EO. Encore Oil

RNS Number:7108H
EnCore Oil PLC
14 November 2007


                                                                               

PRESS RELEASE

For immediate release: 14 November 2007



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



             EnCore Announces Plans to Demerge Gas Storage Business


EnCore Oil plc (LSE: EO.) is pleased to announce that, following a meeting of
its Board of Directors on Tuesday 13th November it has decided to demerge its
Esmond, Forbes and Gordon gas storage business into a separately quoted company.
Completion of the demerger is targeted to be before the end of the first quarter
of 2008.

In December 2006 Star Energy Group plc ("Star Energy") agreed to farm-in to
EnCore's 100 per cent. block 43/8 containing the depleted Forbes gas field to
earn a 25 per cent. interest through undertaking a gas storage feasibility
study. The farm-in was extended to include the Esmond field in block 43/13a and
potentially the Gordon field in block 43/15a and 43/20a.

Currently EnCore's interest in the Esmond and Forbes field is 75 per cent. Star
Energy has an option to increase its interest in Forbes and Esmond to 50 per
cent. on completion of the ongoing feasibility study. EnCore's recently
announced farm-out of the Bennett prospect in blocks 43/15a and 43/20a did not
include an interest in the overlying Gordon field where EnCore's interest
remains at 100 per cent. The Directors believe that work undertaken on the
project to date suggests that there is potentially very significant value in the
project.


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

"Although EnCore is fundamentally an exploration and production company we
identified potentially significant value in developing gas storage options for
the depleted Esmond and Forbes gas reservoirs. We believe the market has yet to
recognise the significant value already created in our gas storage project and
this will be best achieved through a separately listed business.

The businesses have fundamentally different risk/reward profiles, as well as
differing timescales and capital requirements. We believe today's announcement
of an offer by Petronas for our partner Star Energy demonstrates the significant
value already accrued to gas storage businesses, particularly offshore."



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 8800




Notes to Editors:

EnCore Oil plc (EO.) is a UK focused exploration and production company listed
on the Alternative Investment Market (AIM) on the London Stock Exchange.

EnCore's strategy is to create shareholder value through the successful
exploration and appraisal of prospects and discoveries, and the development of
those assets through to commercial sanction or beyond.

EnCore is led by an experienced and proven management team.

EnCore holds a balanced portfolio of interests in licences with the potential
for providing major capital growth. This portfolio includes interests in the UK
Continental Shelf (UKCS) offshore, several of which include operatorship; UK
onshore in the Cleveland, Weald and Wessex basins; offshore Ireland; offshore in
the Netherlands; and offshore in the Western Sahara.


During 2007/2008 EnCore expects to participate in the drilling of at least
twelve wells.

www.encoreoil.co.uk






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

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