EnCore Oil plc
Report and Accounts 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 & 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 Notes to the Group Financial Statements
46 Company Balance Sheet
47 Notes to the Company Financial Statements
53 Notice of AGM
55 Glossary
56 Directors, Officers & Advisers 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 life cycle 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. During
2007/2008 we expect to participate in the drilling of at least
twelve wells.
www.encoreoil.co.uk
Annual Report 2007 EnCore Oil plc 1 2 EnCore Oil plc Annual Report 2007
Highlights
Over the past 12 months, we have 
been active in growing our portfolio 
and adding new opportunities. This 
has resulted in a two-year programme 
of exploration and appraisal drilling
covering a broad range of risk profiles.
We believe this balanced portfolio
positions the Company to add value 
in the near term and means we are 
ideally placed to make the most of
opportunities as they arise.  Annual Report 2007 EnCore Oil plc 3
04
Acquiring four UK
companies: Virgo Oil &
Gas plc, Virgo Energy
Limited, Nido Petroleum
(UK) Limited and Grove
Energy (UK) Limited
– Adding 16 offshore licences to our 
portfolio, including four firm wells to be
drilled in 2007 and 2008
– Adding the potential value of gas storage 
in decommissioned gas fields: Forbes,
Esmond and Gordon
14
Forming fourteen new
joint venture partnerships
generating near term
drilling opportunities
– Joint venture partnerships formed with
Bharat Petroleum, Century Exploration,
Endeavour Energy , Invicta North Sea, 
Island Oil & Gas, Lundin, Nautical
Petroleum, Oilexco, Perenco, Revus
Energy , Star Energy , T ata Petrodyne,
T oreador , and Venture Production
– Benefits of new partnerships include equity
swaps for appraisal drilling opportunities,
equity swaps for drilling funding, securing
expertise for offshore gas storage
evaluation and the securing expertise 
of regionally established operators
12
Building up and 
delivering an active 
drilling programme
covering a range of risk
profiles from pure
exploration to appraisal 
– Active drilling programme of at least 12
wells over two years including three pure
exploration wells and nine appraisal and
development wells
– Drilled one exploration well in the UK 
Central North Sea, one exploration well 
in the Southern North Sea, and two
appraisal wells in the Celtic Sea. Both 
Celtic Sea wells flowed at potentially
commercial rates
24
Successfully being
awarded 24th Round
Licences
– 24th Licensing Round Awards for 
seven licences covering 12 blocks 
and part-blocks providing additional
opportunities for exploration upside
– Contributing three contingent wells to 
the drilling programme
07
Raising £7 million through
an institutional placing 
to support drilling and
operations activity
03
Pursuing the unrealised
potential upside of
offshore Gas Storage
– Gas storage feasibility studies on three
decommissioned gas fields Forbes,
Esmond and Gordon
Highlights of the year include: 4 EnCore Oil plc Annual Report 2007
The EnCore
Story
2005
April to August
Established with US$6 million private
placing. 
September
Awarded first UK T raditional Seaward
Production Licence.
December
Acquired six blocks in the UKCS Central
North Sea.
EnCore Oil was established in April
2005 in the form of several private
companies to explore for oil and gas
with a primary focus in the UK. Prior to
EnCore Oil, Alan Booth, Graham Doré,
and Eugene Whyms were instrumental
in the Buzzard discovery by EnCana 
UK and helping monetise the value 
for EnCana Corporation later in a
US$2.1 billion sale to Nexen Inc. 
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: Annual Report 2007 EnCore Oil plc 5
2006 2007
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 T rade & Industry .
June & November
Applied for two French onshore licences.
October
Signed Cooperation Agreement with Island
Oil & Gas plc.
Acquisition of portfolio of UK offshore
blocks through the acquisition of four UK
companies: Virgo, 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.
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 T ata
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 partnerships with established
French operators, Lundin and T oreador , 
for Mairy licence.
May
Asset Sale & Royalty Agreement for block
21/30S with Perenco.
Post Y ear End Events
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 & 210/30a
to new UK entrant, Revus Energy .
Schull gas appraisal well encountered
hydrocarbons and underwent further
testing.
August
Successful testing of appraisal well at
Schull. Further evaluation of discovery to
take place. 6 EnCore Oil plc Annual Report 2007
The EnCore
Strategy
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 add, ideally , 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 life
cycle. 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.
Our strategy is designed to create
shareholder value principally through 
the successful exploration and appraisal
of prospects and discoveries.
“With a focus on our proven expertise
and a balanced portfolio, we are 
ideally placed to make the most of
opportunities as they arise.” Value Creation in the E&P Arena
01
Successful
Exploration
02
Successful
Appraisal
04
Production
EnCore Strategy
03
Development
Annual Report 2007 EnCore Oil plc 7
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.
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.
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.
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 
£ Project Sanction >
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 life cycle and return value directly to shareholders whenever we can.  8 EnCore Oil plc Annual Report 2007
Chairman’s
Review Annual Report 2007 EnCore Oil plc 9
The last 12 months have been an
exciting time at EnCore. We have 
made great progress in strengthening 
and balancing our exploration and
appraisal portfolio. 
At EnCore, it is not our aim to build a full
cycle E&P company. Throughout the 
year, we continued to develop a portfolio
of assets that will deliver sustainable 
and realisable long-term value to our
shareholders. Our business model 
is to monetise most projects at the
appropriate time in their life cycle, taking
into account remaining risk and further
capital requirements especially with
respect to capital efficiency. We always
remain alert to other value creating and
crystallising opportunities along the 
way – an approach that is a point of 
great pride for me personally. It means
EnCore is a company that not only has 
a well-defined strategy but also one that
is genuinely focused on delivering value 
to shareholders. 
Creating Shareholder Value
An E&P company needs to have a dual
approach to creating shareholder value.
Firstly, it is vital to have a technically and
commercially successful exploration
programme. Secondly, it is crucial never
to run out of money. We have been very
specific about mitigating our financial risk
through the deals we do, and by managing
our cash resources sensibly. Always
having funds available – coupled with an
opportunistic approach – means we are
well positioned to drill wells and actively
participate in industry consolidation. 
As a company , we are still in our youth,
which makes our achievements to date
even more significant. After listing on AIM 
in March 2006, we had interests in 20
licences – 13 onshore and 7 offshore – 
by the end of our last financial year in June
2006. A year on and we now have interests
in 47 licences – 15 onshore and 32 offshore.
While we maintain our focus on the UKCS,
we have also entered two new countries,
Ireland and the Netherlands, and have
licence applications outstanding in France. 
Industry Reputation
We continue to be very involved in
evaluating and negotiating deals and it is
very apparent from opportunities in the 
past 12 months, that the industry views
EnCore as a worthy partner . In fact, our
activity this year has included four corporate
acquisitions, seven asset deals, seven
licence awards through one UK licensing
round and participation in the drilling of four
wells – two of which have been deemed to
be potentially commercial gas discoveries. 
We believe in acting with integrity in how 
we run our business. As significant
shareholders ourselves, we seek to create
opportunities for the Company which 
will ultimately create value for all our
shareholders. The benefit may not always
be seen in the short term – which is the case
now with our market capitalisation – but the
basis has been created for substantial
growth in shareholder value. With any
exploration comes risks but in the portfolio
we have built up over the last two years,
there is the potential for a broad range of
potential rewards on offer . 
The Future
Looking to the immediate future, we are
participating in a number of exploration and
appraisal wells over the coming year . We
also have the added opportunity of offshore
gas storage studies, which are currently
ongoing and came through our acquisition
of Virgo.
None of this year’ s achievements would
have been possible without the hard work
and dedication of the EnCore team and I
would like to thank them all for their efforts. 
I look forward to reporting on EnCore’ s
progression and growth next year .
Michael T . Lynch
Chairman
8 August 2007
“EnCore is a company that not only has a
well-defined strategy but also one that is
genuinely focused on delivering value to
shareholders.” 10 EnCore Oil plc Annual Report 2007
Chief Executive’ s
Review
Last year EnCore made considerable
progress despite a highly competitive
business environment in the UK E&P
sector. 
Firstly , we all share the sense of disappoint-
ment with our fellow shareholders that the
results of the Golden Arrow well were not as
positive as hoped. We openly recognised
that the inherent risks meant that it was
more likely to fail than succeed but judged
the risk worth taking, given the potential
rewards. We also recognised that a great
deal of interest would be focused on this
single event and that our main task was to
focus on planning for what happened after
the well.
Growing Business
Over the past 12 months we have
increased our portfolio significantly , both in
the UK and overseas, through corporate
acquisitions and asset acquisitions, 
swaps, and a successful licensing round
application. We put in place an active drilling
programme of over 12 wells which has
already started to deliver positive results,
backed up by a significant portfolio of
acreage that we hope will deliver more
drilling opportunities in the future. 
The competition for access to exploration
and appraisal opportunities remains intense
– especially in oil. Access to drilling rigs is 
still an issue for the UK offshore industry as 
a whole, especially for semi-submersibles.
We do not believe this will cause any
material delays to fulfilling our upcoming firm
drilling programme, but specific timings are
always subject to operational issues that
may occur under drilling operations ahead
of taking delivery of the rig. 
The fall in the gas price in 2007 and the
greater availability of drilling equipment 
has left us better placed to capture and
progress opportunities in the Southern 
Gas Basin. We are pleased that the UKCS 
25th Round may be delayed until 2008.
This would be a positive development, Annual Report 2007 EnCore Oil plc 11
allowing companies to manage existing
portfolios more effectively in a resource
constrained environment, as well as placing
the award of new licences into a more
appropriate timescale for the industry’ s
normal budget cycle.
Our T eam
Access to talented and experienced people
is a continuing issue for the worldwide oil
and gas industry . It is something that has
been recognised for many years, but in 
an industry well known for often setting its
horizon as much as one or sometimes two
quarters ahead, it is not surprising that we
are now paying the price for our failure to
attract younger geoscientists and engineers
to our industry . The available talent pool is
not large given current demands, with the
inevitable upward pressure on costs. We
are therefore especially pleased to have
established and expanded our close knit
team, which is still, and will remain, small by
comparison with some of our peers. 
We always aim to spend our resources 
on those aspects of our business where we
can make a difference. All our commercial
and material technical evaluations are
undertaken in-house by our own 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. 
The EnCore team equally importantly 
are also shareholders in our business. 
In addition to the Directors, who own 
34.8 million shares, the other team
members own 4.9 million shares through
the investment of their own money in the
Company.
Well Results to Date
Since the agreement to acquire Oil Quest
Resources plc through a reverse takeover in
late 2005 we have drilled a total of six wells.
The results from the first two wells,
Kirkleatham and Westerdale, both gas
discoveries, have been discussed
previously. 
Since then we have drilled an additional 
four offshore wells: 18/5-2 (Golden Arrow),
48/22-5 (Cirrus), 49/23-2 (Old Head of
Kinsale) and 57/2-3 (Schull). 
The results of these are:
Golden Arrow:
Dry hole, plugged and abandoned
Cirrus:
Gas discovery , plugged and abandoned
Old Head of Kinsale:
Gas discovery , flowed 18.5mmcfd 
Schull:
Gas discovery , flowed 21mmcfd
Our drilling record to date has therefore
been five gas discoveries and one dry hole.
While the acid test is commerciality , we are
pleased that we have demonstrated our
ability to find hydrocarbon accumulations. 
Outlook
The next 12 months or so will provide
further business development opportunities
as well as the continuation of the drilling
programme. We are particularly looking
forward to drilling the Breagh, Catcher and
Cobra wells, the success of any of which
should add material value.
We are keen to see the results of our gas
storage feasibility study with Star Energy in
the fourth quarter of this year and are looking
carefully at how we might most effectively
distribute any value to our shareholders if
the project is commercially viable.
2008 will hopefully bring with it our maiden
production from Kirkleatham and also
confirmation of commerciality at the Amstel
Oil field in the Netherlands. We will continue
to manage our portfolio aggressively and
seek opportunities to grow and upgrade our
opportunity set.
Much has been said about ‘consolidation’
within the E&P sector and we have had a
number of discussions in this regard.
However informal discussions to date with 
a number of interesting parties lead us to
believe there is still reluctance among those
companies with a suitable asset base to
sanction a combination. However I firmly
believe consolidation in the sector is
inevitable, even if the timing is not yet clear .
Summary
We achieved many of our objectives 
during the year , but that does not make 
us complacent. We recognise there is still
much to be done to deliver true value to 
our shareholders in a highly competitive
industry . However , we believe that our
measured and opportunistic approach to
business puts us in a very strong position 
to make the most of our opportunities,
which should yield substantial rewards for
our shareholders.
Alan Booth
Chief Executive Officer
8 August 2007
“We put in place an active drilling
programme of over 12 wells which
has already started to deliver
positive results, backed up by a
significant portfolio of acreage.” 12 EnCore Oil plc Annual Report 2007
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.
01 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 T exaco.
02
04
03
05
01
03 Eugene Whyms FCCA
Chief Financial Officer & Company Secretary
Along with Alan, 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. 
– Head of Group Finance, Group Audit Manager and
Manager Financial Accounting at Enterprise Oil plc. 
Eugene is a trustee and the honorary treasurer of 
the St. Christopher’ s Fellowship, a London-based
housing association and charity for the homeless.
04 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 EnCana (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.
05 Christine M.K. Wheeler OBE
Non-Executive Director 
Christine has over 35 years experience advising 
the upstream oil and gas industry on all matters of 
UK taxation, structuring and commercial issues 
and in 1994, she was awarded the OBE for services 
to the oil industry . She now runs her own active
consultancy and prior to that, held a number of
positions including: 
– Chairman of an independent consultancy . 
– Head of the natural resources division of Ernst & Y oung.
– Advisor to upstream clients at Arthur Y oung,
Chartered Accountants.
Christine has advised on UK taxation issues 
including lobbying for fiscal changes and on a
number of commercial transactions, from small 
farm-ins to acquisitions and disposals, the largest 
of which was US$2 billion. 
02 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 EnCana UK up from a new UK entrant in
late 1996 into a significant UK production operator
and 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 has previously been 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. Annual Report 2007 EnCore Oil plc 13
The EnCore
T eam
01 04
02
05
07
08
06 03 01 Melanie Black
Office Manager
Melanie manages the office operations and provides
financial accounting support. She has over 13 years
experience within the oil and gas industry , previously
with Enterprise Oil plc and BP .
02 Graham Bull
Geoscience Consultant
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 .
03 Nada Chebib
Business & Communications Manager
Nada is responsible for investor relations and
general business support. She has over 13 years
experience in the oil and gas industry , including
positions at EnCana (U.K.) Limited and EnCana
Corporation, as well as PanCanadian Energy
Corporation and Home Oil Company . 
04 James Clark
Commercial & T ax 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 (U.K.) Limited,
Enterprise Oil plc, the House of Commons and 
the HMRC.
05 Chris Johnson
Group Financial Controller
Chris oversees financial activities for EnCore. He 
has 12 years experience in financial roles within the
oil and gas industry . Previous roles include Group
Financial Controller at T andberg T elevision, Group
Reporting Manager , then Vice President Finance
USA at Enterprise Oil plc, and member of the oil and
gas audit team at KPMG London. 
06 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.
07 Peter Williams
Group T echnical 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) Ltd., and Shell International Ltd. He is also 
a member of the Society of Petroleum Engineers.
08 Paul Y oung
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 (U.K.) Limited, and PanCanadian Energy
Corporation. He is also a member of the PESGB. 14 EnCore Oil plc Annual Report 2007
Licence Portfolio &
Operational Map
EnCore holds interests in 
47 licences – 15 onshore and 
32 offshore.
UK Onshore
EnCore has a portfolio of interests in 13 UK hydrocarbon licences 
in three basins.
Licence Block(s) & Equity 
Number 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 T10%Northern PetroleumWessex
(A)
PEDL089 T20%Wessex Exploration/ Wessex
(B) Northern Petroleum
PEDL098 T 7.5% Northern Petroleum Wessex
PEDL113 T 7.5% Northern Petroleum Wessex
PEDL151 T 10% Northern Petroleum Wessex
PEDL152 T 5% Northern Petroleum Wessex
Ireland
EnCore holds two licences offshore Ireland.
Licence Block(s) & Equity 
Number 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 T 12.5% Island Oil & Gas Celtic Sea
Part-blocks 57/1,
48/26 & 48/27
Netherlands
EnCore holds one licence offshore the Netherlands.
Licence Block(s) & Equity 
Number Part Blocks T/P Interest Operator Location
Q13 T 10% Island Oil & Gas The Netherlands
France
EnCore holds two licence applications onshore France.
Licence Block(s) & Equity 
Number Part Blocks T/P Interest Operator Location
Mairy licence T 30% Lundin International Paris Basin
Nimes 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 Block(s) & Equity 
Number Part Blocks T/P Interest Operator Location
PSC Laguera PSC 100% EnCore Western Sahara
UK Continental Shelf
EnCore has a portfolio of interests in 28 UK hydrocarbon licences
on the UK Continental Shelf.
Licence Block(s) & Equity 
Number Part Blocks T/P Interest Operator Location
P .1064 210/29a T 26.6%* Sterling Resources Northern North Sea
& 210/30a
P .1284 9/27a T 10% Century Exploration Northern North Sea
P .1377 210/25d P 100% EnCore Northern North Sea
P .1493 3/5 & 3/10c P 30% Endeavour Northern North Sea
P .013 21/30S T 0%† Perenco Central North Sea
P.02121/24 T95%EnCore Central North Sea
Exploration Area
P .244 29/6a T 43.05% EnCore* Central North Sea
P .1307 21/22 P 30% Sterling Resources Central North Sea
P .1309 21/28b P 30% Sterling Resources Central North Sea
P .1352 18/5 & 19/1a T 15% Apache Central North Sea
P .1395 12/16b, 12/17a P 25% Stelinmatvic Central North Sea
& 12/22a
P .1463 14/30a T 40% EnCore Central North Sea
P .1504 18/10 (part) P 100% EnCore Central North Sea
& 19/6 (part)
tbc 28/9 & 28/10b T 35% Oilexco Central North Sea
(split)
P.114448/22b T8.3125%Perenco Southern North Sea
(Northern Area)
P .1230 42/13 T 15% Sterling Resources Southern North Sea
P .1237 43/8 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 P 15% Sterling Resources Southern North Sea
& 42/14
P .1328 42/12 P 15% Sterling Resources Southern North Sea
P .1332 43/6 P 90% EnCore Southern North Sea
P .1335 43/13a P 75% EnCore Southern North Sea
P .1337 43/15a & 43/20a P 100%‡ EnCore Southern North Sea
P .1350 47/8d & 47/13c P 50% EnCore Southern North Sea
P .1535 47/7 P 50% NWE Southern Southern North Sea
Cross Pty Ltd
P .1538 47/22 & 47/23 P 60% EnCore Southern North Sea
(split)
P .1475 113/29c T 50% Nautical East Irish Sea
& 113/30
T T raditional * Subject to completion.
P Promote † Additional payment payable on first production, 
PSC Production Sharing plus a per barrel royalty payment on any oil produced 
Contract from the block.
** Half of EnCore’ s equity is subject to buy-back.
‡ Option by Island Oil & Gas plc to acquire up to 
15 per cent. of EnCore’ s interest in the Bennett
Carboniferous prospect, subject to certain conditions. Northern North Sea
Central North Sea
Cleveland Basin
East Irish Sea
Southern North Sea
Celtic Sea
Weald & Wessex Basin
The Netherlands
Paris Basin
Rhône Graben
Annual Report 2007 EnCore Oil plc 15
SADR 16 EnCore Oil plc Annual Report 2007
Operational
Review
Acquisitions and Corporate Activity
In October 2006, we announced the
acquisition of four UK companies: Virgo 
Oil & Gas plc, Virgo Energy Limited, 
Nido Petroleum (UK) Limited and Grove
Energy (UK) Limited. With a consideration 
of 37,000,000 EnCore shares, these
acquisitions added 16 offshore UK licences
to our portfolio along with an interest in three
decommissioned gas fields with potential
for offshore gas storage. 
Our co-operation agreement with Island Oil
& Gas plc has given us interests in two gas
discoveries offshore Ireland and an interest
in Amstel Field offshore the Netherlands. 
An option under the agreement to acquire
an interest in the Connemara field offshore
Ireland, has now lapsed.
The gas discoveries, ‘Old Head of Kinsale’
located in block 49/23 and ‘Schull’, 
located in blocks 57/1 and 57/2 have 
been drilled and tested since the year end
with encouraging results. Old Head of
Kinsale tested dry gas at a rate in excess 
of 18 million standard cubic feet per day , 
while Schull has encountered gas-bearing
reservoir sands and tested dry gas at 
a rate of 21 million standard cubic feet per
day . The operator , Island, is commissioning 
a commercial and engineering study to
determine the optimum development
scenario for the Schull, Old Head and West
Seven Heads gas fields. The Schull field is
located immediately to the southwest of the
Seven Heads gas field and the associated
infrastructure linking Seven Heads to the
Kinsale Alpha platform.
October saw further corporate activity – 
an asset exchange with Century Exploration
(UK) Limited. We exchanged a ten per cent.
interest in UK blocks 18/5 & 19/1a for a 
8.3 per cent. carried drilling interest on block
48/22b and an interest in block 9/27a. 
Venture Production took a 90 per cent.
interest in the southern North Sea block
47/9c which we acquired through our
acquisition of Nido Petroleum. Our costs for
drilling and any testing activity on the 1982
Barbarossa discovery which is on the block,
will be carried by Venture. We hope to drill
the appraisal well towards the end of 2007
or early 2008.
T ogether with Petro-Canada UK Limited,we
entered into a sale and purchase agreement
with Perenco UK Limited in relation to block
21/30s on licence P .013 in the central UK
North Sea, in which we had a 95 per cent.
interest. Perenco agreed to purchase a 
100 per cent. interest in the block for an
initial payment of US$1.9 million, together
with an additional contingent payment 
due on first production, plus a per barrel
royalty payment on any oil produced from
the block.
During the year , we formed joint venture
partnerships with new entrants into the
UKCS. T wo well respected and established
Indian companies, Bharat Petroleum and
T ata Petrodyne farmed into our UKCS
blocks 48/1b & 48/2c, each taking a 25 per
cent. stake. While we retain operatorship
and a 25 per cent. interest in that licence,
Bharat and T ata Petrodyne will each pay 
40 per cent. of the costs of drilling an
appraisal/development well on the 48/2-1
discovery , originally drilled by Amoco in
1984, up to a total gross cost of US$23
million. The well, known as ‘Cobra,’ is
expected to be drilled in 2008.
Our impending entry into France took a big
step forward when we signed an agreement
with both Lundin International and T oreador
Energy France to combine our licence
applications for the Mairy licence (formerly
Vitry la Ville) in the Eastern Paris Basin which
contains an abandoned oil well. Under the
agreement, Lundin will hold a 40 per cent.
interest and operate the licence, while 
we will own a 30 per cent. interest as will
T oreador . We expect the licence to be
awarded shortly . 
Right Flaring from the
Petrolia Rig during the
testing of the Old Head of
Kinsale discovery .
Far right Flaring from
testing of the Kirkleatham
discovery. Annual Report 2007 EnCore Oil plc 17
Drilling Programme
The year saw us spud four wells. Of the four ,
we had two gas discoveries – one where
hydrocarbons were encountered but at
currently sub-commercial levels, and one
where no hydrocarbons were encountered
which was plugged and abandoned. 
Our first well to spud during the year , known
as Golden Arrow, was drilled in UK North
Sea block 18/5. This was a high risk well,
through which our costs were carried, 
but which resulted in finding no significant
hydrocarbons being present. However , we
took valuable information from what was 
a technically excellent well and this will help 
us in our analysis of our recently awarded
100 per cent. owned blocks 18/10 (part)
and 19/6 (part), both of which are adjacent
to 18/5.
A successful gas appraisal was made on
our second well of the year , on the Old 
Head of Kinsale discovery located offshore
Ireland, in which we have a 15 per cent.
interest. As already mentioned, it has
provided encouraging results, testing dry
gas at a rate in excess of 18 million standard
cubic feet per day . 
The third well drilled during the period was
on the Cirrus prospect on block 48/22b
North in the Southern Gas Basin in which
we had an 8.3125 per cent. carried interest.
The well results, which came in after the
year end, revealed that a hydrocarbon
column was encountered but the potential
size of the accumulation has been deemed
sub-commercial by the operator , Perenco
UK Limited. 
A second successful gas appraisal well 
was made on the final well drilled during the
period, on the Schull discovery , located
offshore Ireland, in which we have a 12.5
per cent. interest. As already mentioned, 
it has provided encouraging results post the
year end period, testing dry gas at a rate of
21 million standard cubic feet per day .
We are due to participate in the drilling of at
least 12 firm wells over the next two years
covering a broad range of risk – three pure
exploration wells and nine appraisal and
development wells. These wells will be
drilled both on and offshore UK and offshore
the Netherlands.
Licence Awards
In February 2007, we were awarded seven
new licences in the UK 24th Licensing
Round. The seven licences cover 12 
blocks or part-blocks and have further
strengthened our portfolio, providing
additional opportunities for exploration
upside, as well as near-term drilling. Of the
12 blocks, five (14/30a, 28/9 & 28/10b
(split), and 113/29c & 113/30) have been
offered under traditional licence terms and
seven (18/10 (part) & 19/6 (part), blocks 3/5
& 3/10c, block 47/7, and blocks 47/22 &
47/23 (split)) under promote licence terms. 
During the year , we were also successful 
in our application to convert five of our UK
22nd Round promote licences to traditional
licences. The five licences are located on
blocks 42/13, 43/8, 47/9c, 48/1b & 48/2c,
and 210/29. (The licence area for 210/29
has subsequently been redrawn to cover
210/29a & 210/30a.) 
Placing
Both existing and new institutional
shareholders subscribed for new shares 
in a placing which raised £7 million before
expenses. A total of 29,166,666 new
ordinary shares were placed at a price of 
24 pence per share. The funds raised will 
be used to support our drilling and
operational activity .
Offshore Gas Storage
Our acquisition of Virgo Energy Limited
provided us with an interesting opportunity
to pursue the potential of offshore gas
storage. Star Energy Group plc, an
established gas storage operator , farmed
into our UKCS block 43/8, known as the
Forbes field, to undertake a feasibility study
and a 3D seismic survey to determine 
the potential to use the Forbes field as 
a gas storage facility . The study was further
extended during the year to incorporate
block 43/13a (the Esmond field), and
potentially UKCS blocks 43/15a and
43/20a (the Gordon field) at a later date,
conditional on the results of any drilling 
that may take place on the underlying
Carboniferous Bennett prospect.
If the feasibility study proves positive, 
a subsequent Front End Engineering &
Design (FEED) study will be done, also
funded by Star Energy . 
As part of the farm in deal, Star Energy will
pay £1.25 million towards the cost of a 
3D seismic survey on the Forbes, Esmond 
and Gordon fields and assign 50 per cent.
of its interests in the Eskdale (PEDL 002)
onshore licence to us. In return, the farm out
agreement allows Star Energy to earn up 
to 50 per cent. on all three licences and to
become operator if the fields are developed
into gas storage facilities.
Right Flaring from the Petrolia
Rig during the testing of the
Old Head of Kinsale discovery . 18 EnCore Oil plc Annual Report 2007
The Y ear Ahead
We are scheduled to participate in the
drilling of eight wells in fiscal 2008 – 
six in the UK and three in the Netherlands.
The year ahead will undoubtedly
provide us with further opportunities 
to add to this programme, both 
through acquisitions and further 
farm-out activity.
Drilling Programme
From the firm drilling programme we will
participate in a number of high impact wells.
Indeed success on any of Breagh, Catcher ,
Bowstring East or Cobra could have 
a significant impact on the value of the
Company . Success in any other area of 
our programme should also see solid value
added, with the possibility of significant
discoveries in the rest of the programme.
Breagh
We have signed a rig contract for the drilling
of Breagh appraisal well on block 42/13 
in which we have a 15 per cent. interest.
Assuming all goes to schedule on its current
operations, the ENSCO 85 rig will be drilling
that well in late September 2007. Breagh
was discovered with the drilling of well
42/13-2 in 1997 by Mobil and encountered
a 450 foot gas column. At the time, that 
well tested at sub-commercial flow rates,
but we believe this was due to formation
damage which occurred during the drilling
and completion of the well rather than to
inherent low productivity from the reservoir .
Catcher
The Catcher oil prospect will be drilled 
on block 28/9 in the Central North Sea. 
We have a 35 per cent. interest in this well,
which will be operated by Oilexco. In the
event of success we will have significant
lower risk opportunities which would follow
other prospects within the licence. 
Bowstring East
The Bowstring East prospect on blocks
210/29 and 210/30 is expected to be drilled
in 2008 or perhaps 2009 with our new joint
venture partner and new UK entrant, Revus
Energy . We have a 26.6 per cent. interest in
the licence and Sterling Resources, the
operator , holds a 39.9 per cent. interest.
Revus will pay 50 per cent. of the costs 
of drilling the exploration well up to a total
gross cost of £10 million, and 33.5 per cent.
of well costs, if any , above £10 million.
Barbarossa
We will be participating in an appraisal well
on the Barbarossa discovery , found in 
1982 on southern North Sea block 47/9c.
Venture Production will be the operator on
this well and will carry our costs through 
the drilling and any subsequent testing. Our
equity in the well is ten per cent. while a third
party has an option to buyback five per
cent. interest subject to various terms and
conditions. 
Cobra
Next year , we also plan to drill on the Cobra
prospect on blocks 48/1b and 48/2c in the
southern North Sea. We have a 25 per cent.
interest in the blocks and are acting as
operator . The blocks contain the 48/2-1 
gas discovery which was drilled in 1984 and
tested 2.7 million cubic feet per day from 
the Rotliegend sandstone. Reprocessing 
of the seismic data suggests that we can
encounter the reservoir some 300 feet
structurally higher than the existing
discovery . We firmly believe that the use of
modern drilling techniques could unlock
the significant commercial potential of this
licence – as has been recently demonstrated
by drilling in the adjacent Babbage field.
Gas Storage
By the end of the year , the results of the gas
storage feasibility studies should become
known. If the results are positive, they could
have a huge impact on the Company . As
with all offshore developments, there are
issues surrounding infrastructure and
legislation which would need to be resolved
to determine final commercial viability , 
but the results of the studies are something
which we await with interest and excitement.
The need for gas storage in the UK is a
pressing one. The country cannot rely on 
its indigenous gas supply alone and we are
increasingly reliant on third party supplies.
Our European neighbours – France for
example – have always put gas into storage.
France stores around 20 per cent. of its
annual gas requirements, whereas the UK
stores only around four per cent. of current
requirements. If the feasibility studies
currently taking place on our Forbes,
Esmond and Gordon fields were to be
successful and were to result in the fields
being used for gas storage, this could
double the UK’ s current gas storage
capacity by providing up to 150 bcf of 
high performance gas storage. 
Shareholder Value
Part of our stated strategy is, where
feasible, to deliver value directly back to our
shareholders, taking into consideration
future risk and capital requirements of the
project as well as the capital efficiency . 
It is not our intention to become a full cycle 
E&P company , rather we aim to return the
value of exploration and appraisal success
to our shareholders, leaving them free to
determine where best to reinvest any gains.
As can be seen from the Drilling Schedule
(opposite) we have an exciting and busy
exploration and appraisal programme
over the next 18 months – just from what
we already have in our portfolio. Annual Report 2007 EnCore Oil plc 19
Drilling Schedule 
2007 2008 2009
Prospect Block(s) Operator Equity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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%
Barbarossa 47/9c Venture Production 10.0%
†
Bowstring East 210/29 & 210/30 Sterling Resources 26.6%
Catcher 28/9 & 28/10b OilExco 35.0%
Markwells Wood PEDL126 Northern Petroleum 10.0%
Amstel 1 Q13 Netherlands Island 10.0%
Cobra 48/1b & 48/2c EnCore 25.0%
Amstel 2 Q13 Netherlands Island 10.0%
Leigh Park PEDL155 Northern Petroleum 7.5%
Amstel 3 Q13 Netherlands Island 10.0%
Bennett 43/15a EnCore 35.0%
[to be confirmed] PEDL068 Egdon Resources 20.0%
T udor Rose 14/30a EnCore 40.0%
Norfolk 12/16 Stelinmatvic 25.0%
Merrow 113/29c & 113/30 Nautical Petroleum 50.0%
* Plugged and abandoned
† 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.
c
c
c
c
c
c
Contingent well 20 EnCore Oil plc Annual Report 2007
Financial
Review
Acquisition of four oil and gas
companies 
On 25 October 2006 EnCore announced 
a proposal to acquire four oil and gas
exploration companies: privately held 
Virgo Oil & Gas plc and Virgo Energy
Limited, Nido Petroleum (UK) Limited, 
a UK subsidiary of Australian listed Nido
Petroleum Limited, and Grove Energy (UK)
Limited, a UK subsidiary of T oronto and 
AIM quoted Grove Energy Limited. The
transaction completed on 16 January 2007.
The acquisition was by way of the issue 
of 37,000,000 new ordinary shares in
EnCore Oil plc at a price of 22.75 pence.
The total consideration was £8.9 million,
including expenses of £0.4 million.
The assets and liabilities of the acquired
companies have been consolidated in the
Group’ s financial statements with effect
from 16 January 2007. The book value of
the acquired net assets at that date was
£0.7 million.
A preliminary fair value exercise has been
undertaken to determine the values
attributable to the acquired assets and
liabilities within the Group’ s Balance Sheet
as at 30 June 2007. The total fair value
attributable to the acquired assets and
liabilities is £11.3 million, comprising 
£8.9 million of consideration and associated
costs and an additional £2.4 million of
deferred tax uplift provided in accordance
with the provisions of IAS 12. Based 
upon this preliminary exercise, EnCore 
has allocated £11.3 million to intangible
exploration and evaluation assets reflecting
a number of UK North Sea licence interests.
Due to the timing of the transaction and 
the wide range of oil and gas assets
acquired the fair value allocated at 30 June
2007 is preliminary in nature and will be
reviewed during 2007 and 2008 in
accordance with the provisions of IFRS 3
relating to Business Combinations. Annual Report 2007 EnCore Oil plc 21
Exploration and evaluation asset
accounting policy
During the year EnCore reviewed the
accounting policy for exploration and
evaluation assets. As a consequence of 
this review the accounting policy has been
changed from the full cost method to
successful efforts accounting as in the
longer term this will aid comparison with 
our peer group. This results in no change 
to previously disclosed results of the Group
but may result in an acceleration of write 
off of exploration and evaluation assets in
future periods. For further information see
the Accounting Policies section of the
Financial Statements for more information. 
Loss for the financial period
The net loss for the year to 30 June 2007 
is £1.7 million (period to 30 June 2006 
£1.0 million). The operating loss is £2.8
million (2006 £1.3 million) comprised of
administrative expenses of £1.7 million
(2006 £1.3 million) and exploration costs 
of £1.1 million (2006 Nil). The operating loss
has been partly offset by financial income 
of £0.9 million (2006 £0.3 million) and gains
on the sale of fixed asset investments of
£0.3 million. Finance expenses and foreign
currency losses were £0.1 million in the
period.
The gross administrative costs can be
further analysed as follows:
2007 2006
£ million £ million
Staff costs 1.5 0.9
Legal and professional 0.4 0.4
Office costs 0.1 0.1
Other 0.1 0.1
2.1 1.5
Gross administrative expenses were £2.1
million (2006 £1.5 million) of which £0.4
million (2006 £0.2 million) was capitalised 
as it reflected direct work to enhance 
the value of our licence interests, giving 
net administration costs in the income
statement of £1.7 million (2006 £1.3 million).
Staff costs reflect a full year charge for
appointments made during the period
ended 30 June 2006. The gross overhead
monthly run rate, including IFRS 2 stock
option charges, is £0.2 million. 
Exploration costs principally comprised
costs associated with UK North Sea licences
where the licence has or will be relinquished.
One licence has a decommissioning
obligation of approximately £0.7 million.
Exploration costs written off on completion
of the exploration well on licence P1352
were immaterial as EnCore had its costs
carried through the exploration phase.
Balance sheet
At 30 June 2007 the Group had net assets
of £39.7 million (30 June 2006 £26.2 million).
The most significant balances are intangible
exploration and evaluation assets of 
£24.2 million (2006 £8.9 million) and cash 
of £18.0 million (2006 £18.0 million).
The exploration and evaluation assets can
be further analysed as follows:
2007 2006
£ million £ million
UK Onshore licences 7.1 7.1
UK Offshore licences 12.9 1.7
Other 4.2 0.1
24.2 8.9
The significant increase in the value of UK
offshore licences reflects the acquisition of
16 offshore licensed blocks and part blocks
in the North, Central and Southern areas of
the North Sea owned by the Virgo group of
companies discussed above.
Other exploration and evaluation assets
include interests in Ireland, France and
Western Sahara. The increase during the
period reflects the costs of drilling the Old
Head of Kinsale appraisal well offshore
Southern Ireland.
The net movement in total exploration and
evaluation assets of £15.3 million
comprises £11.3 million arising from the
acquisition of the Virgo companies; 
£6.4 million of additions of which the Irish
Old Head appraisal well is £4.0 million and
the decommissioning provision noted
above is £0.7 million; exploration write off 
is £1.1 million; disposal proceeds are
approximately £1.0 million and foreign
exchange losses on assets held in a USD
denominated subsidiary are £0.3 million.
Cash flow
The Group ended the year with £18.0 million
of cash and cash equivalents (2006 £18.0
million) and a further £1.6 million of cash held
in escrow. The Group remains debt free.
On 18 December 2006 we announced the
placing of 29,166,666 ordinary 5 pence
shares at 24 pence raising approximately
£6.7 million net of expenses. In addition we
raised a further £0.7 million through the sale
of non-core fixed asset investments.
The Group spent £1.4 million (2006 £0.9
million) during the year funding operations,
principally staff costs. £4.7 million (2006
£2.1 million) was spent on intangible oil and
gas assets, of which £4.0 million related to
Old Head in Ireland. £1.6 million was paid
into an escrow account ahead of the drilling
of the appraisal well on UK North Sea block
42/13 operated by Sterling Resources.
Cash outflow in respect of the acquisition 
of the Virgo group of companies was £0.4
million and net bank interest income was
£0.9 million (2006 £0.3 million).
All our cash is held on deposit with an AA
rated bank and attracts floating rate interest.
Some use has been made of very short
term deposits to enhance interest income.
T o date the duration of these deposits has
not exceeded a month. At 30 June 2007
£3.9 million of cash was held in US Dollars.
The Group is therefore exposed to the risk
that movements in the exchange rate
between the USD and GBP will impact the
value of this holding. 
“The significant increase in the
value of UK Offshore licences
reflects the acquisition of 16
offshore licensed Blocks and part
Blocks in the North, Central and
Southern areas of the North Sea.” 22 EnCore Oil plc Annual Report 2007
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
2007.
The Board
The Board comprises three Executive
Directors and two Non-Executive Directors,
the Chairman and Christine M.K. Wheeler
OBE. All the Directors served throughout
the period. 
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 . T o 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 of this Annual Report.
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 the Chairman 
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 the
Chairman 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 Company 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 the
Chairman 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. Annual Report 2007 EnCore Oil plc 23
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 (see table) 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.
Risk category Definition Possible risks
Strategic risks The strategy – mix of oil and gas interests
developed by the – balance of organic/
Board may fail to acquisition-led growth
create shareholder – ineffective/inadequate
value 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 risks Damage to – HSE incident
shareholder value, – corruption/reputation risk
environment, – security incident
personnel or – failure to secure resources
communities – loss of key staff
caused by – sustained exploration failure
operational failures
External risks Failure to manage/ – oil and gas price volatility
grow the business – hostile acquisition
caused by external – political risk and asset 
factors (political, sequestration
industry or market) – war , terrorist act and 
natural disaster
– fiscal change
– shareholder sentiment 24 EnCore Oil plc Annual Report 2007
Directors’
Report
The Directors submit their report
together with the audited consolidated
financial statements of EnCore Oil plc
for the year ended 30 June 2007.
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 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 2007 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, Operating
review, Finance review and Corporate
Governance statement sections on pages
16 to 23.
Results and dividends
In total during the year the Group invested
£13.6 million in growing the business,
including £4.7 million on capital expenditure
and £8.9 million on the acquisition of the
Virgo group of companies.
Despite a significant increase in the scale 
of our business during the year , following
the acquisition of the Virgo companies, 
the increase in administrative costs year 
on year largely reflects the full year cost 
of appointments made last year . Our
philosophy remains reward on results not
ahead of them. No significant changes in
headcount are planned.
The loss on ordinary activities after taxation
amounted to £1.7 million (period to 30 June
2006 £1.0 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 .
Details of Directors’ interests in the ordinary
shares of the Company and in share options
are set out on page 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, 271,151,952
ordinary shares are issued and fully paid.
Details of the changes in the share capital
during the year to 30 June 2007 are set out
in note 20 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
UBS 7.46 20,221,256
Grove Energy Limited 3.65 9,884,135
Alan Booth, 3.43 9,288,605
Chief Executive Officer
Eugene Whyms, 3.38 9,161,688
Chief Financial Officer
Nido Petroleum (BVI) 3.31 8,985,577
Limited
Credit Suisse Securities 3.04 8,244,670
(Europe) Limited
The Company has not been notified of 
any other person who has an interest of 
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
the date of this report, the broad distribution
of the ordinary shares in issue was as follows:
% Shares
Institutions 55.73 151,122,494
Directors and staff 14.93 40,472,688
Other individuals 29.34 79,556,770
Financial instruments
The Group does not actively use financial
instruments as part of its financial risk 
management. Details of cash holdings are 
shown in note 15 to the Group financial
statements.
Supplier payment policy
The Group’ s policy is to agree payment
terms with individual suppliers and to abide
by those terms. T rade creditors of the
Company , at 30 June 2007 were equivalent
to 16 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 (2006: US$10,000
(approximately £5,500)).
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
Board’ s review of the accounts, budgets
and forward plans, lead the Directors to
believe that the Group has sufficient
resources to continue in operation for the
foreseeable future. The financial statements
are therefore prepared on a going concern
basis.
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
8 August 2007  Annual Report 2007 EnCore Oil plc 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
– Share option incentives
Executive Directors remuneration
basic salary
The base salaries of the Executive Directors
are reviewed annually with regard given 
to personal performance, Company
performance, changes in responsibilities
and competitive market practices.
Following the most recent review, the base
salary of each Executive Director with effect
from March 2007 is:
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.
Share option incentives
The Group has put in place a share option
scheme 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 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 the H.M. Revenue & 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 is to grant options 
in the 42 day period following the
announcement of the Company’ s interim 
or final results.
In March 2007 8,100,000 share options
were granted to directors and employees 
of EnCore Oil plc. The exercise price was 
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 June 2007 640,000 share options were
granted to a new employee of EnCore Oil
plc at an exercise price of 19 pence per
share on the same terms as above. 
In August 2007 640,000 share options
were granted to a new employee of EnCore
Oil plc at an exercise price of 17 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 . The Company does not operate
any other share based incentive schemes.
Service contracts and letters of
appointment
Each of the Executive Directors entered into
a service agreement with the 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
The Chairman is paid a basic annual fee of
£37,500 and Non-Executive Directors
receive 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 period in which 
a Director of the Company was materially
interested and/or which were significant in
relation to the Group’ s business. Audited information
Directors’ remuneration
Remuneration in the year to 30 June 2007
Period to
Fee/base salary Benefits in kind Pension T otal 30 June 2006
£££££
Executive Directors
Alan Booth 141,667 1,921 21,250 164,838 155,829
Eugene Whyms 141,667 1,921 21,250 164,838 155,829
Graham Doré 116,667 1,686 17,500 135,853 115,651
Non-Executive Directors
Michael T . Lynch 35,000 1,096 – 36,096 25,325
Christine M.K. Wheeler OBE 29,167 2,531 – 31,698 28,115
T otal remuneration 464,168 9,155 60,000 533,323 480,749
No loans or guarantees were given to the Chairman of the Board, directors or related parties. 
Directors’ interests in the share capital of the Company
% of issued 
Ordinary shares of £0.05 each At 30 June 2007 Ordinary Share Capital
Alan Booth 9,288,605 3.43
Eugene Whyms 9,161,688 3.38
Michael T . Lynch 7,897,221 2.91
Graham Doré 6,298,229 2.32
Christine M.K. Wheeler OBE 2,156,657 0.80
34,802,400 12.84
The number of shares reported includes any shares held by related parties of the named individual and 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 Share price at Exercisable Exercisable
Name of Director Granted Granted 30 June 2007 grant date Exercise price from
1
to
1
Alan Booth 1,390,000 03.03.06 1,390,000 £0.34 £0.34 03.03.07 03.03.11
1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 14.03.12
Eugene Whyms 1,390,000 03.03.06 1,390,000 £0.34 £0.34 03.03.07 03.03.11
1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 14.03.12
Graham Doré 1,140,000 03.03.06 1,140,000 £0.34 £0.34 03.03.07 03.03.11
1,250,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 14.03.12
Michael T . Lynch 250,000 03.03.06 250,000 £0.34 £0.34 03.03.07 03.03.11
250,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 14.03.12
Christine M.K. Wheeler OBE 250,000 03.03.06 250,000 £0.34 £0.34 03.03.07 03.03.11
250,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 14.03.12
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.
Christine M.K. Wheeler OBE
Chairman of the Remuneration Committee
8 August 2007
26 EnCore Oil plc Annual Report 2007
Remuneration
Report
Continued Annual Report 2007 EnCore Oil plc 27
Statement of Directors’
Responsibilities
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
comply 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 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 period. 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. 28 EnCore Oil plc Annual Report 2007
Independent Auditors’ Report to the Members of EnCore Oil plc
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 1 985.
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, Operating review, Finance 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 Operating
review, the Finance 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
2007 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
2007;
the financial statements have been 
properly prepared in accordance with the
Companies Act 1 985; and
the information given in the directors’ report
is consistent with the financial statements.
PKF (UK) LLP
London, UK 
Registered auditors
8 August 2007
We have audited the group and parent
company financial statements (‘the financial
statements’) of EnCore Oil plc for the year
ended 30 June 2007 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 1 985.
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). 29 EnCore Oil plc Annual Report 2007
Consolidated Income Statement 
2007 2006
For the year ended 30 June 2007 Note £ £
Impairment write down – exploration costs 5,1 1 (1 , 126,307) –
Administrative expenses (1 ,719, 179) (1 ,283,052)
Operating loss (2,845,486) (1 ,283,052)
Gain on sale of fixed asset investments 1 3 287,980 –
Finance income 6 926,076 339,869
Finance costs 7 (2,714) (2,006)
Other gains and losses – foreign currency losses (50,882) (2,564)
Loss from continuing activities before taxation (1 ,685,026) (947,753)
Taxation 8 4, 154 (18,276)
Net loss from continuing activities (1 ,680,872) (966,029)
Loss per ordinary share (pence)
– Basic 9 (0.7) (1.0)
– Diluted 9 (0.7) (1.0) 30 EnCore Oil plc Annual Report 2007
Consolidated Balance Sheet 
2007 2006
As at 30 June 2007 Note £ £
Assets
Non-current assets
Intangible exploration and evaluation assets 1 1 24, 191 ,869 8,906,391
Property , plant and equipment 1 2 25,925 38,993
Investments 13 50,000 425, 125
24,267,794 9,370,509
Current assets
Other receivables 1 4 1 ,319,706 335,440
Cash held in escrow 1 5 1 ,630,361 –
Cash and cash equivalents 1 5 17,967,096 18,035,020
20,917, 163 18,370,460
T otal assets 45, 184,957 27,740,969
Liabilities
Current liabilities
T rade and other payables 1 6 1 , 186,607 406, 183
Non-current liabilities
Provisions 17 736,275 –
Deferred taxation 1 8 3,590,472 1 , 148,868
4,326,747 1 , 148,868
T otal liabilities 5,513,354 1 ,555,051
Net assets 39,671 ,603 26, 185,918
Equity
Equity attributable to equity holders of the parent
Called up share capital 20 14,632,742 1 1 ,319,409
Share premium 27,215,923 15,417,355
Other reserves (60,699) 291 ,581
Retained earnings (2, 1 16,363) (842,427)
T otal equity 39,671 ,603 26, 185,918
Approved and authorised for issue by the Board on 8 August 2007 , and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer 31 EnCore Oil plc Annual Report 2007
Consolidated Statement of Cash Flows
2007 2006
For the year ended 30 June 2007 Note £ £
Cash flows from operating activities
Loss before taxation (1 ,685,026) (947,753)
Depreciation 1 1 16,657 7,956
Share based remuneration charges 3 406,936 123,602
Exploration write off 1 1 1 , 126,307 –
Items shown as financing and investing activities (1 ,21 1 ,342) (305,004)
Operating cash flow prior to working capital (1 ,346,468) (1 , 121 , 199)
Corporation tax payments (18,033) –
Working capital adjustments (48,573) 256,083
Cash used in operations (1 ,413,074) (865, 1 16)
Cash flows from investing activities
Purchase of intangible exploration and evaluation assets 1 1 (4,718,329) (2,091 ,010)
Expenses of acquisition 1 0 (433,769) –
Cash held in escrow 1 5 (1 ,630,361) –
Purchase of property , plant and equipment 1 2 (3,587) (46,949)
Proceeds from sale of investments 1 3 663, 105 –
Interest received 907,359 309,574
Net cash used in investing activities (5,215,582) (1 ,828,385)
Cash flows from financing activities
Shares issued for cash 20 6,694,401 20,074, 1 17
Net cash acquired – 658,974
Interest paid and bank charges (2,714) (4,570)
Net cash generated by financing activities 6,691 ,687 20,728,521
Net increase in cash and cash equivalents 63,031 18,035,020
Cash and cash equivalents at start of year 18,035,020 –
Foreign currency translation difference (130,955) –
Cash and cash equivalents at end of year 15 17,967,096 18,035,020 32 EnCore Oil plc Annual Report 2007
Consolidated Statement of Changes in Equity 
Attributable to parent company equity holders
Foreign
currency
Equity share Share Other translation Retained T otal
capital premium reserve reserve earnings equity
For the year ended 30 June 2007 £ £ £ £ £ £
Period to 30 June 2006
Loss for the period – – – – (966,029) (966,029)
Currency translation – – – 24,673 – 24,673
T otal income and expenses for the period – – – 24,673 (966,029) (941 ,356)
Equity balances of EnCore prior to 
reverse acquisition 3,291 ,900 – 266,908 – – 3,558,808
Cost of acquisition 2,422,509 4,504,852 – – – 6,927 ,361
Shares issued for cash 5,605,000 1 1 ,91 0,625 – – – 1 7 ,51 5,625
Expenses of issue – (998, 1 22) – – – (998, 1 22)
Share option expense – – – – 1 23,602 1 23,602
T otal as at 30 June 2006 1 1 ,31 9,409 1 5,41 7 ,355 266,908 24,673 (842,427) 26, 1 85,91 8
Y ear to 30 June 2007
Loss for the period – – – – (1 ,680,872) (1 ,680,872)
Currency translation – – – (352,280) – (352,280)
T otal income and expenses for the period – – – (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, 1 16,363) 39,671 ,603
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of 
a USD denominated subsidiary . 33 EnCore Oil plc Annual Report 2007
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 1 985 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 are set out below.
Change in accounting policy
In preparing the accounts for the period to 30 June 2006, the Group followed the full cost method of accounting for oil and gas
assets. Under this method, all expenditure incurred in connection with and directly attributable to the acquisition and exploration 
of oil and gas assets was capitalised as a fixed asset pending determination of the property . For evaluated properties, these costs
were allocated to an appropriate cost pool in tangible fixed assets, being UK Onshore, UK Offshore and Other . Unevaluated
properties were held outside the relevant cost pool in intangible fixed assets, and were not amortised until such time as the related
property had been fully appraised. 
Since the Group currently has no development/producing assets there are no positive cash flows in the cost pools with which to
shield the costs of evaluated unsuccessful properties and consequently to date all evaluated unsuccessful exploration costs have
been charged immediately to the profit and loss account. This has in effect resulted in the same accounting treatment as if EnCore
had followed the more common successful efforts method of accounting for oil and gas assets. Consequently , the Group has now
adopted successful efforts accounting as in the longer term this will aid comparison with our peer group. The results for the period
to 30 June 2006 would be unchanged from those published had successful efforts accounting been applied to those periods.
In future periods the costs of unsuccessful wells initially capitalised within exploration assets will be expensed in the Income
Statement in the period they are determined unsuccessful regardless of whether development/producing assets exist. Consequently,
the adoption of successful efforts accounting may accelerate the expensing of the cost of unsuccessful exploration wells.
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:
Title Accounting policy impact Date of adoption by EnCore Impact on application
IFRS 7 ‘Financial Instruments: Disclosures’ No changes to 1 July 2007 Additional disclosures 
and amendment to IAS 32 ‘Financial Instruments: current accounting regarding financial 
Disclosure and Presentation’ policy instruments
IFRS 8 ‘Operating Segments’ No changes to 1 July 2009 Alternative disclosures
current accounting regarding segmental 
policy performance
Amendment to IAS 1 Presentation of ‘Financial No changes to 1 July 2007 Additional disclosures 
Statements – Capital Disclosures’ current accounting required concerning 
policy an entity’ s capital
No other IFRSs as issued by the IASB which are not yet effective, are expected to have an impact on the Group’ s financial
statements.
Basis of consolidation
The Group financial statements consolidate the financial statements of EnCore Oil 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 initially
measured at cost, being the excess of the cost of the business combination over the Group’ s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’ s interest in the net fair value of
the acquiree’ s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is
recognised immediately in profit and loss. 34 EnCore Oil plc Annual Report 2007
Notes to the Group Financial Statements continued
Accounting policies continued
Acquisition of Oil Quest Resources plc
On 3 March 2006 Oil Quest Resources plc acquired the shares of the EnCore Group of companies. On Completion the name 
of Oil Quest Resources plc was changed to EnCore Oil plc. Due to the size of the EnCore Group in relation to Oil Quest and 
the fact that all of the Oil Quest directors stepped down from the Board of EnCore Oil plc, the acquisition of the EnCore 
Group was classified as a reverse takeover of Oil Quest. The consolidated financial statements for the period ended 30 June
2006 were prepared under the reverse acquisition method as set out in IFRS 3 with the EnCore Group as the “acquirer”. 
As a consequence of this, the results for the period ended 30 June 2006 comprised the results of the EnCore Group from
incorporation to 30 June 2006 plus those of Oil Quest from 3 March 2006, the date of the reverse acquisition, to 30 June 2006.
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.
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 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 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 useful life as follows:
– Property , plant and equipment over 3 years
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
The Company’ s investments in subsidiaries are carried at cost less provisions resulting from impairment. Listed investments are
carried at mid market price. Unlisted investments are measured at fair value.
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.
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. Taxation
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially enacted at
the balance sheet date.
Deferred income 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 income tax assets and liabilities are measured on an undiscounted basis 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.
Pensions and other post-retirement benefits
The Group does not operate any pension plans. The Group makes contributions to employees’ private pension plans of 
1 5 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 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 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
T ransactions 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.
Financial risk
The Group is exposed to financial risk because of changes in foreign currency exchange rates as measured against the GBP –
such movements could materially impact the reported results of the Group. One operation holds a significant proportion of its
cash and cash equivalents in USD and has a functional currency of USD. 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. 
35 EnCore Oil plc Annual Report 2007 36 EnCore Oil plc Annual Report 2007
Notes to the Group Financial Statements continued
Accounting policies continued
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 1 7)
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. There is no
impairment in the value of intangible assets based on our calculations.
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.
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. 
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 2007 and for the period ended 30 June 2006. 
UK UK
Onshore Offshore Overseas Unallocated T otal
2007 £££££
Impairment write down – exploration costs – (1 , 126,307) – – (1 , 126,307)
Administrative expenses (167,781) (27,007) (14,393) (1 ,509,998) (1 ,719, 179)
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)
Taxation – 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, 1 1 1 45, 184,957
T otal liabilities 1 ,248, 125 3,304,541 687,330 273,358 5,513,354
Other segment information – net book value
Intangible exploration and evaluation assets 7, 143,382 12,917,990 4, 130,497 – 24, 191 ,869
Property , plant and equipment – – – 25,925 25,925
7, 143,382 12,917,990 4, 130,497 25,925 24,217,794 37 EnCore Oil plc Annual Report 2007
UK UK
Onshore Offshore Overseas Unallocated T otal
2006 £ £ £££
Administrative expenses (57 ,736) (670,984) (32,71 0) (521 ,622) (1 ,283,052)
Operating loss (57 ,736) (670,984) (32,71 0) (521 ,622) (1 ,283,052)
Finance revenue – 93,707 78 246,084 339,869
Finance costs – (2,564) – (2,006) (4,570)
Loss before taxation (57 ,736) (579,841) (32,632) (277 ,544) (947 ,753)
Taxation – (18,260) (16) – (18,276)
Net loss (57 ,736) (598, 1 01) (32,648) (277 ,544) (966,029)
T otal assets 7 , 1 1 6, 1 1 8 3,221 ,747 94,732 1 7 ,308,372 27 ,740,969
T otal liabilities 1 , 1 21 ,868 1 00,436 38,568 294, 1 79 1 ,555,051
Other segment information – net book value
Intangible exploration and evaluation assets 7 , 1 1 6, 1 1 8 1 ,701 ,646 88,627 – 8,906,391
Property , plant and equipment – – – 38,993 38,993
7, 1 16, 1 18 1 ,701 ,646 88,627 38,993 8,945,384
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
2007 2006
£ £
Salaries 846,743 573,968
Share based remuneration charges 406,936 123,602
Social security costs 106,718 68,671
Pension costs 1 17,550 79, 134
Other payments 39,949 22,767
Gross staff costs 1 ,517,896 868, 142
Capitalised/recharged to joint venture partners (290,270) (126,095)
Net staff costs in the income statement 1 ,227,626 742,047
The above employee benefits for the period ended 30 June 2006 were incurred in the period from inception in April 2005 to 
30 June 2006. The average number of employees for the Group in the period to 30 June 2007 was 8 (30 June 2006: 5).
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’ T ransactions 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.
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 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 2007 is
£398,202 (period to 30 June 2006: £1 20,691). At 30 June 2007 the provision for employer social security costs that would arise
on the exercise of share options is £1 ,71 8 (30 June 2006: Nil).  38 EnCore Oil plc Annual Report 2007
3. Share-based remuneration charges continued
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options
during the period.
2007 2007 2006 2006
No. WAEP No. WAEP
Opening balance 8,820,000 33.14 1 ,200,000 33.67
Granted during the period 8,740,000 17.15 7,620,000 33.06
Exercised during the year (100,000) 5.0 ––
Outstanding at 30 June 17,460,000 25.29 8,820,000 33.14
The weighted average remaining contractual life of share options outstanding as at 30 June 2007 is 4. 1 years. At 30 June 2007
3,340,000 of the total number of share options outstanding could be exercised and these options had a weighted average
exercise price of 34.42 pence.
The weighted average fair value of options granted during the period was 6.5 pence. The range of exercise prices for options
outstanding at the end of the period was between 5 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 year ended 30 June 2007 .
2007 2006
Dividend yield (%) – –
Expected share price volatility (%) 60 – 65 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, the expected volatility was determined by calculating the volatility of the Group
since the acquisition and a sample of 21 AIM listed oil & 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 201 0.
The expense recognised during the period to 30 June 2007 in respect of share based payments to third parties is £8,734 
(30 June 2006 £2,91 1).
4. Auditors’ remuneration
2007 2006
£ £
Fees payable to the company’ s auditor for the audit 27,000 30,000
of the company and consolidated financial statements
Fees payable to the company’ s auditor for other services
– audit of company’ s subsidiaries pursuant to legislation 9,000 16,579
– interim review 8,500 –
– transaction services – 60,000
T otal auditors’ remuneration 44,500 106,579
The auditors’ remuneration is shown net of VAT .
Notes to the Group Financial Statements continued 5. Impairment write down – exploration costs
2007 2006
£ £
Exploration costs 1 , 126,307 –
T otal impairment write down – exploration costs 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, including an amount of approximately £0.8 million in respect of a decommissioning obligation, see Note 1 7 . All costs
relate to UK Offshore interests.
6. Finance income
2007 2006
£ £
Bank interest receivable 926,076 339,869
T otal finance income 926,076 339,869
7 . Finance costs
2007 2006
£ £
Bank charges 2,714 2,006
T otal finance costs 2,714 2,006
8. T axation
The Group has a tax credit of £4, 1 54 in the period being a refund in respect of prior year corporation tax. In the period to 30 June
2006 the Group had current tax payable of £1 8,276 in respect of interest income received by subsidiaries of EnCore Oil plc. 
The loss per the income statement can be reconciled to the overall tax charge as follows:
2007 2006
£ £
Pre-tax loss (1 ,685,026) (947,753)
T ax at the UK corporate tax rate of 30% (505,508) (284,326)
T ax effect of items which are not deductible/chargeable for tax 46,463 41 ,877
Excess of potential capital allowances over depreciation (1 ,828,501) (869,053)
Increase in UK tax losses not recognised 2,287, 134 1 , 129,778
Difference between UK and Overseas tax rates 412 –
Adjustments relating to prior periods (4, 154) –
T ax charge/(credit) for period (4, 154) 18,276
At the balance sheet date the Group has a potential deferred tax asset of approximately £3.5 million (30 June 2006: £1 . 1 million) in
respect of tax losses. This asset has not been recognised at 30 June 2007 as there is insufficient evidence of future taxable profits.
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:
2007 2006
£ £
Loss for the period 1 ,680,872 966,029
39 EnCore Oil plc Annual Report 2007 40 EnCore Oil plc Annual Report 2007
9. Loss per ordinary share continued
2007 2006
£ £
Basic weighted average number of shares 237,041 ,815 96,822,666
Dilutive potential ordinary shares:
Share options and warrants (see note 3) 12, 120,219 4,413,571
Diluted weighted average number of shares 249, 1 62,034 101 ,236,237
1 0. Business combinations
On 1 6 January 2007 , EnCore Oil acquired 1 00% of the issued share capital of four oil and gas companies: privately held Virgo 
Oil & Gas plc and Virgo Energy Limited, Nido Petroleum (UK) Limited, a UK subsidiary of Australian Stock Exchange listed Nido
Petroleum Limited, and Grove Energy (UK) Limited, a UK subsidiary of T oronto and AIM quoted Grove Energy Limited – the 
(“Virgo Group”). T otal consideration was £8.9 million comprised of 37 ,000,000 EnCore Oil plc ordinary 5 pence shares issued at
22.75 pence per share and £0.4 million of expenses. 
The fair value allocation to the acquired assets is preliminary in nature and will be reviewed in accordance with the provisions of
IFRS 3 – Business Combinations. Due to the inherently uncertain nature of the oil and gas industry and intangible exploration
evaluation assets in particular , the assumptions underlying the preliminary assigned values are highly judgemental in nature. The
purchase consideration equals the aggregate of the fair value of the identifiable assets and liabilities of the acquired companies,
and therefore no goodwill has been recorded on the acquisition. Deferred tax has been recognised in respect of the fair value
adjustments as applicable.
The effect of the acquisition on the net assets of the Group was as follows:
Book  Provisional
value fair value
(£’000) (£’000)
Net assets acquired:
Oil and gas intangible assets 685.2 1 1 ,265.5
Debtors 64.9 64.9
Short term liabilities (37.5) (37.5)
Deferred tax liabilities – (2,441.6)
T otal net assets 712.6 8,851.3
T otal consideration 8,851.3
Satisfied by:
Shares issued 8,417.5
Costs associated with acquisition 433.8
8,851.3
The loss of the Virgo Group attributable to the Group post acquisition is £1 0,857 .
Notes to the Group Financial Statements continued 1 1 . Intangible assets – exploration and evaluation fixed assets
UK Onshore UK Offshore Other T otal 
£ £££
Cost:
Additions 390,7371,611,64688,6272,091,010
Acquisitions 6,725,381 90,000 – 6,815,381
At 30 June 2006 7 , 1 1 6, 1 1 8 1 ,701 ,646 88,627 8,906,391
Additions 143,664 2, 189,288 4,041 ,870 6,374,822
Acquisitions – 1 1 ,265,467 – 1 1 ,265,467
Disposal – (948, 151) – (948, 151)
Currency translation adjustments (1 16,400) (163,953) – (280,353)
At 30 June 2007 7, 143,382 14,044,297 4, 130,497 25,318, 176
Accumulated amortisation:
Charge for the period ––––
At 30 June 2006 ––––
Impairment write down – 1 , 126,307 – 1 , 126,307
At 30 June 2007 – 1 , 126,307 – 1 , 126,307
Net book value at 30 June 2007 7, 143,382 12,917,990 4, 130,497 24, 191 ,869
Net book value at 30 June 2006 7 , 1 1 6, 1 1 8 1 ,701 ,646 88,627 8,906,391
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. One licence has a decommissioning obligation of approximately £0.7 million, also included in additions in the year
to 30 June 2007 . Exploration costs written off on completion of the exploration well on licence P1 352 were immaterial as EnCore
had its costs carried through the exploration phase.
In May 2007 EnCore announced the sale of UK Offshore block 21/30S to Perenco for an initial sum of $1 .9 million (£948, 1 51).
Further royalty amounts are due in the event of a development on the block.
1 2. Property , plant and equipment
Computer 
Leasehold Fixtures and hardware and 
improvementsequipment software Total 
£ £££
Cost:
Additions ––––
Acquisitions 14,908 5,486 26,555 46,949
At 30 June 2006 1 4,908 5,486 26,555 46,949
Additions ––3,5893,589
At 30 June 2007 14,908 5,486 30, 144 50,538
Accumulated depreciation:
Depreciation charge for the period 1 ,774 433 5,749 7 ,956
At 30 June 2006 1 ,774 433 5,749 7 ,956
Depreciation charge for the period 5, 105 1 ,978 9,574 16,657
At 30 June 2007 6,879 2,41 1 15,323 24,613
Net book value at 30 June 2007 8,029 3,075 14,821 25,925
Net book value at 30 June 2006 1 3, 1 34 5,053 20,806 38,993
41 EnCore Oil plc Annual Report 2007 42 EnCore Oil plc Annual Report 2007
1 3. Investments – non group companies
2007 2006
£ £
Listed investments
Cambridge Mineral Resources plc – 288,960
Unlisted investments
Nighthawk Energy plc – 86, 165
Oil Barrel.com Limited 50,000 50,000
50,000 425, 125
In March and April 2007 the Group disposed of its entire holding of 1 ,685,000 ordinary shares in Nighthawk Energy plc at an
average price of 23 pence per share. The total gain arising on the sale was £297 ,880. In June 2007 the Group disposed of its
entire holding of 8,500,71 5 ordinary shares in Cambridge Mineral Resources plc at an average price of 3.3 pence per share. The
total loss on disposal was £9,900. The total gain arising on the disposal of investments was £287 ,980. The Group holds 50,000
preference shares in Oil Barrel.com Limited, approximately a six per cent. interest in its shares. Oil Barrel.com is a private
company.
1 4. Other receivables
2007 2006
£ £
Prepayments 91 ,609 57, 131
Sundry 218,464 67,805
Disposal proceeds due 948, 151 –
VAT recoverable 61 ,482 210,504
1 ,319,706 335,440
Disposal proceeds due at 30 June 2007 are £948, 1 51 due on the sale of North Sea block 21/30S to Perenco.
1 5. Cash and cash equivalents
2007 2006
£ £
Cash at bank and in hand 17,967,096 18,035,020
Cash at bank earns interest at floating rates based on daily bank deposit rates and the limited use of short term deposits. 
At 30 June 2007 , the Group did not have any committed borrowing facilities.
Interest rate and currency risk
The interest rate and currency profile of the Group’ s financial assets and liabilities at 30 June 2007 and 30 June 2006 was as follows:
Sterling Euro US Dollar T otal
£ £££
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 – 58,81 1
Petty cash 273 – 69 342
14,034,771 581 3,931 ,744 17,967,096
At 30 June 2006
Cash at bank at floating interest rate 1 6,688,670 – 1 ,345,31 8 1 8,033,988
Cash at bank at which no interest is received 344 572 – 91 6
Petty cash 1 1 6 – – 1 1 6
16,689, 130 572 1 ,345,318 18,035,020
Cash held in escrow
In June 2007 , EnCore paid £1 ,630,361 ($3.3million) into an escrow account established under arrangements between Sterling
Resources (UK) Ltd and AGR Peak Well Management Ltd, relating to part of its share of the costs of the Breagh well on block
42/1 3. This well is due to be drilled by the Ensco 85 during the third quarter of 2007 . As at 30 June 2007 , none of the funds in the
escrow account had been drawn down.
Notes to the Group Financial Statements continued 1 6. Current liabilities
2007 2006
£ £
T rade payables 224,037 129,357
PAYE and Social Security 44, 166 25,623
Accruals 781 ,554 199,417
Pension contributions 13,698 1 1 ,352
T axation payable – 18,276
Amounts due to joint venture partners 99,257 –
Other 23,895 22, 158
1 , 186,607 406, 183
Accruals at 30 June 2007 include an amount of £687 ,330 accrued on drilling activities underway at the year end.
1 7 . Provisions
2007 2006
£ £
Decommissioning provision 736,275 –
At 30 June 2007 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 whether the decommissioning works can be performed as part of a multi well programme or in isolation.
1 8. Non current liabilities
2007 2006
£ £
Deferred taxation 3,590,472 1 , 148,868
The deferred taxation in the year ended 30 June 2007 arose on the fair value adjustment to intangible oil and gas assets resulting
from the corporate acquisitions disclosed in Note 1 0. The deferred taxation in the prior period arose on the fair value adjustment
to intangible oil and gas assets resulting from the reverse acquisition of Oil Quest plc as disclosed in basis of consolidation in the
accounting policies section.
1 9. 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 2007 payments under commercial property leases amounted to to £49,050.
Annual rentals payable under the non-cancellable operating lease are as follows:
2007 2006
£ £
Leases ending not later than one year – –
Leases ending after one year but not more than five years 49,050 49,050
Leases ending after five years – –
43 EnCore Oil plc Annual Report 2007 44 EnCore Oil plc Annual Report 2007
20. Equity structure
No. £
Authorised 500,000,000 25,000,000
Ordinary shares
Allotted, called up and fully paid 271 , 1 51 ,952 1 4,632,742
Equity balances of EnCore prior to reverse acquisition – 3,291 ,900
Oil Quest shares in existence prior to the acquisition 44,335, 1 07 –
Cost of acquisition 48,450, 179 2,422,509
Issued for cash 1 12, 100,000 5,605,000
At 30 June 2006 204,885,286 1 1 ,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
On 1 5 March 2007 1 00,000 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 1 6 January 2007 37 ,000,000 ordinary 5 pence shares were issued at 22.75 pence per share in exchange for 1 00 per cent. 
of the issued share capital of four oil and gas companies: privately held Virgo Oil & Gas plc and Virgo Energy Limited, Nido
Petroleum (UK) Limited, a UK subsidiary of Australian Stock Exchange listed Nido Petroleum Limited, and Grove Energy (UK)
Limited, a UK subsidiary of T oronto and AIM quoted Grove Energy Limited – see note 1 0 for further details.
On 1 8 December 2006 29, 1 66,666 ordinary shares of 5 pence each were issued at a price of 24 pence per share by way of a
placing. The Placing raised approximately £7 million (before expenses).
Contingent rights to the allotment of shares
(a) Share options
The Company has granted share options to subscribe for ordinary shares of 5 pence each as follows:
Number of 
Exercise price per options
Period exercisable share (pence) unexercised
1 6 September 1 999 to 1 5 September 2008 5 1 00,000
20 April 2000 to 1 9 April 2009 31 .25 1 00,000
21 May 2003 to 20 May 201 0 53.75 500,000
1 3 April 2005 to 1 2 April 201 5 23.5 600,000
3 March 2006 to 2 March 201 1 34 6,980,000
1 2 June 2005 to 1 1 June 201 1 22.75 640,000
1 4 March 2007 to 1 3 March 201 2 1 7 .0 8, 1 00,000
29 June 2007 to 28 June 201 2 19 640,000
17,660,000
(b) Share warrants
In February 2005 the Company granted 3,500,000 share warrants to Gold Fields Limited in connection with the purchase of its
interest in a Bulgarian project. Following a share consolidation in April 2005, the warrants held by Gold Fields Limited now total
700,000 which are exercisable at 50 pence each on or before 1 February 2008.
Notes to the Group Financial Statements continued 21 . Post balance sheet events
Old Head of Kinsale completion of testing
On 2 July 2007 it was announced that the 49/23-2z sidetrack well operated by Island Oil & Gas plc on Exploration Licence 4/05
in the Celtic Sea offshore Ireland has successfully tested dry gas at a rate in excess of 1 8 million standard cubic feet per day . The
well was suspended as a potential gas producer .
48/22b-6 drilling update
On 2 July 2007 it was announced an update to the drilling of the 48/22b-6 exploration well on the Cirrus prospect.
The well has reached total depth and available electric log data indicates that the well has encountered a sub-commercial
hydrocarbon column. The well was plugged and abandoned. EnCore’ s costs were carried through the drilling phase and
consequently there are no material exploration costs to write off.
21 0/29a and 21 0/30a farm out
On 3 July 2007 it was announced that the Company had entered into a farm-out agreement with Revus Energy (UK) Limited
whereby Revus will acquire a 33.5 per cent. interest in northern North Sea blocks 21 0/29a and 21 0/30a from EnCore and
Sterling Resources Limited.
42/1 3 rig contract 
On 3 July 2007 it was announced that the ENSCO 85 drilling rig has been contracted for the appraisal drilling of the Breagh
discovery on UK North Sea block 42/1 3. EnCore holds a 1 5 per cent. interest in the block which is operated by Sterling
Resources Ltd.
Schull drilling operations
On 1 6 July 2007 it was announced that the drilling rig SS Petrolia has arrived on location on Exploration Licence 5/05 in the 
Celtic Sea offshore Ireland and had commenced drilling operations on the Schull gas appraisal.
22. 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 26 of these accounts.
23. Commitments and contingent liabilities
2007 2006
£ £
Oil and gas expenditure:
Intangible exploration and evaluation assets 4,868,963 –
Contracted for 4,868,963 –
The above capital commitments represent EnCore’ s share of obligations in relation to its interests in Joint Ventures.
45 EnCore Oil plc Annual Report 2007 46 EnCore Oil plc Annual Report 2007
2007 2006
As at 30 June 2007 Note £ £
Fixed assets
Intangible exploration and evaluation assets 4 1 ,091 ,297 988, 178
Property , plant and equipment 5 25,925 38,993
Investments 3 17,272,413 8,796,299
18,389,635 9,823,470
Current assets
Other receivables 6 1 1 ,658,498 6,427,646
Cash and cash equivalents 7 17,783,792 16,505,421
29,442,290 22,933,067
Current liabilities
T rade and other payables 8 372,597 277, 196
Net current assets 29,069,693 22,655,871
Net assets 47,459,328 32,479,341
Capital and reserves
Called up share capital 9 13,557,597 10,244,264
Share premium 9 34,571 ,839 22,773,771
Retained earnings 9 (670, 108) (538,694)
Equity shareholders’ funds 47,459,328 32,479,341
Approved and authorised for issue by the Board on 8 August 2007 , and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer
Company Balance Sheet  Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention in accordance with the Companies Act 1 985
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 of the Company is not
presented separately . In accordance with the exemptions available under FRS 1 Cash Flow Statements the Company has not
presented a cash flow statement as the cash flow of the Company has been included in the Cash Flow of EnCore Oil plc set out
on page 31 . 
Change in accounting policy
In preparing the accounts for the period to 30 June 2006, the Company followed the full cost method of accounting for oil and
gas assets. Under this method, all expenditure incurred in connection with and directly attributable to the acquisition and
exploration of oil and gas assets was capitalised as a fixed asset pending determination of the property . For evaluated properties,
these costs were allocated to an appropriate cost pool in tangible fixed assets, being UK Onshore, UK Offshore and Other .
Unevaluated properties were held outside the relevant cost pool in intangible fixed assets, and were not amortised until such time
as the related property had been fully appraised. 
Since the Company currently has no development/producing assets there are no positive cash flows in the cost pools with 
which to shield the costs of evaluated unsuccessful properties and consequently to date all evaluated exploration costs have
been charged immediately to the profit and loss account. This has in effect resulted in the same accounting treatment as if the
Company had followed the more common successful efforts method of accounting for oil and gas assets. Consequently , the
Company has now adopted successful efforts accounting as in the longer term this will aid comparison with our peer group. 
The results for the period to 30 June 2006 would be unchanged from those published had successful efforts accounting been
applied to those periods.
In future periods the costs of unsuccessful wells initially capitalised within exploration assets will be expensed in the Income
Statement in the period they are determined unsuccessful regardless of whether development/producing assets exist.
Consequently , the adoption of successful efforts accounting may accelerate the expensing of the cost of unsuccessful
exploration wells.
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 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 useful life as follows:
– Property , plant and equipment over 3 years
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.
Notes to the Company Financial Statements
47 EnCore Oil plc Annual Report 2007 48 EnCore Oil plc Annual Report 2007
Notes to the Company Financial Statements continued
Foreign currencies
Sterling is the reporting currency of the Company . T ransactions 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. 
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 5 years of the grant date or forfeited.
The expense recognised for share-based payments in respect of employee services received during the period to 30 June 2007
is £398,202 (2006: £1 65,669). At 30 June 2007 a provision of £1 ,708 was made for employer social security costs that would
arise on the exercise of the options (2006: Nil).
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options
during the period.
2007 2007 2006 2006
No. WAEP No. WAEP
Outstanding at start of period 8,820,000 33.14 1 ,200,000 33.67
Granted during the period 8,740,000 17.15 7,620,000 33.06
Exercised/lapsed during the period (100,000) 5.0 –
Outstanding at 30 June 17,460,000 25.29 8,820,000 33.14
Share options outstanding as at 30 June 2007 had a weighted average remaining contractual life of 4. 1 years. At 30 June 2007
3,340,000 of the total number of share options outstanding could be exercised and these options had a weighted average
exercise price of 34.42 pence.
The weighted average fair value of options granted during the period was 6.5 pence. The range of exercise prices for options
outstanding at the end of the period was 5 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 during the year ended 30 June 2007 and period ended 30 June 2006.
2007 2006 2006
Post acquisition Pre acquisition
Dividend yield (%) – ––
Expected share price volatility (%) 60–65 65 104
Risk-free interest rate (%) 4.5 4.5 4.5
Expected life of option (years) 2 22
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, the change of management and the change in focus of the operation post
acquisition, the expected volatility for shares issued post acquisition was determined by calculating the volatility of the Group
since the acquisition and a sample of 21 AIM listed oil & 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. 
The pre-acquisition volatility was calculated with reference to the historical share price of Oil Quest Resources plc.
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 201 0.
The expense recognised during the period to 30 June 2007 in respect of share based payments to third parties is £8,734 
(2006: £8,733).
2. Directors remuneration
Details of directors’ remuneration of the directors of EnCore Oil plc are provided in the Directors’ Remuneration Report.
3. Investments
2007 2006
£ £
Shares in group undertakings (at cost) 17,222,413 8,371 , 174
Listed – non Group
Cambridge Mineral Resources plc – 288,960
Unlisted – non Group
Nighthawk Energy plc – 86, 165
Oilbarrel.com Limited 50,000 50,000
17,272,413 8,796,299
In January 2007 EnCore completed the acquisition of four UK oil and gas companies as disclosed in Note 1 0 to the Group
accounts. The total consideration paid was approximately £8.9 million which accounts for all of the movement in shares in group
undertakings in the period.
During 2007 the Group disposed of non-core fixed asset investments realising a net gain on sale of £0.3 million, as disclosed in
note 1 3 to the Group accounts.
Shares in Group undertakings
A list of significant investments in subsidiaries is given below:
Name % Country of operation Country of registration
EnCore Exploration Limited 1 00 UK England & Wales
EnCore Natural Resources Limited 1 00 Western Sahara England & Wales
EnCore Petroleum Limited 1 00 UK England & Wales
EnCore North Sea Limited 1 00 UK England & Wales
EnCore Oil and Gas Limited 1 00 UK England & Wales
EnCore (E&P) Limited 1 00 France England & Wales
EnCore (SNS) Limited 1 00 UK England & Wales
EnCore (NNS) Limited 1 00 UK England & Wales
EnCore Forbes Limited 1 00 UK England & Wales
EnCore (VOG) plc 1 00 UK England & Wales
EnCore Exploration Limited 1 00 Ireland Ireland
The principal activity of all companies, other than EnCore Oil and Gas Limited which is dormant, is oil and gas exploration and
evaluation.
The companies acquired as part of the corporate acquisition described in Note 1 0 to the Group Financial Statements; Virgo Oil &
Gas plc; Virgo Energy Limited; Nido Petroleum (UK) Limited; and Grove Energy (UK) Limited have had their names changed to
EnCore (VOG) Limited; EnCore Forbes Limited; EnCore (NNS) Limited; and EnCore (SNS) Limited respectively .
49 EnCore Oil plc Annual Report 2007 50 EnCore Oil plc Annual Report 2007
Notes to the Company Financial Statements continued
4. Intangible exploration and appraisal costs
UK Onshore UK Offshore Other T otal 
£ £££
Cost:
At 1 July 2005 578,840 – 84,764 663,604
Additions 1 ,602,772 – – 1 ,602,772
Disposals (1 , 193,434) – – (1 , 193,434)
At 30 June 2006 988, 1 78 – 84,764 1 ,072,942
Additions 99, 194 3,925 – 103, 1 19
At 30 June 2007 1 ,087,372 3,925 84,764 1 , 176,061
Accumulated amortisation:
At 1 July 2005 – – (84,764) (84,764)
Additions ––––
At 30 June 2006 – – (84,764) (84,764)
Additions ––––
At 30 June 2007 – – (84,764) (84,764)
Net book value at 30 June 2007 1 ,087,372 3,925 – 1 ,091 ,297
Net book value at 30 June 2006 988, 1 78 – – 988, 1 78
5. Property , plant and equipment
Computer 
Leasehold Fixtures and hardware Motor
Improvements equipment and software vehicles T otal 
£ £ £££
Cost:
At 1 July 2005 – 31 ,389 – 7 ,499 38,888
Additions 14, 1 10 10,056 22,316 – 46,482
Disposals – (500) – (7,499) (7,999)
At 30 June 2006 1 4, 1 1 0 40,945 22,31 6 – 77 ,371
Additions – – 3,589 – 3,589
At 30 June 2007 14, 1 10 40,945 25,905 – 80,960
Accumulated depreciation:
At 1 July 2005 – 1 9,303 – 2,343 21 ,646
Depreciation charge for the period 976 1 6,589 1 ,51 0 783 1 9,858
Disposals – – – (3, 126) (3, 126)
At 30 June 2006 976 35,892 1 ,51 0 – 38,378
Depreciation charge for the period 5, 105 1 ,978 9,574 – 16,657
At 30 June 2007 6,081 37,870 1 1 ,084 – 55,035
Net book value at 30 June 2007 8,029 3,075 14,821 – 25,925
Net book value at 30 June 2006 1 3, 1 34 5,053 20,806 – 38,993
6. Other receivables
2007 2006
£ £
Other current receivables 171 ,849 1 10,546
Amounts owed by group undertakings 1 1 ,430,041 6, 108, 157
VAT recoverable 56,608 208,943
1 1 ,658,498 6,427,646 51 EnCore Oil plc Annual Report 2007
7 . Cash and cash equivalents
2007 2006
£ £
Cash at bank and in hand 17,783,792 16,505,421
Interest rate and currency risk
The interest rate profile of the Company’ s financial assets and liabilities at 30 June 2007 was as follows:
Sterling US Dollars Euro T otal
At 30 June 2007 £ £££
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
Sterling US Dollars Euro T otal
At 30 June 2006 £ £££
Cash at bank at floating interest rate 1 6,504,389 – – 1 6,504,389
Cash at bank at which no interest is received 344 – 572 91 6
Petty cash 1 1 6 – – 1 1 6
16,504,849 – 572 16,505,421
8. Current liabilities
2007 2006
£ £
T rade payables 102, 190 106,883
PAYE and Social Security 44, 166 25,623
Accruals 94,224 11 0, 1 54
Pension contributions 13,698 1 1 ,352
Amounts due to joint venture partners 99,257 –
Other 19,062 23, 184
372,597 277, 196
9. Reconciliation of movements in equity
Equity share  Share Retained
capital premium earnings T otal equity
£ £££
At 1 July 2005 2,21 6,755 6,71 3,437 (3,940,593) 4,989,599
Issued for acquisition 2,422,509 5, 1 47 ,831 – 7 ,570,340
Issued for cash 5,605,000 1 1 ,91 0,625 – 1 7 ,51 5,625
Expenses – (998, 122) – (998, 122)
Profit for the period – – 3,227 ,497 3,227 ,497
Shared based payments – – 1 74,402 1 74,402
At 30 June 2006 10,244,264 22,773,771 (538,694) 32,479,341
Issued for acquisition 1 ,850,000 6,567,000 – 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 period – – (538,350) (538,350)
Shared based payments – – 406,936 406,936
At 30 June 2007 13,557,597 34,571 ,839 (670, 108) 47,459,328
The profit for the period ended 30 June 2006 includes an amount of £4,706,566 being the gain generated on the sale of two
onshore UK licences to EnCore Petroleum Limited. This Intercompany gain is eliminated in the Group results.
For further information on movements in equity see note 20 to the Group financial statements. 52 EnCore Oil plc Annual Report 2007
Notes to the Company Financial Statements continued
1 0. 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. 53 EnCore Oil plc Annual Report 2007
Notice of AGM
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 2007 at 1 0.00 a.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 period ended 30 June 2007 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 period ended 30 June 2007 .
3. 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 4 which will be proposed as a special resolution:
4. That:
a) in substitution for all existing authorities under section 80 of the Companies Act 1 985 (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
£4,51 9, 1 99.20, representing one third in nominal value of the ordinary share capital of the Company in issue and provided
that this authority shall expire at the conclusion of the Annual General Meeting of the Company to be held in 2008 save
that the Directors may before such expiry make an offer or agreement which would or might require relevant securities 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) 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
£4,51 9, 1 99.20, representing one third in nominal value of the ordinary share capital of the Company in issue and provided
that such power shall expire at the conclusion of the Annual General Meeting of the Company to be held in 2008 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.
By order of the Board
Eugene Whyms
Secretary
8 August 2007
Registered office: Registrars:
62–64 Baker Street Capita IRG
London The Registry
W1U 7DF 34 Beckenham Road
Beckenham
T el: +44 (0) 20 7224 4546 Kent
Fax: +44 (0) 20 7935 1 224 BR3 4TU 
Registered number 332821 7
T rading: +44 (0)870 458 4577
General Enquiries: +44 (0)870 1 62 31 00 54 EnCore Oil plc Annual Report 2007
Notice of AGM continued
Notes
1 . The relevant proxy form for use in the Annual General Meeting is enclosed. 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 IRG, 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.
2. Resolution 4(a), which is an ordinary resolution, authorises the Directors to allot unissued shares up to an aggregate nominal
value of £4,51 9, 1 99.20. This authority expires at the conclusion of the 2008 Annual General Meeting. 
3. If the shares are to be allotted using the authority under Resolution 4(a) and are to be paid for in cash, Section 89(1) of the
Companies Act 1 985 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’.
4. 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 4 (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 £4,51 9, 1 99.20, 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 2008 Annual General Meeting.
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:
1 . The Register of Directors’ Interests in the share capital of the Company .
2. Copies of all service contracts for periods in excess of one year made between the directors and the Company .
3. A copy of the Memorandum and Articles of Association. 55 EnCore Oil plc Annual Report 2007
Glossary
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 1 59 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. 
Block 
An areal subdivision of the UKCS of 
1 0 minutes of latitude by 1 2 minutes
longitude measuring approximately 
1 0 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 
e.g. Block 9/1 3 is the 1 3th 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, e.g. a drillship, 
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 
When a company acquires an interest
in a block by taking over all or part of the
financial commitment for drilling an
exploration well. 
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.
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 34 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 & gas
Industry Operators, Contractors,
Suppliers, T rade 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 1
degree of longitude by 1 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. 56 EnCore Oil plc Annual Report 2007
Directors, Officers & Advisers
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 1 224
info@encoreoil.co.uk
www.encoreoil.co.uk
Incorporated and registered in England
and Wales under the Companies Act
under registration number 332821 7
Registrar
Capita Registrars 
Northern House
Woodsome Park
Fenay Bridge
Huddersfield, West Y orkshire 
HD8 0LA
United Kingdom 
Trading: 
+44 (0)870 458 4577
General Enquiries: 
+44 (0)870 1 62 31 00
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 & Broker
Hanson Westhouse Limited
One Angel Court
London EC2R 7HJ
United Kingdom
T el: +44 (0)20 7601 61 00
Corporate Finance Fax: 
+44 (0)20 7796 271 3
Sales/Dealing/Research Fax: 
+44 (0)20 7796 2476
www.hansonwesthouse.com
Joint Broker
KBC Peel Hunt
1 1 1 Old Broad Street
London EC2N 1PH
United Kingdom
T el: +44 (0)20 741 8 8900
Main Fax: 
+44 (0)20 741 7 4686
Corporate Finance Fax: 
+44 (0)20 7972 01 1 2
www.kbcpeelhunt.com 
Legal Advisers
LeBoeuf, Lamb, Greene & 
MacRae 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.llgm.com
Financial PR
Aquila Financial Limited
1 81 Union Street
London SE1 0LN
United Kingdom 
T el: +44 (0)20 7202 2600
Fax: +44 (0)20 7202 2608
www.aquila-financial.com  Designed and produced by
SampsonMay
Board photography by
Andy Wilson
Christine M.K. Wheeler OBE
photographed by
Bill Robinson
Group photograph on page 5
Bharat Petroleum
Printed in England by
Colourhouse
The material used in this report has up to
50% recovered fibre from pre- and post-
consumer waste. The remaining pulp is
sourced from fully sustainable forests and
is elemental chlorine free. 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