EO. Encore Oil

RNS Number:3846V
EnCore Oil PLC
24 April 2007


                                                                               
Press Release

For immediate release: 24 April 2007


EnCore Oil plc ("EnCore" or "the Company")



               EnCore Acquires Interests in Existing Discoveries

           Offshore Ireland and the Netherlands from Island Oil & Gas


EnCore Oil plc (LSE: EO.) is pleased to announce that it has acquired interests
in two gas discoveries offshore Ireland and one oil field offshore Netherlands,
as a result of its cooperation agreement with Island Oil & Gas plc ("Island").
The agreement gives EnCore additional 2007 drilling activity as well as
potential near term production in two new jurisdictions.


The immediate cash cost to EnCore will be #3.1million, of which #2 million will
be met by the sum already on deposit with Island. In addition, Island has
acquired options to take 15 per cent. of EnCore's equity in the Bennett
Carboniferous prospect within UK licence Block 43/15a, and 30 per cent. of
EnCore's equity in the Nimes permit application onshore France, subject to
certain conditions.


The new interests include:


  * 15 per cent. equity in part-block 49/23 offshore Ireland, which contains
    the Old Head of Kinsale gas discovery, drilled by Island in 2006. The gas
    discovery is located 25 kilometres from Marathon Oil's gas production
    facilities at the Kinsale Field. Island suspended the discovery as a
    potential gas producer pending drilling an appraisal well in 2007, which is
    currently expected to commence in mid-May. Old Head of Kinsale has P50 gross
    recoverable reserves of 55bcf. EnCore also has an option to acquire an
    additional five per cent., subject to certain conditions.


  * 12.5 per cent. equity in blocks 57/1 and 57/2, which contain the Schull
    Gas Field and a number of associated structures, discovered by Total in
    1987. Schull lies approximately 43 kilometres to the southwest of the Seven
    Heads gas field and the associated infrastructure linking Seven Heads to the
    Kinsale Alpha platform. Schull has P50 gross recoverable reserves of
    18.2bcf, and the other two gas prospects contain unrisked prospective
    resource of 74.1 bcf. Island will drill an appraisal well on Schull
    immediately after the Old Head well. EnCore also has an option to acquire an
    additional 7.5 per cent., subject to certain conditions.


  * 10 per cent. equity in the Q13 Production Licence, which covers an area of
    30 square kilometres offshore the Netherlands and contains the Amstel Field,
    a Lower Cretaceous field with P50 gross recoverable reserves of 10.9 million
    barrels. The field which was discovered in 1962 is located within the West
    Netherlands Basin and development is expected to commence in 2008. EnCore
    also has an option to acquire an additional five per cent., subject to
    certain conditions.


Drilling is expected to commence in May of this year with an appraisal/
development well on Island's 2006 'Old Head' discovery using the Petrolia
Semi-Submersible. This will be followed by a well on the Schull licence
following up additional gas potential of Total's 1987 gas discovery. In 2008,
EnCore expect to drill three development wells on the Amstel field in the
Netherlands again subject to the necessary regulatory approvals.


The option agreement with Island to acquire up to 20 per cent. in the Connemara
Licence has been extended until 30 June 2007.


Alan Booth, Chief Executive Officer of EnCore commented:


"Our entry into Ireland and The Netherlands is a significant and welcome
addition to our portfolio. These additional five wells add to an already active
programme of drilling and commercial activity for EnCore over the next two
years."


Graham Dore B.Sc. (Hons.) in Geology and M.Sc. in Petroleum Geology and EnCore's
Exploration Director, who has over 19 years' experience in the oil exploration
and production industry, has reviewed and approved the technical information
contained in 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
Yvonne Fraser                                  +44 (0)20 7202 2609

Hanson Westhouse Limited
Tim Feather                                    +44 (0)113 246 2610

KBC Peel Hunt
Jonathan Marren                                +44 (0)20 7418 8900



Notes to Editors:


  * The farm out agreements for the Old Head of Kinsale and Schull gas fields 
    are subject to approval from the Irish Minister for Communications, Marine 
    and Natural Resources.


  * The Amstel farm out is subject to the approval of the Dutch Minister for 
    Economic Affairs. EBN, a company wholly owned by the Netherlands government
    holds 40 per cent. equity in the licence.


  * The reserves numbers in this press release are taken from Island's press 
    release of 20 March 2007. Dr Jan Ypma, Manager of the Petroleum Reservoir
    Group of Fugro Robertson Limited, and a Petroleum Reservoir Engineer (PhD
    Theoretical Physics), is the qualified person who managed the evaluation of 
    the technical and commercial information relating to Island Oil & Gas plc 
    and the documentation of the Competent Persons Report from Fugro Robertson 
    Limited.




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

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