EnCore Oil announced its results for the year ended June 30, 2008.
Ongoing drilling program delivers success and offers further potential
- Breagh successfully tested, showing potential for sizeable gas accumulation; further appraisal of Breagh commenced in August 2008 with East Breagh appraisal well and second well planned in September 2008 with West Breagh appraisal/ development well.
- Cobra tested gas at sub-commercial rates without stimulation but confirmed sizeable gas column; feasibility study initiated to review the well results for a prospective well stimulation programme.
- Barbarossa well confirmed presence of gas and horizontal well tested gas at a maximum rate of 40 million standard cubic feet per day; production could commence as early as second quarter of 2009.
- Schull and Old Head wells successfully tested gas. Further evaluation of the commercial potential of these discoveries is taking place.
- Rig secured to drill Bowstring East (also known as ‘Cladhan’) in October 2008, a light oil target in a large stratigraphic trap.
Success in the UK 13th Landward Licensing Round and further licence award onshore France
- Awarded two licences in the UK 13th Landward Licensing Round covering four blocks and part-blocks providing additional opportunities for exploration upside.
- Awarded onshore licence in the Nîmes area of France.
Balancing our portfolio for risk, opportunity generation, and monetisation
- Formed new joint venture partnerships with Wintershall, Revus Energy and Fairfield Energy.
- Post balance sheet event: sold Amstel asset in the Netherlands for US$5.5 million in cash to focus our capital on key strategic areas.
Raised £12.5 million through an institutional placing to support drilling and operations activity
Working to return the value of offshore Gas Storage directly to shareholders
- Feasibility study confirmed the technical and potential economic viability for 145bcf of gas storage at Esmond and Gordon.
- Gas storage option exercised by Star Energy to become operator and increase equity to 50 per cent.
- Appointed N M Rothschild to assist in evaluating gas storage options following interest from a number of parties.
- Drilling operations to commence on Esmond pressure test well in September 2008. Once the results of this well are known, and assuming they come within the expected range of outcomes then it is likely that EnCore will seek to sell its 100 per cent. subsidiary, EnCore Gas Storage Limited.
Michael Lynch, Chairman, commented: “2008 has seen us focus our attention on the delivery of our strategy, the key elements of which are to maximise the potential of our assets and to monetise them at the appropriate time to create the greatest shareholder value."
“Looking ahead, we have a number of wells to be drilled in the coming year including East Breagh (currently drilling), West Breagh, Catcher and Bowstring East (also known as ‘Cladhan’), and of course, the Esmond well. We are excited by this forward drilling program and look forward to reporting the results in due course.”