EnCore Contracts Rig for Breagh Appraisal Well

EnCore Oil reports that the ENSCO 85 drilling rig has been contracted for the appraisal drilling of the Breagh discovery on UK North Sea block 42/13. EnCore holds a 15 per cent. interest in the block which is operated by Sterling Resources Ltd.

Breagh was discovered with the drilling of well 42/13-2 in 1997 by Mobil and encountered a 450 foot gas column within the Lower Carboniferous Scremerston Coal Group. The well was cored and logged, but only tested at sub-commercial flow rates. EnCore believes this was due to formation damage, which occurred during the drilling and completion of the well.

The forthcoming appraisal well will be designed with the principal objective of achieving a test flow rate representative of the undamaged formation, which will be a key factor in determining the commercial viability of the discovery. There is further upside potential to the east of the current discovery which is likely to be the subject of further drilling activity next year if the appraisal well planned for September is successful.

The ENSCO 85 is currently finishing a well in the UK Southern North Sea ("SNS"), prior to moving to drill a well in block 44/19, east of the Breagh location. This well will take approximately 70 days, after which the rig will move to the Breagh location. The ENSCO 85 has a long track record of drilling in the SNS with an established crew and its schedule means that the drilling of Breagh will occur before the winter period.

Alan Booth, Chief Executive Officer, commented:

"The confirmation of the ENSCO 85 rig to drill Breagh is excellent news for EnCore. The arrival of the rig in the late summer firms up the drilling of another well in our 18 month 12-well drilling program and we look forward to working with Sterling on the appraisal."

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