Cancellation of XEO Exploration Flotation (1018H)

TIDMEO.

RNS Number : 1018H

EnCore Oil PLC

23 May 2011

Press Release

For immediate release: 23 May 2011

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

Cancellation of XEO Exploration Flotation

EnCore Oil (LSE: EO.) announces that, in light of current market conditions, exacerbated by the uncertain investment climate created following the recent tax changes, the Board has decided to cancel the flotation of XEO Exploration and the related offer to EnCore shareholders.

Commenting on the decision, EnCore Chief Executive Alan Booth said:

"In the few weeks since the Treasury announced substantive taxation changes, the market appetite for UK North Sea exploration has diminished markedly. Against that background, we were encouraged by the indicated institutional support we received for XEO, but given that the whole strategy behind XEO was to pre-fund a ten to twelve well three year exploration programme without the continual need for fundraising, we felt that it was prudent to withdraw the flotation."

For further information, please contact:

 
 EnCore Oil plc                               www.encoreoil.co.uk 
 Alan Booth, Chief Executive Officer          [phone] 
 Eugene Whyms, Chief Financial Officer 
 Yvonne Fraser, Investor Relations Manager    [phone] 
 
 Westhouse Securities Limited 
 Tim Feather                                  [phone] 
 Matthew Johnson 
 

Notes to Editors:

EnCore (LSE:EO.) is an oil and gas exploration and production (E&P) company quoted on AIM.

EnCore has a balanced portfolio of offshore assets, based mainly in the UK Continental Shelf (UKCS) and a significant equity holding in AIM listed Egdon Resources plc (LSE: EDR).

EnCore has an experienced and proven management team, a number of whom were responsible for the discovery of the Buzzard field in the UK North Sea, which currently produces over 10 per cent. of the UK's total oil production.

All EnCore's commercial and material technical evaluations are undertaken in-house by the EnCore team. This brings both continuity to the management and development of the assets and an ownership that is vital to unearth the best and most creative new ideas and opportunities.

www.encoreoil.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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