Asset Sale & Royalty Agr'mt

RNS Number:9305W
EnCore Oil PLC
21 May 2007

Press Release
For immediate release: 21 May 2007

EnCore Oil plc ("EnCore" or "the Company")

                        Asset Sale and Royalty Agreement

EnCore Oil plc (LSE: EO.) is pleased to announce 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."


For further information, please contact:

EnCore Oil plc                                  www.encoreoil.co.uk
Alan Booth, Chief Executive Officer             [phone]
Eugene Whyms, Chief Financial Officer

Aquila Financial Limited                        www.aquila-financial.com
Peter Reilly                                    [phone]
Yvonne Fraser                                   [phone]

Hanson Westhouse Limited
Tim Feather                                     [phone]

KBC Peel Hunt
Jonathan Marren                                 [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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