UK: Encore Oil Reports Successful Catcher South West Well Appraisal

EnCore Oil plc provides an update on the Catcher South West Appraisal side-track well located in UK Central North Sea block 28/9.

The 28/9-1Y well was drilled to a Total Depth of 6,255 feet Measured Depth (M.D.) having successfully encountered excellent quality oil bearing reservoir sandstones at the target Cromarty Sandstone level. Initial analysis indicates a gross reservoir interval (M.D.) of 449 feet, equivalent to a vertical reservoir thickness of 261 feet; a net vertical sand thickness of 121 feet; a hydrocarbon column of 173 feet; and fluid levels consistent with the oil water contact seen in the Catcher discovery well.

The current phase of the Catcher area drilling programme is now complete and the Galaxy II rig will be released following completion of the 28/9-1Y well operations. In the meantime, EnCore and its co-venturers are preparing to acquire a number of new site surveys, starting this month, over additional potential drilling locations in Block 28/9. The group is also in discussions to secure a rig for a further exploration and appraisal drilling programme for the Catcher area. It is possible, though at this time uncertain, that further drilling may recommence as soon as the autumn. Further announcements will be made as appropriate on the likely timing of future drilling activity.

It is expected that the cost to EnCore of the current drilling campaign will not make a material impact on the Company’s cash resources.

Alan Booth, EnCore’s Chief Executive Officer, commented:

“This is another great result. This side-track, downdip from the original Catcher discovery well, has successfully appraised the south western part of the Catcher structure and has reconfirmed our seismic interpretation and provided greater confidence in our oil in place estimates. Additional Cromarty sand units were developed beneath the oil water contact and we will now integrate this information into our on-going evaluation of the Catcher accumulation. We believe that the group has established an important new North Sea discovery with very significant on block upside potential, and we look forward to returning to the Catcher area as soon as practicable. We now await the start of appraisal drilling later this month at Cladhan, operated by Sterling Resources, which will commence following release of the J.W.McLean rig from its current drilling operations.”

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Source: EncoreOilPlc,July 6, 2010;