EnCore Oil PLC

True, and probably the reason for the update today .............. generate interest?

I'm up about 50% on it so happy to hold. I had very good knowledge of Breagh so was exceedingly happy to buy when it fell off a cliff with all the others. Small operators, reliant on bank funding, have been hit hard by the crunch, but I never included EO. in that group.

Houston, you're looking good. ;-0

RNS Number : 1123W
EnCore Oil PLC
22 July 2009







Press Release


For immediate release: 22 July 2009


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


Sale of EnCore SNS Ltd (Breagh Gas Discovery)

EnCore Oil plc (LSE: EO.) announces that the Company has signed Sale and Purchase Agreements with RWE Dea UK SNS Limited ('RWE Dea') for the sale of its 15 per cent. interest in the Breagh gas discovery on Block 42/13 and surrounding acreage in the UK Southern North Sea. RWE Dea will pay total cash consideration to EnCore of US$68.8 million, with the deal expected to complete in approximately 4 to 6 weeks. There is not expected to be any tax payable by EnCore on the sale. All Breagh co-venturers have sold their interests to the same buyer, other than Sterling Resources which has elected to retain a 30 per cent. non-operated interest from its original 45 per cent. share. EnCore and its co-venturers were advised on the transaction by Standard Chartered.

On completion of the deal, and receipt of the sale proceeds, approximately 20 per cent. of the consideration (US$13 million to EnCore) will be placed in an interest bearing escrow account for 12 months as security against any potential warranty or indemnity claims by the purchaser.

The Board will meet shortly to consider a full range of options for the application of the sale proceeds in line with its previously stated strategy of returning value to shareholders. The options to be considered will include seeking shareholder approval for a share buyback and/or a capital restructuring scheme and also the potential for opportunistic investment in strategic assets.

Commenting on the sale, Alan Booth, EnCore's Chief Executive Officer, said:

'It is close to three years since EnCore acquired its interest in Block 42/13, and the Company, together with its partners, has drilled three wells to appraise the 1997 discovery in a technically complex structure.

'We are very pleased to have proved up a significant gas discovery, and in line with our strategy we have now disposed of Breagh at a time in its lifecycle before it requires further significant capital injections, as it progresses to its development phase. We are pleased that in RWE Dea, the Breagh discovery will now be taken forward by a proven operator with the capital and technical resources to fully exploit the field.

'EnCore will continue to rationalise its portfolio of assets and seek to create value for our shareholders, particularly through those parts of the portfolio we feel are not fully recognised. We do not expect to commit to further exploration drilling activity in the near term other than on Catcher and Cladhan which we expect to be drilled in 2010. In the meantime we will seek to progress our gas storage, Irish and onshore portfolios, whilst maintaining capital flexibility.'




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


Aquila Financial Limited
www.aquila-financial.com

Peter Reilly
+44 (0) 118 979 4100


Hanson Westhouse Limited


Tim Feather
+44 (0) 20 7601 6100

Matthew Johnson


Background to EnCore's interest in Breagh

EnCore acquired its interest in Block 42/13 and the surrounding acreage via the acquisition, in October 2006, of Grove Energy (UK) Limited. Grove Energy (UK) Ltd had, in turn acquired the block in the 22nd UK Licensing Round, and acquired the surrounding acreage (Blocks 42/8, 42/9, 42/12a and 42/14) in the 23rd UK Licensing Round.

For reasons connected with the process of the acquisition of Grove Energy (UK) Limited, EnCore has held a one per cent. interest in block 42/13 in EnCore Petroleum Limited, while the remaining 14 per cent. interest in block 42/13 has remained in EnCore SNS Limited (formerly Grove Energy (UK) Limited) together with the full 15 per cent. of blocks 42/8, 42/9, 42/12a and 42/14. EnCore Petroleum Limited is selling its one per cent. interest, and EnCore Oil plc is selling its entire shareholding in EnCore (SNS) Limited.


Exploration and Appraisal of Breagh

Two wells had previously been drilled on the acreage. The first was drilled by BP in 1968 and was dry, and the second was drilled in 1997 by Mobil. This well, 42/13-2, encountered a 450 ft gas column within the Carboniferous reservoir and when tested, flowed at an uncommercial 3 million standard cubic feet per day (mmscfd).

Since EnCore acquired its interest in Block 42/13, the Company, together with its partners, has drilled three wells to appraise the 1997 discovery.

Well 42/13-3 was completed in November 2007 and tested dry gas at a maximum rate of 17.6 mmscfd through a 56/64 inch choke. The well encountered a possible gas-water contact in line with the original 42/13-2 discovery well giving a gross gas column of 460 feet.

Well 42/13-4 was drilled in October 2008. The well tested two zones at combined controlled rates of up to 10.2 mmscfd. The final rate was held for a period of twelve hours prior to shutting in for pressure build up. The stabilised test was completed on a 32/64 inch choke at a flowing wellhead pressure of circa 1,630 psi.

The final appraisal well drilled on the accumulation was horizontal well 42/13-5z, completed in January 2009. The well tested dry gas at a maximum rate of 26 mmscfd through an 80/64 inch choke at a flowing wellhead pressure of circa 890psi. The well was then shut in for an initial pressure build up survey after which the well was flowed for a further 59 hours at various rates to evaluate reservoir performance.


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.

That's about 42m. Not too bad against mkt cap, is it?

yes al but market is giving deal the thumbs down.......in fact today it had sp at roughly the breagh deal so it valued encore at nothing which is bizarre.

Correct. The strangest things happen. I'm still holding for now.

this is probably my most boring share......even selling breagh has had a negative on sp.

ah well.....lets see in a years time by way things are looking with this company

this share is crap and probably most boring on the market

it really hasn't performed well at all .... i used to hold but now just keep it on my watchlist ..... the chart doesn't look pretty at all .... if it fall to 12 (200 dma), perhaps worth considering again

cant see it rising in short term either......oh dear! look at it in 12 months time probably

Still sitting in profit here, so I'll stick with it. ;-))

unless u put on millions then profit will be tiny.......and only those that bought in last 9 months or so.

its a crap share......and boring!

any tiny profit left will soon be gone as sp is heading back down to the pathetic depths of last 12 months.......only 13.5p now!

Still over 30% to the good with stop at breakeven. I'll stick with it for now, thanks. ;-)))))))

Financial highlights

Gain on sale of EnCore Nederland B.V. 1.2 million following Amstel sale for US$5.5 million to Taqa in September 2008

Loss after tax 1.5 million (2008: loss of 2.4 million)

Cash and cash equivalents 5.4 million at 30 June 2009 (2008: 14.5 million)

Remains debt free

80% of Breagh proceeds expected in September 2009




Outlook

Completion of Ceres development with production commencing in late 2009

Appraise the Cladhan light oil discovery in early 2010

Exploration drilling on Block 28/9 Catcher in early 2010

Complete post well evaluation of Cobra and progress field development planning

Complete technical evaluation of the Esmond/Gordon Gas Storage project

Execute share buy back programme

Business plan for 2009/10 supported by strong balance sheet including Breagh disposal proceeds

looking ok to me and thinking of a top up,with over 41m for the sale of Breagh,
against aM/Cap of 43m+5m in cash seems a bargain to me and could hit
20p next month?
cyril

Helix to provide Esmond review
IAIN ESAU
342 words
21 August 2009
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EnCore enlists Aberdeen-based consultant for revised project

UK junior EnCore Oil has appointed Helix RDS to provide an independent assessment of the viability of a revised plan to develop the Esmond gas storage project in the UK North Sea.

Star Energy, a Petronas subsidiary, withdrew from the proposed scheme earlier this year after results from a pressure test well showed reservoir behaviour to be more complex than initially modelled.

Despite EnCore's view that the storage project is still "technically viable with a different engineering solution", Star's withdrawal for economic and strategic reasons put paid to any further progress on front-end engineering and design work.

EnCore then assumed full control of the project in blocks 43/13a, 43/15a and 43/20a after acquiring Star's 50% stake in the asset.

"We have reworked possible development options on the project and have recently commissioned Helix RDS to provide an independent assessment of the technical viability of the project, which could then lead to further studies," said chief executive Alan Booth.

Booth said work is under way to redesign a development plan for Esmond to account for partial repressurisation of its lower reservoir.

Aberdeen-based Helix will peer review and, where necessary, refine the scheme.

Booth said EnCore hopes to carry out a detailed reservoir simulation study this summer, and, "assuming the results support our planned development scheme we will examine how we might achieve best value for our shareholders".

Chairman Mike Lynch added: "We are now at the stage where we have a project for which we need a new partner or a new owner in order for it to be progressed.

"We still firmly believe in the technical viability of the asset, but recognise that its value is dependent on others seeing the value, as we do, of this asset in a market which is crying out for gas storage."

Like the part,or new owner.

taken from another board.


MMs seem to be absorbing sales at 14p. I wonder if they are accumulating stock so as to sell them at above 14p to Encore when the buyback programme starts. Every 1 million spent on buybacks would require MMs to 'find' say 6.5 million + shares.

Al any thoughts on the buy back price?
ctril

Press Release

For immediate release: 26 August 2009

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

Completion of Disposal of EnCore SNS Ltd (Breagh Gas Discovery)

EnCore Oil plc (LSE: EO.) is pleased to announce the completion of the sale of
its 15 per cent. interest in the Breagh gas discovery on Block 42/13 and
surrounding acreage in the UK Southern North Sea.

In line with the
announcement on 22 July 2009, RWE Dea has paid a total cash consideration to
EnCore of US$44.7million plus GBP14.7m (in repayment of inter-company debt). 20
per cent. of the consideration for the sale of EnCore (SNS) Ltd (US$12.8million)
will be held in an interest bearing escrow account for 12 months as security
against any potential warranty or indemnity claims by the purchaser.

There
is not expected to be any tax payable by EnCore on the sale proceeds.
cyril

Not exactly the rise i was expecting,although it wasn't unknown. Still feel we'll see a steady re-rating?
imho
cyril

much better stocks to have in your portfolio

Well thats probably true when your looking for blue sky,but this is a safer
stock with reasonable chance of an upturn? Its prudent to hold such in ones portfolio. Along side such as AST,HMB,RXP,MXP,URU and XTR all which have made excellent progress lately.
CEY,CHL,DGO along with EO. to bring a little balence,awaiting for SKR to
come good?
cyril