28 January 2009 - Esmond Gas Storage Update
Press Release
For immediate release: 28 January 2009
EnCore Oil plc (‘EnCore’ or ‘the Company’)
Esmond Gas Storage – Update
EnCore Oil plc (LSE: EO.) announces that following an extensive evaluation of the results of the recent Esmond well, Star Energy Group plc, a wholly owned subsidiary of Petronas (‘Star Energy’) and EnCore have concluded that from a technical perspective its use as a gas storage facility would appear to be viable, albeit with a somewhat more complex development and start up phase. Star Energy has, however, indicated that from an economic and strategic perspective it does not meet their current investment criteria, and as such they no longer wish to proceed into the Front End Engineering and Design phase as required in the farm-in agreement with EnCore.
Alan Booth, EnCore's Chief Executive Officer, commented:
“Whilst we are naturally disappointed with this outcome, we can understand that Star Energy now has a broader strategic remit and potential investment portfolio within Western Europe. We would like to thank them for the extensive work and effort that they have expended on the project over the last two years to help move the project forward and we wish them well.
“EnCore is not alone in believing that the UK is woefully short of gas storage capacity, only recently highlighted by the supply disruptions in Eastern Europe. The work carried out to date indicates that the project is technically viable and we will seek to move the project forward, although the constraints caused by the current capital and debt environment make it difficult to assess the likelihood of attracting further investment in the near term.”
For further information, please contact:
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EnCore Oil plc
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Alan Booth, Chief Executive Officer
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+44 (0)20 7224 4546
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Eugene Whyms, Chief Financial Officer
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Yvonne Fraser, Investor Relations Manager
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+44 (0)7957 241 408
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Aquila Financial Limited
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Peter Reilly
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+44 (0) 118 979 4100
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Hanson Westhouse Limited
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Tim Feather
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+44 (0)113 246 2610
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Matthew Johnson
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KBC Peel Hunt
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Jonathan Marren
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+44 (0)20 7418 8900
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Notes to Editors:
EnCore Oil plc (LSE:EO.) is an oil and gas exploration and production (E&P) company quoted on AIM.
It is not the Company’s aim to build a full cycle E&P company. The principal strategy is to create shareholder value through the successful exploration and appraisal of prospects and discoveries. The Company will seek to monetise or exchange the asset at the appropriate point in its life cycle and return value directly to shareholders wherever possible.
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.
EnCore currently holds a balanced portfolio of interests in licences both on and offshore, primarily focused on the UKCS.
www.encoreoil.co.uk
Wednesday, January 28, 2009
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