EnCore Oil share price soars as Catcher results outstrip market expectations

Thursday, Jun 03 2010 by
4
EnCore Oil share price soars as Catcher results outstrip market expectations

Encore Oil (LON:EO.) saw its share price soar up 65% after providing an update on the Catcher exploration well located in UK Central North Sea block 28/9. EnCore has a 15% interest in the well and is operator. Partners on the licence are Premier Oil (LON:PMO) (35%.), Wintershall (20%), Nautical Petroleum (LON:NPE - 15%) and Agora Oil & Gas (15%). The 28/9-1 well was drilled to a total depth of 5,219 ft measured depth, having successfully encountered excellent quality oil bearing reservoir sandstones at 4,600ft at the target Cromarty Sandstone level. A potential oil water contact has also been intersected at 4,840ft. 

Initial analysis indicates the discovery of a minimum 240ft oil column with calculated net pay of 90ft. Extensive sampling and pressure testing of the hydrocarbon bearing zones have been made and a preliminary analysis suggests the hydrocarbons are a light oil with an API of approximately 31 degrees. Analysis of the logs suggest excellent quality sands with porosities of approximately 34%, although analysis has not yet been completed.EnCore and its partners now plan to perform a Drill Stem Test to collect flow rate characteristics and sufficient oil samples for potential development studies. Testing is expected to take c. 10 days.You can read further in-depth discussion on the impact of this news here on Encore Oil and Nautical Petroleum.

Alan Booth, EnCore's Chief Executive Officer, commented:

 "We are delighted to have encountered both an excellent quality reservoir and a significant light oil column in the Catcher structure. To date both the quality of oil recovered and the reservoir quality are significantly better than our pre-drill expectations. Side-tracking into the East Catcher area has the potential to add significant further upside. This is an outstanding result."

Nautical's CEO Steve Jenkins said:

"We are delighted to have discovered an excellent quality reservoir and a significant light oil column in the Catcher structure. Our pre-drill expectations have been exceeded regarding both the quality of the oil and the reservoir quality. The Catcher East sidetrack could add significant upside and there are multiple similar structures on the block.This is a superb result."

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Filed Under: Oil,

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