EnCore Oil provides an update on its activities.

Following the successful testing of the Breagh horizontal well in January 2009, located in block 42/13a in the UK Southern North Sea, the company confirms that along with its partners, it is now in exclusive negotiations with a third party with regards to the sale of an aggregate 70 per cent equity interest in the Breagh gas discovery. EnCore intends to sell the whole of its 15 per cent equity in this and the adjacent licences. A sale and purchase agreement is expected to be signed in the coming weeks and a further announcement will be made at that time.

Cladhan: (formerly known as Bowstring East) Plans are underway for an appraisal well to be drilled on the Cladhan light oil discovery located in block 210/29a in the UK Northern North Sea. Timing of the well is still to be finalised, but it is likely that this will be Q4 2009 or Q2 2010. EnCore holds a 16.6 per cent. interest in the discovery and the licence operator is Sterling Resources Ltd. The initial well, drilled in November 2008, confirmed the presence of a stratigraphically trapped 110 ft light oil column with no apparent oil-water contact.

Ceres (formerly known as Barbarossa): Located in the UK Southern North Sea block 47/9c, Ceres is expected to begin first production in Q4 of this year. EnCore has a 10 per cent. interest in Ceres subject to a 5 per cent. buy back right by a previous owner. The well is being developed as a subsea tieback jointly with the nearby Eris discovery.

Catcher (EnCore 15 per cent.): In May, the Company assumed operatorship of blocks 28/9 and 28/10c following licence operator Oilexco being placed into administration. The Company is now working with partners, Premier Oil, Nautical Petroleum and Wintershall, to finalise a plan for a well on the Catcher prospect which is likely to be drilled in 2010.

Cobra (EnCore 25 per cent. Operator): Following the drilling of the Cobra appraisal well (48/2c-5) in 2008 the Group has undertaken a number of subsurface geotechnical studies and is currently carrying out a fracture stimulation study with a view to redrilling the 48/2c-5 well as a horizontal well and completing it with fracture stimulation.

Bennett (EnCore 70 per cent.): In 2008, 525 km of 2D seismic data was acquired and 150 square km of 3D data was reprocessed to better image the Bennett prospect, located in block 43/15a. The new data has now been interpreted and the Company is seeking an additional farm-in partner with a view to drilling a well on the Bennett prospect possibly in 2010.

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