Cladhan Resource Estimation (5938U)

TIDMEO.

RNS Number : 5938U

EnCore Oil PLC

19 October 2010

Press Release

For immediate release: 19 October 2010

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

Cladhan Resource Estimation

EnCore Oil plc (LSE: EO.) notes the announcement today by Sterling Resources Ltd ("Sterling"), operator of the Cladhan discovery on UK Northern North Sea Block 210/29a.

Sterling has received an independent resource evaluation from RPS Energy on the gross contingent and prospective oil in place estimated to exist in the Cladhan discovery. The resource estimate was compiled in accordance with the Canadian Oil and Gas Evaluation Handbook standards, as required by Canadian National Instrument 51-101 standards.

The estimated range of both contingent and prospective resources of oil in place (STOIIP) at P90, P50 and P10 estimates are as follows:

P90 P50 P10

Contingent Resources (mm bbls) 43 89 155

Prospective Resources (mm bbls) 76 167 311

Commenting on the new STOIIP estimates, Alan Booth, EnCore's Chief Executive Officer, said:

"This is an excellent outcome from the recent drilling campaign. Even though we have yet to establish an oil water contact, these figures suggest a P50 STOIIP potentially in excess of 250mm bbls. Significant upside still remains on the block as can be seen from Sterling's P10 figures.

"The site survey for the next appraisal drilling location at Cladhan is underway and, dependent upon receiving the necessary regulatory approvals from the UK government and sourcing a suitable rig, we hope to return to further appraisal drilling at Cladhan in Q1 next year."

Peter Williams B.Sc. (Hons.) in Physics and EnCore's Group Technical Manager, who has over 35 years' engineering experience in the oil exploration and production industry, has reviewed and approved the technical information contained in this announcement.

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 
 

Glossary

 
 
 "contingent resources"    those quantities of petroleum estimated, 
                            as of a given date, to be potentially recoverable 
                            from known accumulations using established 
                            technology or technology under development, 
                            but which are not currently considered to 
                            be commercially recoverable due to one or 
                            more contingencies. Contingencies may include 
                            factors such as economic, legal, environmental, 
                            political, and regulatory matters, or a lack 
                            of markets. It is also appropriate to classify 
                            as contingent resources the estimated discovered 
                            recoverable quantities associated with a 
                            project in the early evaluation stage 
------------------------  --------------------------------------------------- 
 
 "mm bbls"                 millions of barrels of oil 
------------------------  --------------------------------------------------- 
 
 "P10"                     10 per cent. probability that the value will 
                            be equal to or greater than the stated value 
------------------------  --------------------------------------------------- 
 
 "P50"                     50 per cent. probability that value will 
                            be equal to or greater than stated value 
------------------------  --------------------------------------------------- 
 
 "P90"                     90 per cent. probability that value will 
                            be equal to or greater than stated value 
------------------------  --------------------------------------------------- 
 
 "prospective resources"   those quantities of petroleum estimated, 
                            as of a given date, to be potentially recoverable 
                            from undiscovered accumulations by application 
                            of future development projects. Prospective 
                            resources have both an associated chance 
                            of discovery and a chance of development. 
------------------------  --------------------------------------------------- 
 
 "STOIIP"                  stock tank oil originally in place 
------------------------  --------------------------------------------------- 
 
 

Notes to Editors:

Cladhan is located 225 miles north east of Aberdeen in 536 feet water depth.

The equity in the Cladhan joint venture partnership is as follows: EnCore Oil plc (16.6 per cent.), Sterling Resources Ltd (39.9 per cent., Operator), Wintershall (UK North Sea) Limited (33.5 per cent.) and Dyas (10 per cent.).

EnCore Oil plc (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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