Successful Burgman Side-track Result (7261D)
March 28 2011 - 5:00AM
UK Regulatory
TIDMEO.
RNS Number : 7261D
EnCore Oil PLC
28 March 2011
Press Release
For immediate release: 28 March 2011
EnCore Oil plc ('EnCore' or 'the Company')
Successful Burgman Side-track Result
EnCore Oil plc (LSE: EO.) is pleased to announce that the
Burgman side-track well 28/9-4z located on UKCS Central North Sea
Block 28/9 has successfully encountered hydrocarbons in the
targeted Lower Tay sandstone interval.
The well was drilled directionally with a hole angle up to 64
degrees to a Total Depth of 5,237 feet Measured Depth (M.D.).
Initial analysis indicates net oil pay of 135 feet over a gross
reservoir interval of 135 feet (M.D.), equivalent to 64 feet of net
vertical oil pay over gross vertical interval of 64 feet True
Vertical Thickness. Preliminary log analysis indicates an average
porosity of 38%, significantly better than in the original Burgman
well. Initial estimates suggest a likely STOOIP in the range of 80
- 120 mmbbls.
This result now concludes the current drilling programme on
Block 28/9 and following completion of this well, the Transocean
Galaxy II heavy duty jack-up rig will be demobilised. The Galaxy II
has drilled three successful wells during this drilling campaign,
resulting in two substantial discoveries at Varadero and Burgman,
and an appraisal of Catcher North.
Commenting on the result, Alan Booth, EnCore's Chief Executive
Officer, said:
"This is an excellent result and supports the partnership's
geophysical model for the identification of Tay sands over the
Burgman structure. The sand thickness and quality was very much at
the upper end of our pre side-track expectations. The confirmation
of another important discovery in the licence is a fitting end to
this phase of drilling. On behalf of EnCore I would like to thank
our co-venturers for their help and support and look forward to
continuing to work with them as we progress further appraisal and
development work on the Block. We would also like to thank ADTI,
Transocean and all the offshore crew and service providers that
helped deliver a safe and successful drilling programme. EnCore is
now looking forward to the results of drilling at Cladhan, which we
hope will be within the next 10 days or so.
"I would like to take this opportunity to make some general
comments, not specific to our discoveries in the Catcher area, on
the recent fiscal changes announced in the budget. The EnCore team
have been directly involved in the discovery of a number of the
UK's most important recent oil and gas fields, one of which now
accounts for more than 10% of current UK oil production, and so we
recognise the need to encourage the discovery and ultimately the
production of the UK's indigenous resources.
"Whilst unexpected tax changes are never welcome, given the
current state of the nation's finances, one can at least
rationalise the desire to raise revenues from fields that have
already paid back their risked investments during a time of very
high oil prices. However, failure to encourage the discovery of new
fields as well as the development of newer, smaller and difficult
fields on fair and predictable fiscal terms is in no one's
interest. Undeveloped and undiscovered oil and gas pays no taxes,
creates and sustains no employment and a slowdown in UKCS activity
will simply increase the UK's reliance on imported oil and gas from
less politically stable, if not as fiscally unpredictable, parts of
the globe. I welcome the Government's indication that it is
prepared to discuss with the industry the enhancement and
broadening of the recently introduced Field Allowances which I
believe, if properly structured, could mitigate the effects of
these changes and continue to incentivise those companies who wish
to continue to invest in finding and developing the UK's offshore
natural resources."
The equity in the Block 28/9 joint venture partnership is as
follows: EnCore Oil plc (15 per cent., Operator), Premier Oil (35
per cent.), Wintershall (UK North Sea) Limited (20 per cent.),
Nautical Petroleum (15 per cent.) and Agora Oil & Gas (15 per
cent.).
Peter Williams B.Sc. (Hons.) in Physics and EnCore's Group
Technical Manager, who has over 35 years' engineering experience in
the oil exploration and production industry, has reviewed and
approved the technical information contained in this
announcement.
For further information, please contact:
EnCore Oil plc www.encoreoil.co.uk
Alan Booth, Chief Executive Officer +44 (0)20 7224 4546
Eugene Whyms, Chief Financial Officer
Yvonne Fraser, Investor Relations Manager +44 (0)7957 241 408
Westhouse Securities Limited
Tim Feather +44 (0) 20 7601 6100
Matthew Johnson
Notes to Editors:
EnCore Oil plc (LSE:EO.) is an oil and gas exploration and
production (E&P) company quoted on AIM.
EnCore has a balanced portfolio of offshore assets, based mainly
in the UK Continental Shelf (UKCS) and a significant equity holding
in AIM listed Egdon Resources plc (LSE: EDR).
EnCore has an experienced and proven management team, a number
of whom were responsible for the discovery of the Buzzard field in
the UK North Sea, which currently produces over 10 per cent. of the
UK's total oil production.
All EnCore's commercial and material technical evaluations are
undertaken in-house by the EnCore team. This brings both continuity
to the management and development of the assets and an ownership
that is vital to unearth the best and most creative new ideas and
opportunities.
www.encoreoil.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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