I noticed EOG in Shares Magazine last week, and having done some research, think they may be a decent producer / exploration play.



Europa Oil & Gas (Holdings) plc, is involved in the exploration and production of hydrocarbons in Europe. The Company has a balanced portfolio of 12 European oil and gas exploration and production assets in the UK, Ukraine, Romania and Poland. The portfolio contains proven plus probable and development reserves of 7 million barrels oil equivalent (mmboe) net to Europa and exploration potential of a further 28 mmboe. Wellhead revenues are currently in excess of 200,000 per month from a volume of 340 barrels of oil equivalent per day (boepd). These figures are set to rise substantially by the year 2007 when projected production will be above 7000 boepd.


The Company has an active near term drilling programme with three wells scheduled to spud in the first quarter 2005. The drilling programme mimics the balanced portfolio with one appraisal well on the recent Bilca Gas discovery in Romania, one development well on the West Firsby Oilfield in the UK and one exploration well in Romania.



Europa is set to become a significant producer of hydrocarbons in the near future and intends to develop a substantial independent upstream oil & gas business. The management has a strong mainstream oil and gas background, which enables Europa to continue to identify, acquire and develop profit-making oil and gas assets.



Europa Oil & Gas (Holdings) plc was admitted to the London Stock Exchanges Alternative Investment Market on November 11, 2004 and trades under the symbol EOG.





Corporate website : Click HERE

Just noticed this one Thanks Andy for drawing my attention to it.

Any small oiler with an income stream is worth a look but I have a couple of questions to ask about this one I am not to happy about the placement document where it states that a loan agreement accounts for 65% oil output from the West Firsby field will be given up to repay the loan and once the loan has been repaid 25% of gross oil will be given up. (Page 51) It later states I believe on page 61 to 62 this would be 27% if I have put 2 and 2 together Gemini oil & Gas Ltd being the company involved the 2% while not significant raises questions?

The other problem I have are with the 10 million warrants and 1.8 million share options. As they are there they must be a dilluting effect on the share price yes or no. What I mean is that to go above 30p in the near term before 2007 it would mean that the full 70+ million possible shares would have to be taken into consideration have I got this wrong.

Any thoughts on this would be greatfully recieved

regards

Dr Square,

You are indeed correct!

--------------------------

Other loans Included in loans is an amount of 1,273,274 that has been issued under terms that require that 65 per cent. of gross revenues from the companys oil production are payable to the loan provider to fund interest and capital until the payments exceed the loan balance. Thereafter the loan provider also retains a 25 per cent. interest in gross revenues. The effective interest rate borne by the company for the period under the terms of the agreement was 30 per cent.

This loan has been split between due within one year and due after one year based on the assumption that the company will carry on producing 4,000 barrels of oil a month, at a selling price of $38 dollars a month. Under the terms of the loan agreement if the company is in breach of certain obligations then the loan provideris entitled to require the company to assign its current main production licence to the finance provider for $1.

--------------------------
(a) A loan agreement executed on 15 May 2003 between Gemini Oil & Gas Limited (Gemini) (1), EOGWF (2) and EOG (3) (the Loan Agreement) as amended by an agreement between the same parties entered into on 7 September 2004. Pursuant to the terms of the Loan Agreement, Gemini agreed to provide EOGWF with a loan of up to US$2.48 million to acquire a 100 per cent. interest in a production licence DL003 in the West Firsby Onshore
Oilfield and fund the operation costs associated with drilling and completion of the wells in the area covered by the licence. The loan was paid in three tranches of US$1.3 million, US$1 million and US$180,000. respectively. Pursuant to the terms of the Loan Agreement, Gemini is entitled to receive 65 per cent. of gross revenue generated from the area covered by licence
DL003 until such time as the loan interest and the loan repayment (as defined in the Loan Agreement) exceeds the amount of the loan. Thereafter, Gemini shall be entitled to 27 per cent. of gross revenue generated. In the event that EOGWF is in breach of certain obligations set out in the Loan Agreement, Gemini will be entitled to serve notice on EOGWF to assign its
interest in licence DL003 to it for the consideration of US$1.


--------------------------

I can't say I think that is the best deal in the world, and may ring the company for clarification when I have time.

With regard to the warrants and options, I was aware of the possible dilutive effect, and I was wondering if this was what was holding the price back, but after reading the loan note conditions above, either or both could be responsible.

SP. jumps 14 per cent friday,is news due,any views.

mbugger,

Well judging by the price increase, very possibly!

The warrants look good value,

Plumbing new depths at 20.25p on the back of a very cautious ops update last week. However a production increase is expected in July. Worth watching?


Europa Oil & Gas (Holdings) PLC - Operational update

EUROPA OIL & GAS HOLDINGS PLC

OPERATIONAL UPDATE

The Directors of Europa Oil & Gas (Holdings) plc ('Europa') are pleased to
provide an operational update on a number of projects in three of its areas of
activity - Romania, UK and Western Sahara.

Romania

Seismic Acquisition Programmes

Seismic acquisition in the Bacau Concession (EIII-4) commenced on 27 March. The
programme is designed to mature two leads identified on an earlier survey for
drilling in late 2006 or early 2007. The survey crew will move onto a similar
survey on the Cuejdui Concession (EIII-3) later in April and then on to acquire
a major survey south of Europa's Bilca-Fratauti development in the Brodina
Concession (EIII-1).

Field Development

Work progresses on the Bilca-Fratauti Development. The Operator, Aurelian Oil &
Gas, has informed the group that the current estimate for production start-up
is late July 2006. This development will significantly increase Europa's
production levels during the second part of 2006.

Appraisal Drilling

Europa and its Czech co-venturer, MND, are in the advanced stages of
negotiating the terms of an extension to the Brates Concession (EPI-3) of up to
three years. The work programme will provide for the appraisal of the
Burdigalian gas sands encountered in the Costisa-1 well and further evaluation
of exploration potential of the remainder of the concession area.

UK

North Sea

Europa has begun, with the services of Aberdeen-based Peak Group, to plan the
drilling of 41/24-D, a gas condensate appraisal well anticipated to be drilled
in mid-2007. Peak brings a highly competent engineering team to the project.
Europa is planning to utilise underbalanced drilling technology to drill a 500m
reservoir section which will be tested and potentially retained as a future
producer.

Onshore

The seismic reprocessing on PEDL150, the exploration acreage surrounding the
Whisby Field, Lincolnshire, is almost complete. The results to date show a
dramatic improvement in data quality and prospectivity. Under the terms of the
farm-out with Valhalla Oil & Gas, prospect-specific seismic acquisition will be
undertaken if necessary prior to selecting a drilling location.

Planning work continues on the Holmwood prospect in PEDL143, Surrey. Europa is
taking a deliberately cautious approach to this project, fine-tuning site
selection and environmental issues prior to a formal submission in the next few
weeks.

Western Sahara

Europa was part of a delegation visiting Western Sahara, where its two
Concession agreements, signed in London on 16 March, were ratified by the
Government on 27 March. A reconnaissance of Europa's Bir Lehlou Block, on the
Algerian border, indicated the potential for undertaking geological fieldwork
in the liberated area perhaps as early as late 2006.

Europa Oil & Gas - Market Maker Holding

RNS Number:1963B
Europa Oil & Gas (Holdings) PLC
07 April 2006


London Stock Exchange Regulatory Announcement

Publication of Market Maker Holding under Rule 2302

Name of company: Europa Oil & Gas Holdings Plc

Relevant security: Wts to Sub for Ord

Member firm: Evolution Securities Limited

Percentage holding: 11.91%

As at close of business on: 6th April 2006

Big jumps in recent days - any rumours??

Up again. Strength in the oil price must be a contributing factor to the recent rises, IMO.

RNS out today:

>>Europa Oil & Gas (Holdings) PLC - Change of Advisers
For immediate release: 0700hrs 19th April 2006
Europa Oil & Gas (Holdings) plc

Change of Advisors
The Board of Europa Oil & Gas (Holdings) plc - AIM: EOG - the hydrocarbonproduction and exploration company, is pleased to announce the appointment ofSeymour Pierce Limited as the Company's Nominated Adviser and Broker withimmediate effect.The Board of Europa Oil & Gas also confirms the appointment of gth mediarelations as its financial PR advisors with immediate effect.- ends -About Europa Oil & Gas (Holdings) plcEuropa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production andexploration of hydrocarbons in Europe and North Africa. It currently produces210 barrels of oil per day from UK onshore fields and 25 barrels of oilequivalent from the Ukraine. Production is expected to rise significantly afterits Romanian Bilca Gas Project comes onstream later this year. Operating abalanced portfolio, Europa currently has field appraisal activity on projectsin the UK Southern Gas Basin and onshore Romania and exploration activity on afurther eight licences across the Europe - North Africa region. For moreinformation please visit www.europaoil.com. <

good results out today-tempted me to buy a few. EOG looks very promising.

MP, have you had a look at the warrants? If memory serves, they have quite a while to run according to the AIM admission document.

Ticker Symbol for the warrants is EOGW.

cheers st.

Oilbarrel has an interesting article on EOG, posted on their homepage at present:

http://www.oilbarrel.com/home.html

It seems they rate EOG's prospects, but DYOR.

Moneyplus, if they manage to produce Andy's quoted 7,000 boepd in 2007, that's 72 million in turnover at $50/barrel. Estimate conservatively 20 mil profit and multiply by p/e 15 for a 300 mil company, or 15-bagger from today's SP. 450p a share would be all right with me - even better if one managed to do something crafty with the warrants!! At the current warrant price of around 10p, you could turn a grand into 40K within 18 months!!

EDIT - I had posted some maths regarding Bilca here, but realise after more research that EOG only have a part share. My apologies.

What do you reckon? (If the 2007 target can be hit, even if a little later, the word "no-brainer" springs to mind . . . )

From Europa's website, re Bilca:

>>The Bilca-1 well was drilled in June 2004 and flowed 99.4% methane gas at sustained rates up to 6.4 mmscf/d (1060 boepd). The Bilca-2 well, located on the western extension of Bilca-1, spudded in January 2005 and was completed as a gas producer. The Fratauti exploration well located approximately 7 km south of the Bilca Field was spudded in March 2005. The Fratauti-1 discovery well flowed at an aggregate of 12.7 mmscf/d (2120 boepd). <<

Adding together the figures I have read (including a quoted 12 mmscf/d for Bilca-2 in the oilbarrel.com article), Bilca could produce anything up to 30 mmscf/d!!

I will have to give this one some more research during the week :o)

well researched st-it looks very promising. I actually bought because one of the city boys who seems to make money out of anything he touches told me he's into this one! oil and gas seem to be doing well whatever-I'm happy to be in CHP as well. Don't know much about buying warrants-you buy for 10p and hold for how long? my Marconi shares were turned into warrants and ended up worthless! If you're interested the other shares my friend is into are IAM-said to be a future man group and HML, and KCOM. so I have just a few of each!

Thanks for the info MP - will look into.

I'm glad you found my "research" helpful - but I have to warn you that I have since discovered that EOG holds minority interests in some of these prospects (something that wasn't often mentioned in EOG's reporting). Therefore my maths may be off-beam! The figures for Bilca may be a little high too, so PDYOR.

FYI warrants are tradeable like ordinary shares and their price fluctuates similarly. Warrants give you the right to subscribe for shares at a fixed price, within a specific time period. You can trade the warrants or exercise them at any point up to and including the Final Exercise date.

At present the warrants are trading at Bid: 8p Offer: 9p and have until 11Nov2007 to be exercised. The exercise price of the EOG warrants is 30p, giving the warrant holder the right to buy the underlying share at 30p each.

Therefore the value of warrants is in part an expression of the current share price minus the exercise price, here 34p - 30p = 4p. You could call this figure the asset value of the warrant.

However, there is a "time value" to warrants as well, in that if they have plenty of time left to run, they will carry a premium - here the residual value of 5p in our 9p warrant price. This time value could also fluctuate considerably depending upon perceptions of how likely it is that the share price will make big advances in the time up to the Final Exercise Date.

Needless to say calculating the price of warrants is complex and dependent upon a number of interrelated factors. I have tried to summarise as I see it

I don't know what happened with Marconi, but it sounds as if the SP didn't really take off and the warrants' validity period simply ran out. In some circumstances the warrants' validity period can be extended, but I wouldn't bet on this.

I have to add that I haven't traded warrants before and I don't know how they are treated for tax and/or ISA purposes.

The attraction of warrants is, clearly, that you gain more leverage regarding the share price. If I invest 1000 at present prices, I would get approx 3,000 shares or 11,000 warrants. If the SP hits 100p on the Final Exercise Date, I then come away with 3,000 for the shares or 11,000 x (100p - 30p = 70p) = 7,700 for the warrants. "Time value" may cause the warrant price to peak some time before the Final Exercise Date is reached - in some cases even if the share price continues to advance.

When it comes to EOG there's no question which I'd rather do, HOWEVER one has to be aware of the risk that the shares will not perform in which case I lose my entire investment AND / OR that if I forget to exercise or sell the warrants by the Final Exercise Date then I also lose all my money.

Warrants, therefore, are not for the unwary or amnesiacs. However, for consenting and informed adults they might be a faster way to a bigger profit.

I think EOG has every chance of making at least 100p a share by end 2007, and that's making my most conservative estimate - but you know what E&Ps' timetables are like for slipping; for example, they may turn out not to be able to hit the figure of 7,000 bbl/day by end of 2007. However, they need only a couple of thousand barrels/day to be somewhere in sight to make 100p/share and so I'd feel confident that I could make some sort of multi-bagger profit holding the warrants.

Hope this isn't too complex - please get some advice if you're unsure of anything and as ever PDYOR.

thanks st-warrants sound a bit like CFDs. interesting I'll think about a few!

Moneyplus, warrants are very different from CFDs in their construction - apologies if I didn't make that clear. Warrants give you the right to buy the underlying shares (for this reason they are sometimes called options). However, you can lose all your investment if you fail to exercise the warrant before it expires - obviously you are at risk of this occurring if the price of the underlying share fails to perform and the warrant cannot be exercised. With a CFD you would make a loss if the share price moved against you but you could limit this at any time by closing the contract. With warrants, if things turn out badly, you could potentially see the value of your investment slump to nil overnight and not recover in time to recoup your losses before expiry.

Please, please ensure that you are fully up to speed with how warrants function before investing.

I realise you are an experienced investor; I simply don't want to be in the position of talking you into investing in something on the basis that it appears to be an easy way of making money.

Lecture over - I wish you every success!!

ST

.

Anyway, getting back to the main point of this thread:

RNS out from EOG today - new licences awarded in Egypt (seen on oilbarrel.com).

For immediate release:

Europa Oil & Gas (Holdings) plc

Egypt Licence Award

The Board of Europa Oil & Gas (Holdings) plc - AIM: EOG - the hydrocarbon
production and exploration company, is very pleased to announce that Europa has
been offered the West Darag exploration concession by the Egyptian General
Petroleum Corporation (`EGPC') as a result of an application in the EGPC 2005
bidding round. The award is subject to government approvals and execution of a
Production Sharing Agreement (`PSA') with EGPC.

The concession covers a large under-explored onshore area in excess of 5,300
km2 (1.3 million acres or the equivalent of 25 UK North Sea blocks). It lies on
the northwestern margin of the Gulf of Suez and has a Mesozoic sequence similar
to that in the prolific Egyptian Western Desert oil province.

Saharan Africa, with resources of over 160 billion barrels equivalent, half of
this in Mesozoic basins, is becoming vital to the European oil and gas markets.
Egypt in particular had 36 oil and gas discoveries in 2005 alone and continues
to deliver exploration success in both new and established plays.

Paul Barrett, Managing Director, said, "This is a highly significant award for
Europa and part of our new venture programme across Saharan North Africa,
coming quickly on the heels of two very large licence awards in Western Sahara.

We look forward to exploring West Darag and will release a more detailed
technical review of the concession area once the PSA is signed."

About Europa Oil & Gas (Holdings) plc

Europa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production and
exploration of hydrocarbons in Europe and North Africa. It currently produces
210 barrels of oil per day from UK onshore fields and 25 barrels of oil
equivalent from the Ukraine. Production is expected to rise significantly after
its Romanian Bilca Gas Project comes onstream later this year. Operating a
balanced portfolio, Europa currently has field appraisal activity on projects
in the UK Southern Gas Basin and onshore Romania and exploration activity on a
further eight licences across the Europe - North Africa region. For more
information please visit www.europaoil.com.

Moneyplus, I am sorry; please accept my apologies. I did not wish to give offence.

none taken-I just couldn't think of a reply! very pleased to have your advice and input on this thread nothing offends me except some of tvc15's drivel!

Good to know, thanks!

PS if you'd still like to know more about warrants, then looking up "warrants" on this BB's search function turns up some interesting info on some older threads. Some of it relates to covered warrants, which are not quite the same as those issued by a company (e.g. the EOG warrants), but a lot of the theory applies to both.

PPS am getting an itchy trigger finger when it comes to buying those warrants, but at present I have to wait for my account to be enabled (some brokers make you fill in a little questionnaire before they enable your account for warrant trading, in order to protect the unwary).

If this one does what I think it will then I will personally hand-deliver a bottle of something delicious to Andy the next time we're both in Bournemouth.

Mediterranean Oil + Gas directors have just exercised their warrants.
London Stock Exchange RNS.

Looks like they made a tidy sum!



barclay

ST, think 1 or 2k, maybe 1k initially, then if they move to 20p another 1k maybe an astute trickle or funds into these, I'm going to track, if I get chance I'll do it tomorrow, otherwise it'll be Monday, plenty of time imo to move on these, but they do look tasty, given eog's prospects.

Agreed, the prospects are good, although I might risk a bit more earlier on, on the basis that the safe money will be invested earlier (i.e. while the underlying SP is still low). As soon as my account is enabled, I hope to be on board. Thanks for the feedback too.

Good news (from my point of view anyway) - the warrant price has just come down 1p, following the fall in the share price.

EDIT: I'm seeing this on my online broker's reflection of the market maker's price, in case anyone is looking at the market and seeing something different. E.g. FT.com records no trades today and hence doesn't record the price change.

Currently we have EOGW Bid: 7p Offer: 8p Change: -1

Due for another drop in the next few days??

ST, even if the warrant doesn't reach the 30p exercise price and only reaches
50% of that at 15p you will still make some money 15p-8.5p = 6.5p per warrant held to sell at bid in the market(worse case scenario).

My broker says that company warrants are less risky than covered warrants because of less volatility and are quite liquid, and traded daily.

The same risk can be had from holding the shares which will cost more therefore even though you may not lose all your money because your outlay was more a 25% decline in the sp could equate to a bigger loss than you would suffer from the market rendering your warrant worthless.

EOG warrants never came to my attention until i saw your thread.
Thanks! I will put a small amount of money in them for the leverage.

Production is bound to increase between now and Nov 2007,it may not reach it's targets but it will make the shares rise along with the warrant.

You could always take profits by selling some of your warrants and leaving some
in to reach the exercise price.

barclay

Barclay, it is the underlying share which has to reach exercise price of 30p, i.e. the warrant allows you to buy the share, at any time, for 30p. The warrants are therefore exercisable now (just!).

This is one reason why the warrants look attractive, because they are "in the money" - i.e. exerciseable - but still cheap, with plenty of time left on them and with the company prospects looking good for a rise in the share price.

You may also want to check with your broker/accountant about the tax position, because I have a feeling that if you exercise the warrants and then sell the shares, you'll be able to offset the total purchase amount (i.e. the cost of the warrants plus 30p per subscribed share) against your profits for capital gains tax purposes. At some point this may be more beneficial than just selling the warrants, e.g. if the Final Exercise Date is near at hand and the "time value" of the warrants has reduced. Don't ask me about taper relief and please don't take what I've said as gospel but rather check it out for yourself - I am trying to get these questions cleared up with the Inland Revenue but am currently waiting for them to return my call. I will post any info I do get.

(I should add that in the final analysis I am much more clued up about German taxation having lived here for five years, but am reviewing the position with the UK tax authorities as I may be moving back to the UK shortly).

Trust this helps.
ST.

Thanks for the info, i am new to warrants i did my own research.
Are you saying that because the warrants are exercisable now it would be like
the same as buying the shares, but if the shares rise 5p to 35p i can exercise my warrants and i have made 5p per share profit per warrant held?

How do i excercise the warrant as opposed to selling them in the market?
I deal online with squaregain.

There is no stamp duty on warrants, but they are subject to capital gains tax at 20% uk.

I do not know how to offset it though but what your saying does make sense.

"Are you saying that because the warrants are exercisable now it would be like
the same as buying the shares, but if the shares rise 5p to 35p i can exercise my warrants and i have made 5p per share profit per warrant held?"

Yes - although the warrant price may move differently due to other factors (e.g. if the SP is perceived as being likely to advance very quickly, then that would push the warrant price up by a greater factor due to the "time value". Obviously if everyone starts wanting to buy the warrants then the warrant price will rise independently of the share price. This is basically what happened in April when EOG's SP went up about 50% and the warrant price tripled. Because of a variety of factors, though, you may not always see a penny-for-penny rise in the warrant price.

If things are moving more slowly, the "time value" of the warrant will show a decline and this will reduce the value of the warrant.

Also 1,000 invested in warrants will get you a lot more warrants than if you just bought 1,000 worth of shares - so for your 5p rise you get a lot more profit!


"How do i excercise the warrant as opposed to selling them in the market?"

Your broker will have the facilities for this. IMPORTANT: you may need to have your account set up to trade warrants before you can buy. Please check with your broker.

Offsetting is purely the maths of deducting purchase costs from proceeds of sales to arrive at taxable profits.

EDIT: see also my post #41. stamp duty is payable on traditional company warrants but not on covered warrants. The EOG warrants will therefore be subject to stamp duty.

PPS I would add once again that I am new to warrant trading as well, so please DYOR, etc!! Thanks.

Looking very cheap after today, may go for it tomorrow!

A correction to my post #31: 8,000 warrants were apparently bought yesterday, at a lower price than my online broker was posting. FT.com apparently only records these trades at the end of the day. Here's MoneyAM's breakdown:

Time Price Quantity Type Bid Offer Buy/Sell Total Buy Total Sell Total Unknown
04/05/06 16:32 8.0 3,000 T 7.0 8.0 Buy 8,003 0 0
04/05/06 14:01 8.5 5,003 O 7.0 8.0 Buy 5,003 0 0

ST, i have done a bit more research and found out that most warrants are never exercised, but traded instead. This warrant has 400% gearing. All being equal every 10% rise in the shares should make the warrant go up 40%.

This gearing in theory should converge to 1 as the sp goes higher.

When warrants are exercised, the company shares are diluted (although this will already be factored in prior by the market) but also funds are raised from the exchange of your warrants for shares. This raises money for the company.
You have to make sure if you are going to exercise them you have the money in your account available to purchase the shares along with handing in your warrant.

What is the benefit of exercising them rather than trading them?

Barclay

Barclay,

Many thanks for another interesting post.

I have had a quick dig myself and found the following free online course in warrants. EDIT: I have now skim-read the whole course (didn't take long) and found it very useful.

Free Online Warrants Course

There is also a course in covered warrants:

Online Covered Warrants Course

You should be aware that these products are different and indeed the Covered Warrants course draws attention to the fact that stamp duty is payable on traditional company warrants but not on covered warrants.

You may wish to ensure that the rest of the info you posted/learned pertains to company warrants and not covered warrants.

I would recommend anybody else having questions to take a look at these courses as they are very comprehensive and well thought-out.

Anyone with any thoughts about EOG/W?

Just that the EOAG share price only needs to rise by 50% and the warrant should rise 150%
in price. example: share price 50% of 32p = 48p - exercise price 30p = 18p intrinsic value, warrant price=7p + 30p exercise=37p. If the warrant doesnt increase to at least 17p a 10p increase, people buying the shares will buy the warrants instead and exercise them at 37p to buy 48p shares.

It is also likely there will be a premium on the warrant with so much time value left
raising the 150% gain to maybe 200% or more which is round about what the gearing on the warrant is at the moment.


There are two shares which I class as rare gems

Europa Oil and Gas/warrants and Mediterranean oil and gas
Both are producing oil and gas which puts a floor on the share price.
Both are increasing output, in eoags case a few thousand fold.

the last company i saw with similar attributes was dana petroleum
It was priced at ten pence with oil production and exploration upside.
I didnt act and get in, even though i knew it was going to be big, with hardly any risk due to its production. That was 3 years ago, the shares now trade at 1104.00p(yes i cant forgive myself!).

Med oil can be as big, but eoag is better played on the warrants for the massive gearing.

Northern petroleum is also good but it needs to start production to enjoy gem status. The reason being oil and gas in the ground are valued at absurd prices
But they can't do this to assets in production and making lots of cash, which are valued at spot prices at least for the year to estimate its eps.

pd1000, please read previous posts - this BB has been alight for a week or more with talking about the warrants (most of it posted by me, as it happens, but PDYOR, etc).

Jumped on board with the warrants yesterday, at 8p, having seen the way the wind was blowing with incremental price rises (on very low volume) every day since the end of last week.

Cumulative production from existing sources plus the forthcoming Bilca/Romania production could see the SP around 50p ?? All IMO, DYOR, etc.

Europa Oil & Gas (Holdings) PLC - Holding in Company

Europa Oil & Gas (Holdings) plc (the 'Company')

Holding in Company

The Company was informed today that UBS Global Asset Management Life Limited is interested in 3,295,667 ordinary shares of the Company, representing 5.40% of the issued share capital.

ST, have you got any more info on the 50p price target, i want to get in tomorrow
and i'm just deciding how much to buy.

I looked at the 3 month chart , and the warrants have risen to 9.25p over that period, a 30% gain, so these warrants do move, and will fly if the sp reaches 50p,
and travel at the speed of light if they go even higher.

If the 50p target is met, the warrants would have to rise to 20p in order to stop
arbitrage oppotunities, a 300% gain, in theory.

zipped in for a quick 25000 warrants at under 8p this am. good price imho and when imminent good news breaks they should be in the money pretty quickly!!

Good morning Barclay,

The 50p share price "target" is my back-of-an-envelope calculation of how much I think the Bilca production plus existing production could be worth, using a P/E suitable for a growing oil co. I also came out with a similar figure using EOG's end-2006 production target of 1,000 boepd. It's purely conjecture on my part, although hopefully conservative enough to be realistic.

The bottom line for me is that I can see very little potential downside on this stock at present. All the indicators are pointing in the right direction, and the fact that one can get warrants on an underlying stock which in itself looks like a relatively safe bet is for me a stunning bonus.

I'm prepared to punt on these because I think that over the 18 months for which the warrants are still valid, they offer significant opportunity for growth with a comparatively low chance of losing out.

You're right about the potential, but I would be wary about reliance on charts to predict the warrant price at this early stage due to volatility issues. The share chart may offer some indication that the SP's floor is set around 30p - of which I have a fair degree of confidence given how close we are to seeing Bilca come on-stream - but again it's early days. However, I'm not a chart expert . . .

Anyway, WDIK, best of luck if you're thinking of climbing on board.

PS I took a look at Dana after reading your post - I infer from the chart that at some point the stock consolidated at least 10 for 1? You didn't miss a 100-bagger, surely??

Pommy, welcome aboard! Good to hear from you and am pleased for your sake that you managed to get under 8p (clearly I'm using the wrong broker!).

they still havent published my trade yet!!

Not sure where you might be looking, but MoneyAM's feed for these warrants seems to have stopped working after I looked at it last week. My own broker doesn't publish the movements and FT.com doesn't update them until the end of the day.

Sorry you won't be getting your name in lights but anonymity somehow seems to go with the secretive world of warrants!

surely a trades a trade tho, it should be reported like any trade of the underlying stock!

I agree, but trades of these warrants at least seem to have fallen between the cracks. I can also understand that possibly for reasons of cost there are fewer live feeds for warrants, which are in any case low-volume issues.

A quiet day for the shares - no trades so far. Seems everyone's buying the warrants :o)

Roll on, the end of July!

There it it ...nice price!!!!


12/05/06 08:06 7.5375 25,000 O 7.0 8.0 Buy 25,000 0 0

Morning all.

EOG getting hit a bit heavily right now. Barclay, I only hope you didn't jump on board with that share purchase yesterday. I'd be inclined to wait out some of the choppiness right now, maybe wait until a bit nearer the time of the production news. Anyway, WDIK.

Warrants are down too - wish I'd see that one coming as I could have had more for less money :o(

Best of luck everyone, am certain that this will come right in the end, but would certainly understand anyone who's feeling nervous right now.

ST, good news TD Waterhouse will let me buy by just signing a form saying i know the risks, i have to wait afew days to get my account open, hope the warrants are still down a bit by then, but it doesn't matter as long as i can get in around 8p.

ST, good news TD Waterhouse will let me buy by just signing a form saying i know the risks, i have to wait afew days to get my account open, hope the warrants are still down a bit by then, but it doesn't matter as long as i can get in around 8p.

Sorry guys my message has been repeated and i can't delete it.

Good ol' TDW - I'm with them too. With the prices the way they are it looks as if this incident may now might work in your favour.

By the way, you won't see on your trading/account screens that your account has been upgraded. (I checked this by phoning TDW). Inputting a "dummy" trade for a live quote will show you when the account has been set up for warrants trading. If in doubt, give TDW a call.

Bounce this morning, on both shares and warrants, reversing most of the dip from Mon and Tues.

ST, i read about Northern's placing, not happy we wern't warned. They say they aim to produce 1000 barrels per day in 2007 which is good.

Which brings me to my comparison of Europa, Valued at 4 times less and aiming to produce the same output as Northen by the end of this year, it must transform the mkt cap.

Nice to see them bounce back this morning,everyone knows this is good.

Good comment, Barclay. Definitely there should be good news in store for EOG's SP. I think, however, that NOP's current and near-term SP strength is on valuation of the underlying assets as 1,000 bopd is tiny compared with their mkt cap and their potential, IMO. EOG probably has a way to go to hit the kind of valuations we've seen on NOP recently - NOP's portfolio is quite big now and has very much larger audited resources/reserves, although EOG is also adding prospects and generally heading in the right direction.

It would have been nice to have been told about NOP's placing - there's a suspicious part of me that thinks some of the recent SP drop was due to big boys clearing out existing holdings on the market and replacing them with cheaper shares from the placing. WDIK though.

I read on Tom Winnifreths website that something like this might have happened and that the FSA might look into it. Isn't that illegal?

It probably ought to be - thought this kind of thing was subject to lock-ins, but maybe someone forgot to add the small print!

PS - I see the warrant price has dropped again - looking good for your purchase!

The warrant price skids again! Barclay, whatever have you done to make that happen?

EOGW Bid: 5.5p Offer: 6.5p Change: -0.75


Although if they get any cheaper I shall have a hard time restraining myself from buying some more.

(If anyone knows of a branch of Gamblers Anonymous near Frankfurt then perhaps they ought to arrange to have me kidnapped and delivered there for some treatment :o)

Somehow the SP managed to drop today in spite of what appears to me to be very encouraging news about future drilling.

Anyway, judge for yourselves; here's the RNS:


For immediate release: 31 May 2006

Europa Oil & Gas (Holdings) plc

Romania Seismic Update

The Directors of Europa Oil & Gas (Holdings) plc, the production and
exploration company, are pleased to announce the completion of the planned 300
km seismic acquisition programme on Brodina, Cuejdui and Bacau Blocks in
Romania. The partnership acquired 200 km of new seismic on the Brodina Block,
which contains the Bilca Gas Development, and 50 km of new seismic on each of
the Cuejdui and Bacau Blocks.

Preliminary results have highlighted the appearance of a number of significant
new seismic anomalies in the eastern part of the Brodina Block. Several areas
are prone to high amplitudes in the Sarmatian sequences similar to, but
potentially larger than, those which led to the group's successes in the Bilca
area. Consequently, the partnership has approved the acquisition of 62 km of
new infill seismic over these areas in order to select a drilling location.
This infill seismic will be acquired as soon as possible this summer.

In addition, the group will look to acquire up to 40km of new seismic data over
the Voitinel area, a large structural lead in the central part of the Brodina
block.

Preliminary results over the Cuejdui and Bacau Blocks are also very encouraging
with the all of the initial leads confirmed and in some cases larger than on
the previous interpretation.

Work will commence on the seismic interpretation over all three blocks when the
final processed data are received in the next month or so. It is believed that
the seismic interpretation mapping will lead to several drilling locations for
the 2007 drilling programme.

Paul Barrett, Managing Director, said, "We are delighted the infill survey to
the south of the Bilca Development has identified further areas of significant
potential in the Sarmatian gas play. So much so, that in order to properly plan
a 2007 drilling campaign, additional data will be acquired this summer. We look
forward to a fruitful drilling campaign on these licences in the next 12
months".

Note for Editors:

Europa has a 28.75% working interest in the Brodina and Cuejdui Blocks,
situated in the northern part of the prolific East Carpathian oil and gas
province. The Brodina Block contains the Bilca and Fratauti Fields, a gas
development resulting from discoveries made by the group and due onstream in
summer 2006. In the third block, Bacau, Europa holds a 47.5% interest. All
three blocks are operated by Aurelian Oil & Gas.

ST, i got in at 6p 2 weeks ago during the market correction. The bid price seems to have support at 5p at the moment. I also can't understand why the shares went down on good news, but they will definately go up when news of a significant production increase is announced.

What do you think about Sefton Resources? A overhang is holding this share back
but the Chairman says the overhang will be gone soon.
Results should be out in a week or so, reporting a significant increase in revenues.
Some holders believe it is the best potential ten bagger and undervalued oil company on the market.

I was a bit cautious at first, but the more you look at it, as long as the overhang clears, this company can not stay at this price according to the fundamaentals.
It is receiving revenue 3 quarters to its market cap.

Hello Barclay. Good to hear from you - glad you managed a good price for the warrants (see, all that waiting turned out to be not so bad after all!).

SER is not one I have looked at in detail, but having skim-read the basics a couple of months ago, my instinct said I'd be better off elsewhere. There is a lot of hype surrounding the stock (how much of what is posted on the BB is remotely related to the fundamentals?). I'm also put off by niggly things such as the fact that the company dosen't have enough pride in its appearance to organise a share consolidation and get the SP back into whole pence.

As for EOG's SP, it's just the state of the market - I would hope. There are plenty of other co's out there announcing what appears to me to be good news and the SP still slides. Classic bear-market conditions, or so I'm told. With EOG I'm content to hang on and am indeed trying to take a longer-term view with all of my investments.

What are SER's prospects, realistically? that is the bottom line, but I think there's been a little too much hot air surrounding this one.

My investment of choice amongst the micro-cap oilers is Black Rock Oil and Gas(BLR). There's production coming on stream any day now, big reserves due to be confirmed by independent audit, a decent portfolio for such a small company and to cap it all, it's just been tipped by Shares Mag.

I've been following BLR for a couple of years, and have contributed regularly to the thread on this BB. Seeing support for my views come in from "Shares" is naturally a big fillip, although it will be profits that will show whether or not my hunches are correct.

IMHO it would be worth comparing the two co's and then seeing how you feel.

All WDIK, PDYOR, etc, of course.

Thanks ST, take a look at www.Michael Walters.com there is a free article on their
by their warrants specialist which is very good. The editor has just made a tidy sum
on some warrants and also uses them to track gold EFTs, which is a very good idea for the long term bull market in gold thats coming.

EOG has a new financing facility. Looking good.

You have to take your hat off to Headstart, though; they get 42,500 up front and a shed-load of warrants before EOG even draws any funding. Not bad for a day's work!

BTW Headstart are the VC types who funded Scotty (SCO). I assume Headstart would know when they are onto a good thing, but in Scotty's case there was a lot of dilution involved. WDIK/PDYOR.

For Release: 2nd June - 7am

Europa Oil & Gas (Holdings) plc

(`Europa')

Financing Facility

The Board of Europa Oil & Gas (Holdings) plc - AIM: EOG - the hydrocarbon
production and exploration company, announces that Europa has entered into an
agreement with the Headstart Group of funds under which a share finance
facility of up to 1.5 million will be made available. Any draw down of the
facility is at the sole discretion of Europa.

The facility can be drawn down in monthly increments of up to 100,000 in
exchange for the issue of new ordinary shares and is available at any time up
to 1 December 2008.

In consideration for making the facility available Europa has agreed to pay
Headstart a one-off fee of 42,500. In addition, Europa has issued 300,000
warrants to Headstart granting the right to subscribe for ordinary shares at
31.20p per share. These warrants are exercisable at any time up to 31 May 2009.

The cost of the Headstart financing compares extremely well with the cost of
the IPO, being almost half the cost in percentage terms. The 5mm raised at the
IPO was at a cost of 14.05% of the proceeds, along with one warrant given for
every two shares issued. The 1.5mm Headstart facility cost is 8.2% of the
proceeds, at an equivalent share price, with one warrant for every twenty
shares.

Revenues are set to increase significantly in the next quarter when the Bilca
Gas Development comes onstream. The share finance facility gives Europa the
flexibility to pursue additional acquisition opportunities and the increased
ability to maintain the pace of development of existing projects.

Ewen Ainsworth, Finance Director, commented

"With the pace of Europa's commercial progress accelerating, particularly in
the light of planned testing of the gas shows encountered in the Costisa-1 well
and positive results from the recent seismic acquisition in Romania, the Board
decided it was prudent to secure funding in order to maintain this progress.
The facility has the added benefit of being discretionary, and will only be
used as required."

Nice to see the SP over 30 again, too.

And there's more! EOG will definitely be re-testing Costisa.

Europa Oil & Gas (Holdings) PLC - License Update
For Release - 5 June 2006

Europa Oil & Gas (Holdings) plc

Licence Update

The Directors of Europa Oil & Gas (Holdings) plc, the production and
exploration company, are pleased to announce that the Romanian National Agency
for Mineral Resources has approved an extension of up to three years and change
of Operatorship for the EPI-3 concession. Europa will operate the concession,
situated in the East Carpathians, with a 33.3% working interest, Czech partner
MND holding the remainder. A side agreement gives Europa an 80% beneficial
interest in the eastern part of the block, containing the Costisa-1Z well, and
a 20% interest in the western part of the block.

Both Europa and MND recognise further prospectivity in the Block, which lies
immediately north of the Moinesti oilfields and immediately west of the 600bcf
Roman gasfield. Testing the Burdigalian gas shows encountered in Costisa-1Z is
an initial priority with the re-entry and testing of these gas sands
anticipated to take place in summer 2006. Further potential around the Geamana
and Tazlaul Mare fields will also be assessed.

Costisa-1Z was suspended for later re-entry in December 2005, following
encountering strong gas shows in Burdigalian sands at a depth of approximately
1,000 metres. It was not technically justifiable to test these sands in the
original borehole, as they had been exposed to heavy drilling muds for over
three months before being logged and cased. Consequently, a short sidetrack
away from the damaged zone is planned with a drill stem test.

Whilst the logs were of poor quality due to excessive borehole size in the
original hole, they confirmed the gas shows were from the upper 25 metres of a
50 metre sandstone-prone unit with up to 20% porosity. If the initial test is
successful, it could be extended to provide detailed reservoir performance data
and the gas exported into the nearby pipeline system.

Paul Barrett, Managing Director, said 'I am personally looking forward to this
test with great anticipation. There are indications on the seismic data that
this play extends northwards from Costisa. If successful, its modest depth and
proximity to the gas pipeline system will minimise development costs'.

About Europa Oil & Gas (Holdings) plc

Europa Oil & Gas (Holdings) plc - AIM: EOG - focuses on the production and
exploration of hydrocarbons in Europe and North Africa. It currently produces
210 barrels of oil per day from UK onshore fields and 25 barrels of oil
equivalent from the Ukraine. Production is expected to rise significantly after
its Romanian Bilca Gas Project comes onstream later this year. Operating a
balanced portfolio, Europa currently has field appraisal activity on projects
in the UK Southern Gas Basin and onshore Romania and exploration activity on a
further eight licences across the Europe - North Africa region. For more
information please visit www.europaoil.com.

My thoughts: there has been a good spate of positive newsflow from EOG of late. The next twelve months or so look as if they could be busy for the company, with both production increases and lots of appraisal and exploration planned.

It's a pity that the SP hasn't reacted positively to today's RNS; hopefully the next few months will bring news that attracts a lot more interest.

WDIK, PDYOR etc.

ST, Investors Chronicle tipped it as a buy last week and oil price is heading north, which will show on profits this year.

By the way how do i insert a picture from my pictures with the insert image icon?
I tried to do it on the football thread and it came up blank.

Thanks Barclay - good info re the IC tip. I see they are in sharp disagreement with our very own "Shares" mag, which gave this a red triangle in the AIM Guide.

Re pictures, if you copy-and-pasted the whole link from your browser addresss window, then you probably did it okay, but some webpages don't allow this kind of transfer of links. I think.

What did shares Mag say that disagrees with IC?

They didn't explicitly say anything negative, just stuck a red triangle beside their summary of the co (which did mention forthcoming production increases, etc). Strange.

Nice article on Oilbarrel.com today.

YES! I'd like to read that nice article on oilbarrel.com

Warrants up 0.5p yesterday. (stop yawning at the back - this will get better!)

Barclay, and others,

I thought I'd revive Andy's thread since it has quite a lot of info on it already and things are getting fragmented on the other, shorter threads.

I wanted to address the SP's 11% rise that took place yesterday. I am convinced that the rise is due to the jump in the gas price that took place in the last couple of months. Henry Hub gas, which I am using as my datum (prices and charts available on oilbarrel.com) is up a little over $2.00 from its midsummer low of $5.55.


EOG offers one important advantage to its investors - the Romanian domestic gas market fixes the price on a year-by-year basis.

I quote from a recent RNS: "Currently, Romanian domestic gas production is sold at a 20% discount to the previous year's import price resulting in a 2006 price of $4.30 per thousand cubic feet (mcf). There are strong signals that the 20% discount will reduce substantially with Romanian entry into the European Union in 2007 resulting in an improved gas price."

Thus the domestic gas price equals 80% of the average price of imported gas for the previous calendar year. The figure of $4.30 for gas sold in the Romanian market is therefore a fixed quantity and won't change until the next calendar year.

WHY IS THIS EXCITING?

Two reasons:

1.) The gas price is up again this year. Looking at the chart of Henry Hub, the gas price for the first seven months of the year has been a little over $6.00. IT GETS BETTER! Temperatures in continental Europe have plummeted. From around 32 C a few weeks ago, we are now "enjoying" daytime temperatures as low as 14 C, with night lows of a mere 4 degrees! The five-day forecast gives highs of 8 - 19 C. Over in Bucharest things are still nice and summery, but the price of the gas they import (which in turn fixes the price of domestic gas for the following year) has increased in spite of the summer weather.

It seems likely that the gas price low of $5.55 is about as low as things will get this summer - and the good news is that the higher winter prices are on the way. Even if the average gas price for 2006 is only $6.00, 80% of that gives a Romanian domestic gas price of $4.80 for the year 2007. That's an 11.6% advance on this year's price of $4.30 (which itself was an improvement on the previous year. I think the average gas price for 2006 is likely to be much higher than $6.00. Already we have an average of $6.00 for the first half of the year. If we take the last half of last year as typical, the average gas price for those six months was approx $10!

I'd be happy to take a very conservative average gas price of $6.50 for 2006, translating to a Romanian domestic market price of $5.20 for 2007 - a 21% advance on the current year.

This gives us a rough idea of where EOG could be in terms of turnover, assuming we get confirmation of the second bit of good news:

2.) EOG is about to announce a large production hike at the Bilca field (EOG 28.75% interest). This has already been well-discussed and documented on this thread. Knowing roughly how much the gas will be worth next year, we can already get a fair idea of what EOG's turnover will be in 2007.

So there's good news on the way, we trust! In spite of this, EOG remains a smaller fish at the moment and is still in need of a real "company maker".

Price rise of 11% on Friday!

Looking at the chart of this year's gas prices, it seems clear that EOG will benefit from a domestic gas price in Romania of $5.20 or more in 2007 (current gas price there is $4.30).

Add this to the forthcoming production hikes and things are looking better than ever for EOG (and the warrants).

Aren't they going to change from a fixed price to our prices in 2007?
This would be better for us, as becuase of the discount we are losing potential revenues that other gas companies are making. This does not seem fair, as EOG
shares would be a lot higher already if there was no discount.

Why should we be happy with $4.50 per barrel when gas prices are at $7 plus and rising, that price will nearly double your revenue without any more gas reserves.

But having said that Europa warrants should at least double in time on what we already have because of the gearing effect, the shares only have to go up 25% or so to achieve this.

I think the price gap should narrow in 2007 due to EU entry, from my understanding of what I have read. When and whether it will finally "close" is a moot point, as I can't imagine there will be legislation forcing the domestic market to pay the same as the import market - it may be more a case of market forces evening things out gradually.

Up today: EOG Bid: 31.5p Offer: 33p Change: 0.75 Market Cap 19 mil.

The announcement of commercial production going online at Bilca/Fratauti should be made any day now.

AFX news release 28 september 2006: Bilca production has started - production is up 130%; the wells will be monitered for a 6 months period at this rate to see how well is performing, and then production will be increased.

Great news, but the warrants and shares have not responded, i think because of the lower gas price, due to the warm weather which should reverse over the coming winter.

Barclay, I don't think that the increase in production was as much as expected, adding to the factors you mentioned which have conspired to drag on the SP.

Call me impatient, but I have decided to sell my warrants as I think I have seen enough to realise that there won't be any surprises in the forthcoming financial results. For me there was a lot riding on the Bilca announcement which has not been fulfilled. I thought that short-term I might stand a chance of making more money with the awaited news of a licensing deal for Plethora Solutions (PLE), so that's where I've invested my cash today.

London presentation next week, FREE registration, click here

Do it now! Get out of sterling at $1.56 and into USD and/or gold

An extract from the diaries of infamous bear raider Evil Knievil

Today on UK-Analyst.com we bring you an exclusive extract from the diary of infamous bear raider Evil Knievil, taken from his popular thrice-weekly column (written via his idiot diarist Tom Winnifrith) only on t1ps.com

February 5th

A brief diary follows. Normal service resumes on Monday as I have just got back from the West End for lunch having spent an hour and half on physio.

I am still a gold bull and I think Quintain (QED) is a buy at 61p. In fact, I think QED is a slam dunk buy since it is at such a huge discount to net AV.

I have also bought Europa Oil & Gas (EOG) for the weekend's drilling results.

Tidal Bay is a bet at 8/1 for the World Hurdle, Cheltenham 18th March.

I have sold Provexis (PXS) short at 8.2p.

It's great seeing the EU fall apart. Slithering down the Greecy pole.

UK-Analyst.com

Europa Oil & gas has welcomed an update from Aurelian on the potential resource upgrade on the Brodina Block in Romania.

Europa - which has a 28.75% working interest - said the upgrade reaffirms the significant resource potential in the central part of the Brodina Block as initially indicated by Voitinel-1.

It said further testing work in April will go a long way to allowing these gas volumes to be booked as a significant contingent resource.
cyril

More info on the previous post.

MorAdditional information provided by Romgaz on recent drilling results at Paltinu
confirms that the gas fairway tested in Voitinel-1 extends at least 20km along
trend to the southeast from the well and encompasses the undrilled Solca
structure. As a consequence of these drilling results, Aurelian has upgraded
the potential gas-in-place along the Voitinel-Solca trend from previous
estimates of 50-100bcf to 400bcf on-block.


In Nov their was a brokers note that Votinel was worth 13p to EOG when the reservres were 50/100mbcf,now 4 to 8 times that amount(52p).
Trading around 18p.
cyril

And Hakenham (not sure about spelling)....testing underway....promising stock......sorry.... Hykeham...

Took out a position last week and glad i did.


Romanian Operations Update

The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a joint
venture announcement being made today by the Operator, Aurelian Oil & Gas plc,
regarding the Romanian operations:

`Ongoing Appraisal of Voitinel/Solca trend - Result of Flow Test of 1400 sand

The 1400 sand in the Voitinel-1 well, which accounts for approximately 12% of
total gas-in-place across the wider Voitinel/Solca trend, has been perforated
and flowed gas at 10,000 scf/d with no water production. Further appraisal is
likely in future appraisal wells where core can be obtained and fracture
stimulation undertaken to increase production rates. Aurelian believes that the
wider Voitinel/Solca structural trend could have gas-in-place volumes up to
400bcf and that it may be possible to recover up to 6bcf per well from the 1650
sand tested in May and, on the 1400 sand, up to 3bcf per well on the assumption
that fracture stimulation is successful.

The reprocessing of the available seismic to incorporate the results of the
Voitinel-1 well has been completed and the structure is currently being
remapped. The results of this should be available in July/August and will
enable the Company to provide a more accurate assessment of total gas-in-place
across the trend. In addition, seismic contractor Prospectiuni has been
appointed to acquire 60km of 2D seismic principally to detail the Solca trend
to allow a site to be selected for a possible well in Q4 2010.

Interests in the Brodina block are held by Aurelian Oil & Gas (Romania) SRL
(33.75%), S.N.G.N. Romgaz S.A. (37.50%) and Europa Oil & Gas SRL (28.75%).

Bacau 2D seismic survey commences targeting leads of 147bcf of gas-in-place

Work has commenced on a 70km, 2D seismic survey (44km on Bacau North and 26km
on Bacau/Lilieci) on three prospective areas within the northern and central
areas of the Block. As a result of reviewing the overthrust area of the block
for the first time, the Company has identified additional leads and therefore
the survey is now targeting gas-in-place leads of 147bcf, an increase of 119%
from the previously announced 67 bcf. In summary, two areas are prospective
for Sarmatian biogenic gas prospects in the north eastern area and one for
thermogenic gas/condensate in the overthrust area of the East Carpathians. This
survey will be interpreted by the end of August 2010 and it is hoped that it
will further define prospects for drilling in the future.

Interests in the Bacau North block are Aurelian Oil & Gas (Romania) SRL 41.0%,
S.N.G.N. Romgaz S.A. 40.0% and Europa Oil & Gas SRL 19.0%. Interests in the
Bacau Lilieci block are Aurelian Oil & Gas (Romania) SRL 60.0%, S.N.G.N. Romgaz
S.A. 40.0%.'


Paul Barrett, Managing Director of Europa, said `This test confirms free gas in
the 1400 sand at Voitinel which will be incorporated into the development plan
for the discovery, of which the main 1650 reservoir, successfully fracced in
May, currently holds the majority of potential reserves. We are looking forward
to the Operator's presentation to partners on revised reserve estimates in
early July and will inform shareholders in due course.

Despite our very strong acreage position in the play, we feel we have only
scratched the surface so far in assessing the prolific Oligo-Miocene oil
fairway of the Romanian Carpathians, which has produced 5 billion barrels to
date. Consequently, the seismic program this year across the Bacau and Cuejdiu
Blocks will go a long way to providing a strong exploration prospect flow for
the next few years. The first of our oil prospects, Barchiz, is expected to be
drilled in the Brates Block later this year.'
cyril

StockMarketWire.com
Minor oil shows and mud gas indications have been encountered while drilling the top-hole section of the exploration well at Barchiz in Romania, Europa Oil & Gas says.

The well was spudded in mid-October.

Europa said the well is drilling the top-hole section at 406m.

Minor oil shows and mud gas indications were encountered in sandstones over the interval 268 - 275m, providing evidence for an active petroleum system in the Barchiz area.

It is anticipated that the well will reach the target horizon at a depth of approximately 1,400m in 2-3 weeks time.

All going well, I am long here and hoping for some serious action on good news.



10th November 2010

Drilling Update - Barchiz-1

The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a
progress update on the drilling of the Barchiz-1 well in Romania. The well has
now been cased to a depth of 664m and preparations are being made to drill the
main 8" section of the well containing the target horizons.

From this point the well will be operated `tight hole' and no further
announcements will be made until reaching final total depth of approximately
1,400m.

Further information:

Europa Oil & Gas

Jumped in as well.....you never know...they might just get lucky here....possibility of 1 billion barrels plus ???....I find that hard to believe....I'd be happy with 50 million....the stock would go through the roof...

Yet there appears to be consistant sell through out the day, any idea how long to drill the rest of the way??

15m market cap company potentially drilling for what would be worth to them net around 40m to 50m pounds worth of oil.

End result will either be the undervalued company still has all its main assets, or the undervalued company with a 15m market cap has all its main assets plus oil worth around 3 times its market cap and follow on leads for 5 more of them looking pretty strong.

Interesting times..... and possibly a 3 bagger right away on good news. I think the herd may catch on to the potential soon.

EK is also long EOG, he purchased at 12.5p levels - for the same reasons that the downside is limited but the upside is rather large.

And for any newbies, the present well is on the Romanian Carpathians. Potentially around 6 million barrels or more net to EOG, which for a tiny market cap company is a lot of oil, and on top of that various other leads should this one be good, up to circa 70 million barrels net to EOG.

http://www.proactiveinvestors.co.uk/genera/files/companies/3__europa_oil_and_gas__sept_30th_2010__final.pdf


.

http://www.proactiveinvestors.com/companies/news/9937/europa-oil-gas-prepares-to-drill-main-section-of-barchiz-1-oil-well-shares-rise-9937.html

Wednesday, November 10, 2010

Europa Oil & Gas Prepares To Drill Main Section Of Barchiz-1 Oil Well, Shares Rise


Europa Oil & Gas (LON:EOG) has reported more progress from the closely followed drilling of the Barchiz-1 exploration well in Romania, sending shares up 7%.

Preparations are being made to drill the main section of the well containing the target horizons after the well was cased to a depth of 664 metres.

No further updates will be provided until the well reaches its total depth of 1,400 metres.

The initial results from Barchiz-1, which was spudded on 18 October, were encouraging, giving evidence of an active petroleum system in the Barchiz area with minor oil shows and mud gas indications encountered between 268 and 275 metres.

The Barchiz prospect is 10 kilometres from, and on trend with, the Geamana oilfield with 50 million barrels of oil (mmbo) reserves. The pre-drill oil-in-place estimate for Barchiz is up to 94 mmbo and there are five additional leads on-block in the same structural play which will be significantly upgraded by success at Barchiz.

Additionally, leads in the same play have been identified on new seismic data in the Cuejdiu block, immediately to the north of Brates.

Europa believes it is likely that additional seismic will be acquired in the Brates block in 2011 over the Tazlaul Mare Deep feature, a large thrust structure beneath the Tazlaul Mare gas condensate field, to mature this prospect for drilling.

In October, Europa raised 1.8 million to fund further drilling at the West Firsby field in Lincolnshire and at Barchiz-1, while also covering ongoing working capital requirements for the company's other prospects.

is this person a vampire........look at the time of his or her's post times....lol

Nightwatchman perhaps...? or a train driver with a laptop.....?.....oh ! that'a a red...never mind ...we'll make up for it with the next one....

More like a black plastic mack and binoculars........
Back to thread, whats the time scale for next drilling rf??

I'd say another 10 days for Barchiz....(reminds me of a french goalkeeper)....and a bit longer for the one with Aurelian...

About 10 days is about right, in an about way.

Zak Mir the chartist wrote today :

"I have only recently become a big fan of bulletin boards since I realised that they can take the leg work out of finding new and exciting small cap/multi bagger opportunities. This is largely due to the fact than those less lazy than myself post the fruits of their good work on Sharecrazy.coms community board. The daily chart of Europa shows a fresh break above the black 200 day moving average now at 14.5p. The big plus here is the way that the 200 day line is starting to rise, and with the blue 50 day line moving up to cross it over the next few weeks to give a likely golden buy signal, we should be looking at the sweet spot of a major rally. Only a weekly close back below the black 200 day line would delay the prospect of a three month target as high as the December 2008 resistance line projection at 30p over the next 34 months or less"

Looking a bit stronger, obviously getting noticed by more and more people now and they can see how its pretty much undervalued based on its current assets, let along the upside potential

We could have two bites of the cherry to taste.....if both come in it might go all the way to 50p....that's a big if.....but the possibility is there...

Worth reading this recent write up :

http://boards.fool.co.uk/europa-oil-gas-eog-and-berenx-12066354.aspx

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Couple of older articles for a read :


March 2010

http://www.proactiveinvestors.co.uk/companies/news/14128/europa-oil-gas-well-placed-for-progression-in-2010-14128.html




Sept 2010

http://www.proactiveinvestors.co.uk/companies/news/21164/europa-oil-gas-reports-major-upgrade-for-west-firsby-oil-reserves-21164.html

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New thread with up to date header.


http://www.moneyam.com/InvestorsRoom/posts.php?tid=15462#lastread

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EOG is a potential for share of the year.