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Breagh horizontal well update

Posted: 6 January 2009

EnCore Oil reported the successful drilling of the 42/13-5 high angle pilot hole and 5z horizontal well on Block 42/13 in the United Kingdom North Sea.

"We are very pleased with the progress made so far on this well," said Alan Booth, EnCore's Chief Executive Officer.

"It has confirmed the ability to successfully drill a horizontal well within the Breagh reservoir and testing should establish the reservoir performance from a horizontal well. This will give the partnership a better understanding of development options, production profiles and recoverability."

The 42/13-5 well was directionally drilled from the same seabed location as the 42/13-3 well drilled during 2007, and encountered the top of the Breagh reservoir approximately 17 feet higher than anticipated.

At this point the well bore was angled at 70 degrees and entered the reservoir some 1,700 feet south east of the 42/13-3 well.

The 42/13-5 “pilot hole” encountered 165 feet of gas bearing sand (approximately 55 feet vertical thickness) confirming consistency with previous wells and reached a final depth of 8,892 feet measured depth below rotary table (MDBRT).

The pilot hole was then cemented back above the reservoir and the drilling of a 2,500 feet horizontal well (denoted 42/13-5z) commenced. The horizontal well reached a final total depth of 10,746 feet MDBRT on 2 January 2009. The 42/13-5z well drilled a total of circa 1,200 feet of gas bearing sand.

A 7 inch liner has been run and the well will be tested in the next two to three weeks. Following completion of testing, it is planned to suspend the well as a potential development well.

EnCore has a 15 per cent interest in the licence and the operator, Sterling Resources Limited, has a 45 per cent interest.




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