Drilling Report - Lilieci-1 well spud

Operational Update

Commencement of Well Lilieci-1, Bacau Concession, Romania

The Directors of Europa Oil & Gas (Holdings) plc are pleased to announce that
they have been informed by the Operator of the Bacau Concession, Aurelian Oil
and Gas plc, that the well Lilieci-1 was spudded on 19th August.

Lilieci-1 is located in the northeast of the Bacau Concession, approximately 10
km from the Roman-Secueni gas field. It is reported that, up to the end of
2004, Roman-Secueni had produced 850 bcf of gas. Lilieci-1 will be evaluating
the same Sarmatian sand reservoirs that are productive in Roman-Secueni.

The well is programmed to a total vertical depth of 2,891 metres, although it
will be slightly deviated from the surface location, the selection of which was
restricted due to geographical constraints. It is anticipated that the
operation will take approximately 90 days.

Following completion of the well, working interests in the Bacau Concession
will be: Aurelian (operator) 41%, Romgaz 40% and Europa 19%.

For further information, please contact;

Paul Barrett Europa Oil & Gas (Holdings) plc 01235 553 266
Jonathan Wright Seymour Pierce 0207 107 8050

www.europaoil.com