EnCore Oil plc (LSE: EO.) is pleased to announce that it has entered into a farm-out agreement with Wintershall Noordzee B.V. (“Wintershall”) under which Wintershall will acquire a 30 per cent. interest in southern North Sea Blocks 43/15a and 43/20a from EnCore and will assume operatorship of the Bennett prospect.
Under the terms of the farm-out agreement, Wintershall will secure a 30 per cent. interest in Blocks 43/15a and 43/20a by payment of a cash sum and contributing on a promoted basis to the cost of drilling an exploration well on the Bennett prospect. It is expected that a well will be drilled on Bennett prospect in 2008.
This agreement is subject to the usual regulatory consents, including consent from the Department of Business, Enterprise and Regulatory Reform.
Alan Booth, EnCore’s Chief Executive Officer, said:
“We are pleased to be entering into this new partnership with Wintershall, an established operator in the North Sea. We look forward to drilling the Bennett prospect, which we believe to be one of the high impact wells in our drilling programme. We have also entered into a non-binding Letter of Intent to farm out an additional equity interest in the licence to an undisclosed third party, and negotiations are at an advanced stage.”
For further information, please contact:
EnCore Oil plc
www.encoreoil.co.uk
Alan Booth, Chief Executive Officer +44 (0)20 7224 4546
Eugene Whyms, Chief Financial Officer
Aquila Financial Limited
www.aquila-financial.com
Peter Reilly +44 (0)20 7202 2601
Yvonne Fraser +44 (0)20 7202 2609
Hanson Westhouse Limited
Tim Feather +44 (0)113 246 2610
KBC Peel Hunt
Jonathan Marren +44 (0)20 7418 8800
EnCore Oil
EnCore Oil plc (EO.) is a UK focused exploration and production company listed on the Alternative Investment Market (AIM) on the London Stock Exchange.
EnCore's strategy is to create shareholder value through the successful exploration and appraisal of prospects and discoveries, and the development of those assets through to commercial sanction or beyond.
EnCore is led by an experienced and proven management team.
EnCore holds a balanced portfolio of interests in licences with the potential for providing major capital growth. This portfolio includes interests in the UK Continental Shelf (UKCS) offshore, several of which include operatorship; UK onshore in the Cleveland, Weald and Wessex basins; offshore Ireland; offshore in the Netherlands; and offshore in the Western Sahara.
During 2007/2008 EnCore expects to participate in the drilling of at least twelve wells.
www.encoreoil.co.uk
Posted by Aquila Financial on Tuesday, November 13, 2007 10:41
Category Company News Release
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