Reorganisation of Romanian Portfolio

Europa Oil & Gas (Holdings) plc                        

                     Reorganisation of Romanian Portfolio                      

The Directors of Europa Oil & Gas (Holdings) plc, the production and
exploration company, are pleased to announce that, following a technical and
economic strategic review, it has signed agreements with Aurelian Oil & Gas plc
with respect to Europa's Romanian exploration and production portfolio.

Under the terms of these agreements, which are subject to certain regulatory
and partner approvals, Europa will release interest in several of its
concession areas to Aurelian in return for cash payments and a carry formula
over three wells.

The anticipated effects on Europa's portfolio is as follows:

  * Sale of Europa's interest in the Bilca-Fratauti Gasfield area,
   
  * Farmout of 11.25% of Europa's 28.75% interest in the EIII-3 Cuejdui
    Concession,
   
  * Farmout of 28.50% of Europa's 47.50% interest in the EIII-4 Bacau
    Concession and
   
  * Farmout of a firm 6.88% and further optional 20.37% of Europa's 80.00%
    interest in the EPI-3 Brates Concession (Eastern part - Costisa area)
   
Europa will retain its full working interest in the exploration part of the
EIII-1 Brodina licence, which includes the Arbore prospect, due to commence
drilling in the next few days, and the high-impact Voitinel Prospect, which is
likely to be drilled later in 2007 or early 2008. Europa will also retain its
20% working interest in the EPI-3 Brates Concession (Western part). The
Costisa-2 appraisal well, located in the eastern part of the Brates Concession,
is also due to spud in the next few days.

Paul Barrett, Managing Director, said "This transaction is very good for
Europa, realising the value of previous investments in production activities
and greatly reducing our drilling risk exposure in Romania whilst at the same
time retaining significant interests in key exploration upside potential,
notably at Voitinel and Costisa. We believe that monetising the Bilca asset
today offers an excellent opportunity to concentrate more resources on our plan
to build our UK oil production base without prejudicing the upside potential in
our Romanian portfolio."

Additional Information required under Rule 12, Schedule 4 of the AIM Rules

The proposed transaction involves Europa's existing interests in four Romanian
exploration concessions. The consideration for the whole package is formed of
four parts, totalling £4.5 million and comprises:

Cash consideration for the Bilca Field £2.0 million

Further cash payment on reaching production milestone £0.5 million

Firm cash contribution to Europa's capital expenditures £1.4 million*

Contingent cash contribution to Europa's capital expenditures £0.6 million*

(*due to multiple currencies being involved, these figures are approximate)

Part of the divestment is the interest in the producing Bilca-Fratauti
Gasfield, which has been onstream since October 2006. The effect of this
transaction will be to temporarily reduce Europa's overall current production
levels by 185 boepd. However, Europa has a strong 2007 drilling programme,
including a new development well at Crosby Warren in the UK East Midlands Oil
Province, which if successful would replace this production.

In terms of exploration exposure, the proposed transaction does not dilute
Europa's interest in key exploration areas of the Brodina concession, including
the high-impact Voitinel prospect. The reduction in percentage interest in the
Cuejdui and Bacau Concessions is balanced by having the majority of its costs
paid on two exploration wells, both due to spud this summer. In the eastern
part of the Brates Concession, where Europa holds an 80% interest, Europa will
have 75% of its costs paid on the imminent Costisa-2 well and will retain in
excess of 50% working interest.

The proceeds of this divestment will be used primarily to build the Company's
production levels in the UK East Midlands, where further exploration and
development activity is planned.

Review by Qualified Person

The technical information and opinions contained in this announcement have been
reviewed by Paul Barrett B.Sc. (Hons), M.Sc., Managing Director of Europa Oil &
Gas (Holdings) plc, who is a geologist with 25 years mainstream oil and gas
experience.

For more information please visit www.europaoil.com

For further information, contact:

Paul Barrett, Managing Director, Europa Oil & Gas [phone]

Jonathan Wright or Parimal Kumar, Seymour Pierce [phone]