EUROPA TARGETS INCREASED PRODUCTION IN 2010

By NBF NEWS

Europa Oil & Gas said it would be undertaking production enhancement work in April with a view to significantly increasing well productivity from its projects this year, proactive investors.co.uk reported on Wdnesday.

The activities undertaken during the first half included the drilling of its 28.75 per cent controlled Voitinel-1 exploration well, which encountered gas-bearing Miocene sands in a large structural closure. Voitinel-1 is located in the Brodina concession in Romania.

The well's operator Aurelian Oil & Gas had announced earlier this year that the Voitinel trend had the potential for up to 400 billion cubic feet of gas in place with 115 bcf net to Europa.

Europa drilled the Hykeham-1 exploration well in November which encountered a four metre oil-bearing sand, and the well was cased ready for perforating and an extended well test. In March Europa confirmed that the original perforation of Hykeham-1 failed to penetrate Hykeham-1's well casing.

Subsequently, Hykeham-1 has been re-perforated and a pump installed to lift the well. In a statement only on Tuesday, the group said the well had to date produced only small volumes of liquid and some gas, calling the result 'completely incompatible with both the wireline log and geological data from the well.'

Europa reiterated on Tuesday it believed that the Hykeham reservoir was oil-bearing and, given the right completion conditions, the reservoir would flow.

Europa is the operator of the PEDL150 licence, which hosts the Hykeham-1 well, and it holds a 75 per cent working interest. In December the company completed the drilling of the well to a final total depth of 1,110 metres in a side-tracked wellbore, having encountered encouraging oil shows from 18 metre gross thickness of Basal Sandstone reservoir.

Another key development during the first half was the relinquishment of Europa's interest in the West Darag concession onshore Egypt, which helped the company concentrate on its European assets, Europa said in Wednesday's statement.

The group is planning a very active programme of work on the company's European licences for 2010. This will include production enhancement work at West Firsby and workover of the Crosby Warren-2 well in April to increase productivity.

The re-test and frac of Voitinel, which has been delayed by the persistent winter conditions on-site, is planned for later this year, as is a re-mapping of the Berenx gas discovery, where in-house estimates put the gas-in-place at 1.7 trillion cubic feet.