Contents
01 Overview
02 Highlights
04 The EnCore Story
06 The EnCore Strategy
08 Chairman’ s Review
10 Chief Executive’ s Review
12 Board of Directors
13 The EnCore T eam
14 Licence Portfolio and Operational Map
16 Operational Review
20 Financial Review
22 Corporate Governance Statement
24 Directors’ Report
25 Remuneration Report
27 Statement of Directors’ Responsibilities
28 Independent Auditors’ Report
29 Consolidated Income Statement
30 Consolidated Balance Sheet
31 Consolidated Statement of Cash Flows
32 Consolidated Statement of Changes in Equity
33 Group Accounting Policies
33 Notes to the Group Financial Statements
47 Company Balance Sheet
48 Company Accounting Policies
48 Notes to the Company Financial Statements
53 Notice of AGM
57 Glossary
58 Directors, Officers and Advisers EnCore Oil plc Annual Report 2008 01
Overview
EnCore Oil plc (LSE:EO.) is an oil and gas exploration 
and production (E&P) company quoted on AIM.
At EnCore, it is not our aim to build a full cycle E&P 
company. Our principal strategy is to create shareholder 
value through the successful exploration and appraisal 
of prospects and discoveries. We will seek to monetise 
or exchange the asset at the appropriate point in its 
lifecycle and return value directly to shareholders 
whenever we can.
We have 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 10 per cent. of the UK’s total oil production. 
All our 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.
We currently hold a balanced portfolio of interests in 
licences both on and offshore, primarily focused on the 
UKCS. This portfolio includes an active drilling programme.
www.encoreoil.co.uk  2 EnCore Oil plc Annual Report 2008
Highlights
Over the past 12 months, we have been focused on delivering  
on our principal strategy of value creation. It is not our aim to 
build a full cycle E&P company. Rather, we believe value will  
be created through successful exploration and appraisal of 
prospects and discoveries, and then seeking to monetise or 
exchange an asset at the appropriate point in its lifecycle and 
returning value directly to shareholders where we can. 
Ongoing drilling programme 
delivers success and offers 
further potential 
•  Breagh successfully tested, showing 
potential for sizeable gas accumulation; 
further appraisal of Breagh commenced 
in August 2008 with East Breagh 
appraisal well and second well planned 
in September 2008 with West Breagh 
appraisal/ development well.
•  Cobra tested gas at sub-commercial 
rates without stimulation but confirmed 
sizeable gas column; feasibility study 
initiated to review the well results 
for a prospective well stimulation 
programme.
•  Barbarossa well confirmed presence 
of gas and horizontal well tested gas at 
a maximum rate of 40 million standard 
cubic feet per day; production could 
commence as early as second quarter 
of 2009.
•  Schull and Old Head wells successfully 
tested gas. Further evaluation of the 
commercial potential of these discoveries 
is taking place.
•  Rig secured to drill Bowstring East  
(also known as ‘Cladhan’) in October 
2008, a light oil target in a large 
stratigraphic trap.
Success in the UK 13th 
Landward Licensing Round 
and further licence award 
onshore France
•  Awarded two licences in the UK 13th 
Landward Licensing Round covering 
four blocks and part-blocks providing 
additional opportunities for exploration 
upside.
•  Awarded onshore licence in the Nîmes 
area of France.
Highlights of the year include: EnCore Oil plc Annual Report 2008 3
Balancing our portfolio for 
risk, opportunity generation, 
and monetisation
•  Formed new joint venture partnerships 
with Wintershall, Revus Energy and 
Fairfield Energy.
•  Post balance sheet event: sold Amstel 
asset in the Netherlands for US$5.5 
million in cash to focus our capital on 
key strategic areas.
Raised £12.5 million through 
an institutional placing to 
support drilling and operations 
activity
Working to return the value of 
offshore Gas Storage directly 
to shareholders
•  Feasibility study confirmed the technical 
and potential economic viability for 
145bcf of gas storage at Esmond and 
Gordon. 
•  Gas storage option exercised by 
Star Energy to become operator and 
increase equity to 50 per cent.
•  Appointed N M Rothschild to assist in 
evaluating gas storage options following 
interest from a number of parties.
•  Drilling operations to commence on 
Esmond pressure test well in September 
2008. Once the results of this well are 
known, and assuming they come within 
the expected range of outcomes then 
it is likely that EnCore will seek to sell its 
100 per cent. subsidiary, EnCore Gas 
Storage Limited. EnCore Oil was established in April 2005 to explore for oil and 
gas with a primary focus in the UK. 
At EnCore Oil our strategy is to deliver shareholder value through 
an opportunistic approach with a focus on proven expertise and 
a balanced risk portfolio. Here is our story:
4 EnCore Oil plc Annual Report 2008
The EnCore Story
2005
April to August
•  Established with US$6 million private 
placing. 
September
•  Awarded first UK Traditional Seaward 
Production Licence.
December
•  Acquired six blocks in the UKCS 
Central North Sea.
2006
February
•  Announced reverse takeover of Oil 
Quest Resources.
•  Successful well results announced 
for UK onshore wells, Westerdale and 
Kirkleatham.
March
•  Admission to AIM via reverse takeover 
of Oil Quest Resources.
•  Signed Laguera licence in the Western 
Sahara.
April
•  Approved as exploration operator by 
the Department of Trade and Industry 
(now known as ‘BERR’).
June and November
•  Applied for two French onshore licences.
October
•  Signed co-operation agreement with 
Island Oil & Gas.
•  Acquisition of portfolio of UK offshore 
blocks through the acquisition of four 
UK companies: Virgo (two companies), 
Nido and Grove.
•  Entered asset exchange agreement 
with Century Exploration for Cirrus 
prospect.
December
•  Entered into offshore gas storage 
feasibility study on decommissioned 
Forbes gas field with Star Energy.
•  Raised £7 million through institutional 
placing.
2007
January
•  Farmed out interest in Southern North 
Sea block containing Barbarossa 
discovery to Venture Production.
February
•  Awarded seven licences in the 24th 
Licensing Round.
•  Drilled Golden Arrow well on block 
18/5 and did not encounter significant 
hydrocarbons.
March
•  Farmed out interest in Southern North 
Sea block containing Cobra prospect to 
new UK entrants: Bharat Petroleum and 
Tata Petrodyne.
April
•  Offshore gas storage feasibility study 
expanded to include decommissioned 
gas fields, Esmond and Gordon.
•  Acquisition of interests in existing 
discoveries offshore Ireland and the 
Netherlands from Island Oil & Gas.
•  Formed partnership with established 
French operators, Lundin and Toreador, 
for Mairy licence.
May
•  Asset sale and royalty agreement for 
block 21/30S with Perenco.
July 
•  Successful testing of appraisal well at 
Old Head of Kinsale. Further evaluation 
of the discovery to take place.
•  Drilled Cirrus well on block 48/22. 
Hydrocarbons encountered but sub-
commercial.
•  Contracted rig for drilling of Breagh 
discovery on block 42/13 in Southern 
North Sea.
•  Farmed out interest in 210/29a and 
210/30a to new UK entrant, Revus 
Energy.
•  Schull gas appraisal well encountered 
hydrocarbons and underwent further 
testing. EnCore Oil plc Annual Report 2008 5
August
•  Successful testing of appraisal well 
at Schull. Further evaluation of the 
discovery to take place.
November
•  Farmed out interest in Bennett gas 
prospect on blocks 43/15a and 
43/20a to Wintershall and assigned 
operatorship to Wintershall, an 
experienced North Sea operator.
•  Successful testing of Breagh discovery 
on block 42/13 showing potential for 
sizeable gas accumulation; further 
appraisal of Breagh planned for 2008/9 
with East and West Breagh wells.
•  Technical and economic viability for 
145bcf of gas storage at Esmond and 
Gordon confirmed by feasibility study; 
Esmond well in 2008 to provide more 
certainty on value of the gas storage 
business. 
December
•  Gas storage option exercised by 
Star Energy to become operator and 
increase equity in licence.
•  Ensco 80 rig confirmed for Cobra 
drilling on block 48/2c in Q1 2008.
•  Farmed out interest in Cobra to 
Challenger Minerals, reducing EnCore’s 
total cost of appraisal well to three 
per cent.; formed new joint venture 
partnership with Challenger.
•  Institutional placing raised £12.5 million 
for E&P drilling programme and funding 
for de-merged gas storage company.
2008
Fiscal Year 2008 Events 
January
•  Awarded Nîmes onshore exploration 
licence in France.
•  Acquired operatorship and increased 
equity to 87.5 per cent. in UKCS block 
9/27a.
February
•  N M Rothschild appointed to assist in 
evaluating gas storage options following 
interest from a number of parties.
•  Commencement of drilling on 
Barbarossa well on block 47/9c.
March
•  Rig secured for Bowstring East (also 
known as ‘Cladhan’) on blocks 210/29a 
and 210/30a.
•  Commencement of drilling on first 
operated well, Cobra.
April
•  Barbarossa pilot well confirms presence 
of gas. Lateral development drilling 
commences.
•  Formed new joint venture partnership 
with Fairfield Energy to farm out equity 
on block 9/27a.
May
•  Cobra well tests gas; at sub-commercial 
rates without stimulation.
•  Two licences awarded in 13th Onshore 
Licensing Round.
Post Year-End Events
July
•  Rig secured for Esmond evaluation well.
•  Successful horizontal development well 
on Barbarossa gas discovery tested gas.
August
•  Drilling operations commence on  
East Breagh gas appraisal well.
•  Disposition of Amstel field in the 
Netherlands for US$5.5 million.
September
•  Drilling operations to commence on 
Esmond pressure test well. 6 EnCore Oil plc Annual Report 2008
The EnCore Strategy
Our strategy is designed to create shareholder value principally 
through the successful exploration and appraisal of prospects 
and discoveries.
“ 2008 has seen us focus our 
attentions on delivery of 
our strategy…maximising 
the potential of our assets 
and monetising them at the 
appropriate time to create the 
greatest shareholder value.” 
Michael T. Lynch 
Chairman
Key elements of this strategy are:
Focus on Areas of Proven Expertise
•  We focus mainly on the UKCS, initially 
taking high equities in licences – with 
the objective of generating opportunities 
that could add real value, rather than 
simply large equity or acreage positions.
•  Opportunities outside the UKCS will 
also be considered where we can apply 
our expertise and experience.
•  We plan to operate licences only 
where necessary to make sure that 
evaluation momentum is created. Once 
an evaluation programme is in place 
we are happy for other companies to 
take over this role, so we can focus our 
resources on new opportunities. 
Balanced Risk Profile
•  We carefully balance the risk profile of 
our projects, ranging from high impact 
offshore exploration drilling through to 
onshore appraisal drilling. 
•  We will only consider adding value 
through the acquisition of commercially 
proved reserves when there are 
opportunities at the right price that  
will also, ideally, add value to our other 
prospects.
•  We aim to farm out a proportion of  
our high-equity licences, either through 
exchange to broaden our portfolio,  
or by bringing in partners with access 
to drilling rigs who can advance the 
evaluation process. 
Opportunistic Approach
•  We always take a pragmatic and 
opportunistic approach to both new 
opportunities and consolidation within 
the sector.
•  We are always ready to divest or swap 
part or all of our interest in a successful 
project at the appropriate time in its 
lifecycle. We assess the best time by 
considering the specific asset in relation 
to: future capital requirements and its 
source(s) and remaining risk profile – 
whether that’s appraisal, development 
or production or sunk costs versus 
market value – as well as strategic 
positioning. EnCore Oil plc Annual Report 2008 7
Value Creation in the E&P Arena
At EnCore, it is not our aim to build a full cycle E&P company. 
Our principal strategy is to create shareholder value through 
the successful exploration and appraisal of prospects and 
discoveries. We will seek to monetise or exchange the asset at 
the appropriate point in its lifecycle and return value directly to 
shareholders whenever we can. 
01 Successful Exploration
This shows the phase of operations 
that covers: 1) the search for oil or gas 
by carrying out detailed geological and 
geophysical surveys and 2) exploratory 
drilling which establishes whether there is 
likely to be a commercially viable volume 
of reserves.
02 Successful Appraisal
After hydrocarbons have been discovered 
in an exploration well, the successful 
appraisal stage involves drilling a further 
well (or wells) to establish the likely extent 
and volumes of hydrocarbons.
03 Development
The phase in which a proven oil or gas 
field is prepared for production, through 
the drilling of production wells, the 
building of the necessary physical surface 
infrastructure and its connection to a 
suitable transportation system.
04 Production
At this stage, hydrocarbons are produced 
and ultimately sold to the market.
Project Sanction
Approval by the Secretary of State, or  
equivalent authority in other jurisdictions,  
of the co-venturers Field Development  
Plan (FDP).
A development is authorised once the  
Secretary of State is satisfied the FDP  
meets the Government’ s policy objectives,  
is appropriately financed and the  
Environmental Impact Assessment  
process has been completed successfully.
Relative Value Add
Capital Required 
Value to Shareholders
01 
Successful 
Exploration
02 
Successful 
Appraisal
£ Project Sanction 
03 
Development
04 
Production
> 8 EnCore Oil plc Annual Report 2008
Chairman’s Review
2008 has seen us focus our attention 
on the delivery of our strategy, the key 
elements of which are to maximise the 
potential of our assets and to monetise 
them at the appropriate time to create 
the greatest shareholder value. 
To that end, we have concentrated our 
efforts on our exploration and appraisal 
assets through the participation in the 
drilling of four wells during the year, 
three in our core focus area of the 
UKCS. We have also made progress  
on a potential offshore gas storage 
facility with the successful completion 
of a feasibility study in November 2007  
and the instruction of N M Rothschild  
to assist us on evaluating our options 
for the project following interest from  
a number of parties. 
Our Portfolio
For exploration and appraisal companies 
like EnCore, one aspect of higher oil 
prices is that companies are re-evaluating 
the assets they have rather than seeking 
to divest their interests. Whereas in 2007 
we took part in four acquisitions and 
formed 14 new joint venture partnerships 
through licence awards, asset swaps, 
farm ins and farm outs, 2008 has seen 
us participate in three new joint venture 
partnerships and be awarded three new 
licences onshore UK and onshore France. 
Our portfolio of assets now stands at 33 
licences in our core UK area, 13 onshore 
and 20 offshore. We are also hopeful of 
being awarded further licences in the UK 
25th Offshore Licensing Round.
Outside of our core area, we have two 
licences in France, two in Ireland, and the 
option on a licence in the SADR. 
The dual approach about which I 
spoke last year still stands. We have a 
technically and commercially successful 
exploration programme and, while such  
a programme places large demands 
on our finances, we remain funded to 
continue our exploration efforts.  EnCore Oil plc Annual Report 2008 9
Gas Storage
Aside from straightforward exploration 
and appraisal, we await the results of an 
appraisal well which is to be drilled on  
our 50 per cent. owned Esmond field  
and which is crucial to the future potential 
of our offshore gas storage business.  
If successful, we will look to sell the asset 
to realise shareholder value and allow us 
to concentrate on our core exploration 
and production business.
Looking Ahead
The opportunities and development of 
our assets throughout the past year 
would not have been possible without the 
hard work of the EnCore team. I would 
like to thank the whole team for their 
efforts. 
Looking ahead, we have a number of 
wells to be drilled in the coming year 
including East Breagh (currently drilling), 
West Breagh, Catcher and Bowstring 
East (also known as ‘Cladhan’), and of 
course, the Esmond well. 
I would like to thank you, our shareholders 
for your continued support and look 
forward to updating you later in the year. 
Michael T. Lynch
Chairman
15 September 2008
“ 2008 has seen us focus our attention on  
the delivery of our strategy, the key elements 
of which are to maximise the potential of 
our assets and to monetise them at the 
appropriate time to create the greatest 
shareholder value.” 10 EnCore Oil plc Annual Report 2008
Chief Executive’s Review
“ Our strategy continues to be focused on 
directing our capital and resources towards 
those assets and opportunities that have the 
greatest materiality. This should create the 
greatest value per share.”
The last year has, I believe, been an 
important milestone in delivering on 
our strategy of creating value for our 
shareholders. The principal driver of 
value has been the recognition of the 
potential value of the Esmond-Gordon 
gas storage project, which I will discuss 
in more detail below. Drilling results 
have been positive on the whole with  
all our wells encountering and flowing 
gas, although some more than others. 
We still have a number of wells to  
drill which will provide the potential  
to upgrade existing discoveries or  
find new accumulations, all of which,  
if successful, would add further value.  
We remain optimistic that our strategy  
is bearing fruit and with a fair wind  
and a modicum of luck, that we  
should have another successful year 
ahead of us.
Focus on Strategy Delivery
As I have stated in the past, it is not 
our intention to simply create an ever 
expanding portfolio. We now have fewer 
licences than last year but with potentially 
much greater value. Our strategy 
continues to be focused on directing 
our remaining capital and resources 
towards those assets and opportunities 
that have the greatest materiality. In turn, 
this should create the greatest value per 
share. We continue to ensure that we are 
suitably structured so that we can return 
this value to our shareholders in the most 
effective and efficient way possible. 
Successful Drilling Results
Breagh: We have had significant 
success at Breagh where the group has 
established what could be a sizeable 
gas field in an area that had previously 
been dismissed as having limited 
commercial potential. At the time of 
writing, we are drilling the East Breagh 
appraisal well. The results from drilling 
at this location should establish whether 
the East Breagh feature is part of the 
currently established gas accumulation, 
a separate accumulation or is not gas 
bearing. Success with this well would 
have a very significant impact on the 
size of the currently established Breagh 
accumulation. Results should be  
known in late September or early  
October 2008.
Barbarossa: Recent drilling established 
commercial flow rates and the operator, 
Venture Production, expects that the 
field could be on stream in Q2 2009. 
This is subject to successful finalisation 
of remaining infrastructure access 
agreements and approval of the Field 
Development Programme by the 
Department of Business Enterprise and 
Regulatory Reform (BERR). 
Cobra: We were somewhat disappointed 
with the well test results at Cobra and 
had hoped the reservoir would flow at 
greater rates than we ultimately achieved. 
Nevertheless the well did confirm the 
presence of a sizeable gas column, and 
gave us a better understanding of the 
likely size and distribution of the gas in 
place within the Cobra accumulation. 
We are currently undertaking further 
studies to establish whether commercial 
rates might be achieved on Cobra 
through the drilling of long horizontal wells 
(similar to the well drilled at Barbarossa), 
through fracture stimulation or some 
combination of the two. Whilst we believe 
there are significant volumes of gas in 
place within the structure, we will not be 
able to assess what proportion of this 
could be recoverable until these studies 
are complete. We would then undertake 
further drilling, should that be warranted. EnCore Oil plc Annual Report 2008 11
Gas Storage
As the UK’s offshore gas production 
continues to decline below our supply 
needs, the UK Government and general 
public have become increasingly aware 
of the need to ensure a greater security 
of supply. Whilst the UK is well served by 
both pipeline connections from Europe 
and Norway, as well as newly built LNG 
facilities, such facilities in themselves 
do not ensure that gas will flow in time 
of need or that LNG cargos will actually 
offload at these terminals. One fact that 
has become abundantly clear, both to 
the Government and to gas consumers 
is that the UK is critically short of gas 
storage facilities. We believe that in the 
current climate that Esmond-Gordon is 
a potentially important strategic asset. 
We have spent time this year discussing 
the way we can best deliver value to 
our shareholders from our interest in the 
Esmond-Gordon gas storage project. 
We concluded at a very early stage 
that this type of project would probably 
have most value to a significantly larger 
company with a broad European gas 
portfolio and strategy. We also concluded 
that attempting to develop a £1.4 billion 
project with a major national oil company 
would be something of a challenge from 
both a capital raising and resourcing 
perspective. We have appointed N M 
Rothschild to help in understanding the 
broader market for this type of asset and 
they continue to advise us.
The critical element in best understanding 
the value and capital costs of this project 
will be the current pressure in the reservoir. 
Analysis of the production history from 
the fields helps us model the pressure 
characteristics of the reservoir. This 
pressure model was used to provide a 
range of inputs into the feasibility study, 
but until we have established the actual 
pressures there will always be a degree 
of uncertainty. The pressure test well to 
be drilled by Star Energy is due to be 
spudded in mid-September and is key  
to understanding the value and economic 
viability of the project. 
We have concluded that in the event of  
a successful pressure test, we will seek 
to sell our interest in the project. Although 
we originally considered a separate 
flotation of EnCore Gas Storage, we 
believe that there are more effective ways 
to deliver this value to our shareholders, 
particularly in the light of the current state 
of the capital and debt markets.
Outlook
We look forward to the results of both 
the important East Breagh and Esmond 
wells. We also expect to be drilling 
Bowstring East (also known as ‘Cladhan’) 
in October this year and Catcher in 2009.
Our strategy of focusing our capital  
on assets that add material value 
means that some assets will be traded, 
sold or relinquished. We have recently 
announced the sale of our 10 per 
cent. interest in the Amstel field in the 
Netherlands to Taqa for $5.5 million.  
This generates a healthy profit on our 
initial investment, and also provides a 
capital influx that can be applied to the 
more material projects in our portfolio.  
We expect to rationalise more of our  
non-core assets in due course.
We thank our long term shareholders for 
their patience, particularly in these difficult 
times in the equity markets, and look 
forward to an interesting and hopefully 
profitable year ahead.
Alan Booth
Chief Executive Officer
15 September 2008  12 EnCore Oil plc Annual Report 2008
Board of Directors
The EnCore Board of Directors has 
extensive experience in the oil and gas 
industry, both in the UK and worldwide. 
At their previous company, Alan Booth, 
Graham Doré and Eugene Whyms were 
instrumental in creating and realising 
significant shareholder value through the 
growth and sale of the Company. 
Similarly, the non-executive directors have 
considerable experience in running and 
advising independent companies.
1. Michael T. Lynch
Chairman
Mike has over 30 years’ industry experience.  
He founded and led UK independent, Intrepid 
Energy in October 1996, which was subsequently 
sold in 2004 for over US$1 billion. Intrepid’s 
primary focus was in the UK North Sea, with  
a 30 per cent. stake in Buzzard.
Prior to founding Intrepid, Mike held a number  
of positions including: 
•  Managing Director and Chief Executive of 
Santa Fe Exploration (UK) Limited (‘SFX’). 
Under Mike’s leadership, until his departure in 
1995, SFX grew into a company producing 
approximately 70,000 boe per day, with proved 
reserves in excess of 200 mmboe and ranked 
in the top 25 UK production companies. It was 
subsequently sold to Saga for US$1.23 billion. 
• Drilling and Production Engineer with Texaco.
2. Alan Booth
Chief Executive Officer 
Alan is co-founder of EnCore with over 25 years 
of experience within the oil and gas industry. Prior 
to co-founding EnCore, Alan held a number of 
senior roles including: 
•  Chairman and Managing Director of EnCana 
(U.K.) Limited and a member of EnCana 
Corporation’s executive management team. 
Alan was instrumental in building up EnCana 
UK from a new UK entrant in late 1996 into 
a significant UK production operator that 
discovered and developed the Buzzard field. 
Alan led the UK team in the sale of the company 
in late 2004 to Nexen Inc. for US$2.1 billion. 
•  Prior to EnCana, Alan worked in a number of 
positions of increasing seniority for Amerada 
Hess and Oryx Energy both in the UK and 
overseas. 
Alan is a current director of industry bodies,  
Oil & Gas UK and OGIA and he is also a member  
of PILOT. 
Alan was President of UKOOA from December 
2003 – March 2005 and President of the PESGB 
in 2003. In April 2004 Alan was awarded the 
Petroleum Group Silver Medal by the Geological 
Society in recognition of his contribution to the 
Industry.
3. Eugene Whyms FCCA
Chief Financial Officer and Company Secretary
Along with Alan Booth, Eugene co-founded 
EnCore in April 2005. He has over 20 years’ 
extensive industry experience in all issues of 
finance, tax, treasury, M&A and worldwide joint 
ventures. He has held positions including: 
•  Finance Director of EnCana (U.K.) Limited  
(now Nexen Petroleum U.K. Limited). 
•  Head of Group Finance, Group Audit Manager 
and Manager Financial Accounting at Enterprise 
Oil plc. 
Eugene is a trustee of the St. Christopher’s 
Fellowship, a London-based housing association 
and voluntary provider of services for children, 
young people and vulnerable adults.
4. Graham Doré
Exploration Director 
Graham has over 20 years’ experience in the oil 
and gas industry. Prior to joining EnCore in 2005, 
he held positions including:
•  Senior geologist with Nexen Petroleum U.K. 
Limited, where he generated and developed the 
Buzzard prospect leading to the discovery of 
the Buzzard field in 2001.
•  Geologist with Amerada Hess in the UKCS and 
Norway. 
Graham is a member of PESGB.
5. Christine M.K. Wheeler OBE
Non-Executive Director 
Christine has over 35 years’ experience in advising 
the upstream oil and gas industry on fiscal 
and commercial matters including structuring, 
financing and transactions from small farm-in’s 
to corporate acquisitions of over US$2 billion. In 
1994, Christine was awarded the OBE for services 
to the oil industry. Christine is now an independent 
consultant and in the past has held a number of 
positions including:
•  Chairman of an independent taxation advisory 
consultancy.
•  Head of natural resources division of  
Ernst & Young.
•  Adviser to the upstream clients of Arthur Young 
Chartered Accountants.
Christine is also a non-executive director of 
Setanta Energy B.V ., an exploration and production 
company with its focus on West Africa.
1. 5.
3.
2. 4. EnCore Oil plc Annual Report 2008 13
The EnCore T eam
6. Melanie Black
Office Manager
Melanie manages the office operations and 
provides financial accounting support. She has 
over 14 years’ experience within the oil and gas 
industry, previously with Enterprise Oil plc and BP .
7. Graham Bull
Geological Advisor 
Graham provides geoscience technical expertise 
and support for EnCore’s onshore and offshore 
projects. He has over 35 years’ experience  
as a geologist within the oil and gas industry.
8. Nada Chebib
Business and Communications Manager
Nada is responsible for investor relations and 
general business support. She has over 14 years’ 
experience in the oil and gas industry, including 
positions at EnCana (UK) Limited and EnCana 
Corporation, as well as PanCanadian Energy 
Corporation and Home Oil Company. 
9. James Clark
Commercial and Tax Manager
James provides commercial and tax expertise 
for company planning and joint venture business 
transactions. He has over 30 years’ experience 
in commercial and tax within the oil and gas 
industry. He has previously worked for EnCana 
(UK) Limited, Enterprise Oil plc, the House of 
Commons and HMRC.
10. Chris Johnson
Group Financial Controller
Chris oversees financial activities for EnCore.  
He has over 14 years’ experience in financial  
roles within the oil and gas industry. Previous 
roles include Group Financial Controller at 
Tandberg Television, Group Reporting Manager, 
then Vice President Finance USA at Enterprise  
Oil plc, and member of the oil and gas audit  
team at KPMG London. 
11. Peter Schwarz
Business Development Manager
Peter provides business development expertise 
and support for EnCore’s projects. He has over 
30 years’ experience in the oil and gas industry, 
including working as a principal of his own 
consultancy, and various management roles  
with Amerada Hess, BG, and Marubeni.
12. Peter Williams
Group Technical Manager
Peter provides engineering expertise for EnCore’s 
projects and manages the engineering technical 
services in support of those projects. He has over 
35 years’ experience as an engineer in the oil and 
gas industry, including working as a principal of 
his own consultancy, and roles with Enterprise Oil 
plc, Getty Oil (UK) Limited, and Shell International 
Limited. He is also a member of the Society of 
Petroleum Engineers.
13. Paul Young
Geoscience Manager
Paul provides geophysics expertise for EnCore’s 
projects and manages the geoscience technical 
services in support of those projects. He has 
over 25 years’ experience in geophysics and has 
previously held positions at Nexen U.K. Limited, 
EnCana (UK) Limited, and PanCanadian Energy 
Corporation. He is also a member of the PESGB.
7. 10. 13.
6. 9. 12.
8. 11. 14 EnCore Oil plc Annual Report 2008
Licence Portfolio and Operational Map
EnCore holds interests in  
38 licences – 15 onshore and 
23 offshore.
* Half of EnCore’s equity is subject to buy-back.
T Traditional
P Promote
PSC  Production Sharing Contract
UK Continental Shelf
EnCore has a portfolio of interests in 20 UK hydrocarbon licences on the UK 
Continental Shelf.
Licence     Equity 
Number Block(s) & Part Blocks T/P Interest Operator Location
P .1064 210/29a & 210/30a T 26.6% Sterling Resources Northern North Sea
P .1284 9/27a T 62.5% Fairfield Energy Northern North Sea
P .1493 3/5 & 3/10c P 30% Endeavour Northern North Sea
P .1352 18/5 & 19/1a T 100% EnCore Central North Sea
P .1395 12/16b & 12/17a T 25% EnCore Central North Sea
P .1430 28/9 & 28/10c T 35% Oilexco Central North Sea
P .1463 14/30a T 40% EnCore Central North Sea
P .1504 18/10a & 19/6a P 100% EnCore Central North Sea
P .1230 42/13 T 15% Sterling Resources Southern North Sea
P .1237 43/8a T 75% EnCore Southern North Sea
P .1241 47/9c T 10%* Venture Production Southern North Sea
P .1243 48/1b & 48/2c T 25% EnCore Southern North Sea
P .1327 42/8, 42/9 & 42/14 T 15% Sterling Resources Southern North Sea
P .1328 42/12a T 15% Sterling Resources Southern North Sea
P .1335 43/13a T 50% Star Energy Southern North Sea
P .1337 43/15a & 43/20a T 50% Star Energy Southern North Sea 
‘Upper’
P .1337 43/15a & 43/20a T 70% Wintershall Southern North Sea 
‘Lower’
P .1475 113/29c & 113/30 T 50% Nautical East Irish Sea
P .1535 47/7 P 50% NWE Southern Cross Pty Ltd Southern North Sea
P .1538  47/22 & 47/23a P 60% EnCore Southern North Sea
Northern North Sea
Central North Sea
Cleveland Basin
East Irish Sea
Southern North Sea
Celtic Sea
Weald & Wessex Basin EnCore Oil plc Annual Report 2008 15
UK Onshore
EnCore has a portfolio of interests in 13 UK hydrocarbon licences in three basins.
Licence     Equity 
Number Block(s) & Part Blocks T/P Interest Operator Location
PEDL068  T 20% Egdon Resources Cleveland
PEDL099  T 7.5% Northern Petroleum Weald
PEDL125  T 10% Northern Petroleum Weald
PEDL126  T 10% Northern Petroleum Weald
PEDL154  T 10% Northern Petroleum Weald
PEDL155  T 10% Northern Petroleum Weald
P .1153 98/7b & 98/8a T 20% Wessex Exploration/  Wessex 
    Northern Petroleum
PEDL089 (A)  T 10% Northern Petroleum Wessex
PEDL089 (B)  T 20% Wessex Exploration/  Wessex 
    Northern Petroleum
PEDL098  T 7.5% Northern Petroleum Wessex
PEDL152  T 5% Northern Petroleum Wessex
PEDL240  T 7.5% Northern Petroleum Wessex
PEDL253  T 60% EnCore Humber
Ireland
EnCore holds two licences offshore Ireland.
Licence     Equity 
Number Block(s) & Part Blocks T/P Interest Operator Location
4/05 Part-blocks T 15% Island Oil & Gas Celtic Sea 
 49/17, 49/22 & 49/23
5/05  57/2 and Part-blocks T 12.5% Island Oil & Gas Celtic Sea 
 57/1, 48/26 & 48/27
France
EnCore holds two licences onshore France.
Licence     Equity 
Number Block(s) & Part Blocks T/P Interest Operator Location
 Mairy licence T 30% Lundin International Paris Basin
 Nîmes licence T 100% EnCore Rhône Graben Basin
Western Sahara
EnCore holds a production sharing contract and assurance agreement for one block 
offshore Western Sahara.
Licence     Equity 
Number Block(s) & Part Blocks T/P Interest Operator Location
PSC Laguera PSC 100% EnCore Western Sahara
SADR
Paris Basin
Rhône Graben 16 EnCore Oil plc Annual Report 2008
Operational Review 
Drilling Programme
The financial year got off to a good start 
with the results of the Old Head of Kinsale 
well and the Schull well announced as 
post year end events in our 2007 results. 
Both these opportunities were derived 
from our co-operation agreement with 
Island Oil & Gas plc (‘Island’). 
Old Head of Kinsale (EnCore 15 per cent.) 
is located in block 49/23 in the Celtic Sea 
and tested dry gas at a rate in excess  
of 18 million standard cubic feet per day, 
while Schull tested dry gas at a rate of  
21 million standard cubic feet per day. 
Schull is located in blocks 57/1 and 57/2 
also in the Celtic Sea and EnCore holds  
a 12.5 per cent. interest. 
Along with the operator, Island, the 
partnership has acquired additional 
seismic data over both fields to better 
define the full extent of the accumulations 
and to firm up additional prospectivity 
adjacent to the discoveries. Finalisation 
of the current sale process involving 
the Kinsale and Seven Heads fields by 
Marathon will also be key to progressing 
these developments in the near term.
In late September 2007, drilling 
operations commenced on the Breagh 
gas discovery appraisal well located in 
Southern North Sea block 42/13 in which 
EnCore has a 15 per cent. interest.  
This well successfully tested dry gas at 
a maximum rate of 17.6 million standard 
cubic feet per day and has now been 
suspended as a potential gas producer. 
Data from the well also provided useful 
information on the West Breagh and East 
Breagh structures, and since the year end 
we have spudded a well on East Breagh 
to help us fully establish the extent of  
the Breagh field. 
February saw the commencement of the 
Barbarossa gas appraisal well (EnCore 10 
per cent.) located in Southern North Sea 
block 47/9c. The initial phase of drilling 
was a success which led to the well being 
sidetracked into the Rotliegend reservoir. 
Since the year end, we have announced 
that the horizontal well tested gas at  
a maximum rate of 40 million standard 
cubic feet per day which exceeded 
our expectations. The field will now be 
developed as a single well sub-sea tieback 
with the nearby Channon discovery and 
first gas is planned for 2009.
EnCore’s first operated well, Cobra, 
spudded in March 2008. Cobra is located 
in Southern North Sea block 48/2c and 
EnCore has a 25 per cent. interest in the 
block. The main objective of the well was 
to establish whether the Rotliegendes 
Sandstone reservoir was capable of 
flowing at commercial rates. The well 
tested at a maximum unstimulated dry 
gas rate of 1.1 million standard cubic  
feet per day which is sub-commercial.  
It did, however, establish a total gas 
column greater than 350 feet. We are 
further evaluating all the information 
gathered from the well at the current 
time. We have initiated a feasibility study 
to examine the economic and technical 
potential for development of the field 
through a suitable horizontal well and/or 
fracture stimulation programme.
Our latest well which spudded since 
the year end is an appraisal well on the 
Esmond field located in North Sea block 
43/13a. This is the well which will help us 
fully establish the potential of our offshore 
gas storage by testing the pressure 
that currently exists within the reservoir. 
We anticipate the results of the well in 
October. 
Portfolio Activity
While 2008 has been a quieter year for 
acquisitions, we have continued to refine 
our portfolio with three farm outs, an 
increase in equity interest, a disposal, two 
licence awards and licence applications. 
Left Flaring from the 
Petrolia Rig during the 
testing of the Old Head  
of Kinsale discovery.
Far right Ensco 85  
jack-up rig on location  
at Breagh. EnCore Oil plc Annual Report 2008 17
We started the year with a farm out of 
some of our interest in North Sea blocks 
210/29a and 210/30a. Norwegian based 
Revus Energy took on 33.5 per cent. 
of the equity leaving us with an interest 
of 26.6 per cent. This farm out marked 
Revus’ entry into the UK North Sea and 
we expect a well to be drilled on the 
Bowstring East (also known as ‘Cladhan’) 
prospect on the blocks in the next 
financial year.
In November 2007, we farmed out 30 per 
cent. of our interest in the Bennett prospect 
located on blocks 43/15a and 43/20a to 
Wintershall. This was exchanged for a cash 
sum and contribution on a promoted basis 
to the cost of drilling an exploration well on 
the prospect. 
In December 2007, Challenger Minerals 
(North Sea) Limited (‘Challenger’) 
acquired an option to take a five per 
cent. interest in Southern North Sea 
blocks 48/1b and 48/2c from EnCore 
in consideration for paying a promoted 
share of the Cobra well. After evaluation 
of the results of the well, Challenger 
decided not to exercise the option, and 
accordingly, EnCore’s interest in Cobra 
remains at 25 per cent. The Cobra well 
was drilled on this acreage in March 2008 
which, as has previously been mentioned, 
tested gas at a sub-commercial rate. 
In January 2008, we increased our 
equity in block 9/27a from 10 per cent. 
to 87.5 per cent. through a deal with 
Century Exploration (UK) Limited, and 
we assumed operatorship of that block. 
In April 2008, Fairfield Energy joined us 
in the partnership on the block taking 
25 per cent. of the equity and assuming 
operatorship. Under the terms of the 
farm-out agreement, Fairfield will have the 
option, but not the obligation, to increase 
its equity up to a maximum of 62.5 
per cent. on a promote basis. Fairfield 
will also assume its equity share of the 
overriding royalty of 1.2 per cent. We 
believe there may be overlooked potential 
within this acreage – a belief which has 
been further supported by the success 
in neighbouring block 9/28 for Fairfield 
Energy announced in 2007. 
Aside from our interests in the Old Head 
of Kinsale and Schull fields, the other 
venture which we acquired through our 
co-operation agreement with Island was 
a 10 per cent. interest in the Amstel field 
offshore the Netherlands. Since the year 
end, we have disposed of our interest in 
this field to Taqa for US$5.5 million and 
we now have no further interests in the 
Netherlands. 
We were awarded two licences in the 
13th UK Onshore Licensing Round in 
May and June 2008. The licence awards 
mean that we now have a 7.5 per cent. 
interest in licence PEDL240 located  
on the Isle of Wight, and a 60 per cent. 
interest and operatorship of licence 
PEDL253 in Lincolnshire. 
At the time of writing this report, we 
are also awaiting news on our licence 
applications outstanding in the 25th UK 
Offshore Licensing Round which we 
expect to be announced at the end of 
2008. 
Placing
In December 2007 we successfully 
placed 34,722,223 new ordinary shares 
at a price of 36 pence per share with 
both existing and new institutional 
shareholders. This placing, raising £12.5 
million before expenses, will be used to 
support our increased exploration and 
appraisal drilling activity. 
Offshore Gas Storage
Our partner Star Energy commissioned a 
feasibility study into the suitability of three 
of our fields for offshore gas storage in 
2007, the results of which were received 
in November 2007. The feasibility study 
concluded that two of the fields, Esmond 
and Gordon have the potential to form 
the basis of a 145 bcf offshore gas 
storage facility.
Following the results of the study, 
Star Energy exercised their option to 
increase their ownership on the Esmond 
and Gordon fields to 50 per cent. and 
assumed operatorship.
As previously mentioned, we will be 
drilling a well on the Esmond field in  
mid-September which will help define  
the pressure parameters of the field and 
thus confirm the scope and economic 
viability of the project.
Based on a positive result of the Esmond 
well, it would be our intention to seek  
to dispose of our interest in the offshore  
gas storage project and return the value 
to our shareholders. 18 EnCore Oil plc Annual Report 2008
The Y ear Ahead
Drilling Programme
Fiscal 2009 should see us participate  
in six exploration and appraisal wells, 
all located in the UK. The wells currently 
scheduled in our drilling programme are: 
Bowstring East (EnCore 26.6 per cent.)
The Bowstring East prospect (also 
known as ‘Cladhan’) will be drilled in 
October 2008 using the Sedco 704 
semi-submersible rig. The well is located 
on block 210/29 and EnCore has a 26.6 
per cent. interest in the block. Partners in 
the well are Sterling Resources (Operator, 
39.9 per cent.) and Revus Energy (33.5 
per cent.). Revus Energy will pay 50 per 
cent. of the drilling costs of the well up 
to a total gross cost of £10 million, then 
33.5 per cent. of well costs, if any, above 
£10 million. 
Breagh (EnCore 15 per cent.)
Located in Southern North Sea block 
42/13, the Breagh discovery was made 
by Mobil in 1997 who encountered a gas 
column within the Lower Carboniferous 
Scremerston formation. That well was 
cored and logged but tested at sub-
commercial flow rates due to formation 
damage which occurred during drilling. 
EnCore and its partners appraised the 
Breagh discovery in 2007 with a well 
which successfully tested dry gas at a 
maximum rate of 17.6 million standard 
cubic feet per day. A well to appraise 
East Breagh spudded in August 2008 
and at the time of publication, results of 
the well are expected imminently. The 
West Breagh well will seek to establish if 
commercial flow rates can be achieved 
from a horizontal well bore. The Ensco  
70 rig is contracted to drill the West 
Breagh well. The operator of the well is 
Sterling Resources with a 45 per cent. 
equity interest.
Catcher (EnCore 35 per cent.)
Operated by Oilexco (50 per cent.)  
and located on blocks 28/9 and 28/10c,  
the Catcher prospect is expected to  
be drilled in the first half of 2009. 
Markwells Wood (EnCore 10 per cent.)
Markwells Wood is located on UK 
onshore licence PEDL126 in the Weald 
Basin and is operated by Northern 
Petroleum. A recent high profile legal  
case has resulted in greater uncertainty 
on the timing of drilling this well.
Bennett (EnCore 70 per cent.)
The Bennett prospect is located on 
blocks 43/15a and 43/20a. Wintershall 
farmed in for the remaining 30 per cent. 
interest and operatorship in November 
2007. It is likely that EnCore will farm 
out further equity in these blocks. Drilling 
of the Bennett well is expected in the 
second half of 2009.
Offshore Gas Storage 
In September 2008, drilling operations 
are due to commence on the Esmond 
pressure well. The results of the well 
are key to understanding the value and 
economic viability of the gas storage 
project. In the event of a success, 
we plan to seek to sell our interest in 
the project and return this value to 
shareholders. 
“ Looking ahead, we have a number of wells 
to be drilled in the coming year including 
East Breagh (currently drilling), West Breagh, 
Catcher and Bowstring East (also known as 
‘Cladhan’), and of course, the Esmond well.” 
Michael T. Lynch 
Chairman EnCore Oil plc Annual Report 2008 19
Prospect Block(s) Operator EnCore Equity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Golden Arrow* 18/5 & 19/1a Apache 15.0% 
Old Head of Kinsale** 49/23 – Ireland Island 15.0%
Cirrus* 48/22b Perenco 8.3%
Schull** 57/2 – Ireland Island 12.5%
Breagh** 42/13 Sterling Resources 15.0%
Cobra** 48/1b & 48/2c EnCore 25.0%
Barbarossa** 47/9c Venture Production 10.0%***
Breagh – East 42/13 Sterling Resources 15.0%
Esmond 43/13a Star Energy 50.0%
Breagh – West 42/13 Sterling Resources 15.0%
Bowstring East 210/29a & 210/30a Sterling Resources 26.6%
Catcher 28/9 & 28/10c OilExco 35.0%
Markwells Wood PEDL126 Northern Petroleum 10.0%
Bennett 43/15a EnCore 70.0%
Leigh Park PEDL155 Northern Petroleum 7.5%
Ralph Cross PEDL068 Egdon Resources 20.0%
Norfolk 12/16b EnCore 75.0%
Tudor Rose 14/30a EnCore 40.0%
Merrow 113/29c & 113/30 Nautical Petroleum 50.0%
Cobra – Appraisal 48/1b & 48/2c EnCore 25.0%
* Plugged and abandoned. 
  
Completed well 
  
Planned/firm well 
  
Contingent well
** Successful.
*** Half of EnCore’s equity is subject to buy back.
Disclaimer:
This drilling schedule is subject to risks, uncertainties and reliance on factors outside the control of EnCore Oil plc and its partners which could cause the actual 
drilling schedule to differ materially from that shown.
These factors include, but are not limited to, inclement weather conditions, operational delays, rig availability and changes in governmental policy or legislation which 
may affect operational costs.
Additionally, EnCore’s equity participation may change based on business development activity.
    2007    2008    2009 
EnCore Oil Drilling Schedule 2007–2009 20 EnCore Oil plc Annual Report 2008
Financial Review
Loss for the financial year
The net loss for the year to 30 June 2008 
is £2.4 million (year to 30 June 2007 
£1.7 million). The operating loss is £3.3 
million (2007 £2.8 million) comprising 
administrative expenses of £2.3 million 
(2006 £1.7 million) and exploration costs 
of £1.0 million (2007 £1.1 million). The 
operating loss has been partly offset 
by net financial income of £0.9 million 
(2007 £0.9 million) and in 2007 by gains 
on the sale of fixed asset investments 
£0.3 million. Foreign currency gains were 
£0.03 million in the year (2007 a loss of 
£0.1 million).
The gross administrative costs can be 
further analysed as follows:
 2008 2007
 £ million £ million
Staff costs 2.5 1.5
Legal and professional 0.3 0.4
Office costs 0.1 0.1
Other 0.3 0.1
 3.2 2.1
Gross administrative expenses were 
£3.2 million (2007 £2.1 million), reflecting 
higher activity levels and staffing levels 
compared with a year ago, of which £0.9 
million (2007 £0.4 million) was capitalised 
as it reflected direct work to enhance 
the value of our interests. Consequently, 
net administration costs in the income 
statement were £2.3 million (2007 £1.7 
million).
Staff costs includes £0.5 million (2007: 
£0.4 million) of IFRS 2 charges related to 
share options granted to Directors, staff 
and third parties. The increase reflects the 
full year impact of a new staff appointment 
made late in the prior financial year  
and two new appointments in the current 
financial year. Share options were only 
granted to new staff appointed during  
the year. 
In July 2008 the Company put in place 
the EnCore Performance Incentive Plan 
(‘EPIP’) with the aim of incentivising 
employees in the achievement of key 
business objectives and delivering 
absolute shareholder return. The 
performance drivers underpinning the 
EPIP include business events, such 
as an asset or corporate sale, and a 
minimum share price trigger of 60 pence 
per share below which no sums are due. 
The share price on the date that the 
EPIP was introduced was 40 pence per 
share. In addition, actual amounts due 
to individuals will depend on personal 
performance and the achievement of 
targets. Any amounts due under the  
EPIP will be paid in cash. Staff costs in 
the next financial year will reflect charges, 
if any, in relation to this plan.
Exploration costs of £1.0 million (2007: 
£1.1 million) principally comprised the 
write off of costs associated with UK 
North Sea licences where the licence  
has been relinquished.
Balance sheet
At 30 June 2008 the Group had net 
assets of £50.2 million (30 June 2007 
£39.7 million). The most significant 
balances are intangible exploration and 
evaluation assets of £38.2 million (2007 
£24.2 million) and cash of £14.5 million 
(2007 £18.0 million).
The exploration and evaluation assets can 
be further analysed as follows:
 2008 2007
 £ million £ million
UK onshore licences 7.3 7.1
UK offshore licences 21.7 12.9
Other 9.2 4.2
 38.2 24.2
During the year to 30 June 2008, the 
Company incurred expenditure of £14.9  EnCore Oil plc Annual Report 2008 21
million on its oil and gas properties 
principally in respect of appraisal drilling 
in the UK North Sea on the Breagh, 
Barbarossa and Cobra discoveries and 
on appraisal drilling offshore Southern 
Ireland on the Old Head of Kinsale and 
Schull discoveries.
Other exploration and evaluation  
assets include interests in Ireland,  
the Netherlands, France and Western 
Sahara. 
At 30 June 2008 working capital 
balances reflect amounts due from and 
owing to the Company in its capacity 
as operator of the Cobra discovery well 
which was completed in May 2008. 
Cash flow
The Group ended the year with £14.5 
million of cash and cash equivalents (2007 
£18.0 million) and a further £4.3 million  
of restricted cash (2007 £1.6 million).  
The Group remains debt free.
The restricted cash relates to amounts 
paid into escrow accounts under 
arrangements between Sterling 
Resources (UK) Limited and Applied 
Drilling Technology International (ADTI) 
relating to our share of the costs of  
the Breagh East well on UK North  
Sea block 42/13 which spudded in 
August 2008 and our share of costs  
on the forthcoming Bowstring East  
(also known as ‘Cladhan’) well on UK 
North Sea blocks 210/29 and 210/30 
which is expected to be drilled in the 
fourth quarter of this year.
On 18 December 2007 we announced 
the placement of 34,722,223 ordinary 
5 pence shares at 36 pence raising 
approximately £12.0 million net of 
expenses. In addition we raised a further 
£0.7 million through farm out activities 
and £0.4 million through the exercise  
of share options.
The Group spent £1.8 million (2007  
£1.4 million) during the year funding 
operations prior to working capital 
adjustments, principally staff costs.  
£15.0 million (2007 £4.7 million) was 
spent on intangible oil and gas assets. 
At 30 June 2008 approximately half  
of our cash is held on deposit with  
The Royal Bank of Scotland and attracts 
floating rate interest. The balance was 
placed on short term deposit with Anglo 
Irish Bank attracting fixed rate interest. 
Some use has been made of short term 
deposits to enhance interest income.  
To date the duration of these deposits 
has not exceeded three months. At  
30 June 2008 £14.3 million of cash 
was held in GB Pounds. The Group is 
therefore not currently exposed to the  
risk that movements in exchange rates 
with GB Pounds will impact the value 
of this holding, however we do at times 
increase our holdings of US Dollars.
EnCore anticipates that investing activities 
on its oil and gas properties can be 
financed through operating cash flows 
and existing cash resources and as a 
result it will have adequate liquidity to fund 
its present commitments for a period of at 
least 12 months from the date of signing 
these accounts.
However, EnCore is currently pursuing 
projects that will likely require additional 
financing. Such additional sources may 
include debt and equity financing as 
needs arise. However, factors affecting 
project timing and outcomes and market 
conditions could affect the Company’s 
ability to fully finance all its investment 
opportunities on the optimal schedules. 22 EnCore Oil plc Annual Report 2008
Corporate Governance Statement
The EnCore Oil Board is committed 
to business integrity and high ethical 
values across the Group’s activities. 
The Directors are committed, where 
practicable for a company of this  
size, to applying the requirements  
of the Combined Code on Corporate 
Governance.
This statement explains how the Directors 
applied the principles of the Code during 
the year ended 30 June 2008.
The Board
The Board comprises three Executive 
Directors and two Non-Executive 
Directors, Michael T. Lynch and Christine 
M.K. Wheeler OBE. All the Directors 
served throughout the year. 
Each of the Directors has extensive 
knowledge of the oil and gas industry. 
Biographies of the Directors are set out 
on page 12 of this annual report.
The Board is accountable to shareholders 
for the formulation and delivery of the 
Group’s strategy. To achieve this, the 
Board directs and monitors the Group’s 
affairs within a framework of controls 
which enable risk to be assessed and 
managed effectively. The Board sets the 
Group’s strategy, ensures that sufficient 
resources are in place to achieve the 
strategy, and reviews management and 
financial performance. The Board also 
has responsibility for setting the Group’s 
core values and standards of business 
conduct and for ensuring that these, 
together with the Group’s obligations to 
its stakeholders, are understood by all 
employees.
The Board meets at least six times a 
year and as issues arise which require 
Board attention. The Board has a formal 
schedule of matters specifically referred to 
it for decision. In addition to those formal 
matters the Board will also consider 
strategy and policy, acquisition and 
divestments proposals, approval of major 
capital investments, risk management 
policy, significant financing matters and 
statutory shareholder reporting.
A statement of the Directors’ responsibilities 
in respect of the accounts is set out on 
page 27.
The Company has established Audit, 
Nomination and Remuneration 
Committees which are further discussed 
below.
Audit Committee
An Audit Committee has been 
established and currently comprises 
Michael T. Lynch and Christine M.K. 
Wheeler OBE. It meets at least twice a 
year and is responsible for ensuring that 
the financial performance of the Group  
is properly reported on and monitored. 
This includes reviewing significant 
financial reporting issues and accounting 
policies and disclosures in financial 
reports. It liaises with the auditors and 
reviews the reports from the auditors 
relating to the accounts and internal 
control systems. If required, meetings  
are attended by appropriate members  
of senior management. The Audit 
Committee is also responsible for 
reviewing the requirement for an internal 
audit function.
Remuneration Committee
A Remuneration Committee has been 
established and currently comprises 
Michael T. Lynch and Christine M.K. 
Wheeler OBE. It reviews the performance 
of the Executive Directors and sets the 
scale and structure of their remuneration 
on the basis of their service agreements 
with due regard to the interests of 
shareholders and the performance of the 
Group. The Remuneration Committee 
also makes recommendations to the 
Board concerning employee incentives, 
including the allocation of share options 
to employees. Directors of the Group are 
not permitted to participate in discussions 
or decisions of the Committee concerning 
their own remuneration.
Nominations Committee
A Nominations Committee has been 
established and currently comprises 
Michael T. Lynch and Christine 
M.K. Wheeler OBE. It reviews and 
recommends to the Board the 
appointment of Directors.
Relations with shareholders
Communications with shareholders are 
given high priority and there is regular 
dialogue with institutional investors, as 
well as general presentations to analysts 
at the time of the release of the annual 
and interim results. The Company 
maintains a website (www.encoreoil.
co.uk) for the purpose of improving 
information flow to shareholders as well 
as potential investors. It contains all press 
releases, reports and accounts and 
extensive information about the Group’s 
activities. Enquiries from individual 
shareholders on matters relating to  
their shareholdings and the business of 
the Group are welcomed. Shareholders 
are also encouraged to attend the  
Annual General Meeting at which they  
are given the opportunity to put questions 
to the Chairman and other members of 
the Board.
Internal controls
The Board is responsible for establishing 
and maintaining the Group’s system 
of internal controls and for reviewing 
its effectiveness. They are designed 
to safeguard the assets of the Group 
and to ensure the reliability of financial 
information for both internal use and 
external publication. The controls which 
include inter alia financial, operational and 
compliance matters and management are 
reviewed on an ongoing basis. A system 
of internal control can provide only 
reasonable, and not absolute, assurance 
that material financial irregularities will  
be detected or that risk of failure to 
achieve business objectives is eliminated. 
The Board has considered the need for 
an internal audit function but because  
of the size and nature of its operations 
does not consider it necessary at the 
current time.
Risk
The Directors are responsible for 
the effectiveness of the Group’s risk 
management activities and internal 
control processes. The Group is exposed 
to a range of technical, geological, 
operational, political, environmental, 
health and safety and financial risks in 
the conduct of its operations. The Group 
seeks to manage and mitigate these 
risks by maintaining a balanced portfolio 
and, through compliance with the terms 
of its licences, the application of policies 
and procedures appropriate for a small 
international oil and gas company and  
the recruitment and retention of highly 
skilled personnel.
The Group’s principal risks are considered 
to fall into four main categories. These 
risks are not presented in any assumed 
order of priority. Any of the risks, as 
well as the other risks and uncertainties 
discussed in this document, could have  
a material adverse effect on our business. 
In addition, the risks set out below may 
not be exhaustive and additional risks 
and uncertainties, not presently known 
to the Company, or which the Company 
deems immaterial, may arise or become 
material in the future. EnCore Oil plc Annual Report 2008 23
Risk category Definition Possible risks
Strategic risks The strategy developed  • mix of oil and gas interests 
 by the Board may fail to  • balance of organic/acquisition-led growth 
 create shareholder value •  ineffective/inadequate management 
processes 
  • insufficient portfolio balance
Financial risks Failure to meet  • inadequate/excessive hedging 
 financial obligations  • oil and gas price volatility 
 to stakeholders • cost inflation 
  • mis-priced corporate acquisitions
  • uninsured events
Operational  Damage to shareholder • HSE incident 
risks value, environment,  • corruption/reputation risk 
 personnel or  • security incident
 communities caused • failure to secure resources 
 by operational failures • loss of key staff 
  • sustained exploration failure
External risks Failure to manage/grow  • oil and gas price volatility 
 the business caused by  • hostile acquisition 
 external factors (political,  • political risk and asset sequestration 
 industry or market) • war, terrorist act and natural disaster
  • fiscal change
  • shareholder sentiment 24 EnCore Oil plc Annual Report 2008
Directors’ Report
The Directors submit their report 
together with the audited consolidated 
financial statements of EnCore Oil plc  
for the year ended 30 June 2008.
Business review
The principal activities of the Company 
and its subsidiary undertakings (the 
Group) during the year continued to be oil 
and gas exploration and the provision of 
technical services to joint venture partners. 
Information on the Company’s principal 
subsidiary undertakings appears in note 3 
to the Company’ s financial statements.
Other than monitoring the rate of cash 
burn the Group does not currently use any 
key performance indicators to measure 
progress towards our business goals.
The Company is required by the 
Companies Act to set out in this report  
a fair review of the business of the Group 
during the financial year ended 30 June 
2008 and of the position of the Group 
at the end of the year and a description 
of the principal risks and uncertainties 
facing the Group (‘business review’). The 
information that fulfils the requirements of 
the business review can be found within 
the Chairman’s Review, Chief Executive’s 
Review, Operational Review, Financial 
Review and Corporate Governance 
Statement sections on pages 8 to 11  
and 16 to 23.
Results and dividends
In total during the year the Group invested 
£15.0 million in growing the business.
Despite a significant increase in the scale 
of our business in early 2007, following  
the acquisition of the Virgo companies,  
the increase in administrative costs year  
on year largely reflects the full year cost  
of appointments made in mid 2007.  
Our philosophy remains that we reward 
our team members on results not  
ahead of them, reinforced through the 
introduction of the Performance Incentive 
Plan in July of this year. No changes in 
headcount are planned and our staffing 
levels are appropriate for the current scale 
and stage of our business.
The loss on ordinary activities after taxation 
amounted to £2.4 million (year to 30 June 
2007 £1.7 million).
The Directors have not recommended 
payment of a dividend.
Directors
The Directors of the Company at the date 
of this report, and their biographical details 
are given on page 12. All the Directors 
served throughout the year.
Although not required by the Company’s 
Articles of Association, in keeping with 
best corporate governance practice 
of AIM-listed companies, the current 
Directors Alan Booth and Eugene Whyms 
will retire by rotation and will seek re-
appointment to the Board of Directors  
of the Company at this year’ s AGM.
Details of Directors’ interests in the 
ordinary shares of the Company and in 
share options are set out on pages 25 to  
26 in the Directors’ Remuneration Report.
Insurance cover
The Company maintains Directors’ and 
Officers’ Liability insurance cover, the level 
of which is reviewed annually.
Share capital
At the date of this report 307,360,839 
ordinary shares are issued and fully paid. 
Details of the changes in the share capital 
during the year to 30 June 2008 are set 
out in note 19 to the financial statements.
Significant interests
As of the date of this report the Company 
had been notified of the following 
interests of three per cent. or more in the 
Company’ s ordinary share capital:
 % Shares
Tell Capital 8.47 26,040,247
Blackrock 5.82 17,890,113
Credit Suisse 5.42 16,664,123
Alan Booth 3.08 9,475,000
Eugene Whyms 3.06 9,400,000
  
The Company has not been notified of  
any other person who has an interest in  
three per cent. or more in the Company’s 
share capital.
Shareholder information
The ordinary shares of the Company are 
listed on AIM under the symbol ‘EO.’. As at 
10 September 2008, the broad distribution 
of the ordinary shares in issue was as 
follows:
 % Shares
Institutions 51.23 157,469,717
Directors and staff 13.69 42,078,371
Other individuals 35.08 107,812,751
Financial instruments
Details of cash holdings are shown in note 
14 to the financial statements. Details of 
the Group’ s exposure to credit risk, foreign 
currency risk and interest rate risk are shown 
in note 23 to the financial statements.
Post balance sheet events
Details of post balance sheet events are 
shown in note 20 to the financial statements.
Supplier payment policy
The Group’s policy is to agree payment 
terms with individual suppliers and to 
abide by those terms. Trade creditors 
of the Company at 30 June 2008 were 
equivalent to 33 days’ purchases, based 
on the average daily amount invoiced by 
suppliers to the Company during the year.
Donations
During the period the Group made no 
charitable donations (2007 Nil).
Auditors
A resolution to re-appoint PKF (UK) LLP 
as auditors of the Company is to be 
proposed at the Annual General Meeting.
Going concern
The financial statements have been 
prepared on a going concern basis.
The Group’ s net cash used in investing 
activities of some £15.8m in the year under 
review is substantially in excess of the 
cash generated from operations. Although 
significant progress has been made in 
developing the Group’ s asset base, it is 
probable that the business will remain a net 
consumer of cash over the coming year. 
The directors have prepared financial 
forecasts for the period through to 31 
December 2009 based on the assumption 
of no further external funds being raised. 
After due consideration of these forecasts 
and current cash resources (year end some 
£14.5m available cash) the Directors are 
of the view that the Group has adequate 
financial resources to meet its liabilities as 
they fall due for the foreseeable future and for 
a period of at least 12 months from the date 
of authorisation of these financial statements.
Disclosure of information to the auditors
Each person who is a Director at the date of 
approval of this Annual Report confirms that:
•  So far as the Director is aware, there is 
no relevant audit information of which the 
Company’ s auditors are unaware; and
•  The Director has taken all the steps that he 
or she ought to have taken as a Director 
in order to make himself or herself aware 
of any relevant audit information and to 
establish that the Company’ s auditors are 
aware of that information.
This confirmation is given, and should be 
interpreted, in accordance with the provisions 
of s234ZA of the Companies Act 1985.
Signed on behalf of the Board by:
Eugene Whyms
Company Secretary
15 September 2008  EnCore Oil plc Annual Report 2008 25
Remuneration Report
Information not subject to audit
The members of the Remuneration 
Committee are Michael T. Lynch and 
Christine M.K. Wheeler OBE. The 
Committee met twice during the year.
The main responsibilities of the 
Committee include:
•  determining and agreeing with the 
Board the remuneration policy for the 
Chief Executive, Executive Directors 
and senior executives;
•  reviewing the design of share incentive 
plans for approval by the Board and 
shareholders and determining the 
annual award policy to Executive 
Directors and senior executives under 
existing plans; and
•  within the terms of the agreed policy, 
determining the remainder of the 
remuneration packages (principally 
comprising salary and pension) for each 
Executive Director and senior executive.
The Chief Executive and other relevant 
executives are invited to attend meetings 
of the Committee but do not take part 
in any decision affecting their own 
remuneration.
The Group’s policy is to maintain levels 
of remuneration so as to attract, motivate 
and retain Executive Directors and senior 
executives of the calibre required to grow the 
business and enhance shareholder value.
There are four main elements of the 
remuneration package for Executive 
Directors and senior executives:
• Basic annual salary
• Benefits in kind
• Pension arrangements
•  Incentive schemes including share 
options and performance incentive plan
Executive Directors Remuneration
Basic salary
The basic salaries of the Executive 
Directors are reviewed annually with 
regard given to personal performance, 
Company performance, changes in 
responsibilities and competitive market 
practices. The most recent review was 
in March 2007, the base salary of each 
Executive Director is unchanged from the 
previous financial year as follows:
Alan Booth £175,000
Eugene Whyms £175,000
Graham Doré £150,000
Benefits in kind
The Executive Directors and senior 
executives receive benefits in kind, 
principally private medical insurance,  
life assurance and critical illness cover.
Pension arrangements
The Company does not operate a 
pension plan. Each Executive Director is 
entitled to receive a payment equivalent 
to 15 per cent. of his annual basic salary 
into his private pension scheme.
Incentive schemes
The Group has put in place two 
performance schemes to incentivise all 
employees of the Company, aid recruitment 
to the Company and enable all staff to 
benefit from the successful growth of 
the Company. The Group believes that 
the remuneration policy followed to date 
supports the achievement of EnCore’ s 
strategic goals. Factors of this policy include 
a high proportion of the compensation 
package being performance-linked and a 
significant element of incentive pay being 
directly related to EnCore’ s share price 
performance; both of which create a very 
strong alignment with shareholders.
The first scheme, the ‘EnCore Option 
Scheme,’ has been in place since the 
reverse takeover of Oil Quest Resources  
plc in March 2006; the second scheme,  
the ‘Performance Incentive Plan,’ was put 
in place in July 2008.
Share options
The EnCore Option Scheme is comprised 
of two parts: the basic share option 
scheme and a part which constitutes an 
Enterprise Management Incentive Plan 
under rules set out by HM Revenue and 
Customs in the United Kingdom. Options 
granted under the EnCore Option Scheme 
can be granted, at the discretion of the 
Board, under one or other of the two 
parts. Apart from certain tax benefits which 
can accrue to the Company and its UK 
employees if options are granted under  
the part relating to the EnCore EMI Plan  
all other terms under which options can be 
awarded under either part are substantially 
identical.
The Company’s policy permits the 
granting of options in the 42 day period 
following the announcement of the 
Company’s interim or final results.
In August 2007, 640,000 share options 
were granted to a new employee of 
EnCore Oil plc at a grant price of 17 pence 
per share. The share options vest in equal 
amounts on the first, second and third 
anniversaries of the date of grant and must 
be exercised within five years of the grant 
date or forfeited.
In September 2007, 300,000 share options 
were granted to a new employee of EnCore 
Oil plc at a grant price of 16.25 pence per 
share on the same terms as above. 
The total number of options outstanding 
at any point in time cannot exceed 10 per 
cent. of the issued Ordinary Shares of the 
Company.
Performance Incentive Plan
In order to directly align our employees 
with EnCore’ s principal strategy of value 
creation for the shareholders we have 
made a conscious decision not to issue 
new share options to staff and Directors 
(other than new employees) this year.
In July 2008 the Company put in place 
the EnCore Performance Incentive Plan 
(EPIP) and made an award of 9,350,000 
Performance Units (PU’ s) to plan 
participants. Individual awards of EPIP 
PU’ s were broadly consistent with past 
awards of share options with the principal 
exception of the Executive Directors who 
received a smaller proportion of the overall 
allocation. The EPIP provides a vehicle 
to retain and motivate key staff members 
who will play a key role in helping deliver 
this value.
The PU’s will not achieve any value  
under the EPIP until certain performance 
hurdles and value creation criteria are 
met. These include a minimum share 
price hurdle of 60 pence combined with 
the completion of a significant asset or 
corporate sale. The share price on the 
date that the EPIP was introduced was 
40 pence per share.
Once all appropriate share price hurdles 
and triggers have been met the amount 
paid will be calculated by reference to the 
increase in share price over the base share 
price of 40 pence per share. The amount 
of excess over the base share price will 
then be subject to a pro-ration factor  
of between 0.75 to 1.75, depending on 
the magnitude of the excess over the 60 
pence hurdle price.
The resulting award will then be further 
pro-rated to reflect the proportion that any 
asset sales proceeds relate to EnCore’s 
total market capitalisation. In the event of a 
change of control or sale of the Company 
there will be no pro-ration. 
Following an asset or partial sale of the 
business the hurdle and base share 
prices will be rebased for the purposes 
of calculating any future performance 
related payments. Any awards are subject 
to the discretion of the Remuneration 
Committee.
Service contracts and letters of 
appointment
Each of the Executive Directors entered 
into a service agreement with the  26 EnCore Oil plc Annual Report 2008
Remuneration Report continued
Company with effect from 3 March 2006. 
Each service agreement is on similar 
terms. Each agreement is terminable  
by either party on twelve months’ notice. 
There are no specific provisions under 
which any person is entitled to receive 
compensation upon the early termination 
of his service agreement other than in 
accordance with these notice periods.
Non-Executive Directors’ fees
Michael T . Lynch is paid a basic annual fee 
of £37,500 and Christine M.K. Wheeler 
OBE. receives a basic annual fee of 
£30,000. The appointment is terminable  
on six months notice served by either party. 
The Non-Executive Directors are both 
paid a fee of £7,500 in recognition of their 
services on the Committees.
Material Contracts
There have been no other contracts or 
arrangements during the year in which  
a Director of the Company was materially 
interested and which were significant in 
relation to the Group’s business.
Audited information
Directors’ remuneration
 Remuneration in the year to 30 June 2008
  Fees/base  Benefits   Year to 30 
  salary in kind Pension Total June 2007 
  £ £ £ £ £
Executive Directors      
Alan Booth  174,548 2,522 26,182 203,252 164,838
Eugene Whyms  175,000 3,407 26,250 204,657 164,838
Graham Doré  148,702 2,638 22,305 173,645 135,853
Non-Executive Directors     
Michael Lynch  45,000 1,327 – 46,327 36,096
Christine M.K. Wheeler OBE  37,500 2,908 – 40,408 31,698
Total remuneration  580,750 12,802 74,737 668,289 533,323
Directors interests in the Share Capital of the Company
     % of issued
Ordinary shares of £0.05 each    At 30 June 2008 Ordinary share Capital
Alan Booth    9,475,000 3.08
Eugene Whyms    9,400,000 3.06
Michael T. Lynch    8,017,221 2.61
Graham Doré    6,328,229 2.06
Christine M.K. Wheeler OBE    2,156,657 0.70
    35,377,107 11.51
 No other loans or guarantees were given to the Chairman of the Board, Directors or related parties. The number of shares reported 
includes any shares held by children under the age of 18 of the named individual or by companies controlled by the individual.
EnCore Oil plc Share Option Scheme
 Details of shares awarded to Directors under the EnCore Oil plc share option scheme are as follows:    
     
  Date  As at 30  Share price at Exercise Exercisable Exercisable 
Name of Director Granted granted June 2008  grant date price from
1
 to
1
Alan Booth 1,390,000 03.03.06 1,390,000 £0.34 £0.34 03.03.07 02.03.11
  1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
Eugene Whyms  1,390,000 03.03.06 1,390,000 £0.34 £0.34 03.03.07 02.03.11
  1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
Graham Doré  1,140,000 03.03.06 1,140,000 £0.34 £0.34 03.03.07 02.03.11
  1,250,000 14.03.07 1,250,000 £0.17 £0.17 14.03.08 13.03.12
Michael T. Lynch  250,000 03.03.06 250,000 £0.34 £0.34 03.03.07 02.03.11
  250,000 14.03.07 250,000 £0.17 £0.17 14.03.08 13.03.12
 Christine M.K. Wheeler OBE 250,000 03.03.06 250,000 £0.34 £0.34 03.03.07 02.03.11
  250,000 14.03.07 250,000 £0.17 £0.17 14.03.08 13.03.12
Total  8,970,000  8,970,000    
1
 All share options vest in equal instalments on the first, second and third anniversaries of the grant date.
The closing market price of the ordinary shares at 30 June 2008 was 40.125 pence and the range during the year was  
15.75 pence to 58.375 pence.
Christine M.K. Wheeler OBE
Chairman of the Remuneration Committee
15 September 2008 EnCore Oil plc Annual Report 2008 27
The Directors are responsible for 
preparing the Annual Report and the 
financial statements in accordance with 
applicable law and regulations.
The Directors are responsible for keeping 
proper accounting records which disclose 
with reasonable accuracy at any time 
the financial position of the Company, 
for safeguarding assets, for taking 
reasonable steps for the prevention and 
detection of fraud and other irregularities 
and for the preparation of a Directors’ 
Report which complies with the 
requirements of the Companies Act 1985.
Group
The Directors are required to prepare 
financial statements for the Group in 
accordance with International Financial 
Reporting Standards (IFRS). Company 
law requires the Directors to prepare  
such financial statements in accordance 
with IFRS, the Companies Act 1985  
and Article 4 of the IAS Regulation.
International Accounting Standard 1 
requires that financial statements  
present fairly for each financial year 
the Group’s financial position, financial 
performance and cash flows. This 
requires the faithful representation of 
the effects of transactions, other events 
and conditions in accordance with the 
definitions and recognition criteria for 
assets, liabilities, income and expenses 
set out in the International Accounting 
Standards Board’s ‘Framework for  
the Preparation and Presentation of 
Financial Statements’. Directors are  
also required to:
•  select and apply accounting policies 
properly;
•  present information, including 
accounting policies, in a manner that 
provides relevant, reliable, comparable 
and understandable information;
•  provide additional disclosures 
when compliance with the specific 
requirements in IFRS is insufficient; and
•  enable users to understand the impact 
of particular transactions, other events 
and conditions on the entity’s financial 
position and financial performance.
Company
UK company law requires the Directors 
to prepare financial statements for 
each financial year. Under that law, the 
Directors have elected to prepare for 
the Company only financial statements 
in accordance with United Kingdom 
Generally Accepted Accounting Practice 
(United Kingdom Accountings Standards 
and applicable law). The financial 
statements are required by law to give  
a true and fair view of the state of affairs 
of the Company and of its profit or loss 
for that year. In preparing these financial 
statements, the Directors are required to:
•  select suitable accounting policies  
and then apply them consistently;
•  make judgements and estimates  
that are reasonable and prudent;
•  state whether applicable UK Accounting 
Standards have been followed,  
subject to any material departures 
disclosed and explained in the financial 
statements; and
•  prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for 
the maintenance and integrity of the 
corporate information included on 
the Company’s website. Legislation 
in the United Kingdom governing the 
preparation and dissemination of the 
financial statements and other information 
included in annual reports may differ  
from legislation in other jurisdictions.
Statement of Directors’ Responsibilities 28 EnCore Oil plc Annual Report 2008
Independent Auditors’ Report to the Members of EnCore Oil Plc
We have audited the group and parent 
company financial statements (‘the 
financial statements’) of EnCore Oil 
plc for the year ended 30 June 2008 
which comprise the Consolidated 
Income Statement, the Consolidated 
and Company Balance Sheets, the 
Consolidated Cash Flow Statement,  
the Consolidated Statement of Change 
in Shareholders’ Equity and the related 
notes. The financial statements have 
been prepared under the accounting 
policies set out therein. 
This report is made solely to the 
Company’s members, as a body, in 
accordance with section 235 of the 
Companies Act 1985. Our audit work has 
been undertaken so that we might state 
to the Company’s members those matters 
we are required to state to them in an 
auditors’ report and for no other purpose. 
T o the fullest extent permitted by law, we 
do not accept or assume responsibility 
to anyone other than the Company and 
the Company’ s members as a body, for 
our audit work, for this report, or for the 
opinions we have formed.
Respective responsibilities of directors 
and auditors
The directors’ responsibilities for preparing 
the annual report and the financial 
statements in accordance with applicable 
law and for preparing the group financial 
statements in accordance with International 
Financial Reporting Standards (‘IFRSs’) 
as adopted by the European Union and 
the parent company financial statements 
in accordance with United Kingdom 
accounting standards (‘United Kingdom 
Generally Accepted Accounting Practice’) 
are set out in the Statement of Directors’ 
Responsibilities.
Our responsibility is to audit the financial 
statements in accordance with relevant 
legal and regulatory requirements and 
International Standards on Auditing (UK 
and Ireland).
We report to you our opinion as to whether 
the financial statements give a true and 
fair view and have been properly prepared 
in accordance with the Companies Act 
1985. We also report to you whether in 
our opinion the information given in the 
Directors’ Report is consistent with the 
financial statements. The information 
in the Directors’ Report includes that 
specific information presented in the 
Chairman’s Review, Chief Executive’s 
Review, Operational Review and Financial 
Review and the Corporate Governance 
Statement, that is cross referenced 
from the business review section of the 
Directors’ Report.
In addition we report to you if, in our 
opinion, the Company has not kept 
proper accounting records, if we have 
not received all the information and 
explanations we require for our audit, or 
if information specified by law regarding 
directors’ remuneration and other 
transactions is not disclosed.
We read other information contained in 
the annual report and consider whether 
it is consistent with the audited financial 
statements. The other information 
comprises only the Chairman’ s Review, 
the Chief Executive’ s Review, the 
Operational Review, the Financial Review, 
the Corporate Governance Statement, 
the Directors’ Report, and the Unaudited 
part of the Remuneration Report. We 
consider the implications for our report 
if we become aware of any apparent 
misstatements or material inconsistencies 
with the financial statements. Our 
responsibilities do not extend to any  
other information. 
Basis of audit opinion
We conducted our audit in accordance 
with International Standards on Auditing 
(UK and Ireland) issued by the Auditing 
Practices Board. An audit includes 
examination, on a test basis, of evidence 
relevant to the amounts and disclosures  
in the financial statements. It also  
includes an assessment of the significant 
estimates and judgments made by 
the directors in the preparation of the 
financial statements, and of whether the 
accounting policies are appropriate to the 
group’ s and company’ s circumstances, 
consistently applied and adequately 
disclosed.
We planned and performed our audit 
so as to obtain all the information and 
explanations we considered necessary 
in order to provide us with sufficient 
evidence to give reasonable assurance 
that the financial statements are free from 
material misstatement, whether caused 
by fraud or other irregularity or error. In 
forming our opinion we also evaluated the 
overall adequacy of the presentation of 
information in the financial statements.
Opinion
In our opinion:
the group financial statements give a 
true and fair view, in accordance with 
IFRSs as adopted by the European 
Union, of the state of the group’s affairs 
as at 30 June 2008 and of its loss for the 
year then ended; the parent company 
financial statements give a true and fair 
view, in accordance with United Kingdom 
Generally Accepted Accounting Practice, 
of the state of the parent company’s affairs 
as at 30 June 2008;
the financial statements have been 
properly prepared in accordance with the 
Companies Act 1985; and 
the information given in the Directors’ 
Report is consistent with the financial 
statements.
PKF (UK) LLP
London, UK
Registered auditors
15 September 2008 EnCore Oil plc Annual Report 2008 29
For the year ended 30 June 2008 Note
2008
£
2007
£
Impairment write down – exploration costs 5, 10 (988,095) (1,126,307)
Administrative expenses (2,342,974) (1,719,179)
Operating loss (3,331,069) (2,845,486)
Gain on sale of fixed asset investments – 287,980
Finance income 6 893,002 926,076
Finance costs 7 (3,299) (2,714)
Other gains and losses – foreign currency gains/(losses) 30,880 (50,882)
Loss from continuing activities before taxation (2,410,486) (1,685,026)
T axation 8 – 4,154
Net loss from continuing activities (2,410,486) (1,680,872)
Loss per ordinary share (pence)
– Basic and diluted 9 (0.8) (0.7)
Consolidated Income Statement 30 EnCore Oil plc Annual Report 2008
As at 30 June 2008 Note
2008
£
2007
£
Assets
Non-current assets
Intangible exploration assets and evaluation assets 10 38,204,540 24,191,869
Property, plant and equipment 11 57,240 25,925
Investments  12 50,000 50,000
38,311,780 24,267,794
Current assets
Other receivables 13 3,464,363 1,319,706
Restricted cash 14 4,254,013 1,630,361
Cash and cash equivalents 14 14,526,541 17,967,096
22,244,917 20,917,163
T otal assets 60,556,697 45,184,957
Liabilities  
Current liabilities
Trade and other payables 15 5,764,657 1,186,607
Non-current liabilities
Provisions  16 975,000 736,275
Deferred taxation 17 3,591,511 3,590,472
4,566,511 4,326,747
T otal liabilities 10,331,168 5,513,354
Net assets 50,225,529 39,671,603
Equity   
Equity attributable to equity holders of the parent
Called up share capital 19 16,443,186 14,632,742
Share premium 37,798,714 27,215,923
Other reserve 266,908 266,908
Foreign currency translation reserve (303,875) (327,607)
Retained earnings (3,979,404) (2,116,363)
T otal equity 50,225,529 39,671,603
Approved and authorised for issue by the Board on 15 September 2008, and signed on its behalf:
Alan Booth     Eugene Whyms 
Chief Executive Officer    Chief Financial Officer
Consolidated Balance Sheet EnCore Oil plc Annual Report 2008 31
For the year ended 30 June 2008 Note
2008
£
2007
£
Cash flows from operating activities 
Loss before taxation (2,410,486) (1,685,026)
Depreciation 11 29,142 16,657
Share based remuneration charges 2 547,445 406,936
Exploration write off 10 988,095 1,126,307
Items shown as financing and investing activities (920,003) (1,211,342)
Operating cash flow prior to working capital (1,765,807) (1,346,468)
Corporation tax payments – (18,033)
Working capital adjustments 1,727,925 (48,573)
Cash used in operations (37,882) (1,413,074)
Cash flows from investing activities
Purchase of intangible exploration and evaluation assets (14,982,704) (4,718,329)
Expenses of corporate acquisition – (433,769)
Increase in restricted cash 14 (2,623,652) (1,630,361)
Purchase of property, plant and equipment 11 (62,537) (3,587)
Proceeds from sale of tangible assets 11 2,080 –
Proceeds from sale of investments – 663,105
Proceeds from sale of intangible assets 944,193 –
Interest received 957,261 907,359
Net cash used in investing activities (15,765,359) (5,215,582)
Cash flows from financing activities
Shares issued 19 12,393,235 6,694,401
Interest paid and bank charges (3,878) (2,714)
Net cash generated by financing activities 12,389,357 6,691,687
Net (decrease)/increase in cash and cash equivalents (3,413,884) 63,031
Cash and cash equivalents at start of year 17,967,096 18,035,020
Foreign currency translation difference (26,671) (130,955)
Cash and cash equivalents at end of year 14 14,526,541 17,967,096
Consolidated Statement of Cash Flows 32 EnCore Oil plc Annual Report 2008
Attributable to parent company equity holders
For the year ended 30 June 2008
Equity share
capital
£
Share
premium
£
Other
reserve
£
Foreign
currency
translation
reserve
£
Retained
Earnings
£
T otal
equity
£
T otal as at 1 July 2006 11,319,409 15,417,355 266,908 24,673 (842,427) 26,185,918
Year to 30 June 2007
Loss for the year – – – – (1,680,872) (1,680,872)
Currency translation – – – (352,280) – (352,280)
T otal income and expenses for the year – – – (352,280) (1,680,872) (2,033,152)
Shares issued to acquire Virgo 1,850,000 6,567,500 – – – 8,417,500
Shares issued for cash 1,458,333 5,541,667 – 7,000,000
Expenses of issue – (310,599) – – – (310,599)
New shares issued in respect of  
  employee share options 5,000 – – – – 5,000
Share option expense – – – – 406,936 406,936
T otal as at 30 June 2007 14,632,742 27,215,923 266,908 (327,607) (2,116,363) 39,671,603
Year to 30 June 2008
Loss for the year – – – – (2,410,486) (2,410,486)
Currency translation – – – 23,732 – 23,732
T otal income and expenses for the year – – – 23,732 (2,410,486) (2,386,754)
Shares issued for cash 1,736,111 10,763,889 – – – 12,500,000
Expenses of issue – (505,564) – – – (505,564)
New shares issued in respect of 
  employee share options 74,333 324,466 – – – 398,799
Share option expense – – – – 547,445 547,445
T otal as at 30 June 2008 16,443,186 37,798,714 266,908 (303,875) (3,979,404) 50,225,529
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of a US Dollars denominated 
subsidiary.
The other reserve arose on the reverse acquisition of Oil Quest Resources plc by the EnCore Group in March 2006.
Consolidated Statement of Changes in Equity EnCore Oil plc Annual Report 2008 33
Notes to the Group Financial Statements
Accounting policies
Basis of preparation and statement of compliance with IFRS
The Group’ s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and with 
those parts of the Companies Act 1985 applicable to companies reporting under IFRS. IFRS comprises the Standards issued by the 
International Accounting Standards Board (IASB) and Interpretations issued by the International Financial Reporting Interpretations 
Committee (IFRIC) that have been endorsed by the European Union (EU).
The principal accounting policies adopted by the Group and by the Company where applicable are set out below.
Accounting standards
The Group has applied all accounting standards and interpretations issued by the IASB except for, at the date of authorisation of these 
financial statements, the following relevant new standards and interpretations which were in issue but not yet effective:
IFRS 2  Share-based payments (revised 2008)
IFRS 3  Business combination (revised 2008)
IFRS 8  Operating segments
IAS 1  Presentation of financial statements (revised 2007)
IAS 23  Borrowing costs (revised 2007)
IAS 27  Consolidated and separate financial statements (revised 2008)
IAS 32  Financial Instruments: Presentation (revised 2008)
IFRIC 12  Service concession arrangements
IFRIC 13  Customer loyalty programme
IFRIC 14 IAS19-The limit on a defined benefit asset, minimum funding requirements and their interaction
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the 
financial statements of the Group except for additional segment disclosures when IFRS 8 comes into effect for periods commencing on 
or after 1 January 2009 and disclosure changes when IAS 1 (revised 2007) comes into effect on the same date.
Going concern basis
The financial statements have been prepared on a going concern basis.
The Group’ s net cash used in investing activities of some £15.8m in the year under review is substantially in excess of the cash 
generated from operations. Although significant progress has been made in developing the Group’ s assets base, it is probable that the 
business will remain a net consumer of cash over the coming year. 
The Directors have prepared financial forecasts for the period through to 31 December 2009 based on the assumption of no further 
external funds being raised. After due consideration of these forecasts and current cash resources (year end some £14.5m available 
cash) the Directors are of the view that the Group has adequate financial resources to meet its liabilities as they fall due for the 
foreseeable future and for a period of at least 12 months from the date of authorisation of these financial statements.
Basis of consolidation
The Group financial statements consolidate the financial statements of EnCore Oil plc and the entities it controls (its subsidiaries) drawn 
up to 30 June each year.
The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting 
policies. All inter-company balances and transactions, including unrealised profits arising from them, are eliminated.
Acquisitions
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of 
the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in 
exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree’ s identifiable assets, 
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition 
date. Goodwill arising on acquisition is recognised as an asset and amortised over its expected useful economic life. The gain or loss on 
subsequent disposal of a subsidiary or associated undertaking will take account of any attributable unamortised goodwill.
Expenditure on the discovery, appraisal, development and utilisation of oil and gas reserves
The Group accounts for oil and gas expenditure under the successful efforts method of accounting.
Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the Income Statement.
All licence acquisition, exploration and evaluation costs are initially capitalised in cost centres by well, field or exploration area, as 
appropriate. Directly attributable administration costs are capitalised insofar as they relate to specific exploration and development 
activities.
These costs are written off unless commercial reserves have been established or the determination process has not been completed 
and there are no indications of impairment. IFRS 6 defines examples of triggering events that might lead management to conclude 
that impairment of an exploration and evaluation asset has occurred. Any identified impairment is charged immediately to the income 
statement. 34 EnCore Oil plc Annual Report 2008
Accounting policies continued
If a project is deemed commercial all of the attributable costs are transferred into a single field cost centre within property, plant and 
equipment. These costs are then amortised from the commencement of production on a unit of production basis.
Decommissioning
Provision for decommissioning is recognised in full as an asset and liability when the obligation arises. The asset is included within 
exploration and evaluation assets or property, plant and equipment as is appropriate. The liability is included within provisions. The 
amount recognised is the estimated cost of decommissioning, discounted where appropriate to its net present value, and is reassessed 
each year in accordance with local conditions and requirements. Revisions to the estimated costs of decommissioning which alter the 
level of the provisions required are also reflected in adjustments to the decommissioning asset.
Property, plant and equipment – excluding development and producing assets
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. 
Depreciation is provided on all property, plant and equipment categories at rates calculated to write off the cost, less estimated residual 
value based on prices prevailing at the balance sheet date, of each asset evenly over its expected three year useful life.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the 
carrying value may not be recoverable.
Financial instruments
Financial assets
Investments
The Company’ s investments in subsidiaries are carried at cost less provisions resulting from impairment. Unlisted investments are valued 
by the Directors, having regard to the likely realisable value.
Trade receivables
Trade receivables are measured at initial recognition at their fair value. Appropriate allowances for estimated irrecoverable amounts are 
recognised in the Income Statement when there is objective evidence that the asset is impaired.
Cash and cash equivalents
Cash and short-term deposits in the Balance Sheet comprise cash at banks and in hand and short-term deposits with an original 
maturity of three months or less.
The cash and cash equivalent amount in the Cash Flow Statement includes overdraft facilities.
Financial liabilities
Trade payables
Trade payables are stated at their fair value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An 
equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity 
instruments issued by the Company are recorded at the proceeds received net of direct issue costs.
Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases and 
rentals payable are charged in the Income Statement on a straight line basis over the lease term. 
Joint ventures
The Group is engaged in oil and gas exploration and appraisal through unincorporated joint ventures. The Group accounts for its share 
of the results and net assets of these joint ventures as jointly controlled assets. In addition, where EnCore acts as operator to the joint 
venture, the gross liabilities and receivables (including amounts due to or from non-operating partners) of the joint venture are included in 
the Group Balance Sheet.
T axation
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible 
temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply when the related asset is realised or liability is 
settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Deferred tax is provided on temporary differences arising on acquisitions that are categorised as Business Combinations. Deferred tax 
is recognised at acquisition as part of the assessment of the fair value of assets and liabilities acquired. Any deferred tax is charged or 
credited in the Income Statement as the underlying temporary difference is reversed.
Notes to the Group Financial Statements continued EnCore Oil plc Annual Report 2008 35
Pensions and other post-retirement benefits
The Group does not operate any pension plans. The Group makes contributions to employee’ s private pension plans of 15 per cent. of 
the employees’ gross salary. These contributions are charged as an expense as they fall due.
Share-based payments
Equity settled transactions
The Group has applied the requirements of IFRS 2 Share Based Payments. In accordance with the transitional provisions of that 
standard, only those awards that were granted after 7 November 2002, and had not vested at 1 July 2005, are included.
All share-based awards of the Company are equity-settled transactions as defined by IFRS 2. The cost of equity-settled transactions 
with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an expense over 
the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined 
using an appropriate pricing model. The only vesting condition is that employees remain in employment of the Group during the vesting 
period.
The Company is liable for Employer’ s National Insurance on the difference between the market value at date of exercise and the exercise 
price. The expense is accrued by reference to the share price of the Company at the balance sheet date.
The movement in cumulative expense since the previous balance sheet date is recognised in the Income Statement, with a corresponding 
entry in equity.
Foreign currency translation
Operating companies
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rate ruling at the date of the 
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange 
ruling at the balance sheet date. All differences are taken to the Income Statement. Non-monetary items that are measured in terms of 
historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items 
measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
Consolidation
The assets and liabilities of foreign operations are translated at the rate of exchange ruling at the balance sheet date. Income and 
expenses are translated at weighted average exchange rates for the period. The resulting exchange differences are taken directly to 
a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that 
particular foreign operation is recognised in the income statement.
Market risk
Market risk is the possibility that changes in interest rates, credit risk and currency exchange rates will adversely affect the Group’ s 
assets, liabilities or expected future cash flows.
Foreign exchange risk
The Group is exposed to financial risk because of changes in foreign currency exchange rates as measured against the GBP – such 
movements could impact the reported results of the Group. One operation holds a proportion of its cash and cash equivalents in  
US Dollars and has a functional currency of US Dollars. At each period end assets and liabilities, including cash and cash equivalents, 
that are held in a currency other than the operations functional currency are translated into the functional currency. The resultant foreign 
currency gain or loss arising is reflected in the income statement of the local operation and the Group in the period in which it arises.
Interest rate and credit risk
At the balance sheet date the Group’ s principal financial asset is cash and cash equivalents. The credit risk on such funds is limited 
because the majority are deposited with banks with good credit ratings assigned by international credit rating agencies.
The Group’ s exposure to the risk of changes in market interest rates is mitigated by use of a mix of fixed and variable rate debts.
Use of estimates when preparing the annual financial statements
Preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions 
affecting recognition and measurement in the Consolidated Balance Sheet and Income Statement, as well as the disclosure of 
contingent assets and liabilities. Future events may lead to these estimates being changed. In particular, estimates are required when:
• Assessing the need for and measurement of impairment of fixed assets
• Determining the fair value of share based payments
• Estimating decommissioning liabilities (Note 16)
Intangible assets
The Group determines whether intangible assets are impaired at least on an annual basis. This requires an estimation of the value in use 
of the asset. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the asset and 
also to choose a suitable discount rate in order to calculate the present value of those cash flows.
Share-based payments
Determining the fair value of share-based payments requires assumptions in respect of the inputs used in the option pricing model. 
Details can be found in note 3. 36 EnCore Oil plc Annual Report 2008
Accounting policies continued
Decommissioning 
The Group determines decommissioning liabilities by making assumptions, based on the current economic environment, which 
management believe are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take 
into account any material changes to assumptions. However, the actual decommissioning cost will ultimately depend upon future 
market prices for the necessary decommissioning works required which will reflect market conditions at the relevant time. Furthermore, 
actual costs will also reflect the extent of decommissioning work required to be performed, whether the decommissioning works can be 
performed as part of a multi well programme or in isolation and progress in decommissioning technologies.
1. Segment information
The primary segment reporting format is determined to be geographical segments as the Group’ s risks and rates of return are affected 
predominantly by the economic and market conditions present in each of the geographical areas in which the Group operates. The 
Group’ s geographical segments are based on the location of the Group’ s assets. There are no secondary segments.
Primary reporting format – geographical segments
The following tables present the loss and certain asset and liability information regarding the Group’ s geographical segments for the year 
ended 30 June 2008 and for the year ended 30 June 2007. 
2008
UK
Onshore
£
UK
Offshore
£
Overseas
£
Unallocated
£
T otal
£
Impairment write down – exploration costs (36,019) (952,076) – – (988,095)
Administrative expenses (212,678) (832,897) (20,751) (700,061) (1,766,387)
Depreciation – – – (29,142) (29,142)
Share based remuneration charges – – – (547,445) (547,445)
Operating loss (248,697) (1,784,973) (20,751) (1,276,648) (3,331,069)
Other gains and losses – foreign currency gains/(losses) – (70,737) (143) 101,760 30,880
Finance revenue – 789 – 892,213 893,002
Finance costs – (476) (715) (2,108) (3,299)
Loss before taxation (248,697) (1,855,397) (21,609) (284,783) (2,410,486)
T axation  – – – – –
Net loss (248,697) (1,855,397) (21,609) (284,783) (2,410,486)
T otal assets  7,307,443 25,428,133 9,198,835 18,622,286 60,556,697
T otal liabilities 1,164,883 8,853,572 – 312,713 10,331,168
Other segment information
Intangible exploration and evaluation assets 7,307,440 21,698,265 9,198,835 – 38,204,540
Property, plant and equipment – – – 57,240 57,240
7,307,440 21,698,265 9,198,835 57,240 38,261,780
Capital expenditure
Intangible exploration and evaluation assets 188,329 9,739,837 4,951,418 – 14,879,584
Property, plant and equipment – – – 62,537 62,537
188,329 9,739,837 4,951,418 62,537 14,942,121
Notes to the Group Financial Statements continued EnCore Oil plc Annual Report 2008 37
1. Segment information continued
2007
UK
Onshore
£
UK
Offshore
£
Overseas
£
Unallocated
£
T otal
£
Impairment write down – exploration costs – (1,126,307) – – (1,126,307)
Administrative expenses (167,781) (27,007) (14,393) (1,086,405) (1,295,586)
Depreciation – – – (16,657) (16,657)
Share based remuneration charges – – – (406,936) (406,936)
Operating loss (167,781) (1,153,314) (14,393) (1,509,998) (2,845,486)
Gain on sale of fixed asset investments – – – 287,980 287,980
Other gains and losses – foreign currency gains/(losses) – 1,335 – (52,217) (50,882)
Finance revenue – 48,216 60 877,800 926,076
Finance costs – (576) (180) (1,958) (2,714)
Loss before taxation (167,781) (1,104,339) (14,513) (398,393) (1,685,026)
T axation  – 4,154 – – 4,154
Net loss (167,781) (1,100,185) (14,513) (398,393) (1,680,872)
T otal assets 7,145,975 15,814,305 4,136,566 18,088,111 45,184,957
T otal liabilities 1,248,125 3,304,541 687,330 273,358 5,513,354
Other segment information
Intangible exploration and evaluation assets 7,143,381 12,917,991 4,130,497 – 24,191,869
Property, plant and equipment – – – 25,925 25,925
7,143,381 12,917,991 4,130,497 25,925 24,217,794
Capital expenditure
Intangible exploration and evaluation assets 143,233 2,189,719 4,041,870 – 6,374,822
Property, plant and equipment – – – 3,589 3,589
143,233 2,189,719 4,041,870 3,589 6,378,411
Unallocated income, expenditure, assets and liabilities relate to the general management, financing and administration of the Group and 
are not specifically attributable to a geographic area. Overseas includes Ireland, France, the Netherlands and Western Sahara.
2. Employee benefits
Company and Group
2008
£
2007
£
Salaries 1,388,944 846,743
Share based remuneration charges 547,445 406,936
Social security costs 356,533 106,718
Pension costs 187,137 117,550
Other payments 59,219 39,949
Gross staff costs 2,539,278 1,517,896
Capitalised/recharged to joint venture partners (721,816) (290,270)
Net staff costs in the Income Statement 1,817,462 1,227,626
The average number of employees for the Company and Group in the year to 30 June 2008 was 11 (year to 30 June 2007: 8).
A proportion of the Group’ s staff costs shown above is capitalised into the cost of fixed assets under the Group’ s accounting policy for 
exploration and evaluation assets.
Details of Directors’ Remuneration, Directors’ Transactions and Directors’ Interests are set out in the part of the Directors’ Remuneration 
Report described as having been audited and form part of these financial statements. 38 EnCore Oil plc Annual Report 2008
3. Share-based remuneration charges
All employee share-option plan
The all employee share option plan is a grant of share options to all eligible employees on appointment and periodically thereafter.  
The share options are issued at market price on the grant date. The share options vest in equal amounts on the first, second and third 
anniversaries after the grant date and must be exercised within 5 years of the grant date or forfeited.
The expense recognised for share-based payments in respect of employee services received during the year to 30 June 2008 is 
£540,896 (year to 30 June 2007: £398,202). At 30 June 2008 the provision for employer social security costs that would arise on the 
exercise of share options is £184,323 (30 June 2007: £1,718). 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during  
the year.
2008
No.
2008
WAEP
2007
No.
2007
WAEP
Opening balance 17,460,000 25.29 8,820,000 33.14
Granted during the period 940,000 16.76 8,740,000 17.15
Exercised during the year (1,486,664) 22.17 (100,000) 5.0
Outstanding at 30 June 16,913,336 24.96 17,460,000 25.29
The weighted average remaining contractual life of share options outstanding as at 30 June 2008 is 3.4 years. At 30 June 2008 
8,113,335 of the total number of share options outstanding could be exercised and these options had a weighted average exercise of 
28.5 pence.
The weighted average fair value of options granted during the year was six pence. The range of exercise prices for options outstanding 
at the end of the year was between 16.25 pence and 53.75 pence. 
The fair value of equity-settled share options granted is estimated as at the date of grant using a Black-Scholes option pricing model, 
taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used 
for the years ended 30 June 2008 and 30 June 2007.
2008 2007
Dividend yield (%) – –
Expected share price volatility (%) 60 60–65
Risk-free interest rate (%) 4.5 4.5
Expected life of option (years) 2 2
The expected life of the options is based on management’ s assumption of behavioural patterns and is not necessarily indicative of 
exercise patterns that may occur.
Due to the very short trading history of EnCore Oil plc, the expected volatility was determined by calculating the volatility of the Group 
since the acquisition and a sample of AIM listed oil and gas companies with a similar market capitalisation and operational risks to the 
Group, but a longer trading history. The actual rate used was an approximation to the average of these results. 
No other features of options grant were incorporated into the measurement of fair value.
Third party share options
In April 2005 the Company issued 200,000 share options to a third party company as compensation for professional services received. 
The share options have an exercise price of 23.5 pence. The fair value of the services received was £26,200. The share options expire in 
April 2010.
The expense recognised during the year to 30 June 2007 in respect of share based payments to third parties is £6,549 (30 June 2007 
£8,734).
Notes to the Group Financial Statements continued EnCore Oil plc Annual Report 2008 39
4. Auditors’ remuneration
2008 
£
2007 
£
Fees payable to the Company’ s auditor for the audit 
of the Company and consolidated financial statements 33,750 27,000
Fees payable to the Company’ s auditor for other services
–  audit of Company’ s subsidiaries pursuant to legislation 11,250 9,000
–  interim review 12,000 8,500
–  transaction services 27,000 –
T otal auditors’ remuneration 84,000 44,500
The auditors’ remuneration is shown net of VAT .
5. Impairment write down – exploration costs
2008
£
2007
£
Exploration costs 988,095 1,126,307
T otal impairment write down – exploration costs 988,095 1,126,307
The amounts written off during the year principally relates to the costs accumulated on licences/blocks that have or are to be 
relinquished. All costs relate to UK Onshore and Offshore interests.
6. Finance income
2008
£
2007
£
Bank interest receivable 893,002 926,076
T otal finance income 893,002 926,076
7. Finance costs
2008
£
2007
£
Bank charges 3,299 2,714
T otal finance costs 3,299 2,714
8. T axation
The Group has a Nil tax charge in the year. In the year to 30 June 2007 the Group had current tax credit of £4,154 being a refund in 
respect of prior year corporation tax. The loss per the income statement can be reconciled to the overall tax charge as follows:
2008
£
2007
£
Pre-tax loss (2,410,486) (1,685,026)
T ax at the UK corporate tax rate of 28% (2007: 30%) (674,937) (505,508)
T ax effect of items which are not deductible/chargeable for tax 166,099 46,463
Excess of potential capital allowances over depreciation (3,702,495) (1,828,501)
Increase in UK tax losses not recognised 4,211,333 2,287,134
Difference between UK and overseas tax rates – 412
Adjustments relating to prior periods – (4,154)
T ax charge/(credit) – (4,154)
At the balance sheet date the group has a potential deferred tax asset of approximately £7.5m (30 June 2007: £3.5 million) in respect 
of non-capital tax losses that will be available when the group’ s upstream assets are developed. This asset is not recognised at 30 June 
2008 as there is currently insufficient evidence of future taxable profits. 40 EnCore Oil plc Annual Report 2008
9. Loss per ordinary share
Basic loss per share amounts are calculated by dividing net loss for the period by the weighted average number of ordinary shares 
outstanding during the period.
Diluted loss per share amounts are calculated by dividing the net loss for the period by the weighted average number of ordinary shares 
outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the 
dilutive potential ordinary shares into ordinary shares. 
The following reflects the income and share data used in the basic and diluted earnings per share computations:
2008
£
2007
£
Loss for the year 2,410,486 1,680,872
2008
£
2007
£
Basic weighted average number of shares 289,769,310 237,041,815
Dilutive potential ordinary shares:
Share options and warrants 16,963,144 12,120,219
Diluted weighted average number of shares 306,732,454 249,162,034
As there is a loss for the year, there is no difference between the basic and diluted earnings per share.
10. Intangible assets – exploration and evaluation fixed assets
UK Onshore
£
UK Offshore
£
Other
£
T otal
£
Cost:
At 1 July 2006 7,116,118 1,701,646 88,627 8,906,391
Additions 143,233 2,189,719 4,041,870 6,374,822
Acquisitions – 11,265,467 – 11,265,467
Acquisitions – fair value adjustment
Disposal – (948,151) – (948,151)
Currency translation adjustments (115,970) (164,383) – (280,353)
At 30 June 2007 7,143,381 14,044,298 4,130,497 25,318,176
Additions   188,329 9,739,837 4,951,418 14,879,584
Currency translation adjustments 6,531 5,054 116,920 128,505
At 30 June 2008 7,338,241 23,789,189 9,198,835 40,326,265
Accumulated amortisation:
At 1 July 2006
Impairment write down – 1,126,307 – 1,126,307
At 30 June 2007 – 1,126,307 – 1,126,307
Impairment write down 30,800 957,295 – 988,095
Currency translation adjustments – 7,323 – 7,323
At 30 June 2008 30,800 2,090,925 – 2,121,725
Net book value at 30 June 2008 7,307,440 21,698,265 9,198,835 38,204,540
Net book value at 30 June 2007 7,143,381 12,917,991 4,130,497 24,191,869
The amounts for intangible exploration and evaluation assets represent active exploration projects. These amounts will be written off to 
the Income Statement as exploration costs unless commercial reserves are established or the determination process is not completed 
and there are no indications of impairment. The outcome of ongoing exploration, and therefore whether the carrying value of Exploration 
and Evaluation assets will ultimately be recovered, is inherently uncertain.
Exploration costs impaired principally comprised costs associated with UK North Sea licences where the licence has or will be 
relinquished. 
Notes to the Group Financial Statements continued EnCore Oil plc Annual Report 2008 41
11. Property, plant and equipment
Leasehold
improvements
£
 
Vehicles
£
Fixtures and
equipment
£
Computer
hardware and
software 
£
T otal
£
Cost:
At 1 July 2006 14,908 – 5,486 26,555 46,949
Additions – – – 3,589 3,589
At 30 June 2007 14,908 – 5,486 30,144 50,538
Additions   – 62,537 – – 62,537
Disposals – (2,999) – – (2,999)
At 30 June 2008 14,908 59,538 5,486 30,144 110,076
Accumulated depreciation:
At 1 July 2006 1,774 – 433 5,749 7,956
Depreciation charge for the year 5,105 – 1,978 9,574 16,657
At 30 June 2007 6,879 – 2,411 15,323 24,613
Depreciation charge for the year 5,119 12,114 1,834 10,075 29,142
Disposals – (919) – – (919)
At 30 June 2008 11,998 11,195 4,245 25,398 52,836
Net book value at 30 June 2008 2,910 48,343 1,241 4,746 57,240
Net book value at 30 June 2007 8,029 – 3,075 14,821 25,925
12. Investments
2008
£
2007
£
Unlisted investments
Oil Barrel.com 50,000 50,000
50,000 50,000
The Group holds 50,000 preference shares in Oil Barrel.com. Oil Barrel.com is a private company.
13. Other receivables
2008
£
2007
£
Prepayments 83,196 91,609
Amounts owed from joint venture partners 2,990,399 125,789
Sundry 299,557 92,675
Disposal proceeds due – 948,151
VAT recoverable 91,211 61,482
3,464,363 1,319,706
Amounts owed from joint venture partners includes approximately £1.5 million due from our joint venture partners on the Cobra 48/2-c5 
well which completed drilling in late May 2008. This amount will be cash called from partners in time to meet third party drilling costs as 
they become due. Disposal proceeds due at 30 June 2007 were £948,151 on the sale of North Sea block 21/30 to Perenco. 42 EnCore Oil plc Annual Report 2008
14. Cash and cash equivalents
2008
£
2007
£
Cash at bank and in hand 14,526,541 17,967,096
Cash at bank earns interest at floating rates based on daily bank deposit rates and fixed interest through the limited use of short term 
deposits. 
At 30 June 2008, the Group did not have any committed borrowing facilities.
At 30 June 2008 cash was held with the following financial institutions:
 
 2008
£
Royal Bank of Scotland 6,390,044
Anglo Irish Bank 8,121,666
Fortis Bank 14,284
Petty cash 547
14,526,541
Interest rate and currency risk
The interest rate and currency profile of the Group’ s financial assets and liabilities at 30 June 2008 and 30 June 2007 was as follows:
Sterling
£
Euro
£
US Dollar
£
T otal
£
At 30 June 2008
Cash at bank at floating interest rate 6,227,242 14,868 162,218 6,404,328
Cash on deposit at fixed rate interest 8,121,666 – – 8,121,666
Petty cash 477 – 70 547
14,349,385 14,868 162,288 14,526,541
At 30 June 2007
Cash at bank at floating interest rate 13,976,268 – 3,931,675 17,907,943
Cash at bank at which no interest is received 58,230 581 – 58,811
Petty cash 273 – 69 342
14,034,771 581 3,931,744 17,967,096
Restricted cash
2008
£
2007
£
Cash held in escrow 2,165,748 1,630,361
Cash deposited as security against a Standby Letter of Credit 2,088,265 –
4,254,013 1,630,361
At 30 June 2008 an amount of £1,672,248 was held in an escrow account established under arrangements between Sterling 
Resources (UK) Limited and Applied Drilling T echnology International (ADTI), relating to part of the Company’ s share of the costs of the 
Bowstring East (also known as ‘Cladhan’) well on Block 210/29a. This well is due to be drilled during the fourth quarter of 2008. As at  
30 June 2008, none of the funds in the escrow account had been drawn down.
At 30 June 2008 an amount of £493,500 was held in an escrow account established under arrangements between Sterling Resources 
(UK) Limited and ADTI relating to the Company’ s share of the costs of the Breagh East well on UK North Sea block 42/13 which 
commenced drilling in August 2008. As at 30 June 2008, none of the funds in the escrow account had been drawn down.
At 30 June 2008 an amount of £2,088,265 was deposited with The Royal Bank of Scotland as security for a Short T erm Letter of Credit 
issued to GlobalSantaFe Drilling in connection with the turnkey drilling contract for the UK Offshore Cobra well on Blocks 48/1b and 
48/2c. Following completion of the drilling activities in July 2008 the Short T erm Letter of Credit expired and the funds together with 
accumulated interest were returned to EnCore.
At June 2007, an amount of £1,630,361 was deposited into an escrow account established under arrangements between Sterling 
Resources (UK) Limited and AGR Peak Well Management Limited, relating to part of its share of the costs of the Breagh well on Block 
42/13. This well was drilled during the third quarter of 2007.
Notes to the Group Financial Statements continued
42 EnCore Oil plc Annual Report 2008 Annual Report 2008 EnCore Oil plc 43
15. Current liabilities
2008
£
2007
£
Trade payables 1,746,550 224,037
PAYE and Social Security 242,001 44,166
Accruals 3,689,379 781,554
Pension contributions 23,820 13,698
Amounts due to joint venture partners 16,015 99,257
Other 46,892 23,895
5,764,657 1,186,607
At 30 June 2008 accruals included an amount of £3,565,211 (2007: £687,330) of which approximately £2 million related to gross 
liabilities on the recently completed Cobra well and the balance to drilling activities underway at the year end.
16. Provisions
£
Decommissioning provision at 30 June 2007 736,275
Movement 238,725
Decommissioning provision at 30 June 2008 975,000
At 30 June 2008 provision has been made for decommissioning costs relating to one UK North Sea interest. The provision has been 
based on an external estimate. Assumptions, based on the current economic environment, have been made which management 
believe are a reasonable basis upon which to estimate the future liability. This estimate will be reviewed regularly to take into account any 
material changes to assumptions. However, the actual decommissioning cost will ultimately depend upon future market prices for the 
necessary decommissioning works required which will reflect market conditions at the relevant time. Furthermore, actual costs will also 
reflect the extent of decommissioning work required to be performed and whether the decommissioning works can be performed as 
part of a multi well programme or in isolation.
17. Deferred taxation
2008
£
2007
£
Deferred taxation 3,591,511 3,590,472
The entire deferred taxation balance at 30 June 2008 and 2007 arose on the fair value adjustments to intangible oil and gas assets 
resulting from acquisitions in the year to 30 June 2007 and the period to 30 June 2006.
18. Obligations under leases
The Group has entered into a commercial lease on its head office property in London. This lease expires in January 2009. 
During the period to 30 June 2008 payments under commercial property leases amounted to £49,050 (30 June 2007 £49,050).
Annual rentals payable under the non-cancellable operating lease are as follows:
2008
£
2007
£
Lease payments on leases ending not later than one year 28,613 49,050
Lease payments on leases ending after one year but not more than five years – 28,613
EnCore Oil plc Annual Report 2008 43 44 EnCore Oil plc Annual Report 2008
19. Equity structure
No. £
Authorised – ordinary shares of 5 pence each  500,000,000 25,000,000
Ordinary shares
Allotted, called up and fully paid
At 1 July 2006 204,885,286 11,319,409
Issued for acquisition 37,000,000 1,850,000
Issued for cash 29,166,666 1,458,333
Issued on exercise of share options 100,000 5,000
At 30 June 2007 271,151,952 14,632,742
Issued for cash 34,722,223 1,736,111
Issued on exercise of share options 1,486,664 74,333
At 30 June 2008 307,360,839 16,443,186
On 17 December 2007 100,000 ordinary 5 pence shares were issued at 5 pence per share as a result of the exercise of options by a 
former Director of the Company.
On 18 December 2007 34,722,223 ordinary shares of 5 pence each were issued at a price of 36 pence per share by way of a placing. 
The placing raised approximately £12.5 million (before expenses).
On 4 January 2008 200,000 ordinary 5 pence shares were issued at 23.5 pence per share as a result of the exercise of options by a 
former Director of the Company.
On 20 May 2008 853,332 ordinary 5 pence shares were issued at 34 pence per share and 333,332 ordinary 5 pence shares were 
issued at 17 pence per share as a result of the exercise of options by current staff.
Contingent rights to the allotment of shares
(a) Share options
The Company has granted share options to subscribe for 5 pence ordinary shares as follows.
Period exercisable
 
Exercise price per
share (pence)
Number of 
options
unexercised
20 April 2000 to 19 April 2009 31.25p 100,000
21 May 2003 to 20 May 2010 53.75p 500,000
13 April 2005 to 12 April 2015 23.5p 400,000
3 March 2006 to 2 March 2011 34p 6,126,668
12 June 2005 to 11 June 2011 22.75p 640,000
14 March 2007 to 13 March 2012 17.0p 7,766,668
29 June 2007 to 28 June 2012 19p 640,000
13 August 2007 to 12 August 2012 17p 640,000
30 September 2007 to 29 September 2012 16.25p 300,000
17,113,336
20. Post balance sheet events
UK Offshore Block 43/15a Esmond well
On 7 July 2008 it was announced that Star Energy, the operator of block 43/15a, had contracted the Energy Enhancer jack up rig 
owned by Northern Offshore Limited to drill the well on the Esmond field located on UK North Sea Block 43/13a. The pressure test well 
is now expected to commence in September 2008.
UK Offshore Block 47/9c Barbarossa testing result
On 15 July 2008 it was announced that the Barbarossa gas appraisal well 47/9c-11x had been successfully drilled and completed. The 
horizontal well tested gas at a maximum rate of 40 million standard cubic feet per day through a 96/64” choke. The gas was produced 
from the Rotliegend reservoir between 10,300 feet and 15,600 feet measured depth below rotary table.
The well, operated by Venture Production plc, has been completed as the field production well on the Barbarossa discovery. The 
partners plan that the Barbarossa discovery will be developed as a single well sub-sea tieback jointly with the nearby Channon discovery 
with first gas planned for 2009.
Notes to the Group Financial Statements continued EnCore Oil plc Annual Report 2008 45
20. Post balance sheet events continued
UK Offshore Block 42/13 East Breagh well
On 18 August 2008 it was announced that the Ensco 70 jack-up rig commenced drilling operations on the East Breagh appraisal well 
on Southern North Sea block 42/13.
Sale of EnCore Oil Nederlands B.V .
On 3 September 2008 it was announced that the Company had agreed and completed the sale of its wholly owned subsidiary 
EnCore Oil Nederland B.V ., whose only asset is a 10 per cent. interest in the Amstel field offshore the Netherlands for consideration of 
US$5.5 million paid in cash. This was immediately converted into Sterling realising approximately £3.1 million. The net assets of EnCore 
Nederland B.V . at the date of sale was approximately £1.9 million giving rise to a gain on sale of approximately £1.2 million before 
associated costs. The 10 per cent. interest in the Amstel field is encumbered by royalties payable to the previous operator and to others. 
The purchaser is TAQA Energy B.V .
21. Related party transactions
The transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. 
The remuneration of the Directors, who are the key management personnel of the Group, is set out in the Remuneration Report on page 
25 of these accounts.
22. Commitments and contingent liabilities
2008
£
2007
£
Oil and gas expenditure:
Intangible exploration and evaluation assets 9,155,949 4,868,963
Contracted for 9,155,949 4,868,963
The above capital commitments represent EnCore’ s share of obligations in relation to its interests in joint ventures based on current 
licence interest levels. These commitments are likely to be reduced by further farm out activity. The amount committed at 30 June 2008 
represents sums due to drill two wells on UK North Sea Block 42/13 as part of the Breagh appraisal project and one well on UK North 
Sea Block 210/29a Bowstring East (also known as ‘Cladhan’) together with anticipated development spend on UK North Sea Block 
47/9c Barbarossa. The restricted cash balance at 30 June 2008 of £4,254,013 represents a partial prepayment of these commitments 
and will be drawn down as the expenditure is incurred.
23. Financial instruments
(a) Fair values
Set out below is a comparison by category of carrying amounts and fair values of all the Group’ s financial instruments:
Carrying values Fair values
2008
£
2007
£
2008
£
2007
£
Financial assets
Cash and cash equivalents 14,526,541 17,967,096 14,526,541 17,967,096
Restricted cash 4,254,013 1,630,361 4,254,013 1,630,361
Unlisted investments 50,000 50,000 50,000 50,000
Prepayments 83,196 91,609 83,196 91,609
Amounts owed from joint venture partners 2,990,399 125,789 2,990,399 125,789
Sundry 299,557 92,675 299,557 92,675
Disposal proceeds due – 948,151 – 948,151
VAT recoverable 91,211 61,482 91,211 61,482
22,294,917 20,967,163 22,294,917 20,967,163
Financial liabilities
Trade payables 1,746,550 224,037 1,746,550 224,037
PAYE and Social Security 242,001 44,166 242,001 44,166
Accruals 3,689,379 781,554 3,689,379 781,554
Pension contributions 23,820 13,698 23,820 13,698
Amounts due to joint venture partners 16,015 99,257 16,015 99,257
Other 46,892 23,895 46,892 23,895
5,764,657 1,186,607 5,764,657 1,186,607 46 EnCore Oil plc Annual Report 2008
Notes to the Group Financial Statements continued
23. Financial instruments continued
(b) Foreign currency risk
A portion of the Company’ s assets, liabilities, expenses and commitments are located overseas and therefore denominated in foreign 
currencies. However, these assets are not seen to represent a significant portion of any of these categories. As such the Company is  
not currently materially exposed to the risk of fluctuating exchange rates. At 30 June 2008 the Group held immaterial amounts of cash  
in US Dollars which represented a significant change of position from the prior year end.
Carrying Amount
Foreign exchange rate risk –  
profit impact
£
-10%
£
+10%
£
Financial assets
Cash and cash equivalents 14,526,541 17,717 (16,110)
Amounts owed from joint venture partners 2,990,399 13,261 (12,059)
Financial liabilities
Accounts payable 1,746,550 (6,600) 6,002
T otal increase/(decrease) 24,378 (22,167)
(c) Credit risk
Portions of the Company’ s accounts receivable are with joint venture partners in the oil and gas industry and are subject to normal 
industry credit risks.
(d) Interest rate risk
The Company is exposed to interest rate risk to the extent that changes in market interest rates impact the Company’ s cash and cash 
equivalents that have a floating interest rate. The Company had no interest rate swaps or hedges at 30 June 2008.
Carrying Amount Interest rate risk
£ -1% +1%
Cash and cash equivalents 14,526,541 (145,260) 145,260
Assumes current short term deposit has expired and funds have been reinvested at floating rate. EnCore Oil plc Annual Report 2008 47
As at 30 June 2008 Note
2008
£
2007
£
Fixed assets
Intangible exploration and evaluation assets 4 196,194 1,091,297
Property, plant and equipment 5 57,240 25,925
Investments 3 17,285,230 17,272,413
17,538,664 18,389,635
Current assets
Other receivables 6 26,442,171 11,658,498
Restricted cash 2,088,265 –
Cash at bank and in hand 7 14,430,304 17,783,792
42,960,740 29,442,290
Current liabilities
Trade and other payables 8 2,199,442 372,597
Net current assets 40,761,298 29,069,693
Net assets 58,299,962 47,459,328
Capital and reserves
Called up share capital 9 15,368,041 13,557,597
Share premium 9 45,155,131 34,572,339
Profit and loss reserve 9 (2,223,210) (670,608)
Equity shareholders’ funds 58,299,962 47,459,328
Approved and authorised for issue by the Board on 15 September 2008, and signed on its behalf:
Alan Booth     Eugene Whyms 
Chief Executive Officer    Chief Financial Officer
Company Balance Sheet 48 EnCore Oil plc Annual Report 2008
Accounting policies
Basis of preparation
The financial statements of the parent Company have been prepared under the historical cost convention in accordance with the 
Companies Act 1985 and UK Generally Accepted Accounting Principals (UK GAAP). The following paragraphs describe the main 
accounting policies under UK GAAP , which have been applied consistently.
In accordance with the provisions of Section 230 of the Companies Act the Profit and Loss Account and Cash Flow Statement of the 
Company is not presented separately. 
Expenditure on the discovery, appraisal, development and utilisation of oil and gas reserves
The Company accounts for oil and gas expenditure under the successful efforts method of accounting.
Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the Income Statement.
All licence acquisition, exploration and evaluation costs are initially capitalised in cost centres by well, field or exploration area, as 
appropriate. Directly attributable administration costs are capitalised insofar as they relate to specific exploration and development 
activities.
These costs are written off unless commercial reserves have been established or the determination process has not been completed 
and there are no indications of impairment. 
If a project is deemed commercial all of the attributable costs are transferred into a single field cost centre within property, plant and 
equipment. These costs are then amortised from the commencement of production on a unit of production basis.
Property, plant and equipment – excluding development and producing assets
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. 
Depreciation is provided on all property, plant and equipment categories at rates calculated to write off the cost, less estimated residual 
value based on prices prevailing at the balance sheet date, of each asset evenly over its three year expected useful life.
  
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the 
carrying value may not be recoverable.
Investments
Fixed asset investments, including investments in subsidiaries, are stated at cost and reviewed for impairment if there are indications that 
the carrying value may not be recoverable.
Foreign currencies
Sterling is the reporting currency of the Company. Transactions in foreign currency are translated at rates of exchange ruling at the 
transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange 
ruling at the balance sheet date, with a corresponding charge or credit to the profit and loss account.
Share issue expenses and share premium account
Costs of share issues are written off against the premium arising on the issues of share capital.
Share based payments
The Company has applied the requirements of FRS 20 Share Based Payments. In accordance with the transitional provisions of that 
standard, only those awards that were granted after 7 November 2002, and had not vested at 1 July 2005, are included.
All share-based awards of the Company are equity settled as defined by FRS 20. The fair value of these awards has been determined at 
the date of grant of the award. This fair value, adjusted by the Company’ s estimate of the number of awards that will eventually vest as a 
result of non-market conditions, is expensed uniformly over the vesting period.
The fair values were calculated using an appropriate option pricing model with suitable modifications to allow for employee turnover after 
vesting and early exercise. The inputs to the model include: the share price at date of grant; exercise price; expected volatility; expected 
dividends; risk free rate of interest; and patterns of exercise of the plan participants. 
Notes to the Company Financial Statements EnCore Oil plc Annual Report 2008 49
1. All employee share-option plan
The all employee share option plan is a grant of share options to all eligible employees on appointment and periodically thereafter. 
The share options are issued at market price on the grant date. The share options vest in equal amounts on the first, second and third 
anniversaries after the grant date and must be exercised within five years of the grant date or forfeited.
The expense recognised for share-based payments in respect of employee services received during the year to 30 June 2008 is 
£540,896 (2007: £398,202). At 30 June 2008 a provision of £184,323 (2007: £1,708) was made for employer social security costs  
that would arise on the exercise of the options. 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during  
the period.
2008
No.
2008
WAEP
2007
No.
2007
WAEP
Outstanding at start of year 17,460,000 25.29 8,820,000 33.14
Granted during the year 940,000 16.76 8,740,000 17.15
Exercised/lapsed during the year (1,486,664) 22.17 (100,000) 5.0
Outstanding at 30 June 16,913,336 24.96 17,460,000 25.29
Share options outstanding as at 30 June 2008 had a weighted average remaining contractual life of 3.4 years. 
The weighted average fair value of options granted during the year was six pence. The range of exercise prices for options outstanding 
at the end of the year was 16.25 pence to 53.75 pence. 
The fair value of equity-settled share options granted is estimated as at the date of grant using a Black-Scholes option pricing model, 
taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used 
for the years ended 30 June 2008 and 30 June 2007.
2008 2007
Dividend yield (%) – –
Expected share price volatility (%) 60 60 – 65
Risk-free interest rate (%) 4.5 4.5
Expected life of option (years) 2 2
The expected life of the options is based on management’ s assumption of behavioural patterns and is not necessarily indicative of 
exercise patterns that may occur.
Due to the very short trading history of EnCore Oil plc, the expected volatility for shares issued post acquisition was determined by 
calculating the volatility of the Group since the acquisition and a sample of AIM listed oil and gas companies with a similar market 
capitalisation and operational risks to the Group, but a longer trading history. The actual rate used was an approximation to the average 
of these results.
No other features of options grant were incorporated into the measurement of fair value.
Third party share options
In April 2005 200,000 share options were issued to a third party company as compensation for professional services received. The  
share options have an exercise price of 23.5 pence. The fair value of the services received was £26,200. The share options expire in  
April 2010.
The expense recognised during the year to 30 June 2008 in respect of share based payments to third parties is £6,549 (2006: £8,734).
2. Directors remuneration
Details of remuneration of the Directors of EnCore Oil plc are provided in the Directors’ Remuneration Report.
3. Investments
2008
£
2007
£
Shares in group undertakings (at cost) 17,235,230 17,222,413
Unlisted – non Group
Oilbarrel.com 50,000 50,000
17,285,230 17,272,413 50 EnCore Oil plc Annual Report 2008
3. Investments continued
Shares in Group undertakings
A list of significant investments in subsidiaries is given below:
Name  % Country of operation Country of registration
EnCore Exploration Limited 100 UK England & Wales
EnCore Natural Resources Limited 100 Western Sahara England & Wales
EnCore Petroleum Limited 100 UK England & Wales
EnCore North Sea Limited 100 UK England & Wales
EnCore Oil and Gas Limited 100 UK England & Wales
EnCore (E&P) Limited 100 France England & Wales
EnCore (SNS) Limited 100 UK England & Wales
EnCore (NNS) Limited 100 UK England & Wales
EnCore (VOG) Limited 100 UK England & Wales
EnCore Gas Storage Limited 100 UK England & Wales
EnCore Exploration Limited 100 Ireland Ireland
EnCore Nederland B.V . 100 The Netherlands The Netherlands
EnCore CCS Limited 100 UK England & Wales
The principal activity of all companies, other than EnCore Oil and Gas Limited which is dormant, is oil and gas exploration and evaluation and associated activities.
EnCore Nederland B.V . was sold in September 2008, for further details see note 20 to the Group financial statements.
4. Intangible assets – exploration and evaluation costs
UK Onshore
£
UK Offshore
£
Other
£
T otal
£
Cost:
At 1 July 2006 988,178 – 84,764 1,072,942
Additions 99,194 3,925 – 103,119
At 30 June 2007 1,087,372 3,925 84,764 1,176,061
Additions 97,350 2,121 – 99,471
At 30 June 2008 1,184,722 6,046 84,764 1,275,532
Accumulated amortisation:
At 1 July 2006 – – 84,764 84,764
Impairment – – – –
At 30 June 2007 – – 84,764 84,764
Impairment 988,528 6,046 – 994,574
At 30 June 2008 988,528 6,046 84,764 1,079,338
Net book value at 30 June 2008 196,194 – – 196,194
Net book value at 30 June 2007 1,087,372 3,925 – 1,091,297
Notes to the Company Financial Statements continued EnCore Oil plc Annual Report 2008 51
5. Property, plant and equipment
Leasehold
Improvements
£
Fixtures and
equipment
£
Computer
hardware
and software
£
Vehicles
£
T otal
£
Cost:
At 1 July 2006 14,110 40,945 22,316 – 77,371
Additions – – 3,589 – 3,589
At 30 June 2007 14,110 40,945 25,905 – 80,960
Additions – – – 62,537 62,537
Disposals – – – (2,999) (2,999)
At 30 June 2008 14,110 40,945 25,905 59,538 140,498
Accumulated depreciation:
At 1 July 2006 976 35,892 1,510 – 38,378
Depreciation charge for the year 5,105 1,978 9,574 – 16,657
At 30 June 2007 6,081 37,870 11,084 – 55,035
Depreciation charge for the year 5,119 1,834 10,075 12,114 29,142
Disposals – – – (919) (919)
At 30 June 2008 11,200 39,704 21,159 11,195 83,258
Net book value at 30 June 2008 2,910 1,241 4,746 48,343 57,240
Net book value at 30 June 2007 8,029 3,075 14,821 – 25,925
6. Other receivables
2008
£
2007
£
Other current receivables 295,160 80,241
Prepayments 83,196 91,608
Amounts owed by joint venture partners 232,312 –
Amounts owed by Group undertakings 25,737,594 11,430,041
VAT Recoverable 93,909 56,608
26,442,171 11,658,498
7. Cash and cash equivalents
2008
£
2007
£
Cash at bank and in hand 14,430,304 17,783,792
Interest rate and currency risk
The interest rate profile of the Company’ s financial assets and liabilities at 30 June 2007 was as follows:
At 30 June 2008
Sterling
£
US Dollars
£
Euro
£
T otal
£
Cash at Bank at Floating Interest Rate 6,154,134 153,373 584 6,308,091
Cash at Bank at Fixed Rate Interest 8,121,666 – – 8,121,666
Petty cash 477 70 – 547
14,276,277 153,443 584 14,430,304
At 30 June 2007
Sterling
£
US Dollars
£
Euro
£
T otal
£
Cash at Bank at Floating Interest Rate 13,966,698 3,815,888 – 17,782,586
Cash at Bank at which no Interest is Received 282 – 581 863
Petty cash 343 – – 343
13,967,323 3,815,888 581 17,783,792 52 EnCore Oil plc Annual Report 2008
8. Current liabilities
2008
£
2007
£
Trade payables 1,746,550 102,190
PAYE and Social Security 242,001 44,166
Accruals 124,168 94,224
Pension contributions 23,820 13,698
Amounts due to joint venture partners 16,015 99,257
Other 46,888 19,062
2,199,442 372,597
9. Reconciliation of movements in equity
Equity share
capital
£
Share
premium
£
Retained
earnings
£
T otal equity
£
At 1 July 2006 10,244,264 22,773,771 (538,694) 32,479,341
Issued for acquisition 1,850,000 6,567,500 – 8,417,500
Issued for cash 1,458,333 5,541,667 – 7,000,000
Expenses – (310,599) – (310,599)
New shares issued in respect of employee share options 5,000 – – 5,000
Loss for the year – – (538,850) (538,850)
Shared based payments – – 406,936 406,936
At 30 June 2007 13,557,597 34,572,339 (670,608) 47,459,328
Issued for cash 1,736,111 10,763,889 – 12,500,000
Expenses – (505,563) – (505,563)
Issued on exercise of share options 74,333 324,466 – 398,799
Loss for the year – – (2,100,047) (2,100,047)
Shared based payments – – 547,445 547,445
At 30 June 2008 15,368,041 45,155,131 (2,223,210) 58,299,962
For further information on movements in equity see note 19 to the Group financial statements.
10. Related party transactions
The Company provides services to other companies that make up the EnCore Oil Group. Under the terms of management agreements 
that exist between the Company and each of its subsidiaries, the Company is entitled to charge those companies for services it 
provides.
The Company is exempt under the terms of FRS 8 from disclosing related party transactions with entities that are part of the EnCore 
Group.
Notes to the Company Financial Statements continued EnCore Oil plc Annual Report 2008 53
EnCore Oil plc
Notice is hereby given that the Annual General Meeting of EnCore Oil plc (the ‘Company’) will be held at the T ower Room, IoD hub,  
New Broad Street House, 35 New Broad Street, London, EC2M 1NH on 21 November 2008 at 2.00 p.m. (or any adjournment thereof) 
for the following purposes:
Ordinary business
T o consider, and if thought fit, to pass the following resolutions, which will be proposed as ordinary resolutions:
1.  T o receive and adopt the Company’ s audited accounts for the financial year ended 30 June 2008 together with the last Directors’ 
Report and Auditors’ Report on those accounts and the auditable part of the Remuneration Report.
2. T o approve the Directors’ Remuneration Report for the financial year ended 30 June 2008.
3. T o re-appoint Mr. Alan Booth who has been appointed since the 2006 Annual General Meeting on 24 November 2006.
4. T o re-appoint Mr. Eugene Whyms who has been appointed since the 2006 Annual General Meeting on 24 November 2006.
5.  T o re-appoint PKF (UK) LLP as the Company’ s auditors to hold office from the conclusion of this meeting until the conclusion of the 
next general meeting of the Company at which audited accounts are laid and to authorise the Directors to fix their remuneration.
Special business
T o consider and, if thought fit, pass the following resolution 6 which will be proposed as a special resolution:
6. That:
 a)  in substitution for all existing authorities under section 80 of the Companies Act 1985 (the ‘Act’) (without prejudice to the allotment 
of any relevant securities already made or to be made pursuant to such authorities), the Directors be and they are hereby 
generally and unconditionally authorised for the purposes of Section 80 of the Act to exercise all the power of the Company 
to allot relevant securities (within the meaning of that Section) up to an aggregate nominal amount of £5,122,680.65, to such 
persons at such times and upon such conditions as the Directors may determine (subject to the Articles of Association of the 
Company) representing one third in nominal value of the ordinary share capital of the Company in issue and provided that this 
authority shall commence on the date of passing of this resolution and expire at the conclusion of the Annual General Meeting 
of the Company to be held in 2009 save that the Directors may before such expiry make an offer or agreement which would or 
might require relevant securities to be allotted after such expiry and the Directors may allot relevant securities in pursuance of 
such offer or agreement as if this authority had not expired; and
 b)  b. the Directors be and they are hereby empowered pursuant to Section 95 of the Act to allot equity securities (as defined in 
Section 94(2) of the Act) pursuant to the general authority conferred by paragraph (a) of this resolution for cash as if the provisions 
of Section 89(1) of the Act did not apply to any such allotment, provided that such power shall be limited to £5,122,680.65, 
representing one third in nominal value of the ordinary share capital of the Company in issue and provided that such power 
shall after the passing of this resolution expire at the conclusion of the Annual General Meeting of the Company to be held in 
2009 except that the Directors may during that period make offers or agreements which would or might require the allotment of 
securities after the expiry of such period and the Directors may allot securities pursuant to such offers or agreements as if such 
authority had not expired.
References in this resolution to the Act, or to Sections of the Act, shall, where the context requires and where appropriate, include 
references to the Companies Act 2006 (the ‘2006 Act’) and any corresponding or similar Sections of that Act, it being the intention 
that, to the extent permitted by law, the authorities and powers contained in this resolution shall continue in full force and effect 
notwithstanding any repeal of the Act, or any relevant part thereof. 
7.  That with immediate effect, the Articles of Association produced to the Meeting and for the purpose of identification marked ‘A’ and 
signed by the Chairman of the Meeting, be adopted in substitution for and to the exclusion of the existing Articles of Association of 
the Company. 
 A copy of the Articles of Association marked to show the changes being proposed by resolution 7 will be on display at the Meeting. 
 
By order of the Board
Eugene Whyms
Secretary
15 September 2008
Notice of AGM 54 EnCore Oil plc Annual Report 2008
Registered office: Registrars:
62–64 Baker Street Capita Registrars Limited
London The Registry
W1U 7DF 34 Beckenham Road
  Beckenham
T el: +44 (0) 20 7224 4546 Kent
Fax: +44 (0) 20 7935 1224 BR3 4TU 
Registered number 3328217 
  Calls from within the UK: 0871 664 0300
  Please note that calls cost 10p per minute plus network extras.
  Calls from outside the UK: +44 20 8639 3399
 
 
Notes
1.  Although not required by the Company’ s Articles of Association, in keeping with best corporate governance practice of AIM-listed 
companies, the current Directors Mr. Alan Booth and Mr. Eugene Whyms will retire by rotation and will seek re-appointment to the 
board of Directors of the Company.
2.  Biographical details of the Directors and particulars of their service contracts with the Company are set out in the report and 
accounts.
3.  Resolution 6(a), which is an ordinary resolution, authorises the Directors to allot unissued shares up to an aggregate nominal value of 
£5,122,680.65. This authority expires at the conclusion of the 2009 Annual General Meeting.
4.  If the shares are to be allotted using the authority under Resolution 6(a) and are to be paid for in cash, Section 89(1) of the 
Companies Act 1985 requires that those shares are offered first to existing shareholders in proportion to the number of ordinary 
shares they each hold at the time. An offer of this kind is called a ‘rights issue’ and the entitlement to be offered the shares first is 
known as a ‘pre-emption right’.
5.  In certain circumstances however, it may be in the interests of the Company for the Directors to be able to allot some of the shares 
for cash other than by way of a rights issue. Resolution 6 (b), which is a special resolution, asks shareholders to waive their pre-
emption rights, but only for securities having a maximum aggregate nominal value of £5,122,680.65, which represents one third in 
nominal value of the ordinary share capital of the Company. This authority will expire on at the conclusion of the 2009 Annual General 
Meeting.
6.  It is proposed to adopt new Articles of Association (the ‘New Articles’) with immediate effect to update the Company’ s current 
Articles of Association (the ‘Current Articles’), primarily to take into account changes to English company law brought about by 
certain provisions of the 2006 Act which are being implemented in phases, certain provisions of which came into force on 1 October 
2007 and 1 October 2008. Revisions to the New Articles with effect on and from 1 October 2008 cater for changes being introduced 
by the 2006 Act relating to Director’ s conflicts of interest. Further related changes to the Articles of Association are likely to be 
proposed at a later Annual General Meeting.
7.  Following the introduction of the 2006 Act, the way in which we run the AGM will change this year. Shareholders are now permitted 
to appoint multiple proxies. A proxy form which may be used to make such appointment and give proxy instructions accompanies 
this notice. A proxy need not be a shareholder of the Company. It should be completed and returned as soon as possible. T o be 
valid, a completed proxy must be received by the Company’ s registrar, Capita Registrars Limited, The Registry, 34 Beckenham 
Road, Beckenham, Kent, BR3 4TU, at least 48 hours before the Annual General Meeting. Completion and return of the relevant 
proxy enclosed herewith will not prevent a shareholder from attending and voting in person.
8.  A holder of ordinary shares or their duly appointed representatives are entitled to attend, vote and speak at the Meeting. A member 
so entitled may appoint (a) prox(ies), who need not be (a) member(s), to attend, vote and speak on his/her behalf.
9.  A form of proxy is enclosed with this document, and members who wish to use it should see that it is deposited, duly completed, 
with the Company’ s registrar not less than 48 hours before the time fixed for the Meeting. Completion and posting of the form of 
proxy will not preclude shareholders from attending and voting in person at the AGM should they wish to do so.
10.  Members are entitled to appoint a proxy in respect of some or all of their shares. Members are also entitled to appoint more than one 
proxy. A space has been included on the form of proxy to allow members to specify the number of shares in respect of which that 
proxy has been appointed. Members who return the form of proxy duly executed but leave this space blank will be deemed to have 
appointed the proxy in respect of all of their shares.
11.  Any person receiving a copy of this Notice as a person nominated by a member to enjoy information rights under section 146 of 
the 2006 Act (a ‘Nominated Person’) should note that the provisions in Notes 8–10 above concerning the appointment of a proxy 
or proxies to attend the meeting in place of a member do not apply to a Nominated Person, as only shareholders have the right 
to appoint a proxy. However, a Nominated Person may have a right under an agreement between the Nominated Person and the 
member by whom he or she was nominated to be appointed, or to have someone else appointed, as a proxy for the meeting. If 
a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may have a right under such an 
agreement to give instructions to the member as to the exercise of voting rights at the meeting. Nominated Persons should also 
Notice of AGM continued EnCore Oil plc Annual Report 2008 55
remember that their main point of contact in terms of their investment in the Company remains the member who nominated the 
Nominated Person to enjoy information rights, or perhaps the custodian or broker who administers the investment on their behalf. 
Nominated Persons should continue to contact that member, custodian or broker (and not the Company) regarding any changes or 
queries relating to the Nominated Person’ s personal details and interest in the Company, including any administrative matter. The only 
exception to this is where the Company expressly requests a response from a Nominated Person.
12.  Members or those who do not have a form of proxy and believe that you should have one and wish to appoint more then one proxy 
and require additional forms should photocopy the form of proxy as required. 
13. Such members should also read the instructions contained in the notes on the form of proxy.
14.   In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that:
 a)  If a corporate shareholder has appointed the Chairman of the meeting as its corporate representative to vote on a poll in 
accordance with the directions of all of the other corporate representatives for that shareholder at the meeting, then on a poll 
those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as 
corporate representative in accordance with those directions; and
 b)  If more than one corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder 
has not appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be 
nominated from those corporate representatives who attend and who will vote on a poll, and the other corporate representatives 
will give voting directions to that designated corporate representative. Corporate shareholders are referred to the guidance 
issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (www.icsa.org.uk) 
for details of this procedure. The guidance includes a sample form of appointment letter if the Chairman is being appointed as 
described in (a) above.
15.  A vote ‘withheld’ option is provided on the form of proxy to enable you to instruct your proxy not to vote on any particular resolution. 
However, it should be noted that a vote withheld in this way is not a ‘vote’ in law and will not be counted in the calculation of the 
proportion of the votes ‘For’ and ‘Against’ a resolution.
16.  Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those shareholders 
registered in the register of members of the Company as at 6.00 p.m. on 19 November 2008 shall be entitled to attend or vote at the 
AGM in respect of the number of shares registered in their name at that time. Changes to entries on the relevant register of securities 
after 6.00 p.m. on 19 November 2008 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
17. Electronic proxy appointment through CREST :
  CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for 
the AGM and any adjournments thereof by using the procedures described in the CREST Manual. CREST Personal Members of 
other CREST sponsored members, and those CREST members who have appointed a voting service providers, should refer to their 
CREST sponsor or voting service providers, who will be able to take the appropriate action on their behalf.
18.  In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a 
‘CREST Proxy Instruction’) must be properly authenticated in accordance with Euroclear UK & Ireland Limited’ s specifications and 
must contain the information required for such instructions, as described in the CREST Manual. The message, regardless of whether 
it constitutes the appointment of a proxy or an amendment to the instruction given to a previously appointed proxy must, in order to 
be valid, be transmitted so as to be received by the issuer’ s agent (ID RA10) by the latest time(s) for receipt of proxy appointments 
specified in the notice of meeting. For this purpose, the time of receipt will be taken to be the time as determined by the timestamp 
applied to the message by the CREST Applications Host from which the issuer’ s agent is able to retrieve the message by enquiry to 
CREST in the manner prescribed by CREST . After this time any change of instructions to proxies appointed through CREST should 
be communicated to the appointee through other means. CREST members and, where applicable, their CREST sponsors or voting 
services providers should note that Euroclear UK & Ireland Limited’ s does not make available special procedures in CREST for any 
particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It 
is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored 
member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service providers take(s)) such 
action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this 
connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to 
those sections of the CREST Manual concerning practical limitations of the CREST system and timings.
19.  The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out In Regulation 35(5)(a) of the Uncertificated 
Securities Regulations 2001.
20.  If the Chairman, as a result of any proxy appointments, is given discretion as to how the votes the subject of those proxies are  
cast and the voting rights in respect of those discretionary proxies, when added to the interests in the Company’ s securities already 
held by the Chairman, result in the Chairman holding such number of voting rights that he has a notifiable obligation under the 
FSA’ s Disclosure and Transparency Rules, the Chairman will make the necessary notifications to the Company and the FSA. As 
a result, any member holding 3 per cent. or more of the voting rights in the Company who grants the Chairman a discretionary 
proxy in respect of some or all of those voting rights and so would otherwise have a notification obligation under the Disclosure and 
Transparency Rules, need not make a separate notification to the Company and the FSA. 56 EnCore Oil plc Annual Report 2008
Notice of AGM continued
21.  As at 15 September 2008, being the last practicable date prior to publication of this notice, the Company’ s issued share capital 
consists of 307,360,839 ordinary shares with a nominal value of 5 pence each with voting rights. The Company does not hold any 
ordinary shares in Treasury.
22. Documents on display:
  The following documents are available for inspection during normal business hours at the Company’ s registered office up to the date 
of the Annual General Meeting and will be available for inspection at the Annual General Meeting:
 a)  A copy of the Memorandum of Association and a copy of the proposed New Articles, together with a copy of the Current Articles 
marked to show the changes being proposed.
  EnCore Oil plc Annual Report 2008 57
Appraisal well 
A well drilled as part of an appraisal 
drilling programme which is carried out to 
determine the physical extent, reserves and 
likely production rate of a field. 
bbl 
One barrel of oil; 1 barrel = 35 Imperial 
gallons (approx.), or 159 litres (approx.); 
7.55 barrels = 1 tonne (approx.); 6.29 
barrels = 1 cubic metre. 
bcf 
Billion cubic feet; 1 bcf = 0.83 million tonnes 
of oil equivalent. 
BERR
Department of Business Enterprise & 
Regulatory Reform.
Block 
An areal subdivision of the UKCS of 10 
minutes of latitude by 12 minutes longitude 
measuring approximately 10 x 20 kms, 
forming part of a quadrant. Each quadrant 
is divided into a grid five Blocks wide and 
six deep, and numbered 1 to 30 from NW 
to SE. For example, Block 9/13 is the 13th 
block in Quadrant 9.
boe
Barrels of oil equivalent.
Capex 
Capital expenditure. 
Commercial field 
An oil and/or gas field judged to be capable 
of producing enough net income to make it 
worth developing. 
Development phase 
The phase in which a proven oil or gas 
field is brought into production by drilling 
production (development) wells. 
Discovery 
An exploration well which has encountered 
hydrocarbons. 
Drilling rig 
A drilling unit that is not permanently fixed 
to the seabed. For example, a drill-ship, 
a semi-submersible or a jack-up unit. 
Also means the derrick and its associated 
machinery. 
Dry hole 
A well which has proved to contain no 
hydrocarbons.
E&A 
Abbreviation for exploration and appraisal. 
E&P 
Abbreviation for exploration and production. 
Exploration drilling 
Drilling carried out to determine whether 
hydrocarbons are present in a particular 
area or structure. 
Exploration phase 
The phase of operations which covers 
the search for oil or gas by carrying out 
detailed geological and geophysical 
surveys followed up where appropriate by 
exploratory drilling. 
Exploration well 
A well in an unproven area or prospect, may 
also be known as a ‘wildcat well.’
Farm in/out 
An arrangement between one or more 
parties and the company or group holding 
a lease title to an exploration or production 
area whereby the former pays to earn an 
interest in the permit. Payment may be in 
cash or in the form of a work programme.
Field 
A geographical area under which an oil or 
gas reservoir lies. 
Fracturing 
A method of breaking down a formation by 
pumping fluid at very high pressures. The 
objective is to increase production rates of 
a reservoir. 
Gas field 
A field containing natural gas but no oil. 
Hydrocarbon 
A compound containing only the elements 
hydrogen and carbon. May exist as a 
solid, a liquid or a gas. The term is mainly 
used in a catch-all sense for oil, gas and 
condensate.
LNG
Liquefied Natural Gas; natural gas 
converted to liquid form by cooling to  
a very low temperature.
mmboe 
Million barrels of oil equivalent. 
mmcfd 
Millions of cubic feet per day (of gas). 
NNS
Northern North Sea.
OGIA 
Oil & Gas Independents Association – an 
association of approximately 30 independent 
oil companies active in the UKCS who 
share knowledge and experience of the 
UKCS business and regulatory climate and 
to press for changes where appropriate.
Oil 
A mixture of liquid hydrocarbons of different 
molecular weights. 
Oil & Gas UK 
A representative body with membership 
open to all companies active in the UK 
offshore oil and gas industry.
Oil field 
A geographic area under which an oil 
reservoir lies. 
Operator 
The company that has legal authority to 
drill wells and undertake production of any 
hydrocarbons found. The operator is often 
part of a consortium and acts on behalf of 
this consortium. 
PESGB
Petroleum Exploration Society of Great 
Britain.
PILOT 
 A joint programme involving the 
Government and the UK oil and gas 
industry operators, contractors, suppliers, 
trade unions and SME’ s aiming to secure 
the long-term future of the Industry in the 
UK.
Quadrant 
An areal subdivision of the UKCS of one 
degree of longitude by one degree of 
latitude – typically around 6600 sq km. 
On the UKCS each Quadrant is further 
subdivided into 30 Blocks. 
SNS
Southern North Sea. 
Suspended well 
A well that has been capped off temporarily.
UKCS 
 United Kingdom Continental Shelf. 
UKOOA
UK Offshore Operators Association.
Glossary 58 EnCore Oil plc Annual Report 2008
Directors
Michael T . Lynch Chairman
Alan Booth Chief Executive Officer
Eugene Whyms Chief Financial Officer
Graham Doré Exploration Director
Christine M.K. Wheeler OBE 
Non-Executive Director
Registered Office
62–64 Baker Street
London
W1U 7DF
United Kingdom
T el: +44 (0)20 7224 4546
Fax: +44 (0)20 7935 1224
info@encoreoil.co.uk
www.encoreoil.co.uk
Incorporated and registered in England  
and Wales under the Companies Act  
under registration number 3328217
Registrar
Capita Registrars 
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire 
HD8 0LA
United Kingdom 
Calls from within the UK:  
0871 664 0300
*  Please note that calls cost 10p per minute  
plus network extras.
Calls from outside the UK:  
+44 20 8639 3399
www.capitadeal.com 
Auditors
PKF (UK) LLP 
Farringdon Place
20 Farringdon Road
London 
EC1M 3AP
United Kingdom 
T el: +44 (0)20 7065 0000 
Fax: +44 (0)20 7065 0650
www.pkf.co.uk
Nominated Adviser and Broker
Hanson Westhouse Limited
One Angel Court
London 
EC2R 7HJ
United Kingdom
T el: +44 (0)20 7601 6100
Corporate Finance Fax: 
+44 (0)20 7796 2713
Sales/Dealing/Research Fax: 
+44 (0)20 7796 2476
www.hansonwesthouse.com
Joint Broker
KBC Peel Hunt
111 Old Broad Street
London 
EC2N 1PH
United Kingdom
T el: +44 (0)20 7418 8900
Main Fax: 
+44 (0)20 7417 4686
Corporate Finance Fax: 
+44 (0)20 7972 0112
www.kbcpeelhunt.com 
Legal Advisers
Dewey & LeBoeuf LLP
1 Minster Court
Mincing Lane 
London
EC3R 7YL 
United Kingdom 
T el: +44 (0)20 7459 5000 
Fax: +44 (0)20 7459 5099
www.deweyleboeuf.com 
Financial PR
Aquila Financial Limited
181 Union Street
London 
SE1 0LN
United Kingdom 
T el: +44 (0)118 979 4100
www.aquila-financial.com 
Directors, Officers and Advisers Designed and produced by
SampsonMay
Board photography by
Andy Wilson
Christine M.K. Wheeler OBE  
photographed by
Bill Robinson
Printed in England by
Colourhouse EnCore Oil plc
62–64 Baker Street 
London  W1U 7DF
United Kingdom
T elephone  
+44 (0)20 7224 4546
Fax  
+44 (0)20 7935 1224
Email  
info@encoreoil.co.uk
Registered No.  
3328217
www.encoreoil.co.uk