EnCore Oil PLC

Excellent news.

EnCore Farms Out Interest in Blocks 28/9 & 28/10c

EnCore Oil plc (LSE: EO.) is pleased to announce that it has entered into a farm-out agreement with Revus Energy (UK North Sea) Limited ('Revus') whereby Revus will acquire a 20 per cent. interest in central North Sea blocks 28/9 and 28/10c from EnCore. EnCore will retain a 15 per cent. interest in the licence.

Under the terms of the farm-out agreement, Revus will contribute to the costs of drilling the 'Catcher' exploration well on a promote basis with drilling likely in early 2009. As a result of this farm-out agreement and our original agreement with Oilexco, the current licence operator, it is expected that this well will be drilled at no cost to EnCore.

This agreement is subject to the usual regulatory consents, including BERR consent.

Alan Booth, Chief Executive Officer, commented:

'We are pleased to be able to offer our shareholders exposure to further potential value adding opportunities with little or no capital exposure. We look forward to drilling the Catcher prospect in 2009.'

cyril

EO could easily prove to be one of the E&P stocks that either doubles or collapses over say the next 12 months ..... i hope the former

All things considered I reckon EO.'s SP has held up pretty well over the recent period. HOLD

Gas Discovery at East Breagh

EnCore Oil plc (LSE: EO.) is pleased to announce that the East Breagh well 42/13-4 has reached total depth having successfully encountered significant gas shows.

Initial analysis of wireline log and pressure data indicates the presence of a 72 foot net gas bearing interval and that the gas in this well is likely to be part of the same accumulation found in the 42/13-3 well, drilled in 2007 approximately four kilometres to the northwest.

The partnership group has taken the decision to undertake a well testing programme to better understand the potential productivity of the reservoir in this part of the accumulation. The testing programme is expected to take approximately 14 days. EnCore has a 15 per cent. interest in the licence, and Sterling Resources Limited is the operator.

In November 2007, well 42/13-3 was drilled on Breagh and successfully tested dry gas at a maximum rate of 17.6 million standard cubic feet per day through a 56/64' choke. The gas was produced from the Carboniferous reservoir perforated between 7,332 feet and 7,447 feet measured depth below rotary table. Well 42/13-3 encountered a 76 foot net gas bearing interval and was suspended as a potential gas producer.

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

'Subject to successful testing, we believe that this well has established a very significant gas accumulation at Breagh. Following the testing programme the rig will drill a high angle well adjacent to the earlier 42/13-3 well to gain further information about reservoir productivity which will provide input for the design of the Breagh field development programme. In addition to this, we look forward to the results of ongoing drilling at Esmond and also at Bowstring East where we expect to commence drilling operations within the next week.'

Another piece of excellent news,i wonder how this market will respond?
cyril

cautiously i would guess, though at least among the minnow E&P companies, EO operates in a safe political arena and looks to have the genuine potential of making good - eventually

I believe a more positive update from the operator?

After detecting the presence of gas and sand while drilling at 7,500 feet
(7,363 feet of true vertical depth (tvd)), a 110 foot core was taken. Drilling
was then resumed and the well reached a final depth of 8,000 feet tvd subsea
on September 30th, with gas shows of up to 20% while coring and drilling.
Preliminary analyses of both the core and the well logs indicate two gas
bearing intervals with approximately 72 feet net sand in total. The upper
section shows 30 feet of high quality reservoir with porosity of up to 18% and
permeability up to 50 millidarcy (md), confirmed from core data. Preliminary
geological analysis indicates that these upper gas sands correlate with the
sands encountered in the previously drilled West Breagh well (42/13-3) four
kilometers away.

"We have just completed open hole logging of the well and are very
excited about proving-up gas in the East Breagh area, adding to gas previously
tested at rates up to 17.6 million standard cubic feet per day in the West
Breagh area," noted John Rapach, Vice President of Operations for Sterling.
"With these encouraging results, we plan to test the Upper and Lower reservoir
sections over the next couple of weeks to complete our evaluation," he added.

Stewart Gibson, Chief Executive Officer of Sterling added "Confirming the
presence of gas within the eastern part of the Breagh structure was the
primary objective of the well. Although still to be confirmed, current data
points to a common gas water contact between the west and east areas.
Following the test results and integration of all of the new well data we will
assess the impact on overall development planning for Breagh. This is also the
first of our wells managed by Advanced Drilling Technology International
(ADTI) and we are very pleased with the operations to date."
cyril
Sterling Resources Ltd. is a Canadian-listed international oil and gas
company headquartered in Calgary, Alberta with assets in the United Kingdom,

I think that the rest of this month could be very interesting, with lots of news due?
cyril

Slight drop today on news release of a small fire which has been sorted,no problems to th well. Result of the well expected later this week, if positive will add e a real upside to the company.
aimho
cyril

Some news on the drilling,

Alan Booth, Chief Executive Officer, commented:

'The safety of the crew is paramount whenever such incidents occur and I am pleased that the appropriate action was taken by the Offshore Installation Manager. The well is currently approximately 10 metres above the reservoir and once essential safety checks are carried out it is anticipated drilling will recommence shortly thereafter.'
cyril

Great result on E/Breagh, looks like West and East "one hugh field"

East Breagh Well Test Update


* East Breagh well test successfully completed
* Results consistent with estimates used for development planning
* Additional upside potential in lower reservoir

http://www.investegate.co.uk/Article.aspx?id=200810210700092734G
cyril

If the Esmond G.S. result which is due very soon (probably next week)is postive,
then even in this market we "should" see some real movement in the SP. Esmond is
for me is the real value in the company and success would allow the bidding for
this storage facility to go ahead in earnest?
aimho
cyril

With EO. reporting that drilling the last 10mtrs of Esmond Gas Storage would recommence this week, todays SP looks inviting?
aimho
cyril

I can confirm that the drilling has commenced,with just 10mtrs to TD its more than likely completed? So expect news next week.
cyril

EnCore Oil plc ("the Company") announces that it has been notified that, on 29 October 2008, Michael T. Lynch, Chairman of the Company, purchased 75,000 ordinary shares of 5p each in the capital of the Company at an average price of 26.25p per share. Following this transaction, Mr. Lynch holds 8,092,221 ordinary shares, representing 2.63 per cent. of the issued share capital
cyril

My previous post that drilling had started, "should have read preparations for drilling"
From todays RNS just issued

EnCore has received confirmation from the operator, Star Energy, that drilling operations on Esmond recommenced this morning at approximately 7:00 am.

cyril

Esmond looks like a failure...another one with too much hype...



Esmond Evaluation Well - Initial Results


EnCore Oil plc (LSE: EO.) has received preliminary pressure information from the operator, Star Energy, on the Esmond gas storage evaluation well.

The currently available information suggests that the uppermost Esmond reservoir has not undergone any significant repressurisation, whereas the lower part of the reservoir has seen appreciable repressurisation.

Wireline logging and pressure testing are still ongoing and further information will be released as appropriate.

Alan Booth, EnCore Oil's CEO, said;

'The results show the reservoir behaviour to be more complex than initially modelled and it will take some time to assess the impact on project design. The results, whilst preliminary, indicate that some parts of the reservoir will perform as modelled and other parts may require a different engineering solution to that looked at to date. We will continue to work with Star Energy to incorporate and understand the new data and their implications on the project.'

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.

i don't think EO. suffers from hype syndrome ..... for sure the drilling result is disappointing, but nearly all you guys seem (to choose) to forget that drilling for oil has few certainties, and successful strike rate is rarely better than 25%

While todays news is extremely disappointing lets not forget we still have Breagh,
which itself justify's holding?
aimho
cyril

Wow how does one well costs 50% drop in sp...now 17p?

I'm thinking this looks rather cheap today. Watching.