Star Energy Regulatory News (STAR)

4 Dec 2007 15:37

EnCore Oil PLC04 December 2007 PRESS RELEASEFor immediate release: 4 December 2007 EnCore Oil plc ("EnCore" or the "Company") Gas Storage Option Exercised by Star Energy Group plc EnCore Oil plc (LSE: EO.) is pleased to announce further developments in its gasstorage business. EnCore has entered into additional agreements with Star EnergyGroup plc ("Star Energy"), providing for future management of the gas storageproject, and varying the terms of the existing farm-out agreements already inplace with Star Energy. Star Energy has now exercised its options, and after completion of theregulatory process, will hold 50 per cent. in the decommissioned gas fields,Esmond and Gordon, located on southern North Sea blocks 43/13a and 43/15a & 43/20a respectively, and will assume operatorship of both fields. The effect of the variations to the farm-out agreements is that EnCore willretain a 75 per cent. interest in the Forbes field and licence, and theconditions in respect of Star Energy's option to acquire an interest in Gordonhave been relaxed to enable this option to be exercised immediately. EnCore iscurrently pursuing alternative options for the use of the decommissioned Forbesfield located on southern North Sea block 43/8. On 14 November 2007, the Company announced its intention to demerge its gasstorage business into a separately quoted company. Completion of the demerger istargeted to be before the end of the first quarter of 2008. 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