Licence Acquisitions (4804J)
June 30 2011 - 9:00AM
UK Regulatory
TIDMEO.
RNS Number : 4804J
EnCore Oil PLC
30 June 2011
Press Release
For immediate release: 30 June 2011
EnCore Oil plc ('EnCore' or 'the Company')
Licence Acquisitions
Block 15/21a (P218)
EnCore Oil plc (LSE: EO.) and its P1655 (Block 15/21g) partners,
Nautical Petroleum plc and Serica Energy plc (the P1655 group),
announce they have agreed terms to acquire a 70 per cent. interest
in a part of adjoining Licence P218 (Block 15/21a). P218 is
currently operated by DEO Petroleum with co-venturers, Faroe
Petroleum plc, Maersk Oil UK Ltd and Atlantic Petroleum (the P218
group). The area in P218 to be acquired includes the 15/21a-38z
Spaniards/Gamma discovery well, drilled in 1989 by Amerada Hess,
which flowed 2,600 bbls/day of 26 API oil on test. In
consideration, the P1655 group have agreed to assign the P218 group
a 30 per cent. interest in P1655, and have agreed to fund the cost
of the first well to appraise the Spaniards/Gamma discovery. It has
also been agreed that a subsequent appraisal well, if deemed
necessary and approved by the partnership, would be funded on
promoted terms by the current P218 partners as shown in the table
below, after which funding for any further wells would be by equity
share.
Subject to DECC approval, it is expected that part of the P218
licence will be amalgamated into P1655 and it is anticipated that
the initial equities and funding obligations in the newly enlarged
P1655 licence will be as follows:
First Second
Enlarged Spaniards Spaniards
Current P1655 P1655 Appraisal Well Appraisal Well
Company Equity % Equity % Funding % Funding %
---------------- -------------- ---------- --------------- ---------------
EnCore Oil
plc* 40.00 28.00 40.00 22.86
---------------- -------------- ---------- --------------- ---------------
Nautical
Petroleum 30.00 21.00 30.00 17.14
---------------- -------------- ---------- --------------- ---------------
Serica Energy 30.00 21.00 30.00 17.14
---------------- -------------- ---------- --------------- ---------------
Current P218
Equity %
---------------- -------------- ---------- --------------- ---------------
DEO Petroleum 42.08 12.62 nil 18.03
---------------- -------------- ---------- --------------- ---------------
Faroe Petroleum 28.00 8.40 nil 12.00
---------------- -------------- ---------- --------------- ---------------
Maersk Oil
UK 19.12 5.74 nil 8.19
---------------- -------------- ---------- --------------- ---------------
Atlantic
Petroleum 10.80 3.24 nil 4.63
---------------- -------------- ---------- --------------- ---------------
* Operator
The first well, is expected to commence drilling in Q2 2012,
subject to suitable rig availability and receipt of the necessary
permitting and site survey approvals.
Blocks 15/21d (P1870), 13/28b (P1866), 22/5 (P1876).
EnCore has also, subject to necessary DECC approvals, acquired a
50 per cent interest in the above mentioned 26(th) Round Promote
licences under the terms of a pre-existing option agreement between
EnCore and Echo Exploration Limited for a nominal sum. Echo
Exploration is a 100 per cent. owned subsidiary of North Sea Energy
Inc..
Block 15/21d contains the 15/21-50 "Beehive" discovery well,
drilled by Amerada Hess in 1993 which flowed 5,700 bbls/day of 28
API oil on test.
Alan Booth, Chief Executive of EnCore commented:
"We are especially pleased to have reached agreement with the
P218 group to progress the further evaluation of the
Spaniards/Gamma discovery. Although not without risk, if
successfully appraised, Spaniards/Gamma has significant upside
potential but also a relatively low commerciality threshold, given
both the proximity of the Scott Field and the potential for
synergies with the prospective development of the nearby Perth
Field. Block 15/21 is a prolific block, containing a number of
previously developed fields and having had 56 exploration and
appraisal wells drilled in it to date, the last well, 15/21-56,
being drilled some 14 years ago. We believe that the time is now
right for further evaluation of these undeveloped discoveries."
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 241408
Cenkos Securities plc
Jon Fitzpatrick +44 (0)20 7397 1951
Ken Fleming +44 (0)131 220 9772
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
END
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