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

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!