3 June 2010 - Significant Light Oil Discovery at Catcher

Press Release

For immediate release: 3 June 2010

EnCore Oil plc (‘EnCore’ or ‘the Company’)

Significant Light Oil Discovery at Catcher

EnCore Oil plc (LSE: EO.) is pleased to provide an update on the Catcher exploration well located in UK Central North Sea block 28/9.

The 28/9-1 well was drilled to a TD of 5,219 ft Measured Depth (M.D.) having successfully encountered excellent quality oil bearing reservoir sandstones at 4,600ft at the target Cromarty Sandstone level. A potential oil water contact has also been intersected at 4,840ft.

Initial analysis indicates the discovery of a minimum 240ft oil column with calculated net pay of 90ft. Extensive sampling and pressure testing of the hydrocarbon bearing zones have been made and a preliminary analysis suggests the hydrocarbons are a light oil with an API of approximately 31 degrees. Analysis of the logs suggest excellent quality sands with porosities of approximately 34%, although analysis has not yet been completed and it is expected that these sands will have multi Darcy permeabilities.

EnCore and its partners now plan to perform a Drill Stem Test (DST) with the principal aim of collecting both flow rate characteristics and sufficient oil samples for potential development studies. Testing is expected to take approximately 10 days.  Dependent upon the results of the testing, the group plans to drill a side-track to test the Catcher East area, which demonstrates similar seismic characteristics to the Catcher discovery area. Following this, a further side-track generally to the west of the current location is also being considered to better understand reservoir development in this area of the Catcher structure.   

EnCore has a 15 per cent. interest in the well and is operator. Partners on the licence are 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.).

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

“We are delighted to have encountered both an excellent quality reservoir and a significant light oil column in the Catcher structure. To date both the quality of oil recovered and the reservoir quality are significantly better than our pre-drill expectations. Side-tracking into the East Catcher area has the potential to add significant further upside. This is an outstanding result.”

Click here to see pdf of announcement 

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:

Notes to Editors:

EnCore has been carried on the Catcher well cost by partners Premier Oil (uncapped) and Wintershall (UK North Sea) Limited (capped).

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.

www.encoreoil.co.uk

Thursday, June 03, 2010