EnCore Oil plc announces that, together with Petro-Canada UK Limited (“Petro-Canada”), the Company has entered into a sale and purchase agreement with Perenco UK Limited (“Perenco”) in relation to block 21/30S on licence P.013 in the central UK North Sea.
Perenco has agreed to purchase a 100 per cent. interest in the block for an initial payment of US$2 million, together with an additional contingent payment payable on first production, plus a per barrel royalty payment on any oil produced from the block.
EnCore currently holds 95 per cent. interest in block 21/30S with Petro-Canada holding five per cent. Completion of the transaction is subject to DTI approval of Perenco’s work programme for the licence and the usual regulatory approvals.
Alan Booth, Chief Executive Officer of EnCore, commented:
“We are pleased to have concluded this agreement with Perenco, a well respected and successful North Sea operator. The agreement is in line with our strategy of managing our portfolio of opportunities to ensure optimal use of our resources.”
