Star Energy Regulatory News (STAR)

23 Nov 2007 07:01

EnCore Oil PLC23 November 2007 PRESS RELEASE For immediate release: 23 November 2007 EnCore Oil plc ("EnCore" or the "Company") Feasibility Study Confirms Viability of Offshore Gas Storage Project EnCore Oil plc (LSE: EO.) announces that the Gas Storage Feasibility Study,which was conducted by Star Energy Group plc ("Star Energy"), has demonstratedthat the Esmond and Gordon fields show potential to form the basis of a 145 bcfgas storage facility. Star Energy has confirmed its intention to exercise itsoption to increase its interest in the project to 50 per cent. and becomeproject operator. EnCore will retain a 50 per cent. interest in the project. A conceptual design study, conducted by AMEC as part of the feasibility study,confirmed a capital expenditure estimate of £1.15 billion comprising twooffshore platforms (with compression), a 200 km 42" pipeline and a terminal atBacton (with compression and gas processing), excluding cushion gas. The next stage of the project will be the drilling of an appraisal well on theEsmond field in Q1/Q2 2008, the cost of which will be met by Star Energy. On 14 November 2007, the Company announced its intention to demerge its gasstorage business consisting of the decommissioned Forbes, Esmond and Gordon gasfields into a separately quoted company. Completion of the demerger is targetedto be before the end of the first quarter of 2008. Alan Booth, EnCore Oil's Chief Executive Officer, commented: "Confirmation of the technical and economic viability of the gas storage projectis a very significant milestone for EnCore. Star has indicated that, subject tosatisfactory results from the well into the Esmond field in 2008, thePartnership would then expect to sanction the development of what would be theUK's largest gas storage facility. This result supports the Board's recentdecision to progress with the demerger and listing of EnCore's gas storagebusiness." Sanction for development of gas storage is subject to the necessary regulatoryconsents. For further information, please contact: EnCore Oil plc www.encoreoil.co.ukAlan Booth, Chief Executive Officer +44 (0)20 7224 4546Eugene Whyms, Chief Financial Officer Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0)20 7202 2601Yvonne Fraser +44 (0)20 7202 2609 Hanson Westhouse LimitedTim Feather +44 (0)113 246 2610 KBC Peel HuntJonathan Marren +44 (0)20 7418 8800 Notes to Editors: EnCore Oil plc (EO.) is a UK focused exploration and production company listedon the Alternative Investment Market (AIM) on the London Stock Exchange. EnCore's strategy is to create shareholder value through the successfulexploration and appraisal of prospects and discoveries, and the development ofthose assets through to commercial sanction or beyond. EnCore is led by an experienced and proven management team. EnCore holds a balanced portfolio of interests in licences with the potentialfor providing major capital growth. This portfolio includes interests in the UKContinental Shelf (UKCS) offshore, several of which include operatorship; UKonshore in the Cleveland, Weald and Wessex basins; offshore Ireland; offshore inthe Netherlands; and offshore in the Western Sahara. During 2007/2008 EnCore expects to participate in the drilling of at leasttwelve wells. www.encoreoil.co.uk This information is provided by RNS The company news service from the London Stock Exchange