23 Sep 2009 07:00
Press Release
For immediate release: 23 September 2009
EnCore Oil plc ('EnCore' or 'the Company')
Potential Asset Divestment
EnCore Oil plc (LSE: EO.) announces that it is in advanced negotiations with Egdon Resources plc ('Egdon', LSE: EDR) over the sale of the Company's onshore assets (onshore UK and onshore France) together with an interest in the Ceres Gas field, to Egdon, in return for a material equity stake in Egdon.
The consideration, which would be satisfied in Egdon ordinary shares, will be finalised as part of the contract negotiations and the transaction will be structured so that on completion EnCore's ownership would not exceed 29.9% of Egdon's enlarged share capital.
Further announcements will be made in due course.
Commenting on the negotiations, Alan Booth, EnCore's Chief Executive Officer said:
"We have long felt that our onshore asset portfolio failed to generate significant interest amongst many of our shareholders, principally on the grounds of materiality. We believe that by combining these assets with those of Egdon, we would expose our shareholders to more easily recognisable value in a more material portfolio of similar onshore assets. Egdon, as a committed and well established onshore player would be better placed to develop and add significant value to the enlarged asset base.
"We are firmly of the view that it is possible to build a meaningful onshore E&P business, however this will need both scale and management focus. It is our view that this transaction would enable Egdon to accelerate its transition into a significant onshore E&P player."
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 |
| Aquila Financial Limited | www.aquila-financial.com |
| Peter Reilly | +44 (0) 118 979 4100 |
| Hanson Westhouse Limited | |
| Tim Feather | +44 (0) 20 7601 6100 |
| Matthew Johnson |
Notes to editors:
The package of assets included in the deal are listed below:
| Onshore UK | |||
| Licence | Equity (%) | Operator | |
| PEDL068 | Cleveland Basin | 20.0 | Egdon Resources |
| PEDL256 | Weald Basin | 7.5 | Northern Petroleum |
| PEDL125 | Weald Basin | 10.0 | Northern Petroleum |
| PEDL126 | Weald Basin | 10.0 | Northern Petroleum |
| PEDL154 | Weald Basin | 10.0 | Northern Petroleum |
| PEDL155 | Weald Basin | 10.0 | NP Weald Limited |
| PEDL098 | Wessex Basin | 7.5 | Northern Petroleum |
| PEDL240 | Wessex Basin | 7.5 | Northern Petroleum |
| PEDL253 | Humber | 60.0 | EnCore |
| Onshore France | |||
| Mairy | Paris Basin | 30.0 | Lundin |
| Nimes | Rhone Graben Basin | 100.0 | EnCore |
| Ceres | |||
| P.1241 | 47/9c, Southern North Sea | 10.0 | Centrica |
EnCore Oil plc
EnCore Oil plc (LSE:EO.) is an oil and gas exploration and production (E&P) company quoted on AIM.
It is not the Company's aim to build a full cycle E&P company. The principal strategy is to create shareholder value through the successful exploration and appraisal of prospects and discoveries. The Company will seek to monetise or exchange the asset at the appropriate point in its life cycle and return value directly to shareholders wherever possible.
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