Europa loses Holmwood drill appeal

by on September 27, 2012 3:01 pm BST

The London-listed junior said it received notice on Thursday
that Surrey County Council’s decision not to let it drill an exploration borehole
and undertake a term test at the Holmwood prospect on the PEDL 143 licence had
been upheld.

The company had originally made an application to drill on
the prospect in the Weald basin, Surrey in 2011 but this was rejected.

Following Thursday’s setback, the company said it would
consider its options along with its partners in the play by consulting its
legal counsel. Europa is operator with a 40% stake while Edgon Resources is on
38.4%, Warwick Energy on 20% and Altwood Petroleum on 1.6%.

Shares in Europe slumped over 17% near the close of trading
on Thursday.