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

    22 August 2016

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

              Technical Update on Licensing Option 16/22, Offshore Ireland         

    Europa Oil & Gas (Holdings) plc, the AIM listed oil and gas exploration,
    development and production company focused on Europe, is pleased to provide
    detailed technical information on the recently awarded Licensing Option ('LO')
    16/22.  Europa has a 100% interest in, and is operator of, seven licences in
    the Atlantic basins offshore Ireland including LO 16/22, which covers 992km2 in
    the Padraig Basin.

    Highlights

      * Gross mean un-risked indicative resources in the range of 300-600 million
        barrels of oil equivalent
      * Padraig Basin is a remnant Jurassic basin on the eastern margin of the
        Rockall Trough
      * Most relevant analogue is the conjugate margin play offshore Newfoundland
        in the Flemish Pass Basin
      * Good quality 1998 2-D seismic suggests structures of significant size
      * Multiple leads mapped in water depths ranging from 800-2,000m in both
        Pre-rift and Syn-rift hydrocarbon plays
      * Strategy to expedite exploration by securing a farm-in partner with which
        to reprocess historic 2-D seismic over LO 16/22 and to mature leads to
        drillable prospect status

    Europa CEO Hugh Mackay said, "Following Statoil's exploration success at the
    play-opening Bay du Nord oil discovery in the Flemish Pass basin offshore
    Newfoundland there is considerable industry interest in Flemish Pass analogues
    being found offshore west Ireland.  Whilst most of the industry is currently
    focused on exploring for this play in the South Porcupine basin our restoration
    of the conjugate margin prior to Atlantic seafloor spreading suggests the
    possibility that the Padraig basin may be a better fit with the Flemish Pass
    basin.

    "The potential of the Flemish Pass play in Ireland is currently being pioneered
    in the South Porcupine basin by the oil majors.  If they achieve exploration
    success we expect there will be clear technical read across to, and potentially
    de-risking of, our Padraig licence and in due course this might encourage a
    second phase of drilling in the perched basins on the Rockall margin.  Whilst
    the Padraig Basin play is currently at an early exploration stage and at the
    higher risk end of the exploration spectrum, we have a work programme to
    de-risk this evolving play.  In particular we are hopeful that successful
    reprocessing of historic 2-D seismic might allow us to mature existing leads to
    drillable prospect status at comparatively low cost and without the necessity
    to acquire new seismic data."

    A map can be found on Europa's website detailing the location of all seven of
    Europa's offshore Ireland licences.  Please click on the link below or copy and
    paste this into your browser: http://www.europaoil.com/documents/
    160607EuropaIrishLicences_002.pdf.

    An updated concession map can be found on the Department of Communications,
    Climate Action and Environment (DCCAE) website at:  http://www.dccae.gov.ie/
    natural-resources/SiteCollectionDocuments/
    Oil-and-Gas-Exploration-and-Production/A0_Concession_Map_Jul2016.pdf.

    Further Information

    LO 16/22 was awarded to Europa as part of Phase 2 of the 2015 Atlantic Margin
    Licensing Round (see announcements of 3 June and 8 June 2016).

    The duration of LO 16/22 is three years, effective from 1 June 2016.  Following
    the completion of a work programme, Europa has the option to apply to the Irish
    authorities for their consent to convert the LO into a full Frontier
    Exploration Licence ('FEL').

    During the period of the Licensing Option Europa will further mature the
    prospect inventory and will seek a farm-in partner with which to convert to an
    FEL, reprocess a 2-D seismic survey and in due course drill an exploration well
    (subject to a positive technical and commercial outcome from the 2-D seismic
    reprocessing, prospect mapping and prospect inventory).

    The licence lies on the eastern margin of the Rockall basin.  It contains a
    number of exploration leads in water depths of 800-2,000m.  The licence is some
    300km west of the Irish coast and some 150km to the west of the Spanish Point
    and Burren discoveries.  Whilst the location offers some logistical challenges
    these are considered no more difficult than the western flank of the South
    Porcupine basin where substantial exploration activity is already taking place.

    The Pre-rift oil play comprises Lower and Middle Jurassic sandstone reservoirs
    in large tilted fault block structures with Jurassic source rocks.  It is also
    possible that the Triassic gas play could be developed, however, oil would be
    the preferred hydrocarbon type in this location.

    The Syn-rift play comprises Upper Jurassic source rocks that provide the
    pre-eminent source rock around the North Atlantic hydrocarbon province commonly
    charging both Pre-rift reservoirs and Upper Jurassic shallow marine, fan, and
    slope apron sandstone reservoirs. Traps are tilted fault blocks.

    There are a number of relevant historic 2-D seismic surveys available over the
    licence.  The most important data set was shot for Phillips Petroleum in 1998.
    These data are of good intrinsic quality and would, the Company believes,
    respond well to modern reprocessing.  It is hoped that a successful outcome to
    seismic reprocessing of the 2-D data could mature leads to drillable prospect
    status without the necessity for acquisition of new seismic data.

    In due course Europa will seek a farm-in partner with which to reprocess
    seismic, mature leads to drillable prospect status and, if justified, drill a
    Padraig basin exploration well.  The immediate priority is to farm-out Europa's
    South Porcupine licences FELs 2/13 and 3/13 and LOs 16/2 and 16/19.

    Flemish Pass Basin

    The Flemish Pass basin is located in the Atlantic Ocean some 400km east of St
    John's in Newfoundland, Canada.  It is adjacent to the Jeanne d'Arc basin which
    hosts oil production from the Hibernia, White Rose and Hebron fields in shallow
    water depths.  Water depths in the Flemish Pass basin range from 500-1,500m and
    environmental conditions are considered harsh.  The Flemish Pass play comprises
    Syn-rift Jurassic sandstone reservoirs in structural traps with closely
    associated contemporaneous source rocks.

    Whilst exploration drilling has been conducted in the basin since the 1980s it
    was not until Statoil's Bay du Nord oil discovery in 2013 that exploration
    activity substantially increased. In 2013 Bay du Nord was reported as
    potentially holding resources of 300-600 million barrels of oil equivalent and
    was considered to be the largest exploration discovery in the world that year.

    This exploration success stimulated further exploration activity.  Statoil
    undertook a nine well drilling campaign including exploration and appraisal
    drilling.  Two new discoveries were made at Bay du Verde and Baccalieu and it
    was reported that the volumes at Bay du Nord were within the original volume
    estimate of 300-600 million boe but potentially toward the lower end of the
    range.  During 2015 new exploration licences were awarded to mostly major and
    super-majors including Statoil, Exxon, Chevron, BP, BG and Nexen.  Work
    programmes to the value of C$1.9 billion were committed to and including cash
    payments of C$450 million.  Some of these companies have also recently been
    awarded licences in the South Porcupine Basin in Ireland and it seems
    reasonable to assume that their technical insights from Flemish Pass may have
    influenced their applications in Ireland.

    Prior to seafloor spreading and the creation of the North Atlantic, Ireland and
    Canada were joined together and formed part of the same conjugate margin.  As
    the North Atlantic began to spread open, various sedimentary basins were
    created and into which were deposited sandstones reservoirs and mudstone source
    rocks.  In some of the basins such as Flemish Pass the combination of
    reservoir, source and trap has been found by exploration drilling in the right
    circumstances to deliver potentially commercial hydrocarbon discoveries. In
    other basins such as the South Porcupine whilst the "ingredients" of reservoir,
    trap and source are known to exist individually the lack of exploration
    drilling means than they have not yet been found combined in a potentially
    commercial discovery, were these to exist.

    Atlantic basin portfolio

    Europa has seven licences in three basins in the Atlantic basins offshore
    Ireland.  The combined gross mean un-risked prospective and indicative
    resources of more than 4 billion boe and 1.5 TCF gas.

                                                        gross mean un-risked   
                                                     prospective and indicative
                                                             resources         
                                                                               
    Licence  Europa     area km2    Basin     Term    Oil millon     Gas TCF   
             equity                                       boe                  
                                                                               
    FEL 2/13 100%          768      South     Phase       595                  
             operator               Porcupine 1 of                             
                                              15 yr                            
                                                                               
    FEL 3/13 100%          782      South     Phase      1,500                 
             operator               Porcupine 1 of                             
                                              15 yr                            
                                                                               
    LO 16/2  100%          523      South     2 yr        895                  
             operator               Porcupine                                  
                                                                               
    LO 16/19 100%          976      South      2 yr       700                  
             operator               Porcupine                                  
                                                                               
    LO 16/20 100%          945      Slyne     3 yr                      1      
             operator               Basin                                      
                                                                               
    LO 16/21 100%          832      Slyne     3 yr                     0.5     
             operator               Basin                                      
                                                                               
    LO 16/22 100%          992      Padraig   3 yr        500                  
             operator                                                          
                                                                               
              total           5,818                          4,190     1.5     

                                     * * ENDS * *                                  

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

    Hugh Mackay Europa                + 44 (0) 20 7224    
                                      3770                
                                                          
    Phil        Europa                + 44 (0) 20 7224    
    Greenhalgh                        3770                
                                                          
    Matt Goode  finnCap Ltd           + 44 (0) 20 7220    
                                      0500                
                                                          
    Simon Hicks finnCap Ltd           + 44 (0) 20 7220    
                                      0500                
                                                          
    Frank       St Brides Partners    + 44 (0) 20 7236    
    Buhagiar    Ltd                   1177                
                                                          
    Susie       St Brides Partners    + 44 (0) 20 7236    
    Geliher     Ltd                   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 2015 Europa produced 141 boepd.  Its
    highly prospective exploration projects include the Wressle development
    (targeting production start-up in H2 2016 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.