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Encore Oil Investors - EO.

Share Name	Share Symbol	Market	Stock Type
Encore Oil	EO.	London	Ordinary Share

	Price Change	Price Change %	Share Price	Last Trade
	0.00	0.00%	69.75	01:00:00

Open Price	Low Price	High Price	Close Price	Previous Close
			69.75	69.75

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Top Investor Posts

Top Posts
Posted at 11/1/2012 15:36 by rbcrbc If you look at the launch price of EO and the sale price and the time difference it really wasnt such a wonderful management. The great thing for (some) investors (me included) was the buying at 8p/16p. Read Full Thread Reply
Posted at 04/1/2012 19:46 by praipus ABC Arbitrage buying now holding 1.37% I'm tracking a number of arbitrageurs on the WAM thread for all private investors mutual benefit. Read Full Thread Reply
Posted at 09/12/2011 14:16 by huttley Can we now expect something from PMO ? RNS Number : 7117T EnCore Oil PLC 09 December 2011 Press Release For immediate release: 9 December 2011 EnCore Oil plc ("EnCore" or "the Company") Issue of Equity EnCore Oil plc announces that it has today allotted and issued 3,351,177 new ordinary shares of 5p each in the Company as a result of the exercise of options by employees of the Company. Application will be made for these new ordinary shares to be admitted to trading on AIM. It is expected that admission will occur on 15 December 2011. Following the issue of these new shares, there will be 298,679,737 ordinary shares of 5p each in issue with each share carrying the right to one vote. 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 Yvonne Fraser, Investor Relations Manager +44 (0)7957 241408 Cenkos Securities plc Jon Fitzpatrick +44 (0)20 7397 1951 Ken Fleming +44 (0)131 220 9772 This information is provided by RNS The company news service from the London Stock Exchange END IOEEADANEAPFFFF Read Full Thread Reply
Posted at 06/12/2011 14:31 by captainnelsonforties Repo, As commercially sensitive information and EO being still listed it would be against the rules to withold the result of this well from investors. Whether there would be time to assign a recoverable amount to this well is another matter. You certainly couldnt get a CPR together in that short a time. Hopefully the oil will be 21 degrees api certainly towards the intermediate side of heavy oil. I reckon we'l hear the result of TR either way, it may not contain much, perhaps extent of any oil prone reservoir, oil saturations porosity and API. Beyond that they dont need to say much about potential recoverable, if any, nor any expected flow rates if it were tested. they could keep that under their hat. I hope that they get something out of it and perhaps rework the offer to 0.21 or 0.22 PMO paper per EO. Captain Nelson Forties Read Full Thread Reply
Posted at 28/11/2011 11:38 by leedskier The institutions are still buying. Question is who is selling to them? Other institutions or private investors? Read Full Thread Reply
Posted at 26/11/2011 08:29 by whackford Regarding the prposed takeover, I note that yesterday's Investors Chronicle recommends "sit tight" (page 65). I will see what they say next Friday (2 Dec.)before making my decision. Read Full Thread Reply
Posted at 16/10/2011 09:34 by spacecake The week ahead... The corporate calendar is full to the brim next week with a wide variety of companies all vying to win over investors. The week kicks off with results from UK-focused Nautical Petroleum (NPE). Investor focus remains on how the company will fund its Kraken heavy oil project and on the potential implications of the Premier Oil (PMO) - Encore Oil (EO.) takeover on the value of Nautical's 15% stake in the Catcher development. Numis analyst Matt Lambourne said: "We expect Nautical will end financial year 2011 with circa £90 million of available cash, which we believe is sufficient to meet the company's drilling commitments for at least the next 12 months. "Key medium-term catalysts are an announcement on Kraken funding, the Tudor Rose exploration well and the Carnaby exploration well in the Catcher Area." Read Full Thread Reply
Posted at 06/10/2011 07:26 by liquid millionaire Thursday 06 October, 2011 EnCore Oil PLC Final Results to 30 June 2011 RNS Number : 6595P EnCore Oil PLC 06 October 2011 Press Release For immediate release: 6 October 2011 EnCore Oil plc ('EnCore' or 'the Company') Results for the Year Ended 30 June 2011 EnCore Oil plc (LSE: EO.) announces its audited results for the year ended 30 June 2011. Highlights Operational highlights · Eleven wells completed during the period: Two exploration wells resulting in the Varadero and Burgman discoveries, and nine appraisal wells at Catcher, Burgman and Cladhan. · Acquisition of part of Central North Sea Licence P.218 with our partners in Licence P.1655 · Two Licences covering six Blocks awarded in the 26th UK Seaward Licencing Round · 50 per cent. option over three further Central North Sea Licences exercised · Rig contract signed post period end for the Sedco 704 rig to drill on Licence P.1463 which contains the Tudor Rose discovery, due to commence later this month · Appointment of Vivien Gibney onto the Board of Directors upon the resignation of L. Keith Hughes Financial highlights · Cash of £18.3m as at 30 June 2011 (£41.9m as at 30 June 2010) · Debt free · Intangible Oil & Gas assets of £34.2m as at 30 June 2011 (£15m as at 30 June 2010) · Loss of £2.5m for the year ended 30 June 2011 (profit of £11.4m for the year ended 30 June 2010) Post year end, on 5 October 2011 the Board announced that it has reached agreement on the terms of a recommended acquisition by Premier Oil plc ("Premier") of the entire issued and to be issued share capital of EnCore at 70p per ordinary share in cash, with a share alternative; which it is proposed will be implemented by way of a Court-sanctioned scheme of arrangement (the "Acquisition"). Further information can be found in the announcement dated 5 October 2011 on our website www.encoreoil.co.uk. 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 Yvonne Fraser, Investor Relations Manager +44 (0)7957 241408 Cenkos Securities plc (NOMAD & Joint Broker) Jon Fitzpatrick +44 (0)20 7397 1951 Ken Fleming +44 (0)131 220 9772 Westhouse Securities Ltd (Joint Broker) Tim Feather +44 (0)20 7601 6100 Matthew Johnson Chairman's Review Few companies will look back on 2011 as a successful and satisfying year. Prior to the announcement made on 5 October 2011 of the recommended acquisition by Premier to acquire EnCore, I had written my Chairman's statement and, in that draft, had reported that within EnCore we could look at 2011 with some pleasure because of our continuing exploration success but, like every other company in the UK upstream oil sector, we have been affected by the worldwide funding crisis which has in turn affected oil prices, prompted fiscal changes and dampened investor confidence. Of course I had also outlined our plans for further work on the Catcher area, Cladhan and the planned well on Tudor Rose. All this has been overtaken by recent events and it is likely that we will now remember 2011 as the year EnCore satisfied its aim of delivering value to its shareholders. As a Board we have considered the Acquisition very carefully. There are differing views in the industry about how to risk assess UK exploration assets not just for oil price, geological and development risk, but fiscal uncertainty and funding risk. Bearing all factors in mind, the Board unanimously determined that the terms of the Acquisition are fair and reasonable to EnCore shareholders. I thank the EnCore team, many of whom have been with the company since its inception in 2005 and the contractors with whom we have worked inter alia during our drilling programmes, for demonstrating their high levels of expertise and hard work. The EnCore Executive management and staff have an enviable reputation which is well deserved. I thank my fellow Non-Executive Directors Keith Hughes, who left the Board during the year, and Vivien Gibney who joined us, for their valuable contributions. I also thank our shareholders for their continued support over the last six years. Since EnCore started in 2005, we have sought to maintain a balanced risk profile and to conserve our equity for the appraisal of areas where we made discoveries like Catcher and Cladhan. I hope our shareholders share our pride in being involved with a company responsible for a number of the more important discoveries in the UK North Sea in recent years. Our prime aim has been to create and deliver value to EnCore shareholders, and I am pleased that having created that value we can now deliver it. Christine M.K. Wheeler OBE Chairman 5 October 2011 Chief Executive's Review Before I comment on the recent announcement regarding the Acquisition of the company, I would like to review the year. I believe that 2011 has amply demonstrated that exploration and production is a business where risk and uncertainty are ever present, both above and below ground. Whilst we would like to think we understand the nature and range of potential outcomes of the subsurface and the operational risks that we take, the "above ground" risks are often less predictable and can have, and have had material impacts on both the value and risk profile of the business. A successful drilling campaign in the Catcher area delivered greater certainty on the extent and potential within the licence, with two new discoveries at Varadero and Burgman and a number of now highly attractive undrilled prospects high graded for future drilling, demonstrating the discovery of a material new hydrocarbon fairway in this part of the UKCS. These discoveries are now progressing towards development and we would expect to see the first Field Development Plan (FDP) approvals by the Department of Energy & Climate Change (DECC) in 2012, followed by first oil a few years later. Our recent drilling campaign at Cladhan was less successful than we had initially hoped. Although we were pleased to see a significantly increased hydrocarbon column from the results of the first well, it also demonstrated that there was likely to be higher variability in reservoir quality, in part, we believe, relating to depth, and in part relating to the depositional nature of the sandstones. The second well of the campaign in the deepest parts of the structure, some 2,500 feet from the mapped crest, and some 1,000 feet or more below the lowest established oil, encountered a reservoir sequence without any effective porosity and permeability. The third and fourth wells established an area to the south of Cladhan with a different pressure regime, where we believe we may have intersected a potential oil water contact in a separate accumulation. We also expect that Cladhan will now progress towards FDP approval, possibly in 2012, likely as a sub-sea tie back to established infrastructure. Recognising the fact that our development assets, and in particular the Catcher area, were ultimately likely to be of greater strategic value to a larger, more established UK producer, we set about positioning the Company to try and maximise the value of our remaining exploration portfolio by attempting to demerge these into a newly formed and listed subsidiary, XEO Exploration. A change in market sentiment with respect to exploration and production risk, and in particular with respect to the UK offshore sector following unexpected, rather blunt and frankly ill-considered tax changes, meant that this avenue was no longer available to us. We were disappointed with this outcome, as we believe the portfolio had, and indeed still has, significant merit, although not without risk. As we entered the second half of 2011, the Board recognised that we needed to evaluate our near term strategy and balance our risk exposure to mitigate the effects of a new and uncertain external investment environment, and safeguard to the maximum extent possible the value we had already created for our shareholders in a turbulent and unforgiving market. Following a number of informal and broad ranging discussions with third parties, the Board concluded that the best route would likely be the outright sale of the company to a larger, well capitalised company, ideally with the option to allow our shareholders to continue to participate in the upside contained within the asset base should they so wish. Following receipt of an approach from Premier, our co-venturer in Catcher, the Board agreed that on balance, and considering the future risks and uncertainties, this route was likely the best option for retaining much of the value we had created. The market will of course determine if this is indeed the case. On a personal level, I would particularly like to thank my fellow Directors and staff for their invaluable contribution towards the successes we have achieved over the past six years. I would also like to thank our shareholders, many of whom participated in our original $6million friends and family fundraising in 2005, for their patience and understanding over the years. Alan Booth Chief Executive Officer 5 October 2011 Operational Review UKCS Block 28/9 - Catcher, Varadero, Burgman We began the period under review part-way through the drilling of the side-track appraisal well at Catcher South West, well 28/9-1y, which we covered in our 2010 Annual Report. This well found oil with a net vertical sand thickness of 121 feet and a hydrocarbon column of 173 feet. During July and August 2010 following the completion of the Catcher South West well, site surveys were carried out over Block 28/9 to identify safe drilling locations for the second phase of drilling. A rig contract was signed in late September 2010 for the Transocean Galaxy II heavy duty jack-up rig to carry out this drilling. After an extended period of waiting on weather to exit Dundee Harbour, the second phase of drilling commenced in mid-December 2010 with the spud of the Varadero exploration well 28/9-2. Well 28/9-2 discovered oil and gas within the Tertiary age Tay Formation and had a net pay of 106 feet with an average porosity of 33 per cent., over a gross hydrocarbon bearing interval of 400 feet. Wireline samples indicated an oil gravity of 26 degrees API. The well was plugged and abandoned as an oil and gas discovery. January 2011 saw the commencement of drilling of the Catcher North appraisal well. Well 28/9-3 appraised the Tay and Cromarty reservoirs to the North of the original Catcher discovery, and discovered 34 feet of net hydrocarbon pay with average porosity of 31 per cent.; 14 feet of 29.8 degree API oil within the Cromarty level and 20 feet of gas within the Tay section. The gross hydrocarbon column for the Catcher area was extended to 410 feet, comprising a gas column of 75 feet and an oil column of 335 feet. The well was plugged and abandoned as an oil and gas well. Well 28/9-4, to evaluate the Burgman prospect, commenced at the beginning of March 2011. The well location was selected to intersect four potential reservoir horizons (the Upper Tay, Lower Tay, Cromarty and Fulmar reservoirs) which had been identified from the seismic data. The well encountered 12 feet of gas in the Upper Tay sandstones and 10 feet of 24 degree API oil in the Lower Tay sandstones. The gross gas column encountered was a minimum of 78 feet and the gross oil column was estimated to be 420 feet. The Cromarty and Fulmar sections were not hydrocarbon bearing Although oil bearing in well 28/9-4, the Lower Tay was not particularly well developed at the well location, appearing more thickly developed over a large proportion of the remainder of the Burgman prospect. Therefore, the group decided to side-track to an area prognosed to contain better developed Lower Tay sands to the south east of well 28/9-4. The side-track well 28/9-4z encountered 64 feet True vertical thickness (TVT) of net oil pay with average porosity of 38 per cent. over a gross interval of 64 feet TVT. This result confirmed the geophysical model for the identification of Tay sands over the Burgman structure. The well was plugged and abandoned as an oil and gas well. Following completion of the Burgman side-track at the end of March 2011, work has continued on development planning studies for the development of the discoveries on Block 28/9 and a dedicated development team is now in place. On the exploration side, a high density 3D seismic survey has just been acquired over the Block. The data, expected to be delivered during Q4 2011, will be fully analysed alongside the existing data. Additionally, a site survey has been commissioned to survey the Carnaby prospect on Block 28/9 during the second half of 2011, with a view to drilling in H1 2012. UKCS Blocks 210/29a & 210/30a - Cladhan During the year under review, one well and five side-track wells were drilled on the Cladhan discovery. The first well was a side-track from the original Cladhan discovery made in November 2008. Well 210/29a-4z commenced in August 2010 with the objective of targeting a southerly extension up-dip of the original Cladhan discovery. This well discovered a gross hydrocarbon column of 159 feet TVT with 102 feet TVT of net hydrocarbon pay. When tested, the 34 degree API light oil flowed at a restricted 5,900 bopd for over 13 hours through a 28/64 inch choke, with a final wellhead pressure of 1,874 psi. The Operator, Sterling Resources, indicated that with larger 4.5 inch completion tubing, they estimated that the well is capable of producing over 15,000 bopd. A second side-track, well 210/29a-4y,was then drilled to test an area down dip and to the South East of the original discovery well. The well encountered a 169 feet TVT gross hydrocarbon column, with a net pay of 71 feet TVT. This took the total oil column from the three wells drilled to date to in excess of 425 feet, with no Oil Water Contact established at that time. In October 2010, the Operator, Sterling Resources, published a Competent Persons Report (CPR) which gave a range of oil in place estimates. However, it remained our opinion at that time that until further drilling was done, an Oil Water Contact was established and connectivity to other areas in the broader Cladhan structure was confirmed, the potential size of the Cladhan discovery remained uncertain, though likely commercial. The second phase of drilling commenced in March 2011 using the Transocean Prospect semi-submersible rig. Appraisal well 210/30a-4 was drilled to the south east of the original Cladhan discovery to a Total Measured Depth of 12,252 feet. This well encountered oil bearing Upper Jurassic sandstones in two separate reservoir intervals. In the lower reservoir, the well encountered a gross interval of 256 feet TVT with a net sand of 21 feet TVT. Pressure data indicated that this sand was in pressure communication with, and therefore part of, the original Cladhan discovery. Average porosity of this sand was 16 per cent. and hydrocarbon saturation was 75 per cent. The well proved an Oil Down To of 10,447 feet True Vertical Depth SubSea (TVDSS), giving a hydrocarbon column of over 1,200 feet. The well also encountered 13 feet TVT of net sand over an 18 feet TVT gross interval in the upper reservoir sequence, with average porosity of 16 per cent. and hydrocarbon saturation of 82 per cent. The pressure data for this upper reservoir sequence suggested it was not in communication with the original Cladhan discovery. No Oil Water Contact was established in either reservoir sequence. In April 2011, the well was side-tracked to the East, 1,000 feet deeper and out to the eastern fan area of the prognosed Cladhan structure. Well 210/30a-4z encountered two separate Upper Jurassic reservoir intervals with gross sands of 12 feet TVT and 169 feet TVT respectively. Hydrocarbon shows were encountered in both reservoirs but with average porosity of less than 10 per cent., it was not possible to confirm if the sands were hydrocarbon bearing and in pressure communication with the original Cladhan discovery. A second planned side-track well, 210/30a-4y,commenced in May 2011. This well targeted the Central Channel area to the south of the original Cladhan discovery and encountered gross sands of 191 feet TVT with net sands of 40 feet TVT. Log and pressure data indicated that the sands were water wet, and that the Central Channel was in a separate pressure regime from the main Cladhan discovery. The sands in this location were still over pressured which suggests there may be remaining prospectivity up dip from the 210/30a-4y well location. The final well of the programme, well 210/30a-4x was drilled as a side-track to evaluate another channel to the south of the Cladhan discovery. The well discovered 171 feet TVT of gross sands, with 105 feet TVT of net sand. Log data indicated that the uppermost five feet of reservoir was hydrocarbon bearing, resulting in an Oil Down To at 10,177 feet TVDSS and a calculated Oil Water Contact of 10,200 feet TVDSS. Pressure data indicated that the sands were over pressured in this location, similar to the pressure trend encountered in well 210/30a-4y which evaluated the Central Channel, and therefore in a separate pressure regime to the original Cladhan discovery. All indications point to a possible new accumulation, separate from Cladhan, up dip of 210/30a-4x and 210/30a-4y but further drilling would be required to prove this. Infield surveys and a pipeline survey have taken place since the period end through July and August 2011, and subsea pre-FEED work was recently commissioned. Planning continues on the best development scenarios for the Cladhan field. Other Portfolio Activity During the period under review, EnCore was awarded two traditional licences containing six Blocks and part-Blocks in the UK Seaward 26th Licencing Round. The first of these Licences, P.1812 contains Blocks 28/5, 28/10a and 29/1d (split) and lies to the east and north east of the Catcher oil discovery in EnCore's existing Blocks 28/9 and 28/10c. EnCore owns 100 per cent. of this licence and since reprocessing 3D seismic data over the area, initial observations have highlighted a potentially interesting new Tay prospect, Coaster, which has similarities to the Tay structures found in the Catcher Blocks 28/9 and 28/10c to the West. Further technical work is being undertaken to establish prospective locations for potential drilling in 2012. The second licence award, P.1769 containing Blocks 14/29e, 20/4c and 20/5f lies to the south west of the Tudor Rose heavy oil discovery and the Buffalo prospect in EnCore's existing Block 14/30a. EnCore was awarded 50 per cent. of the Licence, with the remaining equity and operatorship awarded to Endeavour Energy UK Ltd. The blocks contain the Hoylake gas discovery that was drilled by Shell in 1998. The partnership is reprocessing 3D seismic data over this Licence to further evaluate the Hoylake discovery in the near term. The 26th Licencing Round also saw the award of three Licences; P.1870, P.1866 and P.1876 containing Blocks 15/21d, 13/28b and 22/5 respectively to Echo Exploration, owned by North Sea Energy Inc., in which EnCore had the option to acquire 50 per cent. of the equity, for a nominal consideration. This option was exercised at the end of June 2011, subject to the usual regulatory approvals. Block 15/21d contains the Beehive oil discovery, which was drilled by Amerada Hess in 1993 and flowed 5,700 bbls/day of 28 degree API oil when tested. The forward work programme on these Blocks is expected to include reprocessing of seismic data over the area. Towards the end of the period under review, talks took place regarding the acquisition (subject to the usual regulatory approvals) of part of UK Central North Sea Licence P.218, which neighbours EnCore's Licence P.1655. The area of Licence P.218 to be acquired includes the 15/21a-38z Spaniards / Gamma discovery well, drilled in 1989 by Amerada Hess, and which flowed 2,600 bbls/day of 26 degree API oil on test. EnCore and its P.1655 partners have agreed to acquire a total of 70 per cent of licence P.218 in return for 30 per cent. of the P.1655 licence and funding the cost of the first well to evaluate the Spaniards / Gamma discovery. Upon receiving regulatory approval, EnCore's equity in the two licences, P.1655 and P.218 will be 28 per cent. Other licence activity which took place during the period under review included extensions granted by DECC to licence P1463, containing the Tudor Rose discovery and Buffalo prospect, and licence P.1475 containing the Merrow prospect. A Letter of Award, and since the period end, a full rig contract, was signed with ADTI for use of the Sedco 704 rig to drill an appraisal well on the Tudor Rose discovery to establish the gravity and viscosity of the oil in place. The drilling of the well is expected to commence in October 2011 and the results will help determine if Tudor Rose can be commercially exploited. Under the licence terms agreed with DECC on award, our interest in licences P.1689 and P.1674 lapsed and were relinquished and in addition, we elected to relinquish licence P.1687. In Ireland, we are still awaiting a decision from the Irish Petroleum Affairs Division over the lease undertakings application in order to allow EnCore and its partners, San Leon Energy (Operator) and Valhalla Oil and Gas to continue work on the licences. As a consequence of this delay, little work was done on the Irish licences during the period. Finally, our Gas Storage project on UK Southern North Sea Block 43/13a remains for sale but has received no acceptable offers to date. Corporate activity At the time of our Interim Results in March 2011, we announced that the Board were considering options for how best to maximise the potential of our exploration portfolio without any undue dilution of the value created for shareholders in our two main assets, Catcher and Cladhan. The Board concluded that floating a newly formed company containing the exploration assets, in which EnCore would retain a significant shareholding, would be the best way to fund an extended, high impact exploration drilling programme with the associated risks. On top of EnCore retaining a significant shareholding, an offer was to be made to existing EnCore shareholders to subscribe for shares in the new exploration company at the institutional placing price. However, in part due to the unexpected announcement of the North Sea taxation reforms in the 2011 Budget, the market appetite for high impact exploration with its inherent risks all but evaporated overnight. While encouraged by the indicated support we had received at the time, the decision was taken to cancel the flotation of the new company rather than the continual need for further fundraising to complete the proposed drilling programme. In April 2011, the resignation of L. Keith Hughes, a Non-Executive Director was announced. Keith had joined a new law firm which prohibited partners holding non-executive directorships with for-profit companies. On Keith's resignation, Vivien Gibney, a barrister and executive, now retired, with over 25 years' oil industry experience, joined the Board as a Non-Executive Director. Since the period end, it was announced on 5 October 2011 that EnCore had reached agreement on the terms of a recommended acquisition by Premier of the entire issued and to be issued share capital of EnCore at 70p per ordinary share in cash, with a full share alternative. The Board of EnCore considers the terms of the Acquisition to be fair and reasonable and as such, intend to recommend unanimously that EnCore shareholders vote in favour of the Scheme. Further information can be found in the announcement dated 5 October 2011 on the EnCore website www.encoreoil.co.uk 5 October 2011 FINANCIAL REVIEW Gain for the Financial Year The net loss for the year to 30 June 2011 is £2.5 million (30 June 2010: profit of £11.4 million). The movement to a loss in 2011 reflects the one off gains associated with the sale of the Breagh gas asset in the prior year result. The normalised result for 30 June 2010, excluding the Breagh gains, was a loss of £11.5 million. The operating loss is £3.7 million (2010: loss £15.1 million) comprising administrative expenses of £3.3 million (2010: £2.7 million) and exploration costs of £0.4 million (2010: £12.4 million). The gain from our share in our associate company Egdon Resources plc is £1.2 million. Net financial income in 2011 was £0.4 million (2010: £0.3 million). Foreign currency losses were £0.6 million in the year (2010: gain of £1.5 million). Gross administrative expenses, before capitalisation and recharges to joint venture partners, were £4.5 million (2010: £3.5 million). The increase reflects the costs of the aborted XEO flotation which are not capitalised or recharged to partners. The gross administrative costs can be further analysed as follows: 2011 2010 £ million £ million Staff costs 2.6 3.0 Legal and professional 1.4 0.2 Office costs 0.3 0.1 Other 0.2 0.2 4.5 3.5 Capitalisation and recharge to joint venture partners of administration costs during the current year amounted to £1.2 million (2010: £0.8 million) reflecting the increase in work on operated projects, principally Catcher. Consequently, net administration costs in the profit and loss account were £3.3 million (2010: £2.7 million). Staff costs includes £0.1 million (2010: £0.3 million) of IFRS 2 charges related to share options granted to Directors, staff and third parties. Exploration costs of £0.4 million principally relate to the write down of certain UK Offshore assets. Exploration costs in the year ended 30 June 2010 of £12.4 million reflected the write down of UK Onshore assets which were ultimately sold to Egdon Resources Plc and our Irish assets. Tax The tax credit of £0.3 million in the year ended 30 June 2011 largely reflects the restatement of deferred tax balances arising on fair value adjustments to intangible oil and gas assets to current tax rates. This deferred tax movement is a non-cash item. The tax credit arising in the year to 30 June 2010 reflected the reversal of deferred tax balances created on the fair value adjustments to intangible oil and gas assets resulting from acquisitions in the year to 30 June 2008 and the period to 30 June 2007. These deferred tax balances reverse via the Consolidated Statement of Comprehensive Income when the asset is subsequently sold, as was the case with Breagh, or the asset is impaired, as was the case with the impairment of certain UK Onshore licences. This deferred tax movement is a non-cash item. Associate company During the year the company acquired an interest of just under 30% in Egdon Resources plc through the sale of its onshore assets and Ceres gas field. Egdon is an associate company of EnCore and as such we are required to account for our share of its trading results. Egdon announced their result for the six months ended 31 January 2011 on the 19th April 2011. The result was a profit for the period of £4.4 million. As of the date of these accounts Egdon have not released their results for the year ended 31 July 2011 nor given any indication of when the results announcement will be made. Despite Egdon being an associate company of EnCore Oil plc they are under no obligation to provide us with trading and financial data. To date no such data has been received by us. In the interests of the timely announcement of our year end results, the Directors of EnCore Oil plc decided to estimate Egdon's results for the year ended 31 July 2011 based on publicly available data and our knowledge of their assets. We have estimated that the full year profit for the year ended 31 July 2011 for Egdon will be approximately £4 million. An amount of £1.2 million, based on our shareholding of just under 30% in Egdon, has been included in our consolidated income statement in the current year. The actual result for Egdon for this period may be different to our estimate and consequently an adjustment may be required in our future accounts. Our auditors, PKF (UK) LLP, have not had access to the management of Egdon nor to their financial documents nor Egdons auditors' working papers. Consequently, PKF (UK) LLP have been unable to obtain sufficient appropriate audit evidence to support our estimates of the carrying value of the investment in Egdon at 30 June 2011 and the Group's share of the result for the year. They were therefore unable to determine whether any adjustments to these amounts were necessary. As a consequence PKF (UK) LLP have qualified their report to the members of EnCore Oil plc to draw attention to the limitation that has been placed on the scope of their audit work. Statement of financial position At 30 June 2011 the Group had net assets of £56.8 million (30 June 2010: £58.4 million). The most significant balances are intangible exploration and evaluation assets of £34.2 million (2010: £15.0 million) and cash of £18.3 million (2010: £41.9 million). The exploration and evaluation assets can be further analysed as follows: 2011 2010 £ million £ million UK offshore licences 31.7 12.5 Other 2.5 2.5 34.2 15.0 During the year to 30 June 2011, the Company incurred expenditure of £19.6 million (2010: £2.7 million) on its oil and gas properties principally in respect of the extensive drilling campaigns on Cladhan (£12.5 million) and Catcher (£6.5 million). Costs in 2010 reflected exploration drilling on Catcher together with Ceres development costs. Ceres was sold to Egdon Resources plc during the course of the financial year. Other exploration and evaluation assets include interests in Ireland. Financing The Group ended the year with £15.3 million of cash and cash equivalents (2010: £31.2 million) and a further £3.0 million of restricted cash (2010: £10.7 million). The Group remains debt free. Restricted cash at 30 June 2011 includes £1.5 million held in escrow accounts under arrangements with drilling contractors relating to the Company's share of the cost of drilling the Cladhan well and a further £0.3 million in respect of Catcher drilling and £1.2 million in respect of the forthcoming Tudor Rose well. At 30 June 2011 approximately half of our cash is held on deposit with The Royal Bank of Scotland and attracts floating rate interest. The balance is on deposit with Scottish Widows in a fixed rate account. At 30 June 2011 all of the cash was held in GB Pounds. The Group from time to time holds US Dollars and is therefore exposed to some extent to the risk that movements in exchange rates with GB Pounds will impact the value of cash and cash equivalents. EnCore anticipates that investing activities on its oil and gas properties can be financed through operating cash flows and existing cash resources and as a result it will have adequate liquidity to fund its present commitments for a period of at least 12 months from the date of signing these accounts. However, EnCore is currently pursuing projects that will likely require additional financing. Such additional sources may include debt and equity financing as needs arise. However, factors affecting project timing and outcomes and market conditions could affect the Company's ability to fully finance all its investment opportunities on the optimal schedules. Read Full Thread Reply
Posted at 04/8/2011 20:56 by nomde From Proactiveinvestor on the AIM fall: "The sector must be down around 10-15 percent across the board. There have been some really big moves and its all down to those really highly leveraged spread bets that retail investors like to use." Searle added: "Retail investors who hold these stocks have had to sell to meet their obligations, but there is a massive buyers' strike and that has caused these violent share price movements." I wonder what tomorrow will bring? If buyers hold off and leveraged spread betters are obliged to sell ... This is what I hate about the present system - the stock price often bears no reflection of true valuation, and the problem often resides with spread-bet gambling - not real investment. Read Full Thread Reply
Posted at 16/6/2011 10:57 by sg31 Courtesy of puzzle on IV. The end is near the correction, that is Leon Tuey Jun 14, 2011 12:09 PM ET \| Last Updated: Jun 14, 2011 7:16 PM ET As mentioned on numerous occasions, short-term market moves are driven by technical and sentiment factors, and should not be confused with the long-term or the primary trend of the market. Human psychology, however, prevents investors from making money in the market. As the market moves higher, investors get more bullish, and when the market peaks, they become euphoric. On the other hand, as the market moves lower, they become increasingly more pessimistic, and at the very bottom of a correction or a bear market, gripped by fear and uncertainty, they panic and capitulate. That's no way to make money. Moreover, investors are always obsessed with the Dow Jones Industrial Average or the S&P 500 Index believing that these averages represent "the market." They don't realize that these indices are weighted with techs and financial being the biggest weights. Also, they have the silly notion that all stocks top, decline, bottom and rise all together at the same time, not realizing that tops and bottoms are always rotational. Hence, the popular market indices don't tell investors much about "the market." Take the recent correction, for example. In February, the market was grossly overbought. After a brief pause, the major indices rebounded and in April, they reached new bull market highs. Consequently, bullish sentiment rose even further. But that rise, however, only exacerbated the market's short-term technical structure as bullish sentiment rose and momentum deteriorated. Hence, the correction is not surprising. After a five-week correction, however, gloom is starting to thicken. Optimism is being replaced by fear and tremblings. Bearish sentiment is on the rise. Headlines are becoming blacker by the day Europe's sovereign loan default, a "double dip" in the United States, inflation, China. Investors are questioning the market's long-term trend as they are worried about the recent market pullback. Although the major market indices may well weaken further in the weeks ahead, the correction in no way changes the market's very bullish long-term trend. Moreover, the sentiment backdrop is beginning to improve. Also, keep in mind that the correction is due more to a lack of buying interest than to heavy selling. Furthermore, the correction remains rotational. Note the positive relative strength shown by many of the high-tech, water, transportation, uranium and natural gas issues. "The market" is acting better than most think. When the major market indices finally hit bottom, "the market" will be long gone. As for the long-term, one of the greatest bull markets on record remains in place as the monetary, economic, valuation, supply/demand, and momentum factors continue to give bullish readings. The only fly in the ointment is sentiment, but that is improving. Until these factors turn bearish, there is no need to alter course. Short-term weakness notwithstanding, investors should continue to emphasize sectors and stocks as the market is not monolithic. A "rotational" correction has been in progress since May 2009. As for strategy, investors should continue to trim back holdings in those issues which are overbought and show momentum deterioration, but re-deploy cash into stocks which are oversold and show improving momentum. Waiting for the S&P or the DJIA to hit bottom will result in missed opportunities. When the indices hit their final lows, investors will not know until after the fact. Moreover, even they do recognize the low, psychology prevents them from buying as they are seized by fear. As always, concerns rise as the market moves lower and lower. Technical and sentiment indicators, however, give more and more bullish readings as the market heads lower and they hit their optimal best at the bottom. Accordingly, refrain from joining the crowd. Additional weakness should be viewed as a buying opportunity. Leon Tuey is a veteran technical analyst Read Full Thread Reply

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