EO. Encore Oil

RNS Number:9889K
EnCore Oil PLC
25 October 2006



                                                                              

PRESS RELEASE


For immediate release: 25 October 2006



EnCore Oil plc to acquire additional portfolio of UK offshore blocks through the
                         acquisition of four companies


The Directors of EnCore Oil plc ("EnCore" or the "Company") are pleased to
announce that the Company has entered into sale and purchase agreements for the
acquisition of four oil and gas exploration companies: privately held Virgo Oil
& Gas plc and Virgo Energy Limited, Nido Petroleum (UK) Limited, a UK subsidiary
of Australian listed Nido Petroleum Limited, and Grove Energy (UK) plc, a UK
subsidiary of Toronto and AIM quoted Grove Energy Limited.

These acquisitions add a number of UK licensed Blocks and part Blocks in the
North, Central and Southern areas of the North Sea.

Consideration for the acquisitions consists of the issue to the vendors of
37,000,000 new ordinary shares of 5p in the Company and will represent
approximately 15% of the enlarged share capital of the Company. The number of
Ordinary Shares in issue following completion of these transactions will be
241,885,286.

Completion of these acquisitions, which is expected to occur before the end of
the year, is subject to the usual regulatory consents including DTI consent.

Alan Booth, EnCore's Chief Executive Officer, commented:

"We are very pleased with the acquisition of these assets. This acquisition is a
continuation of our ongoing strategy of broadening and deepening our opportunity
set and balancing the associated risk profile. Our offshore UK exploration
portfolio now includes a significantly increased presence in the Southern Gas
Basin and exposure to additional near term drilling opportunities. The increased
portfolio will provide us with an enhanced ability to manage our portfolio and
to prioritise those assets which we believe are more likely to create
sustainable and realisable value for our shareholders."

A full list of the licences to be acquired is set out as an Appendix to this
announcement.



For further information, please contact:

EnCore Oil plc                                   www.encoreoil.co.uk
Alan Booth, Chief Executive Officer              +44 (0)20 7224 4546
Eugene Whyms, Chief Financial Officer

Aquila Financial Limited                         www.aquila-financial.com
Peter Reilly                                     +44 (0)20 7202 2601





Appendix:


                        Licence Interests to be Acquired

 Licence    Traditional/    Blocks & Part   Interest   Operator      Location
  Number      Promote          Blocks         (%)
P.1064     Traditional    210/25b & 210/30      40   Sterling      Northern
                                                     Resources     North Sea
P.1199     Promote             210/29           40   Sterling      Northern
                                                     Resources     North Sea
P.1230     Promote              42/13           15   Sterling      Southern
                                                     Resources     North Sea
P.1237     Promote              43/8           100   Virgo         Southern
                                                                   North Sea
P.1241     Promote              47/9c           50   Corsair       Southern
                                                                   North Sea
P.1243     Promote          48/1b & 48/2c       50   Nido          Southern
                                                                   North Sea
P.1327     Promote        42/8, 42/9 & 42/      15   Sterling      Southern
                                 14                  Resources     North Sea
P.1328     Promote              42/12           15   Sterling      Southern
                                                     Resources     North Sea
P.1332     Promote              43/6            60   Virgo         Southern
                                                                   North Sea
P.1337     Promote         43/15a & 43/20a     100   Virgo         Southern
                                                                   North Sea
P.1350     Promote         47/8d & 47/13c       50   Nido          Southern
                                                                   North Sea
P.1335     Promote             43/13a          100   Virgo         Southern
                                                                   North Sea
P.1377     Promote             210/25d         100   Virgo         Northern
                                                                   North Sea
P.1307     Promote              21/22           30   Sterling      Central North
                                                     Resources     Sea
P.1309     Promote             21/28b           30   Sterling      Central North
                                                     Resources     Sea
P.1395     Promote        12/16b, 12/17a, &     25   Stelinmatvic  Moray Firth
                               12/22a




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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