EO. Encore Oil

RNS Number:1539E
EnCore Oil PLC
20 September 2007



Press Release

20 September 2007


EnCore Oil plc ("EnCore" or "the Company") (LSE:EO.)


                   Old Head of Kinsale and Schull discoveries
                     Front End Engineering contract awarded


Island Oil & Gas plc, the operator of the Old Head of Kinsale and Schull
discoveries, has today announced the award of a front end engineering contract
to Pegasus International UK Limited. EnCore has a 15% interest in Old Head of
Kinsale and a 12.5% interest in Schull.

A copy of Island Oil & Gas' announcement is set out below for convenience:


          "ISLAND AWARDS FRONT-END ENGINEERING STUDY CONTRACT FOR THE
              OLD HEAD OF KINSALE AND SCHULL GAS FIELD DEVELOPMENT

Island Oil & Gas plc (LSE:IOG) today announces that it has awarded a contract to
Pegasus International UK Ltd, for front-end engineering work ahead of the joint
development of the Old Head of Kinsale and Schull Gas Fields in the Celtic Sea,
offshore Ireland. The Studies, which will focus on field development options,
including subsea tiebacks, will commence immediately ahead of plans to bring the
Fields onstream during 2009.

Pegasus are specialist subsea engineering consultants, with offices in the UK
and the USA, who support operators in the definition of field development
options and the associated detailed design works. The Phase 1 works for the
front-end engineering studies will establish a technical definition for the
subsea tie back options and the operational and functional requirements for the
subsea facilities. They will also generate production profiles and gas
composition and condensate recovery volumes.

This work, in conjunction with other studies that are currently being
undertaken, will provide a basis for the updating of field development cost
estimates and schedules.  It is anticipated that the subsequent planned Phase 2
works, in the end of the 4th Qtr 2007, will enable an active dialogue with
suppliers and offshore service contractors in order to establish field
development plans. These plans will form the basis for a Declaration of
Commerciality. Following this an application for a Petroleum Lease covering the
two gas fields, together with a Plan of Development, will then be submitted to
the Minister for Communications, Energy and Natural Resources for approval.

Following technical evaluation of the drilling results from the recent Old Head
of Kinsale and Schull pre-development wells this summer, Island believes the two
fields potentially contain in the range of 80 to 120 bcf of recoverable gas,
subject to confirmation and verification as part of an updated reserves report
that is currently underway. Preliminary discussions with Parties that could
potentially market any future gas produced from Old Head and Schull have been
initiated.

In addition to plans for the joint development of the two fields, Island
continues to investigate gas storage opportunities and the potential partnership
advantages to Island, its co-venturers and the Irish government in offering a
possible strategic gas reserve for the country.

Commenting on the award of the contract, Paul Griffiths, Chief Executive of
Island, said:

"Our pre-development drilling results this year have exceeded the pre-drill
expectations, as a consequence of which we can now consider the joint
development of the gas fields. This could result in a significant cost saving
and a greater flexibility to market the gas in a way that exploits the potential
uplift in Winter gas prices. Island has initiated the process of confirming the
commercial potential of the Old Head and Schull gas fields prior to a
Declaration of Commerciality" "

ENDS


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:

EnCore Oil plc (LSE:EO.) is an oil and gas exploration and production (E&P)
company quoted on AIM.

At EnCore, it is not the Company's aim to build a full cycle E&P company. The
principal strategy is to create shareholder value through the successful
exploration and appraisal of prospects and discoveries. The Company will seek to
monetise or exchange the asset at the appropriate point in its life cycle and
return value directly to shareholders wherever possible.

EnCore has an experienced and proven management team, a number of whom were
responsible for the discovery of the Buzzard field in the UK North Sea, which
currently produces 10 per cent. of the UK's total oil production.

All EnCore's commercial and material technical evaluations are undertaken
in-house by the EnCore team. This brings both continuity to the management and
development of the assets and an ownership that is vital to unearth the best and
most creative new ideas and opportunities.

EnCore currently holds a balanced portfolio of interests in licences both on and
offshore, primarily focused on the UKCS. During 2007/2008 EnCore expects to
participate in the drilling of at least twelve wells.

www.encoreoil.co.uk





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