Drawdown on finance facility to upgrade produci...

Client : Europa O&G

Subject : Issue of Equity

Target media : Financial wire + business writers.

Date : 7th December 2006

For immediate release:

                          Europa Oil & Gas (Holdings)                          

            Drawdown on finance facility to upgrade producing field            

Europa Oil & Gas, the AIM-listed production and exploration company (AIM: EOG),
announces that the Company 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
programme 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

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
strong new ventures programme across Europe and the North African region.

For more information please visit www.europaoil.com


Contact Information:

Paul Barrett, Managing Director, Europa Oil & Gas (Holdings) plc [phone]

Ewen Ainsworth Finance Director                         [phone]        

Jonathan Wright / Parimal Kumar, Seymour Pierce Limited [phone]