EnCore lining up wells on Cladhan, Catcher

EnCore Oil expects to participate in wells on two exploration/appraisal prospects in the UK North Sea next year. Both programs would be supervised by well management group ADTI.

Offshore staff

LONDON -- EnCore Oil expects to participate in wells on two exploration/appraisal prospects in the UK North Sea next year. Both programs would be supervised by well management group ADTI.

In the northern sector, Sterling Resources and co-venturers in block 210/29a (including EnCore) have signed a letter of agreement with ADTI for the semisubmersible J.W.Maclean to appraise the Cladhan accumulation. Drilling should begin late May to early July.

The well will appraise the potential extension of a stratigraphically trapped, 110-ft (33-m) light oil column discovered in November 2008. The well will be designed to improve understanding of the distribution and thickness of the Upper Jurassic reservoir sands. Should the well encounter hydrocarbon-bearing reservoirs of reasonable thickness and quality, a well test and/or sidetrack appraisal drilling will ensue.

In central North Sea blocks 28/9 and 28/10c, where Encore holds a 15% operating interest, a seabed survey has been completed. The results confirm that a well on the Catcher prospect can be drilled using a heavy duty jackup. Negotiations for a rig are under way with ADTI, and the partners hope to start drilling during spring 2010.

If the structure proves to be hydrocarbon bearing, EnCore adds, the likely rig will undertake a well test and/or sidetracking into the adjacent Eocene Tay sand prospect Dark Roast (ex-E1). EnCore’s share of the well costs will be carried by Premier Oil (uncapped to cost exposure) and Wintershall (capped). Premier Oil’s interest in Catcher could, however, be assigned to a potential UK subsidiary of Velo Energy, subject to the outcome of a Velo fund-raising program.

In the southern gas basin, EnCore is progressing with its proposal to convert the Esmond field to a gas storage role. Following the completion of the Helix/RDS study of the revised development scheme, Senergy’s reservoir simulation study will determine the reservoir’s suitability for gas injection and withdrawal.

EnCore is applying to the Crown Estates for a lease and to the UK Department of Energy and Climate Change for one of the newly introduced gas storage licenses. EnCore expects to market the project to interested parties during the first part of 2010.

In the Celtic Sea off southern Ireland, EnCore has entered a collaboration agreement with Valhalla Oil & Gas, its joint venture partner in the Schull and Old Head fields in licenses PEL 4/05 and 5/05. This has been prompted by uncertainty over operator Island Oil and Gas and the future development plans for the fields.

12/21/2009

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