EnCore Oil plc is pleased to announce that it has entered into a farm-out agreement with Dyas UK Limited ('Dyas') whereby Dyas will acquire a ten per cent. interest in northern North Sea Blocks 210/29a and 210/30a from EnCore. EnCore will retain a 16.6 per cent. interest in the licence.
It is expected that a well will be drilled on block 210/29a on the 'Bowstring East' prospect (also known as 'Cladhan') in October 2008 using the Sedco 704 semi-submersible. Under the terms of the farm-out agreement, Dyas will contribute to the cost of the well on a promote basis.
This agreement is subject to the usual regulatory consents, including BERR consent.
Alan Booth, Chief Executive Officer, commented:
"We are pleased to welcome Dyas to the licence, and look forward to drilling this high impact, light oil, exploration prospect. EnCore continues to focus on exposing our shareholders to a number of potentially significant value adding opportunities whilst ensuring careful stewardship of our existing capital resources and effective management of our risk portfolio."
