ENCORE Oil said yesterday it had focused attention this year on the delivery of its strategy; the key elements of which are to maximise the potential of assets and to monetise them at the appropriate time to create the greatest shareholder value.
Chairman Michael Lynch said: “Looking ahead, we have a number of wells to be drilled in the coming year including East Breagh, which is currently drilling, West Breagh, Catcher and Bowstring East, and the Esmond well.”
The company, which raised £12.5million through an institutional placing to support drilling and operations activity, said a highlight of the period was that a feasibility study had confirmed the technical and potential economic viability for 145billion cubic feet of gas storage at Esmond and Gordon.
It added that once the results of a pressure-test well on Esmond were known and assuming they were within the expected range of outcomes, it was likely that EnCore would seek to sell its 100%-owned subsidiary EnCore Gas Storage, having earlier considered a flotation.
EnCore reported wider pre-tax losses yesterday of £2.41million for the year to June 30, compared with a £1.68million deficit the year before. It has no income from production as yet.