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

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).