Bilca Development Approval

Europa Oil & Gas (Holdings) PLC
03 August 2005



                        EUROPA OIL & GAS (HOLDINGS) PLC

                           BILCA DEVELOPMENT APPROVAL

The Directors of Europa Oil & Gas (Holdings) plc ('Europa'), the independent oil
and gas exploration and production group with assets in the UK and Continental
Europe, are pleased to announce that the Romanian National Agency for Mineral
Resources has approved the development of the Bilca Area Gas Project.  This
project, in which Europa has an interest of 28.75%, comprises the development of
the Bilca East and West Fields and the Fratauti Field.

Bilca East was discovered in 2004 with the successful Bilca-1 well, which flowed
6.3 mmscfpd on test from a single interval.  The Bilca-2 well was drilled in
early 2005 and confirmed a separate western extension to the Bilca East Field.
Fratauti was discovered in April 2005 and flowed an aggregate of 13.5 mmscfpd on
test from three gas sands.

The operator, Falcon Oil & Gas Limited, is anticipating first gas in early 2006.
In order to evaluate reservoir performance, the wells will be produced for the
first six months at reduced rates, at which point the production regime will be
re-evaluated.

Further gas prospects in the vicinity of Bilca have been identified.  Elsewhere
on the licence, seismic data is being acquired this year to evaluate the
prospectivity to the south of Fratauti.

Paul Barrett, Managing Director of Europa, said 'The approval of the Bilca
project is a major step forward in our plans to increase our production base.
The cashflow generated by the Bilca project will enable the Company to continue
to build its quality portfolio.'


For further information, contact:

Europa Oil & Gas (00 33 563 33 18 97)
Paul Barrett

Citigate Dewe Rogerson (020 7638 9571)
George Cazenove

Westhouse Securities LLP (0161 838 9140)
Tim Feather


Notes to Editors

Europa began trading on AiM on 11 November 2004.

Placing Statistics

  Placing Price per New Ordinary Share                               25 pence
  Number of New Ordinary Shares placed                               20,000,000
  Total Proceeds from the Placing (before expenses)                  £5 million
  Number of Ordinary Shares in issue immediately following Admission 60,000,000
  Number of Warrants in issue immediately following Admission        10,000,000
  Market Capitalisation following the Placing at the Placing Price   £15 million

Production

Three projects are currently in production and a further two are awaiting
development.  The current attributable production of around 240 boepd is
forecast by independent consultants, Scott Pickford, to rise to up to 6,000
boepd by 2007.

Reserves

Scott Pickford has undertaken a review of the oil and gas properties of Europa
and concluded that the Group holds 2P reserves and contingent resources of 7
million barrels of oil equivalent ('mmboe') and estimated additional unrisked
prospective resources of 28 mmboe.

                          Summary of Principal Assets

             Country   Block / Field                    Operator       Interest
Producing    UK        West Firsby Oilfield             Europa         100%
             UK        Whisby-4, Whisby Oilfield        Blackland Park 65%
             Ukraine   Horodok Field                    Europa         70%

Development  UK        41/24 & 41/25                    Europa         100%
             UK        Whisby Area                      Europa         100%
             Romania   Brodina EIII-1 (Bilca Discovery) Falcon         28.75%

Exploration  UK        TQ14 Holmwood                    Europa         40%
             UK        Whisby Area Exploration          Europa         100%
             Romania   EPI-3 Costisa Prospect           Tullow Oil     15%
             Romania   EIII-3 Cuejdui                   Falcon         28.75%
             Romania   EIII-4 Bacau                     Falcon         47.5%
             Poland    Nowy Sacz Area                   Medusa         2.5% ORRI

Strategy

Europa has embarked on a strategy to build the Group into a significant
European-focused independent upstream oil and gas business.  The strategy will
be to continue to grow a balanced exploration and production portfolio with
producing assets generating cashflow, development projects providing low risk
potential and exploration opportunities offering significant upside.

Also see www.europaoil.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange