EnCore Oil plc (LSE:EO.) is a UK based oil and gas exploration and production (E&P) company quoted on AIM. EnCore hold a balanced portfolio of licences, primarily focused on offshore UKCS. The company also own just under 30 per cent equity in AIM listed Egdon Resources plc (LSE: EDR), a focused onshore UK E&P company.
Our strategy is designed to create shareholder value principally through the successful exploration and appraisal of prospects and discoveries.
Key elements of this strategy are:
Focus on Areas of Proven Expertise
- We focus mainly on the UKCS, initially taking high equities in licences - with the objective of generating opportunities that could add real value, rather than simply large equity or acreage positions.
- Opportunities outside the UKCS will also be considered where we can apply our expertise and experience.
- We plan to operate licences only where necessary to make sure that evaluation momentum is created. Once an evaluation programme is in place we are happy for other companies to take over this role, so we can focus our resources on new opportunities.
Balanced Risk Profile
- We carefully balance the risk profile of our projects, ranging from high impact offshore exploration drilling through to onshore appraisal drilling.
- We will only consider adding value through the acquisition of commercially proved reserves when there are opportunities at the right price that will also, ideally, add value to our other prospects.
- We aim to farm-out a proportion of our high-equity licences, either through exchange to broaden our portfolio, or by bringing in partners with access to drilling rigs who can advance the evaluation process.
- Opportunistic Approach
We always take a pragmatic and opportunistic approach to both new opportunities and consolidation within the sector.
We are always ready to divest or swap part or all of our interest in a successful project at the appropriate time in its life cycle. We assess the best time by considering the specific asset in relation to: future capital requirements and its source(s) and remaining risk profile - whether that's appraisal, development or production or sunk costs versus market value - as well as strategic positioning.