EnCore Oil plc has entered into a farm-out agreement with Revus Energy (UK North Sea) Limited (‘Revus’) whereby Revus will acquire a 20 per cent. interest in central North Sea blocks 28/9 and 28/10c from EnCore. EnCore will retain a 15 per cent. interest in the licence.
Under the terms of the farm-out agreement, Revus will contribute to the costs of drilling the ’Catcher’ exploration well on a promote basis with drilling likely in early 2009. As a result of this farm-out agreement and our original agreement with Oilexco, the current licence operator, it is expected that this well will be drilled at no cost to EnCore.
This agreement is subject to the usual regulatory consents, including BERR consent.
Alan Booth, Chief Executive Officer, commented:
"We are pleased to be able to offer our shareholders exposure to further potential value adding opportunities with little or no capital exposure. We look forward to drilling the Catcher prospect in 2009."
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