EnCore Wins Seven Offshore UK Licenses

EnCore Oil plc and its subsidiaries were offered seven licenses covering twelve blocks and part blocks in the 24th Seaward Licensing Round.

Five blocks have been offered under traditional license terms and seven blocks under promote license terms. EnCore expects to become operator of three of the licenses. Further information on all the licenses offered are set out in the appendix below.

The licenses include traditional licenses for blocks 14/30a, 28/9 and 28/10b (split), and 113/29c and 113/30. Promote licenses for blocks 18/10 (part) and 19 /6 (part), which are immediately adjacent to 18/5 and 19/1a, blocks 3/5 and 3/ 10c, block 47/7, and blocks 47/22 and 47/23 (split).

On blocks 28/9 and 28/10b (split), the operator, Oilexco North Sea Ltd., has offered to drill a firm well within 12 months of award. EnCore has a 35% equity interest in the blocks and will have a small part of its well costs paid for by Oilexco. EnCore will be operator of block 14/30a with a 40% working interest and has agreed to drill a well contingent on further evaluation of the 14/30a-2 heavy oil discovery. On blocks 113/29c and 113/30, Nautical Petroleum plc and EnCore have a drill or drop option on a sizeable offshore prospect that could be drilled from an onshore location.

Commenting on the awards, Alan Booth, Chief Executive Officer of EnCore Oil plc, said:

"We are delighted to be offered these awards which complement and further strengthen EnCore's UK portfolio as well as providing additional near term drilling activity. We believe these awards further demonstrate EnCore's ability to participate effectively in an extremely competitive market place for the acquisition of opportunities which have the potential to add sustainable and realizable value to our portfolio. Our exploration and commercial teams deserve full credit for this excellent result."

The award of these licenses is subject to the usual regulatory approvals.


Blocks &      Traditional    EnCore's   Operator &             Location
Part Blocks   / Promote      Interest   Co-Venturers

14/30a        Traditional    40%        EnCore Petroleum       Central North Sea
                                        Limited (Operator)                
                                        Endeavour Energy UK
                                        Nautical Petroleum plc 
                                        Lundin Heather Ltd.

28/9 &        Traditional    35%        Oilexco North Sea      Central North Sea
28/10b                                  Limited (Operator)    
(split)                                 EnCore Petroleum
                                        Nautical Petroleum plc

113/29c &     Traditional    50%        Nautical Petroleum plc East Irish Sea
113/30                                  (Operator)
                                        EnCore Petroleum

3/5 &         Promote        30%        Endeavour (Operator)   Northern North 
3/10c                                   EnCore Petroleum       Sea      
                                        Invicta North Sea

18/10 (part)  Promote        100%       EnCore Petroleum       Central North Sea
& 19/6 (part)                           Limited (Operator)            
47/7          Promote        50%        NEW Southern Cross     Southern North 
                                        (Operator)             Sea
                                        Virgo Oil & Gas plc 
                                        (now named EnCore 
                                        (VOG) plc)

47/22 &       Promote        60%        Virgo Oil & Gas plc    Southern North
47/23                                   (Operator - now named  Sea           
(split)                                 EnCore (VOG) plc)                                     
                                        Montrose Industries                                   

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