Oil find sends EnCore shares rocketing 23.5%

Encore Oil has announced an oil find at the Bowstring East prospect in the UK northern North Sea.

Shares in the firm jumped 23.5% yesterday to close the day at 10.5p.

The 210/29a-4 well was drilled to a depth of 9,734 feet and the company said that wireline logging confirmed 25ft of net hydrocarbon pay over a gross interval of more than 110ft.

EnCore said wireline pressure data and fluid sampling established the presence of light oil and, significantly, no oil-water contact was observed.

The well will be suspended, with a view to re-entering and undertaking sidetracking, coring and testing operations in the future, following integration of the well results into a seismic model.

EnCore has a 16.6% interest in the licence, while Sterling Resources is the operator.

EnCore chief executive Alan Booth said: “I am absolutely delighted with the success of this well. The well has intersected a light oil column of over 110ft within an Upper Jurassic stratigraphic trap. Given its stratigraphic nature, there is potential for the hydrocarbon column height to increase both up-dip and down-dip of the current location.

“The wireline logging programme confirmed the presence of light oil with no oil-water contact and the group has now obtained sufficient oil samples, reservoir pressure and permeability data to conclude that the cost of a winter well-testing programme would be better spent on further appraisal of the discovery. As such, the group has decided to suspend the well for likely use during any future appraisal or development drilling.”