14th Nov 2007 11:43
EnCore Oil PLC14 November 2007 PRESS RELEASE For immediate release: 14 November 2007 EnCore Oil plc ("EnCore" or the "Company") EnCore Announces Plans to Demerge Gas Storage Business EnCore Oil plc (LSE: EO.) is pleased to announce that, following a meeting ofits Board of Directors on Tuesday 13th November it has decided to demerge itsEsmond, Forbes and Gordon gas storage business into a separately quoted company.Completion of the demerger is targeted to be before the end of the first quarterof 2008. In December 2006 Star Energy Group plc ("Star Energy") agreed to farm-in toEnCore's 100 per cent. block 43/8 containing the depleted Forbes gas field toearn a 25 per cent. interest through undertaking a gas storage feasibilitystudy. The farm-in was extended to include the Esmond field in block 43/13a andpotentially the Gordon field in block 43/15a and 43/20a. Currently EnCore's interest in the Esmond and Forbes field is 75 per cent. StarEnergy has an option to increase its interest in Forbes and Esmond to 50 percent. on completion of the ongoing feasibility study. EnCore's recentlyannounced farm-out of the Bennett prospect in blocks 43/15a and 43/20a did notinclude an interest in the overlying Gordon field where EnCore's interestremains at 100 per cent. The Directors believe that work undertaken on theproject to date suggests that there is potentially very significant value in theproject. Alan Booth, EnCore Oil's Chief Executive Officer, commented: "Although EnCore is fundamentally an exploration and production company weidentified potentially significant value in developing gas storage options forthe depleted Esmond and Forbes gas reservoirs. We believe the market has yet torecognise the significant value already created in our gas storage project andthis will be best achieved through a separately listed business. The businesses have fundamentally different risk/reward profiles, as well asdiffering timescales and capital requirements. We believe today's announcementof an offer by Petronas for our partner Star Energy demonstrates the significantvalue already accrued to gas storage businesses, particularly offshore." For further information, please contact: EnCore Oil plc www.encoreoil.co.ukAlan Booth, Chief Executive Officer +44 (0)20 7224 4546Eugene Whyms, Chief Financial Officer Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0)20 7202 2601Yvonne Fraser +44 (0)20 7202 2609 Hanson Westhouse LimitedTim Feather +44 (0)113 246 2610 KBC Peel HuntJonathan Marren +44 (0)20 7418 8800 Notes to Editors: EnCore Oil plc (EO.) is a UK focused exploration and production company listedon the Alternative Investment Market (AIM) on the London Stock Exchange. EnCore's strategy is to create shareholder value through the successfulexploration and appraisal of prospects and discoveries, and the development ofthose assets through to commercial sanction or beyond. EnCore is led by an experienced and proven management team. EnCore holds a balanced portfolio of interests in licences with the potentialfor providing major capital growth. This portfolio includes interests in the UKContinental Shelf (UKCS) offshore, several of which include operatorship; UKonshore in the Cleveland, Weald and Wessex basins; offshore Ireland; offshore inthe Netherlands; and offshore in the Western Sahara. During 2007/2008 EnCore expects to participate in the drilling of at leasttwelve wells. www.encoreoil.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Star Energy