OilVoice - EnCore Oil Completes Disposal of EnCore SNS Ltd (Breagh Gas Discovery)

EnCore Oil Completes Disposal of EnCore SNS Ltd (Breagh Gas Discovery)

Wednesday, August 26, 2009

EnCore Oil plc announces 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 £14.7m (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.

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