Activity Update
May 01 2007 - 10:00AM
UK Regulatory
RNS Number:8705V
EnCore Oil PLC
01 May 2007
For immediate release: 1 May 2007
EnCore Oil plc ("EnCore" or "the Company")
Activity Update
EnCore Oil plc (LSE: EO.), the AIM-quoted oil and gas exploration company has
uploaded a copy of its forthcoming drilling programme for 2007, 2008 and 2009 to
its website. The programme, which is for guidance only and subject to change for
either operational or business reasons, can be found on EnCore's website at
www.encoreoil.co.uk/operations.asp and set out in a table in the attached
appendix.
Highlights
EnCore currently expects to participate in at least 12 wells over the next 18
months. Highlights of the programme are set out below.
Offshore
The programme is expected to commence in May with the Cirrus (48/22b-F)
Perenco-operated exploration well and the 49/23-2 Island Oil and Gas plc
("Island")-operated Old Head of Kinsale appraisal well. Subject to any
operational and testing issues on the Old Head of Kinsale well, this will be
followed by an appraisal well on the 1987 Schull discovery, also operated by
Island. The Company also expects to see the drilling of the Breagh appraisal
well by Sterling Resources Ltd. in late summer, with drilling on Barbarossa 47/
9c-A and the Catcher 28/9-C well either in late 2007 or the first half of 2008.
Development drilling activity on the Amstel field in Holland could start as soon
as the first half of 2008.
Onshore
The onshore discovery at Kirkleatham is progressing as planned. The operator,
Egdon Resources plc ("Egdon"), has acquired additional seismic data in the area
and the group are currently reviewing the additional gas potential that this
licence may have to offer. Egdon has informed EnCore that the group may be in a
position to produce gas from the Kirkleatham discovery in the winter of 2007/08.
At Westerdale, the group is currently reviewing the potential of drilling an
appraisal well to the Ralph Cross discovery. Although the Westerdale well
encountered gas, it is thought to be separate from the Ralph Cross accumulation.
Gas Storage Progress
The gas storage evaluation in partnership with Star Energy is progressing as
expected, and EnCore is encouraged by the interest expressed by a number of
larger companies active in this segment of the gas business.
Further Portfolio Development
EnCore continues to mature the prospectivity of the remainder of its portfolio
and is actively seeking co-venturers to partner in the drilling of a number of
these prospects. Discussions with potentially interested third parties on a
number of EnCore's licences are progressing well and the Company is hopeful that
this may lead to additional drilling in an already active forward programme.
Commenting on the drilling programme, Alan Booth, Chief Executive of EnCore
said:
"EnCore has been especially active in expanding and broadening its portfolio
over the last nine months within our stated strategy of building an opportunity
set that has the capacity to create sustainable and realisable value for our
shareholders. Our portfolio now covers acreage in the UK, Ireland*, Holland* and
France* in addition to our already established position in Western Sahara. As a
result of this work, EnCore is now about to embark upon a significant
exploration, appraisal and development drilling programme beginning in May and
continuing through 2007 and into 2008.
"I believe we now have a forward activity programme that few companies of our
size can match. We will however continue to seek additional value adding and
company transforming opportunities and expect that we will continue to upgrade
our portfolio actively through trades, sales, swaps and acquisitions. We
continue to shepherd our cash resources and remain alert to consolidation
opportunities in the small cap E&P sector. Our criteria for taking advantage of
such opportunities are that they should offer the opportunity to create a
stronger and more capable entity with the scale and capability to take advantage
of opportunities in the sector, and, where appropriate, deliver value directly
to our shareholders."
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.
*Subject to regulatory approval
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
APPENDIX
EnCore Oil Drilling Schedule 2007-2009
EnCore 2007 2008 2009
Prospect Block(s) Operator Equity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1.Old Head 49/23 - Island Oil & Gas 15.0% X
of Kinsale Ireland
2.Cirrus 48/22b Perenco 8.3% X
3.Schull 57/2 - Island Oil & Gas 12.5% X
Ireland
4.Breagh 42/13 Sterling Resources 15.0% X
5.Barbarossa 47/9c Venture Production 10.0%** X
6.(TBC) 210/29 & Sterling Resources 40.0% X*
210/30
7.Catcher 28/9 & 28/10b OilExco 35.0% X
8.Markwells PEDL126 Northern Petroleum 10.0% X
Wood
9.Amstel 1 Q13 - Island Oil & Gas 10.0% X
Netherlands
10.Cobra 48/1b & EnCore 25.0% X
48/2c
11.Amstel 2 Q13 - Island Oil & Gas 10.0% X
Netherlands
12.Leigh PEDL155 Northern Petroleum 7.5% X
Park
13.Amstel 3 Q13 - Island Oil & Gas 10.0% X
Netherlands
14.Bennett 43/15a EnCore 35.0% X*
15.(TBC) PEDL068 Egdon Resources 20.0% X*
16.Tudor 14/30a EnCore 40.0% X*
Rose
17.Norfolk 12/16 Stelinmatvic 25.0% X*
18.Merrow 113/29c Nautical Petroleum 50.0% X*
& 113/30
* Contingent Well
** Half of EnCore's equity is subject to buy-back.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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