Tax fall-out halts EnCore float

EnCore Oil has cancelled the flotation of its UK North Sea interests via the proposed new company XEO Exploration.

Offshore staff

LONDON -- EnCore Oil has cancelled the flotation of its UK North Sea interests via the proposed new company XEO Exploration.

CEO Alan Booth said: "In the few weeks since the Treasury announced substantive taxation changes, the market appetite for UK North Sea exploration has diminished markedly.

“Against that background, we were encouraged by the indicated institutional support we received for XEO, but given that the whole strategy behind XEO was to pre-fund a 10- to 12-well, three-year exploration program without the continual need for fundraising, we felt that it was prudent to withdraw the flotation."

05/24/2011

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