Burgman Oil & Gas Discovery and Operations Update (3145D)
March 21 2011 - 9:00AM
UK Regulatory
TIDMEO.
RNS Number : 3145D
EnCore Oil PLC
21 March 2011
Press Release
For immediate release: 21 March 2011
EnCore Oil plc ('EnCore' or 'the Company')
Burgman Oil and Gas Discovery and Operations Update
EnCore Oil plc (LSE: EO.) announces that the Burgman well 28/9-4
located on UKCS Central North Sea Block 28/9 has reached Total
Depth of 5,990 feet Measured Depth and has successfully encountered
good quality hydrocarbons in a Tay sandstone interval. Based on the
results of the well, the joint venture partnership has decided to
drill an immediate side-track from the Burgman well.
The well encountered 22 feet of net hydrocarbon pay within the
overall Tay sandstone interval; 12 feet of gas in the Upper Tay
sandstones and 10 feet of 24 degree API oil in the Lower Tay
sandstones. The Cromarty and Fulmar sections were not hydrocarbon
bearing at this location. A Gas Oil Contact was calculated at 3,560
feet true vertical depth sub sea (TVDSS) and the Oil Water Contact
was calculated at 3,980 feet TVDSS, giving a gross gas column of at
least 78 feet and a gross oil column of approximately 420 feet.
The original Burgman location was selected to intersect all four
potential reservoir horizons identified on seismic data: the Upper
Tay, Lower Tay, Cromarty and Fulmar. Although oil bearing, the
Lower Tay sands are not well developed at this particular location.
Seismic data strongly suggests that the Lower Tay sands are more
thickly developed over a large proportion of the remainder of the
Burgman prospect area, as well as being above the newly established
oil water contact. Therefore, the Group will now side-track the
current well to target an area prognosed to contain more thickly
developed Lower Tay sands. It is expected that the results of this
side-track will be known within the next 10 days, subject to any
weather or operational delays.
Based on the information gained from the Burgman well, the Group
has concluded that the selected surface drilling location for the
Carnaby prospect, which was determined primarily on safety grounds
to avoid drilling through an overlying significant shallow gas
anomaly whilst using a jack-up rig, is sub-optimally located to
effectively test the Carnaby Prospect.
The Burgman side-track will therefore conclude this phase of
drilling on Block 28/9. The Group intends to integrate all the
information from the wells drilled on Block 28/9 with a newly
reprocessed 3D seismic data set in order to gain a better
understanding of the on-block volumes and hydrocarbon properties
and to assist in moving forward with a suitable development
programme for the licence.
Commenting on the result, Alan Booth, EnCore's Chief Executive
Officer, said:
"This well has proved up a substantial column of good quality
oil in the Burgman structure. The presence of 24 degree API oil
suggests that the oil quality in the licence does not significantly
degrade as we test increasingly shallower prospectivity which is
great news for a number of the undrilled prospects on the licence.
This short side-track should, we believe, confirm thicker Lower Tay
sands and help us further delineate what could be another
important, good quality oil discovery in Block 28/9.
"Following these results, EnCore is keen to return to the Block
to test the Carnaby, Rapide/West Varadero and Bonneville prospects.
Any further drilling on the licence will, of course, be subject to
necessary partnership approvals, as well as identification and
availability of a suitable semi-submersible drilling rig. The use
of a semi-submersible rig would allow the Carnaby prospect to be
drilled at a more appropriate location.
"EnCore is now looking forward both to the result of the Burgman
side-track and to our important Cladhan appraisal well currently
drilling on UKCS Northern North Sea Block 210/30a, the initial
results of which are expected in the coming weeks."
The equity in the Block 28/9 joint venture partnership is as
follows: EnCore Oil plc (15 per cent., Operator), Premier Oil (35
per cent.), Wintershall (UK North Sea) Limited (20 per cent.),
Nautical Petroleum (15 per cent.) and Agora Oil & Gas (15 per
cent.).
Peter Williams B.Sc. (Hons.) in Physics and EnCore's Group
Technical Manager, who has over 35 years' engineering 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
Yvonne Fraser, Investor Relations Manager +44 (0)7957 241 408
Westhouse Securities Limited
Tim Feather +44 (0) 20 7601 6100
Matthew Johnson
Notes to Editors:
EnCore Oil plc (LSE:EO.) is an oil and gas exploration and
production (E&P) company quoted on AIM.
EnCore has a balanced portfolio of offshore assets, based mainly
in the UK Continental Shelf (UKCS) and a significant equity holding
in AIM listed Egdon Resources plc (LSE: EDR).
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 over 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.
www.encoreoil.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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