prospect (PEDL182).

      * Under the terms of the SPA, UJO will acquire a 3.34% working interest in
        the Licences from Europa for a cash consideration of £600,000
      * The transaction implies a £5.4 million mark to market for Europa's
        remaining 30% interest in the Licences

      * Wressle is anticipated to commence production at a gross rate of 500 bopd
        in early 2017
      * Europa's anticipated net share of 150 bopd from Wressle is expected to more
        than double existing production from the West Firsby and Crosby Warren
        fields and Whisby-4 well
      * Summary details of a Competent Persons Report compiled by ERC Equipoise
        Limited ('ERCE') were published by Europa and its partners in respect of
        Wressle and the Broughton North Prospect on 26 September 2016
      * Subject to approval of the assignment of interest from the Oil & Gas
        Authority, Europa will retain a 30.00% interest in the Licences alongside
        Egdon Resources UK Limited (25.00%), Celtique Energie Petroleum Limited
        (33.33%) and Union Jack Oil plc (11.67%)

    Europa CEO Hugh Mackay said, "We consider this transaction to represent a
    sensible monetisation of part of the asset now it has been largely de-risked,
    whilst still retaining sizeable exposure to production and upside on the other
    reservoirs.  Importantly, this transaction provides investors with a point of
    reference for the value of our remaining 30% interest in the Licences.  At £5.4
    million our 30% interest in these two licences accounts for almost half our
    current market capitalisation.

    "PEDL180 and 182 are just two of a portfolio of licences we hold.  These
    include three UK onshore fields which in H1 produced 124 boepd net to Europa;
    PEDL143 containing the Holmwood prospect in the Weald Basin, which we rate as
    the best undrilled conventional prospect onshore UK; and seven licences
    offshore Ireland which we estimate to have gross mean un-risked prospective and
    indicative resources of more than 4 billion barrels of oil equivalent and 1.5
    tcf of gas.   The funds released will be used to fund our share of drilling the
    Holmwood exploration well in PEDL143, which we anticipate drilling in 2017
    subject to obtaining the relevant permits and permissions. In the meantime, we
    continue with our strategy to advance and monetise our multistage portfolio of
    licences, and in the process generate value for our shareholders."

    Europa's net interests following this transaction are tabulated below:

    Table summarising gross volumes at Wressle and Broughton North along with net
    volumes attributed to Europa's interests before and after transaction

                                                 Gross                            Net Volumes           
                                                 Volumes                          attributable          
                                                                                  to Europa             
                                                                                  before                
                                                                                  transaction           
                                                                                                        
                                  Oil MMstb      Gas      Oil and  Oil MMstb      Gas                   
                                                 Bscf     Gas*                    Bscf          Oil and 
                                                          MMboe                                 Gas*    
                                                                                                MMboe   
                                                                                                        
    Wressle                                                                                             
    2P Ashover Grit  and          0.62           0.20     0.65     0.21           0.07          0.22    
    Wingfield Flags                                                                                     
                                                                                                        
    2C Penistone Flags                                                                                  
                                  1.53           2.00     1.86     0.51           0.67          0.62    
                                                                                                        
                                                                                                        
    Broughton North               0.51           0.51     0.60     0.17           0.17          0.20    
    Mean Unrisked  Prospective                                                                          
    Resources                                                                                           

       

                                                 Gross                            Net Volumes           
                                                 Volumes                          attributable          
                                                                                  to Europa             
                                                                                  after                 
                                                                                  transaction           
                                                                                                        
                                  Oil MMstb      Gas      Oil and  Oil MMstb      Gas                   
                                                 Bscf     Gas*                    Bscf          Oil and 
                                                          MMboe                                 Gas*    
                                                                                                MMboe   
                                                                                                        
    Wressle                                                                                             
    2P Ashover Grit  and          0.62           0.20     0.65     0.19           0.06          0.20    
    Wingfield Flags                                                                                     
                                                                                                        
    2C Penistone Flags                                                                                  
                                            1.53 2.00     1.86     0.46           0.60          0.56    
                                                                                                        
                                                                                                        
    Broughton North               0.51           0.51     0.60     0.15           0.15          0.18    
    Mean Unrisked  Prospective                                                                          
    Resources                                                                                           

    *Gas converted to oil equivalent using 6 Bscf/MMboe conversion and added to oil
    volume

    Glossary:

    Some of the terms used in this announcement are defined below. A more
    exhaustive glossary is contained in ERCE's letter to Europa's Board of
    Directors summarising the findings of their CPR has been published on the
    Company's website (www.europaoil.com).

    Proved Reserves

    Proved  Reserves  are  those  quantities  of  petroleum,  which  by  analysis 
    of  geoscience  and  engineering data,  can  be  estimated  with  reasonable
    certainty  to  be  commercially  recoverable,  from  a  given  date forward, 
    from  known  reservoirs  and  under  defined  economic  conditions,  operating 
    methods,  and government regulations.

    If deterministic methods are used, the term reasonable certainty is intended to
    express a high degree of confidence that the quantities will be recovered.  If
    probabilistic methods are used, there should be at least a 90% probability that
    the quantities actually recovered will equal or exceed the estimate. The area
    of the reservoir considered as Proved includes:

      * the  area  delineated  by  drilling  and  defined  by  fluid  contacts, 
        if  any,  and
      * adjacent  undrilled  portions  of  the  reservoir  that  can  reasonably 
        be  judged  as  continuous with  it  and  commercially  productive  on 
        the  basis  of  available  geoscience  and  engineering data

    In the absence of data on fluid contacts, Proved quantities in a reservoir are
    limited by the lowest known hydrocarbon  (LKH)  as  seen  in  a  well 
    penetration  unless  otherwise  indicated  by  definitive  geoscience,
    engineering,  or  performance  data.  Such definitive  information  may 
    include  pressure  gradient  analysis and  seismic  indicators.  Seismic  data 
    alone  may  not  be  sufficient  to  define  fluid  contacts  for  Proved
    Reserves  (see  "2001  Supplemental  Guidelines,"  Chapter  8).  Reserves  in 
    undeveloped  locations  may  be classified as Proved provided that the
    locations are in undrilled areas of the reservoir that can be judged with
    reasonable certainty to be commercially productive and interpretations of
    available geoscience and engineering  data  indicate  with  reasonable 
    certainty  that  the  objective  formation  is  laterally  continuous with
    drilled Proved locations.  For  Proved  Reserves,  the  recovery  efficiency 
    applied  to  these  reservoirs  should  be  defined  based  on  a range  of 
    possibilities  supported  by  analogues  and  sound  engineering  judgment 
    considering  the characteristics of the Proved area and the applied development
    programme.

    2P 

    Proved + Probable, a best estimate category of Reserves.

    Contingent Resources 

    Contingent  Resources  are  those  quantities  of  petroleum  estimated,  as 
    of  a  given  date,  to  be  potentially recoverable  from  known 
    accumulations  by  application  of  development  projects,  but  which  are 
    not currently considered to be commercially recoverable due to one or more
    contingencies.

    Contingent  Resources  may  include,  for  example,  projects  for which 
    there  are  currently  no  viable markets,  or  where  commercial  recovery 
    is  dependent  on  technology  under  development,  or  where evaluation  of 
    the  accumulation  is  insufficient  to  clearly  assess  commerciality. 
    Contingent  Resources  are further  categorized  in  accordance  with  the 
    level  of  certainty  associated  with  the  estimates  and  may  be sub?
    classified based on project maturity and/or characterized by their economic
    status.

    2C 

    A best estimate category of Contingent Resources.

    Prospective Resources 

    Prospective  Resources  are  those  quantities  of  petroleum   which  are 
    estimated,  as  of  a  given  date,  to  be potentially recoverable from
    undiscovered accumulations. Potential accumulations are evaluated according to
    their chance of discovery and, assuming a discovery, the  estimated 
    quantities  that  would  be  recoverable  under  defined  development 
    projects.  It  is recognized  that  the  development  programs  will  be  of
    significantly  less  detail  and  depend  more  heavily on analog developments
    in the earlier phases of exploration.

                                     * * ENDS * *                                  

    For further information please visit http://www.europaoil.com/ or contact:

    Hugh Mackay       Europa                        + 44 (0) 20 7224    
                                                    3770                
                                                                        
    Phil Greenhalgh   Europa                        + 44 (0) 20 7224    
                                                    3770                
                                                                        
    Matt Goode        finnCap Ltd                   + 44 (0) 20 7220    
                                                    0500                
                                                                        
    Simon Hicks       finnCap Ltd                   + 44 (0) 20 7220    
                                                    0500                
                                                                        
    Frank Buhagiar    St Brides Partners Ltd        + 44 (0) 20 7236    
                                                    1177                
                                                                        
    Susie Geliher     St Brides Partners Ltd        + 44 (0) 20 7236    
                                                    1177                

    Notes

    Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
    hydrocarbon assets that includes production, exploration and development
    interests, in countries that are politically stable, have transparent licensing
    processes, and offer attractive terms.  In H1 2016 Europa produced 124 boepd. 
    Its highly prospective exploration projects include the Wressle development
    (targeting production start-up in early 2017 at up to 500 bopd gross) in the
    UK; 100% owned gas exploration prospect (107 bcf) and appraisal project (CPR
    277 bcf) in onshore France, a joint venture with Vermilion Energy also in
    onshore France; and seven licences offshore Ireland with the potential to host
    gross mean un-risked prospective and indicative resources of more than 4
    billion barrels oil equivalent and 1.5 tcf gas across all seven licences.

    Qualified Person Review

    This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
    is a petroleum geologist with 30 years' experience in petroleum exploration and
    a member of the Petroleum Exploration Society of Great Britain, American
    Association of Petroleum Geologists and Fellow of the Geological Society. Mr
    Mackay has consented to the inclusion of the technical information in this
    release in the form and context in which it appears.