EnCore Oil Hits Payload at Burgman Oil & Gas Operation

March 23, 2011
EnCore Oil plc (LSE: EO.) announces that the Burgman well 28/9-4 located on UKCS Central North Sea Block 28/9 has reached Total Depth of 5,990 feet Measured Depth and has successfully encountered good quality hydrocarbons in a Tay sandstone interval.  Based on the results of the well, the joint venture partnership has decided to drill an immediate side-track from the Burgman well.

The well encountered 22 feet of net hydrocarbon pay within the overall Tay sandstone interval; 12 feet of gas in the Upper Tay sandstones and 10 feet of 24 degree API oil in the Lower Tay sandstones.  The Cromarty and Fulmar sections were not hydrocarbon bearing at this location.  A Gas Oil Contact was calculated at 3,560 feet true vertical depth sub sea (TVDSS) and the Oil Water Contact was calculated at 3,980 feet TVDSS, giving a gross gas column of at least 78 feet and a gross oil column of approximately 420 feet.

The original Burgman location was selected to intersect all four potential reservoir horizons identified on seismic data: the Upper Tay, Lower Tay, Cromarty and Fulmar.  Although oil bearing, the Lower Tay sands are not well developed at this particular location.  Seismic data strongly suggests that the Lower Tay sands are more thickly developed over a large proportion of the remainder of the Burgman prospect area, as well as being above the newly established oil water contact.  Therefore, the Group will now side-track the current well to target an area prognosed to contain more thickly developed Lower Tay sands.  It is expected that the results of this side-track will be known within the next 10 days, subject to any weather or operational delays.

Based on the information gained from the Burgman well, the Group has concluded that the selected surface drilling location for the Carnaby prospect, which was determined primarily on safety grounds to avoid drilling through an overlying significant shallow gas anomaly whilst using a jack-up rig, is sub-optimally located to effectively test the Carnaby Prospect.

The Burgman side-track will therefore conclude this phase of drilling on Block 28/9.  The Group intends to integrate all the information from the wells drilled on Block 28/9 with a newly reprocessed 3D seismic data set in order to gain a better understanding of the on-block volumes and hydrocarbon properties and to assist in moving forward with a suitable development programme for the licence.

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