EnCore Oil ..

NS Number:0670O
EnCore Oil PLC
18 December 2006


PRESS RELEASE

For immediate release: 18 December 2006


EnCore Oil plc

Period End Activity Update

EnCore Oil plc (LSE: EO.) ("EnCore" or the "Company") is pleased to provide an
activity update ahead of the end of the interim financial period on 31 December.

Fundraising

EnCore has today announced separately a placing of 29,166,666 new ordinary
shares of 5p each at 24 pence per share to raise #7 million (before expenses) in
order to provide additional funding for the increasing UK work programmes.
Completion of the placing is expected on 21 December 2006.


Drilling on Block 18/5

The contracted rig is currently being used to drill another well for the
operator, Apache. Subject to the weather and operational requirements, the rig
is expected to arrive on location to spud well 18/5G in January 2007.


Virgo, Nido & Grove Acquisition

On 25 October 2006, EnCore announced that it had agreed to acquire four
companies: Virgo Oil & Gas plc and Virgo Energy Limited ("Virgo"), Nido
Petroleum (UK) Limited ("Nido"), and Grove Energy (UK) plc ("Grove"). Completion
of the acquisitions is expected in the near future.

A technical review of the 22nd Round promote licences to be acquired within the
portfolio of licences has been encouraging and applications have been made to
the DTI to convert all five 22nd Round promote licences into traditional
licences. With the DTI's agreement, EnCore would commit to drilling three firm
wells and two contingent wells on the acreage within two years.

Sterling Resources, the operator, is currently sourcing a rig to drill the
Breagh prospect. On this licence, Grove will be paying 30% of the drilling costs
to earn 15% equity.

A technical review and marketing programme of the ten 23rd Round promote
licences to be acquired is already underway.


UKCS Licences Acquired from Petro-Canada

These licences were acquired in 2005 and, following technical review of
reprocessed seismic data, further activity will be prioritised within the now
much larger overall portfolio.


Connemara Field - Offshore Ireland

On 9 October 2006, the Company announced it had taken an option to acquire an
interest in the Connemara field from Island Oil & Gas plc. The option has been
extended to January 2007 to allow more time to review data provided by Island.



24th Offshore Licensing Round Applications

Including applications made by Virgo, Nido and Grove, EnCore is awaiting
decisions on eight licence applications in the UKCS 24th Licence Round. The DTI
has announced a further delay and a firm date for the announcement of the awards
has not been given. Licences have been applied for in the northern, central and
southern areas of the North Sea as well as in the East Irish Sea.


France

In May and June of 2006, EnCore applied for two onshore licences in France. One,
in the Eastern Paris Basin - Vitry La Ville, contains an abandoned oil well. The
second application relates to a high risk, high reward exploration play in the
south near Nimes. A decision on the award of these licences is expected in 2007.


UK Onshore

With regards to the recent gas discovery at Kirkleatham and following the
additional seismic shot over the summer, the operator has been discussions with
the adjacent chemical complex with a view to supplying gas on long term
contract.

At Westerdale, the co-venturers are considering options either to stimulate and
test the discovery, or to appraise the nearby Ralph Cross accumulation, which
was the target of the original Westerdale well. In the event that the group
chooses to appraise the Ralph Cross accumulation with a new well, planning
consents will be required.

In the South of England, the operator is progressing plans to drill the Markells
Wood and Leigh Park licences in 2007/2008.


Alan Booth, EnCore's Chief Executive Officer, said:

"Over the last six months we have significantly increased our UK offshore
exploration portfolio through acquisitions and are hopeful of receiving news in
the New Year of our UK 24th Round applications. In addition, we have two pending
licence applications onshore France, and an interesting option under evaluation
over the undeveloped Connemara field offshore Ireland.

Looking forward to 2007 we expect to be equally busy on continuing portfolio
management including reviewing sector consolidation opportunities and, of
course, with the drill bit. We anticipate drilling six offshore wells during
2007 and 2008 representing a range of risk profiles."


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