EnCore farms out interest in Bennett Prospect

EnCore Oil plc has entered into a farm-out agreement with Wintershall Noordzee B.V. (“Wintershall”) under which Wintershall will acquire a 30 per cent. interest in southern North Sea Blocks 43/15a and 43/20a from EnCore and will assume operatorship of the Bennett prospect.

Under the terms of the farm-out agreement, Wintershall will secure a 30 per cent. interest in Blocks 43/15a and 43/20a by payment of a cash sum and contributing on a promoted basis to the cost of drilling an exploration well on the Bennett prospect. It is expected that a well will be drilled on Bennett prospect in 2008.

This agreement is subject to the usual regulatory consents, including consent from the Department of Business, Enterprise and Regulatory Reform.