Cladhan. News in. As foretold here!

Press Release

For immediate release: 31 August 2010

EnCore Oil plc (‘EnCore’ or ‘the Company’)

Successful Cladhan Appraisal Well

EnCore Oil plc (LSE: EO.) is pleased to provide an update on the Cladhan appraisal well located in UK Northern North Sea block 210/29a.

The appraisal well was drilled to a total measured depth of 11,215 feet, as a side-track into the Upper Jurassic channel sands, approximately 3,150 feet to the south of the original 2008 Cladhan discovery. The side-track encountered excellent quality oil bearing sandstones, resulting in a gross hydrocarbon column of 159 feet with 102 feet of net hydrocarbon pay. The sandstone has average porosity of 21 per cent. and average oil saturations of 86 per cent. No oil water contact has been observed.

Modular Dynamic Test sampling for both formation pressures and oil samples indicate good correlation of both oil type and reservoir pressure with the 2008 discovery well.  The original discovery well and this side-track have together confirmed a total hydrocarbon column in excess of 273 feet.

Drill stem testing will now be performed after which the next phase of the appraisal programme will be to drill a second side-track down dip of the original discovery well in order to confirm the extent of the reservoir and seek to establish the oil water contact.

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

“This is a superb result from Cladhan and is at the upper end of our expectations regarding the quality and quantity of reservoir sands. This result supports the idea that Cladhan is a significant stratigraphic trap which has still not encountered an oil water contact. We look forward to the results of the testing and the second side-track in order to help us determine the oil water contact and thus the extent of Cladhan. Only once this information is to hand will we be able to determine the relevant development options of Cladhan and provide an informed estimate of the potential size of the field.

“Aside from this exceptional result at Cladhan, we are hopeful of returning to Catcher this autumn, dependent on the signing of a suitable rig contract which is nearing agreement, but not yet confirmed. The group will target between two and four further locations on the Catcher block which, as with Cladhan, will help determine the size of the overall discovery and future development options. This is a really exciting time for EnCore and we look forward to the results over the coming months.”

The equity in the Cladhan joint venture partnership is as follows: EnCore Oil plc (16.6 per cent.), Sterling Resources Ltd (39.9 per cent., Operator), Wintershall (UK North Sea) Limited (33.5 per cent.) and Dyas (10 per cent.).

Peter Williams B.Sc. (Hons.) in Physics and EnCore’s Group Technical Manager, who has over 35 years’ engineering experience in the oil exploration and production industry, has reviewed and approved the technical information contained in this announcement.

For further information, please contact:

Notes to Editors:

Cladhan is located 225 miles north east of Aberdeen in 536 feet water depth.

EnCore Oil plc (LSE:EO.) is an oil and gas exploration and production (E&P) company quoted on AIM.

EnCore has a balanced portfolio of offshore assets, based mainly in the UK Continental Shelf (UKCS) and a significant equity holding in AIM listed Egdon Resources plc (LSE: EDR).

EnCore has an experienced and proven management team, a number of whom were responsible for the discovery of the Buzzard field in the UK North Sea, which currently produces over 10 per cent. of the UK’s total oil production.

All EnCore’s commercial and material technical evaluations are undertaken in-house by the EnCore team. This brings both continuity to the management and development of the assets and an ownership that is vital to unearth the best and most creative new ideas and opportunities.

www.encoreoil.co.uk