Cladhan Sidetrack Successful

EnCore announced initial results of the second side-track on UK Northern North Sea Block 210/29a which contains the Cladhan discovery.

Sterling Resources, operator of the well 210/29a-4Y, reported that the second side-track to be drilled on the Cladhan discovery, was drilled to a total measured depth of 11,530 feet, approximately 1km to the southeast of the original 2008 discovery well. Initial results from logging while drilling data indicate the side-track encountered a 258 feet gross hydrocarbon bearing reservoir interval (169 feet vertical thickness) with 108 feet net pay (71 feet vertical thickness). The well has established oil down to 9,643 feet subsea. No oil water contact has been penetrated.

Further wireline logging, downhole sampling and pressure measurements will now be undertaken to confirm this information. The original discovery well and the two side-tracks indicate a hydrocarbon column in excess of 425 feet.

Once the current operations are completed, the J W McLean rig will be released from the Cladhan location. The next step in the appraisal of Cladhan will be to analyze all of the data gathered in order to decide on the next drilling location and perform a site survey. It is possible that the next phase of drilling at Cladhan could commence in Q4 2010 dependent upon rig availability, otherwise drilling will resume at Cladhan early next year.

Alan Booth, EnCore's Chief Executive Officer, commented, "This is another excellent result from Cladhan. It is still too early to put a precise figure on how large the discovery might be, but we are now very confident that we have a potentially significant commercial accumulation. We hope to return to the Cladhan area at the earliest opportunity to establish both the southern extent of Cladhan and drill further down dip in search of the contact.

"Following on from our Catcher drilling program announced last week, the Galaxy II rig has not yet been assigned to EnCore as bad weather has prevented the rig from being mobilized to the Catcher area from its current operating location. Arrival at the Varadero location is dependent on a suitable weather window for its mobilization. A further announcement will be made upon spud of the Varadero well in due course."

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