Award of Licences

EUROPA OIL & GAS (HOLDINGS) PLC                        

                      AWARD OF LICENCES IN WESTERN SAHARA                      

Europa Oil & Gas (Holdings) plc ("Europa") is pleased to announce it has been
awarded exploration acreage in Western Sahara, situated between Mauritania and
Morocco, Algeria and the Atlantic Ocean. The Western Saharan government has
been actively promoting oil and gas licensing to encourage modern exploration
efforts in this under-explored territory.

Europa has been awarded a 100% interest in two blocks in geologically
contrasting areas, totaling approximately 80,000 km2 (equivalent to roughly
half of the licensed area of the UK Central and Northern North Sea):

  * the Bir Lahlou Block is located in the southern part of the Tindouf Basin,
    a Lower Palaeozoic basin system stretching northeastwards into Algeria.
    Although unexplored, it has similarities with the world-class Ghadames
    Lower Palaeozoic-sourced petroleum system in central Algeria.
   
  * the Hagunia Block encompasses a large area of the onshore part of the
    Atlantic margin coastal basin system. No significant exploration has taken
    place, though a promising Cretaceous deltaic package over 3km thick is
    present in the basin. Hydrocarbons have been discovered just to the north
    at Cap Juby and notably recently in Cretaceous sands in the north of
    Mauritania.
   
Paul Barrett, Europa's Managing Director, said, "These are extremely large
exploration tracts and the strong similarities to nearby proven hydrocarbon
systems make this new venture a very exciting project. Substantial work will be
required to ready these areas for drilling, but we are confident that high
quality prospects will emerge."

Further information on the oil and gas activities in Western Sahara can be
obtained on the government website, www.sadroilandgas.com.

Further information on Europa can be obtained at www.europaoil.co.uk.

For further information, please contact:

Europa Oil & Gas (Holdings) plc                             [phone]
                                                                             
Paul Barrett                                                                 
                                                                             
Westhouse Securities LLP                                     [phone]
                                                                             
Tim Feather