Offshore staff

LONDON, UK --EnCore Oil and Star Energy have extended their study agreement concerning conversion of the decommissioned Forbes field for gas storage. Forbes, in UK North Sea block 43/8 (operated by EnCore) was formerly produced by Hamilton Oil as a subsea tieback to the Esmond field, which had original reserves of 350 bcf.

The first agreement, signed last December, also led to Star farming in to Esmond, in EnCore's block 43/12a. They now plan to broaden their studies to potentially include Gordon, another former tieback to Esmond, in blocks 43/15a and 43/20a.

Under the new terms, Star will pay a further $494,000 towards extending a planned low density 3D seismic survey to all three fields and surrounding areas. As with the Forbes agreement, a successful outcome to the feasibility study would allow Star to become operator of the licenses. In that case, it would also conduct a front end engineering design study by the end of this year, and carry the cost of a well in the farm-out areas.

4/3/2007