EnCore Oil plc
EnCore Oil plc
Annual Report and Accounts 2011
Annual Report and Accounts 2011
Watson House
54 Baker Street
London
W1U 7BU
United Kingdom EnCore Oil plc   Annual Report & Accounts 2011 EnCore Oil plc   Annual Report & Accounts 2011
EnCore Oil
Who We Are
Our Strategy
EnCore Oil plc is a UK-based oil and gas exploration 
and production (E&P) company quoted on AIM in 
London under the ticker ‘EO.’. We hold a balanced 
portfolio of licences, primarily focused on offshore 
UKCS and own just under 30 per cent. equity in AIM 
listed Egdon Resources plc (LSE: EDR), a focused 
onshore E&P company.
Our principal strategy is to create shareholder 
value through the successful exploration, 
appraisal and development of prospects and 
discoveries. Since our inception in 2005, we 
have drilled 26 wells and side-tracks. These 
have resulted in a number of discoveries 
including Breagh in the UK Southern North 
Sea, Catcher, Varadero and Burgman in the 
UK Central North Sea, and Cladhan in the UK 
Northern North Sea. 
We believe in monetising or exchanging of 
assets at the right stage in their lifecycle to 
best maximise value: this can either be before 
development sanction, especially where the 
development costs are significant, such as the 
Breagh gas discovery which we sold in 2009, or 
it may be once the field has been developed, for 
example the Ceres gas field which was part of 
the package of assets which were divested to 
Egdon Resources in 2010. 
For more information on our activities, please see 
our website www.encoreoil.co.uk 
 Focus on areas of  
proven expertise: 
offshore UKCS
1
  Balanced risk pr ofile:
broad portfolio of exploration 
and appraisal assets, minimise 
financial risk through farm out 
of equity for carry on wells
2
Opportunistic approach:
open to asset divestment and 
asset swaps. Consider stage 
of asset lifecycle as well as 
strategic position. 
3 EnCore Oil plc   Annual Report & Accounts 2011
01
Business Profile The Year in Review Governance Financial Statements Company Information
Highlights
Operational
Eleven wells completed during the period: Two exploration  
wells resulting in the Varadero and Burgman discoveries,  
and nine appraisal wells at Catcher, Burgman and Cladhan 
Acquisition of part of Central North Sea Licence P .218 with our 
partners in Licence P .1655 
T wo Licences covering six Blocks awarded in the 26th  
UK Seaward Licensing Round
50 per cent. option over three further Central North Sea  
Licences exercised 
Rig contract signed post period end for the Sedco 704 rig to drill  
on Licence P .1463 which contains the Tudor Rose discovery, due  
to commence later this month
Appointment of Vivien Gibney onto the Board of Directors upon  
the resignation of L. Keith Hughes
Financial
Cash of £18.3m as at 30 June 2011 (£41.9m as at 30 June 2010)
Debt free
Intangible Oil & Gas assets of £34.2m as at 30 June 2011  
(£15m as at 30 June 2010)
Loss of £2.5m for the year ended 30 June 2011 (profit of £11.4m 
for the year ended 30 June 2010)
Business Profile
2011 Highlights 01 
At a Glance 02
The Year in Review
Chairman’s Review 04 
Chief Executive’s Review 05
Operational Review 06 
Financial Review 10 
Governance
Board of Directors 12 
The EnCore Team 12 
Corporate Governance Statement 14
Directors’ Report 16 
Remuneration Report 18
Statement of Directors’ Responsibilities 22
Financial Statements
Independent Auditor’s Report 23
Consolidated Statement  
of Comprehensive Income
 
25
Consolidated Statement  
of Financial Position
 
25
Consolidated Statement  
of Changes in Equity 27
Consolidated Statement  
of Cash Flows 28
Group Accounting policies 29
Notes to the Group  
Financial Statements 34
Company Balance Sheet 52
Company Accounting policies 53
Notes to the Company  
Financial Statements 54
Company Information
Notice of AGM 62
Glossary 66
Directors, Officers and Advisors 68 EnCore Oil plc   Annual Report & Accounts 2011
02 At a Glance
licences 
16
blocks or  
part blocks
29
shares in issue
292m
employees including  
the Executive Directors
11
wells drilled 
since inception
26
shares owned in  
Egdon Resources plc
39.2m
East Irish Sea
1 Licence
Central North Sea
9 Licences
South North Sea
2 Licences
Northern North Sea
1 Licence
Celtic Sea 
2 Licences
Western Sahara
1 Licence
Where we are EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
03
Licence Block Type 
EnCore 
Equity Operator 
Other 
Partners
UK Continental Shelf
EnCore has interests in 13 offshore licences on the UK Continental Shelf (as at 5 October 2011)
Northern North Sea
P1064 210/29a & 210/30a T 16.60% Sterling Resources (39.9%) Dyas (10.00%)
Wintershall (33.50%)
Central North Sea
P1463 14/30a T 40.00% EnCore Endeavour Energy (20.00%) 
EnQuest (20.00%) 
Nautical Petroleum (20.00%)
P1769 14/29e, 20/4c (part) & 20/5f (part) T 50.00% EnCore Endeavour Energy (50.00%)
P1430 28/9 & 28/10c T 15.00% EnCore Agora (15.00%) 
Nautical (15.00%) 
Premier Oil (35.00%)
Wintershall (20.00%)
P1812 28/5, 28/10c, & 29/1d T 100.00% EnCore –
P1655* 15/21g T 28.00% EnCore Atlantic Petroleum (3.24%) 
DEO Petroleum (12.62%)
Faroe Petroleum (8.40%)
Maersk Oil UK (5.74%)
Nautical Petroleum (21.00%)
Serica Energy (21.00%)
P218* 15/21a T 28.00% EnCore Atlantic Petroleum (3.24%) 
DEO Petroleum (12.62%)
Faroe Petroleum (8.40%)
Maersk Oil UK (5.74%)
Nautical Petroleum (21.00%)
Serica Energy (21.00%)
P1870 15/21d P 50.00% North Sea Energy Inc (50%) –
P1866 13/28b P 50.00% North Sea Energy Inc (50%) –
P1876 22/5 P 50.00% North Sea Energy Inc (50%) –
Southern North Sea & East Irish Sea
P1335 43/13a T 100.00% EnCore –
P1243 48/1b & 48/2c T 25.00% EnCore Bharat Petroleum (25.00%) 
Bridge Energy (25.00%) 
TATA Petrodyne (25.00%)
P1475 113/29c & 113/30 T 50.00% Nautical Petroleum (50%) –
*subjection to regulatory approval and completion
Ireland
EnCore has interests in 2 licences offshore Ireland
PEL 4/05 49/17 (part), 49/22 (part) 
& 49/23 (part)
T 15.00% San Leon Energy (65.00%) Valhalla Oil & Gas (20.00%)
PEL 5/05 57/2,57/1 (part), 
48/26 (part) & 48/27 (part)
T 12.50% San Leon Energy (62.50%) Valhalla Oil & Gas (25.00%)
Western Sahara
EnCore has a pre-production sharing contract and assurance agreement for one Block offshore Western Sahara
PSC Laguera PSC 100.00% EnCore –
Type: T: Traditional Licence, P: Promote Licence, PSC: Pre-Production Sharing Contract. 04
EnCore Oil plc   Annual Report & Accounts 2011
Chairman’s Review
Few companies will look back on 2011 as a successful 
and satisfying year. Prior to the announcement made 
on 5 October 2011 of the recommended acquisition by 
Premier to acquire EnCore, I had written my Chairman’s 
statement and, in that draft, had reported that within 
EnCore we could look at 2011 with some pleasure 
because of our continuing exploration success but, like 
every other company in the UK upstream oil sector, we 
have been affected by the worldwide funding crisis which 
has in turn affected oil prices, prompted fiscal changes 
and dampened investor confidence. Of course I had also 
outlined our plans for further work on the Catcher area, 
Cladhan and the planned well on Tudor Rose.
All this has been overtaken by recent events and it is likely 
that we will now remember 2011 as the year EnCore 
satisfied its aim of delivering value to its shareholders. As 
a Board we have considered the Acquisition very carefully. 
There are differing views in the industry about how to 
risk assess UK exploration assets not just for oil price, 
geological and development risk, but fiscal uncertainty 
and funding risk. Bearing all factors in mind, the Board 
unanimously determined that the terms of the Acquisition 
are fair and reasonable to EnCore shareholders.
I thank the EnCore team, many of whom have been 
with the company since its inception in 2005 and the 
contractors with whom we have worked inter alia 
during our drilling programmes, for demonstrating their 
high levels of expertise and hard work. The EnCore 
Executive management and staff have an enviable 
reputation which is well deserved. I thank my fellow 
Non-Executive Directors Keith Hughes, who left the 
Board during the year, and Vivien Gibney who joined 
us, for their valuable contributions.
I also thank our shareholders for their continued 
support over the last six years. Since EnCore started 
in 2005, we have sought to maintain a balanced risk 
profile and to conserve our equity for the appraisal of 
areas where we made discoveries like Catcher and 
Cladhan. I hope our shareholders share our pride 
in being involved with a company responsible for a 
number of the more important discoveries in the UK 
North Sea in recent years.
Our prime aim has been to create and deliver value to 
EnCore shareholders, and I am pleased that having 
created that value we can now deliver it.
Christine M.K. Wheeler OBE
Chairman
5 October 2011
It is likely that we will now remember  
2011 as the year EnCore satisfied its aim  
of delivering value to its shareholders 05
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Chief Executive’s Review
Before I comment on the recent announcement 
regarding the acquisition of the Company, I would  
like to review the year.
I believe that 2011 has amply demonstrated that 
exploration and production is a business where risk  
and uncertainty are ever present, both above and below 
ground. Whilst we would like to think we understand 
the nature and range of potential outcomes of the 
subsurface and the operational risks that we take, the 
“above ground” risks are often less predictable and can 
have, and have had material impacts on both the value 
and risk profile of the business. 
A successful drilling campaign in the Catcher area  
delivered greater certainty on the extent and potential  
within the licence, with two new discoveries at Varadero  
and Burgman and a number of now highly attractive undrilled 
prospects high graded for future drilling, demonstrating 
the discovery of a material new hydrocarbon fairway in this 
part of the UKCS. These discoveries are now progressing 
towards development and we would expect to see the first 
Field Development Plan (FDP) approvals by the Department 
of Energy & Climate Change (DECC) in 2012, followed by 
first oil a few years later.
Our recent drilling campaign at Cladhan was less 
successful than we had initially hoped. Although we  
were pleased to see a significantly increased hydrocarbon 
column from the results of the first well, it also 
demonstrated that there was likely to be higher variability 
in reservoir quality, in part, we believe, relating to depth, 
and in part relating to the depositional nature of the 
sandstones. The second well of the campaign in the 
deepest parts of the structure, some 2,500 feet from the 
mapped crest, and some 1,000 feet or more below the 
lowest established oil, encountered a reservoir sequence 
without any effective porosity and permeability. The third 
and fourth wells established an area to the south of 
Cladhan with a different pressure regime, where we believe 
we may have intersected a potential oil water contact in a 
separate accumulation. We also expect that Cladhan will 
now progress towards FDP approval, possibly in 2012, 
likely as a sub-sea tie back to established infrastructure.
Recognising the fact that our development assets, and 
in particular the Catcher area, were ultimately likely to be 
of greater strategic value to a larger, more established 
UK producer, we set about positioning the Company to 
try and maximise the value of our remaining exploration 
portfolio by attempting to demerge these into a newly 
formed and listed subsidiary, XEO Exploration plc. A 
change in market sentiment with respect to exploration 
and production risk, and in particular with respect to the 
UK offshore sector following unexpected, rather blunt and 
frankly ill-considered tax changes, meant that this avenue 
was no longer available to us. We were disappointed with 
this outcome, as we believe the portfolio had, and indeed 
still has, significant merit, although not without risk. 
As we entered the second half of 2011, the Board 
recognised that we needed to evaluate our near-term 
strategy and balance our risk exposure to mitigate the 
effects of a new and uncertain external investment 
environment, and safeguard, to the maximum extent 
possible, the value we had already created for our 
shareholders in a turbulent and unforgiving market. 
Following a number of informal and broad ranging 
discussions with third parties, the Board concluded that 
the best route would likely be the outright sale of EnCore 
to a larger, well capitalised company, ideally with the option 
to allow our shareholders to continue to participate in the 
upside contained within the asset base should they so 
wish. Following receipt of an approach from Premier, our 
co-venturer in Catcher, the Board agreed that on balance, 
and considering the future risks and uncertainties, this route 
was likely the best option for retaining much of the value 
we had created. The market will of course determine if this 
is indeed the case. On a personal level, I would particularly 
like to thank my fellow Directors and staff for their invaluable 
contribution towards the successes we have achieved 
over the past six years. I would also like to thank our 
shareholders, many of whom participated in our original 
$6 million friends and family fundraising in 2005, for their 
patience and understanding over the years. 
Alan Booth
Chief Executive Officer
5 October 2011 
Exploration and production is a business 
where risk and uncertainty are ever 
present, both above and below ground 06
EnCore Oil plc   Annual Report & Accounts 2011
Operational Review
UKCS Block 28/9 – Catcher, Varadero, Burgman
We began the period under review part-way through the 
drilling of the side-track appraisal well at Catcher South 
West, well 28/9-1y, which we covered in our 2010 Annual 
Report. This well found oil with a net vertical sand thickness 
of 121 feet and a hydrocarbon column of 173 feet.
During July and August 2010 following the completion of 
the Catcher South West well, site surveys were carried 
out over Block 28/9 to identify safe drilling locations for 
the second phase of drilling. A rig contract was signed in 
late September 2010 for the Transocean Galaxy II heavy 
duty jack-up rig to carry out this drilling. After an extended 
period of waiting on weather to exit Dundee Harbour, the 
second phase of drilling commenced in mid-December 
2010 with the spud of the Varadero exploration well 
28/9-2. Well 28/9-2 discovered oil and gas within the 
Tertiary age Tay Formation and had a net pay of 106 feet 
with an average porosity of 33 per cent., over a gross 
hydrocarbon bearing interval of 400 feet. Wireline samples 
indicated an oil gravity of 26 degrees API. The well was 
plugged and abandoned as an oil and gas discovery. 
January 2011 saw the commencement of drilling of the 
Catcher North appraisal well. Well 28/9-3 appraised 
the Tay and Cromarty reservoirs to the North of the 
original Catcher discovery, and discovered 34 feet of net 
hydrocarbon pay with average porosity of 31 per cent.; 
14 feet of 29.8 degree API oil within the Cromarty level 
and 20 feet of gas within the Tay section. The gross 
hydrocarbon column for the Catcher area was extended 
to 410 feet, comprising a gas column of 75 feet and an oil 
column of 335 feet. The well was plugged and abandoned 
as an oil and gas well.
Well 28/9-4, to evaluate the Burgman prospect, 
commenced at the beginning of March 2011. The 
well location was selected to intersect four potential 
reservoir horizons (the Upper Tay, Lower Tay, Cromarty 
and Fulmar reservoirs) which had been identified from 
the seismic data. The well encountered 12 feet of gas in 
the Upper Tay sandstones and 10 feet of 24 degree API 
oil in the Lower Tay sandstones. The gross gas column 
encountered was a minimum of 78 feet and the gross oil 
column was estimated to be 420 feet. The Cromarty  
and Fulmar sections were not hydrocarbon bearing.
Although oil bearing in well 28/9-4, the Lower Tay was not 
particularly well developed at the well location, appearing 
more thickly developed over a large proportion of the 
remainder of the Burgman prospect. Therefore, the group 
decided to side-track to an area prognosed to contain 
better developed Lower Tay sands to the south east of 
well 28/9-4. The side-track well 28/9-4z encountered 64 
feet True vertical thickness (TVT) of net oil pay with average 
porosity of 38 per cent. over a gross interval of 64 feet 
TVT. This result confirmed the geophysical model for the 
identification of Tay sands over the Burgman structure. The 
well was plugged and abandoned as an oil and gas well.
Following completion of the Burgman side-track at the 
end of March 2011, work has continued on development 
planning studies for the development of the discoveries on 
Block 28/9 and a dedicated development team is now in 
place. On the exploration side, a high density 3D seismic 
survey has just been acquired over the Block. The data, 
expected to be delivered during Q4 2011, will be fully 
analysed alongside the existing data. Additionally, a site 
Work has continued on development  
planning studies for the development  
of the discoveries on Block 28/9 and a  
dedicated development team is now in place
UKCS Block 28/9 07
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
survey has been commissioned to survey the Carnaby 
prospect on Block 28/9 during the second half of 2011, 
with a view to drilling in H1 2012. 
UKCS Blocks 210/29a & 210/30a – Cladhan
During the year under review, one well and five side-
track wells were drilled on the Cladhan discovery. The 
first well was a side-track from the original Cladhan 
discovery made in November 2008. Well 210/29a-
4z commenced in August 2010 with the objective of 
targeting a southerly extension up-dip of the original 
Cladhan discovery. This well discovered a gross 
hydrocarbon column of 159 feet TVT with 102 feet 
TVT of net hydrocarbon pay. When tested, the 34 
degree API light oil flowed at a restricted 5,900 bopd 
for over 13 hours through a 28/64 inch choke, with 
a final wellhead pressure of 1,874 psi. The Operator, 
Sterling Resources, indicated that with larger 4.5 inch 
completion tubing, they estimated that the well is 
capable of producing over 15,000 bopd.
A second side-track, well 210/29a-4y, was then drilled 
to test an area down dip and to the South East of the 
original discovery well. The well encountered a 169 feet 
TVT gross hydrocarbon column, with a net pay of 71 feet 
TVT. This took the total oil column from the three wells 
drilled to date to in excess of 425 feet, with no Oil Water 
Contact established at that time. 
In October 2010, the Operator, Sterling Resources, 
published a Competent Persons Report (CPR) which gave 
a range of oil in place estimates. However, it remained 
our opinion at that time that until further drilling was done, 
an Oil Water Contact was established and connectivity 
to other areas in the broader Cladhan structure was 
confirmed, the potential size of the Cladhan discovery 
remained uncertain, though likely commercial. 
The second phase of drilling commenced in March 2011 
using the Transocean Prospect semi-submersible rig. 
Appraisal well 210/30a-4 was drilled to the south east 
of the original Cladhan discovery to a Total Measured 
Depth of 12,252 feet. This well encountered oil bearing 
Upper Jurassic sandstones in two separate reservoir 
intervals. In the lower reservoir, the well encountered 
a gross interval of 256 feet TVT with a net sand of 21 
feet TVT. Pressure data indicated that this sand was in 
pressure communication with, and therefore part of, the 
original Cladhan discovery. Average porosity of this sand 
was 16 per cent. and hydrocarbon saturation was 75 per 
cent. The well proved an Oil Down To of 10,447 feet True 
Vertical Depth SubSea (TVDSS), giving a hydrocarbon 
column of over 1,200 feet. The well also encountered 13 
feet TVT of net sand over an 18 feet TVT gross interval 
in the upper reservoir sequence, with average porosity 
of 16 per cent. and hydrocarbon saturation of 82 per 
cent. The pressure data for this upper reservoir sequence 
suggested it was not in communication with the original 
Cladhan discovery. No Oil Water Contact was established 
in either reservoir sequence.
In April 2011, the well was side-tracked to the East, 
1,000 feet deeper and out to the eastern fan area of 
the prognosed Cladhan structure. Well 210/30a-4z 
encountered two separate Upper Jurassic reservoir 
All indications point to a possible new 
accumulation, separate from Cladhan, up  
dip of 210/30a-4x and 210/30a-4y but further 
drilling would be required to prove this
UKCS Block 210/29a and 210/30a 08
EnCore Oil plc   Annual Report & Accounts 2011
intervals with gross sands of 12 feet TVT and 169 feet 
TVT respectively. Hydrocarbon shows were encountered 
in both reservoirs but with average porosity of less 
than 10 per cent., it was not possible to confirm if 
the sands were hydrocarbon bearing and in pressure 
communication with the original Cladhan discovery. 
A second planned side-track well, 210/30a-4y, 
commenced in May 2011. This well targeted the Central 
Channel area to the south of the original Cladhan discovery 
and encountered gross sands of 191 feet TVT with net 
sands of 40 feet TVT. Log and pressure data indicated 
that the sands were water wet, and that the Central 
Channel was in a separate pressure regime from the main 
Cladhan discovery. The sands in this location were still 
over pressured which suggests there may be remaining 
prospectivity up dip from the 210/30a-4y well location. 
The final well of the programme, well 210/30a-4x was 
drilled as a side-track to evaluate another channel to 
the south of the Cladhan discovery. The well discovered 
171 feet TVT of gross sands, with 105 feet TVT of net 
sand. Log data indicated that the uppermost five feet 
of reservoir was hydrocarbon bearing, resulting in an 
Oil Down To at 10,177 feet TVDSS and a calculated Oil 
Water Contact of 10,200 feet TVDSS. Pressure data 
indicated that the sands were over pressured in this 
location, similar to the pressure trend encountered in well 
210/30a-4y which evaluated the Central Channel, and 
therefore in a separate pressure regime to the original 
Cladhan discovery. All indications point to a possible 
new accumulation, separate from Cladhan, up dip of 
210/30a-4x and 210/30a-4y but further drilling would  
be required to prove this. 
Infield surveys and a pipeline survey have taken place since 
the period end through July and August 2011, and subsea 
pre-FEED work was recently commissioned. Planning 
continues on the best development scenarios for the 
Cladhan field. 
Other Portfolio Activity
During the period under review, EnCore was awarded two 
traditional licences containing six Blocks and part-Blocks 
in the UK Seaward 26th Licensing Round. The first of 
these Licences, P .1812 contains Blocks 28/5, 28/10a 
and 29/1d (split) and lies to the east and north east of the 
Catcher oil discovery in EnCore’s existing Blocks 28/9 and 
28/10c. EnCore owns 100 per cent. of this licence and 
since reprocessing 3D seismic data over the area, initial 
observations have highlighted a potentially interesting new 
Tay prospect, Coaster, which has similarities to the Tay 
structures found in the Catcher Blocks 28/9 and 28/10c 
to the West. Further technical work is being undertaken to 
establish prospective locations for potential drilling in 2012.
The second licence award, P .1769 containing Blocks 
14/29e, 20/4c and 20/5f lies to the south west of the 
Tudor Rose heavy oil discovery and the Buffalo prospect 
in EnCore’s existing Block 14/30a. EnCore was awarded 
50 per cent. of the Licence, with the remaining equity 
and operatorship awarded to Endeavour Energy UK Ltd. 
The blocks contain the Hoylake gas discovery that was 
drilled by Shell in 1998. The partnership is reprocessing 
3D seismic data over this Licence to further evaluate the 
Hoylake discovery in the near term. 
The 26th Licensing Round also saw the award of three 
Licences; P .1870, P .1866 and P .1876 containing Blocks 
15/21d, 13/28b and 22/5 respectively to Echo Exploration, 
owned by North Sea Energy Inc., in which EnCore had the 
option to acquire 50 per cent. of the equity, for a nominal 
consideration. This option was exercised at the end of 
June 2011, subject to the usual regulatory approvals. 
Block 15/21d contains the Beehive oil discovery, which 
was drilled by Amerada Hess in 1993 and flowed 5,700 
bbls/day of 28 degree API oil when tested. The forward 
work programme on these Blocks is expected to include 
reprocessing of seismic data over the area. 
Towards the end of the period under review, talks took 
place regarding the acquisition (subject to the usual 
regulatory approvals) of part of UK Central North Sea 
Licence P .218, which neighbours EnCore’s Licence 
P .1655. The area of Licence P .218 to be acquired includes 
the 15/21a-38z Spaniards / Gamma discovery well, drilled 
in 1989 by Amerada Hess, and which flowed 2,600 bbls/
day of 26 degree API oil on test. EnCore and its P .1655 
Operational Review continued
EnCore was awarded two traditional licences 
containing six Blocks and part-Blocks in the 
UK Seaward 26th Licensing Round 09
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
partners have agreed to acquire a total of 70 per cent. 
of licence P .218 in return for 30 per cent. of the P .1655 
licence and funding the cost of the first well to evaluate 
the Spaniards / Gamma discovery. Upon receiving 
regulatory approval, EnCore’s equity in the two licences, 
P .1655 and P .218 will be 28 per cent. 
Other licence activity which took place during the period 
under review included extensions granted by DECC to 
licence P .1463, containing the Tudor Rose discovery 
and Buffalo prospect, and licence P .1475 containing the 
Merrow prospect. A Letter of Award, and since the period 
end, a full rig contract, was signed with ADTI for use of the 
Sedco 704 rig to drill an appraisal well on the Tudor Rose 
discovery to establish the gravity and viscosity of the oil in 
place. The drilling of the well is expected to commence in 
October 2011 and the results will help determine if Tudor 
Rose can be commercially exploited. Under the licence 
terms agreed with DECC on award, our interest in licences 
P .1689 and P .1674 lapsed and were relinquished and in 
addition, we elected to relinquish licence P .1687. 
In Ireland, we are still awaiting a decision from the Irish 
Petroleum Affairs Division over the lease undertakings 
application in order to allow EnCore and its partners, 
San Leon Energy (Operator) and Valhalla Oil and Gas to 
continue work on the licences. As a consequence of this 
delay, little work was done on the Irish licences during 
the period. 
Finally, our Gas Storage project on UK Southern North 
Sea Block 43/13a remains for sale but has received no 
acceptable offers to date. 
Corporate activity 
At the time of our Interim Results in March 2011, we 
announced that the Board were considering options for 
how best to maximise the potential of our exploration 
portfolio without any undue dilution of the value created 
for shareholders in our two main assets, Catcher and 
Cladhan. The Board concluded that floating a newly 
formed company containing the exploration assets, in 
which EnCore would retain a significant shareholding, 
would be the best way to fund an extended, high impact 
exploration drilling programme with the associated risks. 
On top of EnCore retaining a significant shareholding, an 
offer was to be made to existing EnCore shareholders to 
subscribe for shares in the new exploration company at 
the institutional placing price. 
However, in part due to the unexpected announcement 
of the North Sea taxation reforms in the 2011 Budget, the 
market appetite for high impact exploration with its inherent 
risks all but evaporated overnight. While encouraged by the 
indicated support we had received at the time, the decision 
was taken to cancel the flotation of the new company 
rather than have a continual need for further fundraising to 
complete the proposed drilling programme. 
In April 2011, the resignation of L. Keith Hughes, a 
Non-Executive Director was announced. Keith had 
joined a new law firm which prohibited partners holding 
non-executive directorships with for-profit companies. 
On Keith’s resignation, Vivien Gibney, a barrister and 
executive, now retired, with over 25 years’ oil industry 
experience, joined the Board as a Non-Executive Director.
Since the period end, it was announced on 5 October 
2011 that EnCore had reached agreement on the terms 
of a recommended acquisition by Premier of the entire 
issued and to be issued share capital of EnCore at 70p 
per ordinary share in cash, with a full share alternative. 
The Board of EnCore considers the terms of the 
Acquisition to be fair and reasonable and as such, intend 
to recommend unanimously that EnCore shareholders 
vote in favour of the Scheme. Further information can be 
found in the announcement dated 5 October 2011 on  
the EnCore website www.encoreoil.co.uk.
5 October 2011 
The Board of EnCore considers the terms of the 
Acquisition to be fair and reasonable and as such, 
intend to recommend unanimously that EnCore 
shareholders vote in favour of the Scheme 10
EnCore Oil plc   Annual Report & Accounts 2011
Financial Review
Gain for the Financial Year
The net loss for the year to 30 June 2011 is £2.5 million 
(30 June 2010: profit of £11.4 million). The movement to a 
loss in 2011 reflects the one off gains associated with the 
sale of the Breagh gas asset in the previous financial year. 
The normalised result for 30 June 2010, excluding the 
Breagh gains, was a loss of £11.5 million.
The operating loss is £3.7 million (2010: loss £15.1 million) 
comprising administrative expenses of £3.3 million (2010: 
£2.7 million) and exploration costs of £0.4 million (2010: 
£12.4 million).
The gain from our share in our associate company  
Egdon Resources plc is £1.2 million. 
Net financial income in 2011 was £0.4 million  
(2010: £0.3 million). Foreign currency losses were  
£0.6 million in the year (2010: gain of £1.5 million).
Gross administrative expenses, before capitalisation and 
recharges to joint venture partners, were £4.5 million 
(2010: £3.5 million). The increase reflects the costs of 
the aborted Xeo Exploration plc flotation which are not 
capitalised or recharged to partners.
The gross administrative costs can be further analysed 
as follows:
2011
£ million
2010
£ million
Staff costs 2.6 3.0
Legal and professional 1.4 0.2
Office costs 0.3 0.1
Other 0.2 0.2
4.5 3.5
Capitalisation and recharge to joint venture partners of 
administration costs during the current year amounted 
to £1.2 million (2010: £0.8 million) reflecting the increase 
in work on operated projects, principally Catcher. 
Consequently, net administration costs in the profit and 
loss account were £3.3 million (2010: £2.7 million).
Staff costs include £0.1 million (2010: £0.3 million) of IFRS 
2 charges related to share options granted to Directors, 
staff and third parties.
Exploration costs of £0.4 million principally relate to the 
write down of certain UK Offshore assets. Exploration costs 
in the year ended 30 June 2010 of £12.4 million reflected 
the write down of UK Onshore assets which were ultimately 
sold to Egdon Resources Plc and our Irish assets.
Tax
The tax credit of £0.3 million in the year ended 30 June 2011 
largely reflects the restatement of deferred tax balances 
arising on fair value adjustments to intangible oil and gas 
assets to current tax rates. This deferred tax movement is a 
non-cash item.
The tax credit arising in the year to 30 June 2010 reflected 
the reversal of deferred tax balances created on the fair 
value adjustments to intangible oil and gas assets resulting 
from acquisitions in the year to 30 June 2008 and the 
period to 30 June 2007. These deferred tax balances 
reverse via the Consolidated Statement of Comprehensive 
Income when the asset is subsequently sold, as was the 
case with Breagh, or the asset is impaired, as was the case 
with the impairment of certain UK Onshore licences. This 
deferred tax movement is a non-cash item.
Associate Company
During the year the Company acquired an interest of 
just under 30% in Egdon Resources plc through the 
sale of its onshore assets and Ceres gas field. Egdon is 
an associate company of EnCore and as such we are 
required to account for our share of its trading results.
Egdon announced their result for the six months ended 
31 January 2011 on the 19 April 2011. The result was a 
profit for the period of £4.4 million. As of the date of these 
accounts Egdon have not released their results for the 
year ended 31 July 2011 nor given any indication of when 
the results announcement will be made.  11
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Despite Egdon being an associate company of EnCore 
Oil plc they are under no obligation to provide us with 
trading and financial data. To date no such data has 
been received by us. In the interests of the timely 
announcement of our year end results, the Directors of 
EnCore Oil plc decided to estimate Egdon’s results for the 
year ended 31 July 2011 based on publicly available data 
and our knowledge of their assets.
We have estimated that the full year profit for the year 
ended 31 July 2011 for Egdon will be approximately 
£4 million. An amount of £1.2 million, based on our 
30% shareholding in Egdon, has been included in our 
consolidated income statement in the current year.
The actual result for Egdon for this period may be different 
to our estimate and consequently an adjustment may be 
required in our future accounts.
Our auditors, PKF (UK) LLP, have not had access to  
the management of Egdon nor to their financial 
documents nor Egdons auditors’ working papers. 
Consequently, PKF (UK) LLP have been unable to 
obtain sufficient appropriate audit evidence to support 
our estimates of the carrying value of the investment 
in Egdon at 30 June 2011 and the Group’s share of 
the result for the year. They were therefore unable to 
determine whether any adjustments to these amounts 
were necessary. As a consequence PKF (UK) LLP have 
qualified their report to the members of EnCore Oil plc 
to draw attention to the limitation that has been placed 
on the scope of their audit work.
Statement of financial position
At 30 June 2011 the Group had net assets of 
£56.8 million (30 June 2010: £58.4 million). The most 
significant balances are intangible exploration and 
evaluation assets of £34.2 million (2010: £15.0 million)  
and cash of £18.3 million (2010: £41.9 million).
The exploration and evaluation assets can be further 
analysed as follows:
2011
£ million
2010
£ million
UK offshore licences 31.7 12.5
Other 2.5 2.5
34.2 15.0
During the year to 30 June 2011, the Company incurred 
expenditure of £19.6 million (2010: £2.7 million) on its oil 
and gas properties principally in respect of the extensive 
drilling campaigns on Cladhan (£12.5 million) and Catcher 
(£6.5 million). Costs in 2010 reflected exploration drilling 
on Catcher together with Ceres development costs. Ceres 
was sold to Egdon Resources plc during the course of the 
financial year.
Other exploration and evaluation assets include interests 
in Ireland. 
Financing
The Group ended the year with £15.3 million of cash and 
cash equivalents (2010: £31.2 million) and a further £3.0 
million of restricted cash (2010: £10.7 million). The Group 
remains debt free.
Restricted cash at 30 June 2011 includes £1.5 million 
held in escrow accounts under arrangements with drilling 
contractors relating to the Company’s share of the cost 
of drilling the Cladhan well and a further £0.3 million in 
respect of Catcher drilling and £1.2 million in respect of 
the forthcoming Tudor Rose well.
At 30 June 2011 approximately half of our cash is held 
on deposit with The Royal Bank of Scotland and attracts 
floating rate interest. The balance is on deposit with 
Scottish Widows in a fixed rate account. 
At 30 June 2011 all of the cash was held in GB Pounds. 
The Group from time to time holds US Dollars and 
is therefore exposed to some extent to the risk that 
movements in exchange rates with GB Pounds will  
impact the value of cash and cash equivalents.
EnCore anticipates that investing activities on its oil and 
gas properties can be financed through operating cash 
flows and existing cash resources and as a result it will 
have adequate liquidity to fund its present commitments 
for a period of at least 12 months from the date of signing 
these accounts.
However, EnCore is currently pursuing projects that 
will likely require additional financing. Such additional 
sources may include debt and equity financing as needs 
arise. However, factors affecting project timing and 
outcomes and market conditions could affect EnCore’s 
ability to fully finance all its investment opportunities on 
the optimal schedules.
Eugene Whyms
Chief Financial Officer
5 October 2011  12
EnCore Oil plc   Annual Report & Accounts 2011
Board of Directors
1. Christine M.K. Wheeler OBE, 
Chairman and Non-Executive 
Director, 66 
Christine has over 35 years’ experience 
in advising the upstream oil and gas 
industry on fiscal and commercial 
matters including structuring, financing 
and transactions from small farm-ins 
to corporate acquisitions of over US$2 
billion. Christine is now an independent 
consultant and in the past has held 
a number of positions including 
Chairman of an independent taxation 
advisory consultancy; Head of Natural 
Resources Division of Ernst & Young; 
and Advisor to the upstream clients of 
Arthur Young Chartered Accountants.
In 1994, Christine was awarded the 
OBE for services to the oil industry.
2. Alan Booth,  
Chief Executive Officer, 53 
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 
body, OGIA and a Non-Executive 
Director of Egdon Resources plc, 
in which EnCore holds a significant 
shareholding. He has previously been 
President of UKOOA from December 
2003 – March 2005; a Director of Oil 
& Gas UK; a member of PILOT; and 
was President of the PESGB in 2003. 
In April 2004, Alan was awarded the 
Petroleum Group Silver Medal by the 
Geological Society in recognition of his 
contribution to the Industry.
3. Eugene Whyms,  
Chief Financial Officer & 
Company Secretary, 54
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. Former 
positions include Finance Director of 
EnCana (U.K.) Limited (now Nexen 
7. Melanie Black,  
Office Manager
Melanie manages the office 
operations and provides financial 
accounting support. She has over 
17 years’ experience within the oil 
and gas industry, previously with 
Enterprise Oil plc and BP .
8. Graham Bull, 
Geological Advisor
Graham provides geoscience 
technical expertise and support for 
EnCore’s onshore and offshore 
projects. He has over 40 years’ 
experience as a geologist within  
the oil and gas industry.
9. Yvonne Fraser,  
Investor Relations Manager
Yvonne is responsible for investor 
relations. She has over 11 years’ 
experience in investor relations and 
PR roles, including positions at 
Enterprise Oil plc, Hanson plc and 
Aquila Financial Limited. 
10. Chris Johnson,  
Group Financial Controller
Chris oversees financial activities 
for EnCore. He has over 17 years’ 
experience in financial roles within  
the oil and gas industry. Previous 
roles include Group Financial 
Controller at Tandberg Television, 
Group Reporting Manager, then Vice 
President Finance USA at Enterprise 
Oil plc, and member of the oil and 
gas audit team at KPMG London.
The EnCore Team
1.
7. 8. 9.
2. 3. 13
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Petroleum U.K. Limited); and Head of 
Group Finance, Group Audit Manager 
and Manager, Financial Accounting at 
Enterprise Oil plc. 
Eugene was until 2010 a Fellow  
of the Chartered Association of 
Certified Accountants.
4. Graham Doré,  
Exploration Director, 48
Graham has over 25 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 (now Nexen Petroleum U.K. 
Limited), where he generated and 
developed the Buzzard prospect 
leading to the discovery of the 
Buzzard field in 2001. Prior to that,  
he was a Geologist with Amerada 
Hess in the UKCS and Norway. 
Graham is a member of PESGB.
5. James Clark,  
Commercial Director, 61
James has over 35 years’ experience 
in tax and commercial roles with 
extensive experience of corporate 
and asset transactions across the 
oil and gas industry. He began his 
career as an economics researcher 
in the House of Commons, and 
moved into tax in 1975 with the 
Inland Revenue. In 1984, he joined 
Ernst and Whinney as the firm’s 
specialist oil and gas tax manager, 
and then moved to Enterprise Oil plc 
as tax manager in 1989. Between 
leaving Enterprise Oil in 2002 and 
joining EnCore Oil in February 2006, 
James worked in a variety of roles 
for Harrison Lovegrove & Co, and 
for EnCana (UK) Limited (now Nexen 
Petroleum U.K. Limited). James was 
appointed a Director of EnCore in 
October 2009.
6. Vivien Gibney,  
Non-Executive Director, 65
Vivien is a barrister and holds a law 
degree. She spent most of her 30 
year legal career in the upstream 
oil and gas industry. After nine 
years with Mobil she moved to 
Enterprise Oil to set up and head 
the Legal department. Other roles 
during her 17 years at Enterprise 
Oil included Company Secretary 
and Head of Human Resources. 
Since retirement, she has sat on a 
number of Boards in the voluntary 
sector, consulted on corporate 
governance issues and undertaken 
some arbitration and mediation work.
Vivien is currently a member of the 
Governing Council of the University 
of Northampton where she chairs 
the Strategy Review Group; a Board 
member of Opera North where she 
chairs the Remuneration Committee  
and a trustee of the Oundle Music Trust.
11. Peter Schwarz,  
Business Development Manager
Peter provides business development 
expertise and support for EnCore’s 
projects. He has over 30 years’ 
experience in the oil and gas industry, 
including working as a principal of 
his own consultancy, and various 
management roles with Amerada 
Hess, BG, and Marubeni. 
12. Peter Williams,  
Group Technical Manager
Peter provides engineering expertise 
for EnCore’s projects and manages 
the engineering technical services in 
support of those projects. He has over 
40 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.
13. Paul Young,  
Geoscience Manager
Paul provides geophysics expertise 
for EnCore’s projects and manages 
the geoscience technical services 
10. 11. 12.
13.
4. 5. 6.
in support of those projects. He 
has over 25 years’ experience in 
geophysics and has previously 
held positions at Nexen U.K. 
Limited, EnCana (UK) Limited, and 
PanCanadian Energy Corporation.  
He is also a member of the PESGB. 14
EnCore Oil plc   Annual Report & Accounts 2011
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 2011.
The Board
The Board comprises four Executive Directors Alan Booth, Eugene Whyms, James Clark and Graham Doré and two 
Non-Executive Directors who are Christine M.K. Wheeler OBE and Vivien Gibney.
Each of the Directors has extensive knowledge of the oil and gas industry. Biographies of the Directors are set out on 
pages 12 and 13 of this annual report.
The Board is accountable to shareholders for the formulation and delivery of the Group’s strategy. To achieve this, the 
Board directs and monitors the Group’s affairs within a framework of controls which enable risk to be assessed and 
managed effectively. The Board sets the Group’s strategy, ensures that sufficient resources are in place to achieve the 
strategy, and reviews management and financial performance. The Board also has responsibility for setting the Group’s 
core values and standards of business conduct and for ensuring that these, together with the Group’s obligations to its 
stakeholders, are understood by all employees.
The Board meets at least six times a year and as issues arise which require Board attention. The Board has a formal 
schedule of matters specifically referred to it for decision. In addition to those formal matters the Board will also consider 
strategy and policy, acquisition and divestment 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 22.
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 Christine M.K. Wheeler OBE and Vivien Gibney. 
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 Christine M.K. Wheeler OBE and Vivien 
Gibney. It reviews the performance of the Executive Directors and sets the scale and structure of their remuneration on 
the basis of their service agreements with due regard to the interests of shareholders and the performance of the Group. 
The Remuneration Committee also makes recommendations to the Board concerning employee incentives, including 
the allocation of share options to employees. Directors of the Group are not permitted to participate in discussions or 
decisions of the Committee concerning their own remuneration.
Nominations Committee
A Nominations Committee has been established and currently comprises Christine M.K. Wheeler OBE and Vivien 
Gibney. It reviews and recommends to the Board the appointment of Directors. 15
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Relations with Shareholders
Communications with shareholders are given high priority and there is regular dialogue with institutional investors, as 
well as general presentations to analysts at the time of the release of the annual and interim results. The Company 
maintains a website (www.encoreoil.co.uk) for the purpose of improving information flow to shareholders as well as 
potential investors. It contains all press releases, reports and accounts and extensive information about the Group’s 
activities. Enquiries from individual shareholders on matters relating to their shareholdings and the business of the Group 
are welcomed. Shareholders are also encouraged to attend the Annual General Meeting at which they are given the 
opportunity to put questions to the Chairman and other members of the Board.
Internal Controls
The Board is responsible for establishing and maintaining the Group’s system of internal controls and for reviewing 
its effectiveness. They are designed to safeguard the assets of the Group and to ensure the reliability of financial 
information for both internal use and external publication. The controls which include inter alia financial, operational 
and compliance matters and management are reviewed on an ongoing basis. A system of internal control can provide 
only reasonable, and not absolute, assurance that material financial irregularities will be detected or that risk of failure 
to achieve business objectives is eliminated. The Board has considered the need for an internal audit function but 
because of the size and nature of its operations does not consider it necessary at the current time.
Risk
The Directors are responsible for the effectiveness of the Group’s risk management activities and internal control processes. 
The Group is exposed to a range of technical, geological, operational, political, environmental, health and safety and 
financial risks in the conduct of its operations. The Group seeks to manage and mitigate these risks by maintaining a 
balanced portfolio and, through compliance with the terms of its licences, the application of policies and procedures 
appropriate for a small international oil and gas company and the recruitment and retention of highly skilled personnel.
The Group’s principal risks are considered to fall into four main categories. These risks are not presented in any 
assumed order of priority. Any of the risks, as well as the other risks and uncertainties discussed in this document, could 
have a material adverse effect on our business. In addition, the risks set out below may not be exhaustive and additional 
risks and uncertainties, not presently known to the Company, or which the Company deems immaterial, may arise or 
become material in the future.
Risk category Definition Possible risks
Strategic risks The strategy developed by the Board may  
fail to create shareholder value
– mix of oil and gas interests
– balance of organic/acquisition-led growth
– ineffective/inadequate management processes
– insufficient portfolio balance
Financial risks Failure to meet financial obligations 
to stakeholders
– inadequate/excessive hedging
– oil and gas price volatility
– cost inflation
– mis-priced corporate acquisitions
– uninsured events
Operational risks Damage to shareholder value, environment, 
personnel or communities caused by  
operational failures
– HSE incident
– corruption/reputation risk
– security incident
– failure to secure resources
– loss of key staff
– sustained exploration failure
External risks Failure to manage/grow the business caused  
by external factors (political, industry or market)
– oil and gas price volatility
– hostile acquisition
– political risk and asset sequestration
– war, terrorist act and natural disaster
– fiscal change
– shareholder sentiment 16
EnCore Oil plc   Annual Report & Accounts 2011
Directors’ Report
The Directors submit their report together with the audited 
consolidated financial statements of EnCore Oil plc for the 
year ended 30 June 2011.
Business Review
The principal activity of the Company and its subsidiary 
undertakings (the Group) during the year continued 
to be oil and gas exploration and production. In the 
course of this, the Company provides management and 
technical services to its subsidiaries. Information on the 
Company’s principal subsidiary undertakings appears in 
note 5 to the Company’s financial statements.
Other than monitoring the rate of cash burn the Group 
does not currently use any key performance indicators to 
measure progress towards our business goals.
The Company is required by the Companies Act 2006 
to set out in this report a fair review of the business of 
the Group during the financial year ended 30 June 2011 
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 including the consideration of future 
developments (‘business review’). The information that 
fulfils the requirements of the business review can be 
found within the Chairman’s Review, Chief Executive’s 
Review, Operational Review, Financial Review and 
Corporate Governance statement sections on pages  
4 to 15.
Results and Dividends 
The loss on ordinary activities after taxation amounted to 
£2.5 million (year to 30 June 2010: a profit of £11.4 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 pages 12 
and 13.
In April 2011 L. Keith Hughes resigned as Non-Executive 
Director of EnCore Oil plc. 
In April 2011 Vivien Gibney was appointed as Non-
Executive Director of EnCore Oil plc.
Although not required by the Company’s Articles of 
Association, in keeping with best corporate governance 
practice of AIM-listed companies, the current Directors 
Graham Doré and Christine M.K. Wheeler OBE will retire 
by rotation and will seek re-appointment to the Board of 
Directors of the Company at this year’s AGM. In addition 
Vivien Gibney, who was appointed during the year, will 
retire and will also seek re-appointment to the Board of 
Directors of the Company at this year’s AGM.
Details of Directors’ interests in the ordinary shares of the 
Company and in share options are set out on pages 20  
to 21 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 292,695,488 ordinary shares 
are issued and fully paid. During the year ended 30 June 
2011 the Company issued 2,458,624 ordinary 5 pence 
shares for cash following the exercise of share options.
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
Blackrock 8.59 25,140,723
Ingalls & Snyder 3.85 11,269,468
The Company has not been notified of any other person 
who has an interest in three per cent or more in the 
Company’s share capital.
 
Shareholder Information
The ordinary shares of the Company are listed on AIM 
under the symbol ‘EO.’. As at 15 September 2011, 
the broad distribution of the ordinary shares in issue 
was as follows:
% Shares
Institutions 46.12 134,993,235
Directors and staff 8.77 25,668,958
Other individuals 45.11 132,033,295 17
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Financial Instruments
Details of cash holdings are shown in notes 17 and 18 to 
the financial statements. Details of the Group’s exposure 
to credit risk, foreign currency risk and interest rate risk 
are shown in note 28 to the financial statements.
Post Balance Sheet Events
Details of post balance sheet events are shown in note 25 
to the financial statements.
Supplier Payment Policy
The Group’s policy is to agree payment terms with 
individual suppliers and to abide by those terms. 
Trade creditors of the Company at 30 June 2011 were 
equivalent to 19 days’ purchases, based on the average 
daily amount invoiced by suppliers to the Company 
during the year.
Donations
During the year the Group made no charitable donations 
(2010: Nil).
Auditor
A resolution to re-appoint PKF (UK) LLP as auditor of the 
Company is to be proposed at the Annual General Meeting.
Going Concern
The financial statements have been prepared on a going 
concern basis.
Disclosure of Information to the Auditor
Each person who is a Director at the date of approval  
of this Annual Report confirms that:
•	 So	far	as	the	Dir ector	is	awar e,	ther e	is	no	r elevant	
audit information of which the Company’s auditor is 
unaware; and
•	 The	Dir ector	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 
auditor is aware of that information.
This confirmation is given, and should be interpreted, in 
accordance with the provisions of s418 of the Companies 
Act 2006.
Signed on behalf of the Board by:
Eugene Whyms
Company Secretary
5 October 2011 18
EnCore Oil plc   Annual Report & Accounts 2011
Remuneration Report
Information not subject to audit
The members of the Remuneration Committee are Christine M.K. Wheeler OBE and Vivien Gibney. The Committee met 
twice during the year.
The main responsibilities of the Committee include:
•	 determining	and	agr eeing	with	the	Boar d	the	r emuneration	policy	for	the	Chief	Executive,	Executive	Dir ectors	and	
senior executives;
•	 r eviewing 	 the 	 design 	 of 	 shar e 	 incentive 	 plans 	 for 	 appr oval 	 by	th e	Bo a r d	a n d	s h a r e h o l de rs	a n d	de te rm i n i n g	th e	a n n u a l	
award policy to Executive Directors and senior executives under existing plans; and
•	 within	the	terms	of	the	agr eed	policy ,	determining	the	r emainder	of	the	r emuneration	packages	(principally	comprising	
salary and pension) for each Executive Director and senior executive.
The Chief Executive and other relevant Executive Directors are invited to attend meetings of the Committee but do not take 
part in any decision affecting their own remuneration.
The Group’s policy is to maintain levels of remuneration so as to attract, motivate and retain Executive Directors and 
senior executives of the calibre required to grow the business and enhance shareholder value.
There are four main elements of the remuneration package for Executive Directors and senior executives:
•	 Basic	annual	salary
•	 Benefits	in	kind
•	 Pension	arrangements
•	 Incentive	schemes	including	shar e	options	 
and performance incentive plan
Executive Directors’ Remuneration
Basic Salary
The basic salaries of the Executive Directors are reviewed annually with regard given to personal performance, Company 
performance, changes in responsibilities and competitive market practices. The base salary of each Executive Director, 
prior to any salary sacrifice election, is:
Alan Booth £175,000
Eugene Whyms £175,000
Graham Doré £150,000
James Clark £150,000
Benefits in Kind
The Executive Directors and senior executives receive benefits in kind, principally private medical insurance, life 
assurance and critical illness cover.
Pension Arrangements
The Company does not operate a pension plan. Each Executive Director is entitled to receive a payment equivalent  
to 15 per cent. of his annual basic salary into his private pension scheme.
Incentive Schemes
The Group has put in place two performance schemes to incentivise all employees of the Company, aid recruitment to 
the Company and enable all staff to benefit from the successful growth of the Company. The Group believes that the 
remuneration policy followed to date supports the achievement of EnCore’s strategic goals. Factors of this policy include 
a high proportion of the compensation package being performance-linked and a significant element of incentive pay being 
directly related to EnCore’s share price performance; both of which create a very strong alignment with shareholders.
The first scheme, the ‘EnCore Option Scheme,’ has been in place since the reverse takeover of Oil Quest Resources plc 
in March 2006; the second scheme, the ‘Performance Incentive Plan,’ was put in place in July 2008. 19
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Share Options
The EnCore Option Scheme is comprised of two parts: the basic share option scheme and a part which constitutes 
an Enterprise Management Incentive Plan under rules set out by HM Revenue and Customs in the United Kingdom. 
Options granted under the EnCore Option Scheme can be granted, at the discretion of the Board, under one or other 
of the two parts. Apart from certain tax benefits which can accrue to the Company and its UK employees, if options are 
granted under the part relating to the EnCore EMI Plan all other terms under which options can be awarded under either 
part are substantially identical.
The Company’s policy permits the granting of options in the 42 day period following the announcement of the 
Company’s interim or final results.
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.
The total number of options outstanding at any point in time cannot exceed 10 per cent. of the issued Ordinary Shares 
of the Company.
Performance Incentive Plan
In July 2008 the Company put in place the EnCore Performance Incentive Plan (EPIP) and made an award of 9,350,000 
Performance Units (PUs) to plan participants. Individual awards of EPIP PUs were broadly consistent with past awards 
of share options with the principal exception of the Executive Directors who received a smaller proportion of the overall 
allocation. The EPIP provides a vehicle to retain and motivate key staff members who will play a key role in helping 
deliver this value.
The PUs will not achieve any value under the EPIP until certain performance hurdles and value creation criteria are 
met. These include a minimum share price hurdle of 60 pence combined with the completion of a significant asset or 
corporate sale. The share price on the date that the EPIP was introduced was 40 pence per share.
Once all appropriate share price hurdles and triggers have been met the amount paid will be calculated by reference to 
the increase in share price over the base share price of 40 pence per share. The amount of excess over the base share 
price will then be subject to a pro-ration factor of between 0.75 to 1.75, depending on the magnitude of  
the excess over the 60 pence hurdle price.
The resulting award will then be further pro-rated to reflect the proportion that any asset sales proceeds relate to 
EnCore’s total market capitalisation. In the event of a change of control or sale of the Company this further pro-ration  
will not be made. 
Following an asset or partial sale of the business the hurdle and base share prices will be rebased for the purposes  
of calculating any future performance related payments. Any awards are subject to the discretion of the  
Remuneration Committee.
Service Contracts and Letters of Appointment
Executive Directors enter into a service agreement with the Company with effect from the date of appointment. 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
Christine M.K. Wheeler OBE is paid a basic annual fee of £37,500 and Vivien Gibney receives a basic annual fee of 
£30,000. The appointment is terminable on six months notice served by either party. The Non-Executive Directors are 
both paid a fee of £7,500 in recognition of their services on the Committees.
Material Contracts
There have been no other contracts or arrangements during the period in which a Director of the Company was 
materially interested and which were significant in relation to the Group’s business. 20
EnCore Oil plc   Annual Report & Accounts 2011
Audited information
Directors’ remuneration 
 Remuneration in the year to 30 June 2011 
Executive Directors
 Fees/base
 salary 
£
 Benefits 
in kind 
£
 
Pension 
£
 Total 
£
 Year to 
30 June 2010 
£
Alan Booth* 172,286 3,651 25,843 201,780 201,716
Eugene Whyms* 174,160 3,096 26,124 203,380 203,664
Graham Doré* 146,338 1,866 21,951 170,155 173,955
James Clark* 149,664 3,218 22,449 175,331 130,587
Non-Executive Directors
Michael T. Lynch  
(resigned 30 September 2009) – – – – 11,584
Christine M.K. Wheeler OBE 45,000 4,665 – 49,665 45,799
L. Keith Hughes  
(resigned 15 April 2011) 29,712 – – 29,712 28,125
Vivien Gibney  
(appointed 15 April 2011) 7,837 – – 7,837 –
Total remuneration 724,997 16,496 96,367 837,860 795,430
*After salary sacrifice
The IFRS 2 share-based remuneration charge in respect of the Directors share options for the year ended 30 June 2011 is £74,636 (2010: £150,150).
Directors interests in the Share Capital of the Company
Ordinary Shares of £0.05 each At 30 June 2011
% of issued 
Ordinary Share Capital
Alan Booth 6,650,000 2.27
Eugene Whyms 5,900,000 2.02
Graham Doré 4,550,000 1.55
Christine M.K. Wheeler OBE 2,250,657 0.77
Vivien Gibney 232,000 0.08
James Clark 2,110,327 0.72
21,692,984 7.41
No other loans or guarantees were given to the Directors or related parties. The number of shares reported includes any 
shares held by children under the age of 18 of the named individual or by companies controlled by the individual.
Remuneration Report continued 21
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
EnCore Oil plc Share Option Scheme
Details of shares awarded to Directors under the EnCore Oil plc share option scheme are as follows:
Name of Director Granted
 Date
 granted
 As at 30 
June 2010
 Share price
at grant date
Exercise
 price
 Exercisable
 from 
(1)
Exercisable
 to 
(1)
Alan Booth 1,390,000 03.03.06 1,095,883 £0.34 £0.34 03.03.07 02.03.13
  1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
  1,400,000 05.03.09 1,400,000 £0.085 £0.085 05.03.10 04.03.14
Eugene Whyms 1,390,000 03.03.06 1,095,883 £0.34 £0.34 03.03.07 02.03.13
  1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
  1,400,000 05.03.09 1,400,000 £0.085 £0.085 05.03.10 04.03.14
Graham Doré 1,140,000 03.03.06 845,883 £0.34 £0.34 03.03.07 02.03.13
  1,250,000 14.03.07 1,250,000 £0.17 £0.17 14.03.08 13.03.12
  1,250,000 05.03.09 1,250,000 £0.085 £0.085 05.03.10 04.03.14
James Clark 640,000 03.03.06 345,883 £0.34 £0.34 03.03.07 02.03.13
  850,000 14.03.07 850,000 £0.17 £0.17 14.03.08 13.03.12
  1,000,000 05.03.09 1,000,000 £0.085 £0.085 05.03.10 04.03.14
Christine M.K. Wheeler  
OBE 
 250,000 03.03.06 250,000 £0.34 £0.34 03.03.07 02.03.13
 250,000 14.03.07 250,000 £0.17 £0.17 14.03.08 13.03.12
 250,000 05.03.09 250,000 £0.085 £0.085 05.03.10 04.03.14
Vivien Gibney 250,000 06.05.11 250,000 £0.94625 £0.94625  06.05.12 05.05.16
Total 15,510,000  14,333,532
(1)
 All share options vest in equal instalments on the first, second and third anniversaries of the grant date.
Performance Incentive Plan
An award of 3,150,000 Performance Units was made to Directors in July 2008. Of these 250,000 units lapsed with the 
resignation of Michael T. Lynch in September 2009. An award of 1,250,000 was made to James Clark in July 2009 prior 
to his appointment as a Director.
Performance units At 30 June 2011
Alan Booth 900,000
Eugene Whyms 900,000
Graham Doré 850,000
Christine M.K. Wheeler OBE 250,000
James Clark 1,250,000
4,150,000
The closing market price of the ordinary shares at 30 June 2011 was 63.375 pence (30 June 2010: 49.75 pence) and 
the range during the year was 151 pence to 49.375 pence.
Christine M.K. Wheeler OBE
Chairman of the Remuneration Committee
5 October 2011 22
EnCore Oil plc   Annual Report & Accounts 2011
The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with 
applicable law and regulations. 
Company law requires the directors to prepare financial statements for each financial year. Under that law, the Directors 
have, as required by the AIM Rules of the London Stock Exchange, elected to prepare the Group financial statements 
in accordance with International Financial Reporting Standards as adopted by the European Union and have elected to 
prepare the parent company financial statements in accordance with United Kingdom Generally Accepted Accounting 
Practice (United Kingdom accounting standards and applicable law). Under company law the Directors must not 
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 
Company and the Group and of the profit or loss of the group for that period. 
In preparing these financial statements the Directors are required to:
•	 select	suitable	accounting	policies	and	then	apply	them	consistently;
•	 make	judgments	and	accounting	estimates	that	ar e	r easonable	and	prudent;
•	 state	whether	the	Gr oup	financial	statements	have	been	pr epar ed	in	accor dance	with	IFRSs	as	adopted	by	the	
European Union;
•	 state,	with	r egar d	to	the	par ent	company	financial	statements,	whether	applicable	UK	accounting	standar ds	have	
been followed, subject to any material departures disclosed and explained in the financial statements; and
•	 pr epar e	the	financial	statements	on	the	going	concer n	basis	unless	it	is	inappr opriate	to	pr esume	that	the	Company	
and the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
Company’s transactions, to disclose with reasonable accuracy at any time the financial position of the Company and to 
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial 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.
 
Directors’ Responsibilities Statement 23
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
We have audited the financial statements of EnCore Oil plc (“EnCore”) for the year ended 30 June 2011 which comprise 
the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated 
statement of changes in equity, the consolidated statement of cash flows, the Company balance sheet, and the related 
notes. The financial reporting framework that has been applied in the preparation of the group financial statements is 
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial 
reporting framework that has been applied in the preparation of the parent Company financial statements is applicable law 
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. 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 auditor’s report and for no other purpose. To 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 Auditor
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express 
an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK 
and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or 
error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent 
Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of 
significant accounting estimates made by the directors; and the overall presentation of the financial statements. In 
addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies 
with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we 
consider the implications for our report.
Basis for qualified opinion on financial statements 
The Group’s investment in Egdon Resources PLC (“Egdon”), an AIM listed associate acquired in the year and 
accounted for by the equity method, is carried at £7.55m on the consolidated statement of financial position and an 
amount of £1.2m is included in the consolidated statement of comprehensive income in respect of the Group’s share 
of Egdon’s result for the year ended 30 June 2011. 
Due to the timing of EnCore’s year end and proposed date of publication of the financial statements of Egdon, published 
audited financial information in respect of Egdon is not available. Egdon have not made trading and financial data 
available to EnCore ahead of its publication and therefore the Directors of EnCore have estimated the result for the 
period and the net assets of Egdon as described in note 15.
We were unable to gain access to the management, financial information and auditor’s working papers of Egdon to 
obtain sufficient appropriate audit evidence to support the EnCore Directors’ estimates of the carrying value of the 
investment at 30 June 2011 and the Group’s share of the result for the year. Consequently we were unable to determine 
whether any adjustments to these amounts were necessary.
Qualified opinion on financial statements
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph:
•	 the	financial	statements	give	a	true	and	fair	view	of	the	state	of	the	gr oup’ s	and	the	par ent	Company’ s	af fairs	as	at	 
30 June 2011 and of the group’s loss for the year then ended;
•	 the 	 group 	 financial 	 statements 	 have 	 been 	 properly 	 prepared 	 in 	 accordance 	 with 	 IFRSs 	 as 	 adopted 	 by 	 the 	
European Union;
•	 the	par ent	Company	financial	statements	have	been	pr operly	pr epar ed	in	accor dance	with	United	Kingdom	Generally	
Accepted Accounting Practice; and
•	 the	financial	statements	have	been	pr epar ed	in	accor dance	with	the	r equir ements	of	the	Companies	Act	2006.
Independent Auditor’s Report to the Members of EnCore Oil plc 24
EnCore Oil plc   Annual Report & Accounts 2011
Independent Auditor’s Report to the Members of EnCore Oil plc continued
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ report for the financial year for which the financial statements  
are prepared is consistent with the financial statements. 
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to the investment in associate Egdon Resources plc,  
described above:
•	 we	have	not	obtained	all	the	information	and	explanations	that	we	consider ed	necessary	for	the	purpose	of	our	audit.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to 
you if, in our opinion:
•	 adequate	accounting	r ecor ds	have	not	been	kept	by	the	par ent	Company ,	or	r etur ns	adequate	for	our	audit	have	not	
been received from branches not visited by us; or
•	 the	par ent	Company	financial	statements	ar e	not	in	agr eement	with	the	accounting	r ecor ds	and	r etur ns;	or
•	 certain	disclosur es	of	dir ectors’	r emuneration	specified	by	law	ar e	not	made.
Stuart Barnsdall (Senior statutory auditor)
for and on behalf of PKF (UK) LLP, Statutory auditor
London UK
5 October 2011 25
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Consolidated Statement of Comprehensive Income year ended 30 June 2011
Note
Year ended 
30 June 2011 
£
Year ended 
30 June 2010 
£
Continuing operations
Impairment write down – exploration costs 5, 13 (361,916) (12,364,888)
Administrative expenses (3,291,976) (2,756,601)
Operating loss (3,653,892) (15,121,489)
(Loss)/gain on sale of subsidiary 6 (26,749) 21,215,199
Gain on sale of intangible exploration and evaluation assets 7 – 1,703,456
Share of post tax gain in associate 15 1,198,144 –
Finance income 8 375,730 288,942
Finance costs 9 (3,250) (10,947)
Other gains and losses 10 (618,322) 1,476,017
(Loss)/profit before taxation (2,728,339) 9,551,178
Taxation 11 252,929 1,888,670
(Loss)/profit and total comprehensive income for the year 
attributable to equity holders of the parent (2,475,410) 11,439,848
(Loss)/earnings for the year per ordinary share (pence)
– Basic 12 (0.8) 3.9
– Diluted 12 (0.8) 3.8 26
EnCore Oil plc   Annual Report & Accounts 2011
Consolidated Statement of Financial Position at 30 June 2011
Note
30 June 2011
£
30 June 2010
£
ASSETS
Non-current assets
Intangible exploration and evaluation assets 13 34,243,429 15,023,405
Property, plant and equipment
– other 14 79,811 22,906
Investments accounted for using equity method 15 7,550,593 –
Investments 15 50,000 50,000
41,923,833 15,096,311
Current Assets
Other receivables 16 2,034,246 639,495
Restricted cash 17 3,089,148 10,684,802
Cash and cash equivalents 18 15,252,080 31,183,559
20,375,474 42,507,856
Assets held for sale 19 – 6,669,264
20,375,474 49,177,120
LIABILITIES
Current liabilities
Trade and other payables 20 (4,095,084) (3,016,345)
(4,095,084) (3,016,345)
Liabilities directly associated with assets classified as held for sale 19 – (190,775)
(4,095,084) (3,207,120)
Net current assets 16,280,390 45,970,000
Non-current liabilities
Provisions – (975,000)
Deferred taxation 22 (1,449,912) (1,702,841)
(1,449,912) (2,677,841)
NET ASSETS 56,754,311 58,388,470
EQUITY
Equity attributable to equity holders of the parent
Ordinary shares 24 15,709,918 15,586,987
Capital redemption reserve 24 856,199 856,199
Share premium 38,382,840 37,798,714
Other reserve 266,908 266,908
Foreign currency translation reserve (316,893) (316,893)
Retained earnings 1,855,339 4,196,555
TOTAL EQUITY 56,754,311 58,388,470
Approved and authorised for issue by the Board on 5th October 2011, and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer  27
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
 Attributable to parent Company equity holders
Equity share
 capital
£
 Capital
 Redemption
 Reserve
£
 Share 
premium 
£
 Other 
reserve 
£
 Foreign
 Currency
 translation
 reserve 
£
 Retained
 earnings 
£
 Total 
£
At 1 July 2009 16,443,186 – 37,798,714 266,908 (316,893) (5,015,962) 49,175,953
Profit for the year – – – – – 11,439,848 11,439,848
Total comprehensive 
income for the year – – – – – 11,439,848 11,439,848
Share option 
expense – – – – – 275,515 275,515
Own shares  
bought back (856,199) 856,199 – – – (2,502,846) (2,502,846)
At 30 June 2010 15,586,987 856,199 37,798,714 266,908 (316,893) 4,196,555 58,388,470
Loss for the year – – – – – (2,475,410) (2,475,410)
Total comprehensive 
income for the year – – – – – (2,475,410) (2,475,410)
Share option expense – – – – – 134,194 134,194
Share issued for cash 122,931 – 584,126 – – – 707,057
At 30 June 2011 15,709,918 856,199 38,382,840 266,908 (316,893) 1,855,339 56,754,311
The foreign currency translation reserve was used to record exchange differences arising from the translation of 
the financial statements of subsidiaries that were denominated in currencies other than GB Pounds. One of these 
subsidiaries has been sold and the other has changed to a functional currency of GB Pounds.
The Other reserve arose on the reverse acquisition of Oil Quest Resources plc by the EnCore Group in March 2006.
Consolidated Statement of Changes in Equity year ended 30 June 2011 28
EnCore Oil plc   Annual Report & Accounts 2011
Consolidated Statement of Cash Flows year ended 30 June 2011
Note
Year ended 
30 June 2011 
£
Year ended 
30 June 2010 
£
Cash flows from operating activities
(Loss)/profit before taxation (2,728,339) 9,551,178
Depreciation 14 24,822 14,781
Share-based remuneration charges 3 134,194 275,515
Share of gain in associate 15 (1,198,144) –
Exploration costs written off 5, 13 361,916 12,364,888
Items shown as financing and investing activities 249,008 (24,668,889)
Operating cash outflow prior to working capital (3,156,543) (2,462,527)
Working capital adjustments (1,194,744) 970,281
Cash used in operations (4,351,287) (1,492,246)
Cash flows from investing activities
Purchase of intangible exploration and evaluation assets 13 (19,581,940) (1,531,158)
Purchase of field under development assets – (1,133,832)
Decrease/(increase) in restricted cash 17 7,595,654 (10,053,829)
Purchase of property, plant and equipment 14 (81,727) (16,590)
Interest received 428,892 205,877
Proceeds from sale of property, plant and equipment 3,166 4,891
Proceeds from sale of intangible assets – 2,665,126
Proceeds from sale of subsidiary – 38,793,428
Net cash (used)/generated in investing activities (11,635,955) 28,933,913
Cash flows from financing activities
Shares issued for cash 24 707,057 –
Own shares repurchased – (2,502,846)
Interest paid and bank charges (3,250) (3,606)
Net cash generated/(used) by financing activities 703,807 (2,506,452)
Net (decrease)/increase in cash and cash equivalents (15,283,435) 24,935,215
Cash and cash equivalents at start of year 31,183,559 5,405,072
Translation difference (648,044) 843,272
Cash and cash equivalents at end of year 15,252,080 31,183,559 29
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Group 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 2006 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 where applicable are set out below.
Accounting standards
There have been no changes to accounting policies through the application of new standards that are effective and 
there have been no standards adopted in advance of the effective date. At the date of authorisation of these financial 
statements, the following relevant standards and interpretations which have not been applied in these financial 
statements were in issue but not yet effective:
IFRS 9  Financial instruments: Recognition and measurement
IFRS 10 Consolidated financial statements
IFRS 11 Joint arrangements
IFRS 12 Disclosure of interests in other entities
IFRS 13 Fair value measurement
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material 
impact on the financial statements of the Group.
Going concern basis
The financial statements have been prepared on a going concern basis.
The Group’s net cash used in investing activities of some £11.6 million in the year under review is substantially in excess 
of the cash generated from operations. Although significant progress has been made in developing the Group’s assets 
base, it is probable that the business will remain a net consumer of cash over the coming year.
The Directors have prepared financial forecasts for the period through to 31 December 2012 based on the assumption 
of no further external funds being raised. After due consideration of these forecasts, current cash resources (year end 
some £18.3 million available cash) and present level of commitments the Directors are of the view that the Group has 
adequate financial resources to meet its liabilities as they fall due for the foreseeable future and for a period of at least  
12 months from the date of authorisation of these financial statements.
Basis of consolidation
The Group financial statements consolidate the financial statements of EnCore Oil plc and the entities it controls (its 
subsidiaries) drawn up to 30 June each year.
A subsidiary is an entity controlled by the Group, where control is the power to govern the financial and operating 
policies of the entity so as to obtain benefit from its activities.
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. 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. Goodwill is tested for impairment on an annual basis. The cost 
of business acquisitions are written off when incurred.
The results of Group undertakings acquired during the year are included from the date of acquisition of a controlling 
interest. The results of Group undertakings that have been sold during the year are included up to the date of disposal. 
The profit or loss on sale is calculated by reference to the net asset value at the date of disposal, adjusted for purchased 
goodwill previously consolidated in the balance sheet. 30
EnCore Oil plc   Annual Report & Accounts 2011
Basis of consolidation continued
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 in preparing the consolidated financial statements.
Investment in associates
An associate is an entity over which the group is in a position to exercise significant influence through participation 
in the financial and operating policy decisions of the investee, but which is not a subsidiary or a jointly controlled 
entity. The results, assets and liabilities of an associate are incorporated in these financial statements using the equity 
method of accounting.
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 profit or loss.
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 profit or loss.
If a project is deemed commercial all of the attributable costs are transferred into a single field cost centre within 
property, plant and equipment. These costs are then amortised from the commencement of production on a unit of 
production basis.
Decommissioning
Provision for decommissioning is recognised in full as an asset and liability when the obligation arises. The asset is 
included within exploration and evaluation assets or property, plant and equipment as is appropriate. The liability is 
included within provisions. The amount recognised is the estimated cost of decommissioning, discounted where 
appropriate to its net present value, and is reassessed each year in accordance with local conditions and requirements. 
Revisions to the estimated costs of decommissioning which alter the level of the provisions required are also reflected in 
adjustments to the decommissioning asset.
Property, plant and equipment – excluding development and producing assets
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. 
Depreciation is provided on all property, plant and equipment categories at rates calculated to write off the cost, less 
estimated residual value based on prices prevailing at the date of the statement of financial position, of each asset 
evenly over its expected useful life as detailed below:
Leasehold improvements over life of lease
Vehicles over three years
Fixtures and equipment over three years
Computer hardware and software over three 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.
Group Accounting Policies continued 31
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Asset held for resale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered 
principally through a sale transaction rather than continuing use. This condition is regarded as met only when a sale is 
highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management 
must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year 
from the date of classification. Disposal groups are groups of assets, and liabilities directly associated with those assets, 
that are to be disposed of together as a group in a single transaction.
Non-current assets (and disposal groups) classified as held for sale are initially measured at the lower of carrying value 
and fair value less costs to sell.
Financial instruments
Financial assets
Investments
Unlisted investments are stated at the lower of cost and likely realisable value.
Amounts owed from Joint Venture Partners and associates
Amounts owed from Joint Venture Partners and associates are measured at initial recognition at their fair value. 
Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective 
evidence that the asset is impaired. 
Cash and cash equivalents
Cash and short-term deposits in the Statement of financial position comprise cash at banks and in hand and short-term 
deposits with an original maturity of three months or less.
The cash and cash equivalent amount in the Cash Flow Statement includes overdraft facilities.
Financial liabilities
Trade payables
Trade payables are initially stated at their fair value and subsequently accounted for at amortised cost.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements 
entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after 
deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received net of 
direct issue costs.
Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as 
operating leases and rentals payable are charged in profit or loss 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 Statement of financial position. 32
EnCore Oil plc   Annual Report & Accounts 2011
Group Accounting Policies continued
Taxation
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the date of the 
Statement of financial position.
Deferred tax liabilities are recognised for all taxable temporary differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxation and is 
accounted for using the Statement of financial position liability method.
Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which 
the deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply when the related asset is 
realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the date of the statement 
of financial position.
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 profit or loss 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 
15 per cent. of the employee’s gross salary. These contributions are charged as an expense as they fall due.
Share-based payments
The Company has both equity-settled and cash 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 date of the 
statement of financial position.
The movement in cumulative expense since the previous date of the statement of financial position is recognised in profit 
or loss, with a corresponding entry in equity.
The cost of cash settled share-based payment transactions is measured by reference to the goods and services 
acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group measures the fair 
value of the liability at each reporting date and at the date of settlement, with any changes in value recognised in profit 
or loss for the year. Integral to this measurement exercise is the need for management to make assumptions about the 
likelihood of an event occurring that will give rise to a liability and this includes amongst other things the probability of a 
significant asset or corporate sale occurring.
Foreign currency translation
Operating companies
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rate ruling 
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the 
functional currency rate of exchange ruling at the date of the statement of financial position. All differences are taken to 
profit or loss. 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. 33
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Consolidation
The assets and liabilities of foreign operations are translated at the rate of exchange ruling at the date of the statement of 
financial position. 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 profit or loss.
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 statement of financial position and 
consolidated statement of comprehensive income, 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:
•	 Estimating	the	r esult	of	the	associate
•	 Assessing	the	need	for	and	measur ement	of	impairment	of	intangible	fixed	assets
•	 Determining	the	fair	value	of	shar e-based	payments
•	 Estimating	decommissioning	liabilities
•	 Financial	risk	management
Estimating result of associate
Due to the timing of the year end of the associate, Egdon Resources plc, audited financial information has not been 
made available to the Group. As a result an estimate has been made of the result for the period based on historic 
publicly released financial information and updates on individual projects. The carrying value of the individual projects 
has also been assessed based on publicly available information. The need to make such an estimate increases the 
uncertainty in our accounts and adjustment may therefore be required in a future period.
Intangible assets
The Group determines whether intangible assets are impaired at least on an annual basis. If there is an indication of 
impairment, an estimate of the value in use of the asset is required. 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 pre-tax discount rate 
in order to calculate the present value of those cash flows.
Share-based payments
Determining the fair value and measurements of share-based payments requires assumptions in respect of the inputs 
used in the option pricing model. The measurement of cash settled share-based payments also requires management to 
make estimates of the likelihood of certain events occurring. 
Details can be found in note 3.
Decommissioning 
The Group determines decommissioning liabilities by making assumptions, based on the current economic environment, 
which management believe are a reasonable basis upon which to estimate the future liability. These estimates are 
reviewed regularly to take into account any material changes to assumptions. However, the actual decommissioning 
cost will ultimately depend upon future market prices for the necessary decommissioning works required which will 
reflect market conditions at the relevant time. Furthermore, actual costs will also reflect the extent of decommissioning 
work required to be performed, whether the decommissioning works can be performed as part of a multi well 
programme or in isolation and progress in decommissioning technologies.
Financial risk management
In respect of financial risk management, at the date of the statement of financial position, the Group’s principal financial 
assets are cash and cash equivalents, amounts due from Joint Venture Partners and other receivables.
The Group manages liquidity risk by ensuring that sufficient funds are available to meet its commitments as they fall due. 
The Group uses projected cash flows to monitor funding requirements for the Group’s activities.
The Group’s exposure to the risk of changes in market interest rates is mitigated by regular reviews of available fixed and 
variable rate deposits. Management also monitor bank credit risk. 34
EnCore Oil plc   Annual Report & Accounts 2011
Notes to the Group Financial Statements
1. Segment Information
Operating segments
For management purposes, the Group currently operates in three geographical markets: UK Offshore, UK Onshore 
and Overseas. Unallocated operating expenses, assets and liabilities relate to the general management, financing and 
administration of the Group.
The following tables present the gain/(loss) and certain asset and liability information regarding the Group’s operating 
segments for the year ended 30 June 2011 and for the year ended 30 June 2010. 
2011
 UK Onshore 
£
 UK Offshore 
£
 Overseas 
£
 Unallocated 
£
 Total 
£
Impairment write down  
– exploration costs – (343,937) (17,979) – (361,916)
Administrative expenses – (2,464,680) (65,725) (761,571) (3,291,976)
Operating loss (2,808,617) (83,704) (761,571) (3,653,892)
(Loss)/gain on sale of subsidiary – – (26,749) – (26,749)
Share of gain in associate – – – 1,198,144 1,198,144
Finance income – – – 375,730 375,730
Finance costs – – – (3,250) (3,250)
Other gains and losses  
– Foreign currency gains – – – (618,322) (618,322)
(Loss)/profit before taxation – (2,808,617) (110,453) 190,731 (2,728,339)
Taxation – 252,929 – – 252,929
(Loss)/profit for the year – (2,555,688) (110,453) 190,731 (2,475,410)
Other segment information
Non-current assets – 31,823,241 2,500,000 7,600,592 41,923,833
Current assets – 3,410,450 – 16,965,024 20,375,474
Current liabilities – (2,155,621) – (1,939,464) (4,095,085)
Non-current liabilities – (1,449,911) – – (1,449,911)
Net assets – 31,628,159 2,500,000 22,626,152 56,754,311
Capital expenditure
Intangible exploration and 
evaluation assets – 19,525,773 56,167 – 19,581,940
Property, plant and equipment
– other – – – 81,727 81,727
– 19,525,773 56,167 81,727 19,663,667 35
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
2010
 UK Onshore 
£
 UK Offshore 
£
 Overseas 
£
 Unallocated 
£
 Total 
£
Impairment write down 
– exploration costs (6,800,000) (525,932) (5,038,956) – (12,364,888)
Administrative expenses (137,830) (1,102,640) (137,830) (1,378,301) (2,756,601)
Operating loss (6,937,830) (1,628,572) (5,176,786) (1,378,301) (15,121,489)
Gain on sale of subsidiary – 21,215,199 – – 21,215,199
Gain on sale of intangible 
exploration and evaluation assets – 1,703,456 – – 1,703,456
Finance income – – – 288,942 288,942
Finance costs – (7,341) – (3,606) (10,947)
Other gains and losses 
– Foreign currency gains – – – 1,476,017 1,476,017
(Loss)/profit before taxation (6,937,830) 21,282,742 (5,176,786) 383,052 9,551,178
Taxation 1,054,356 834,314 – – 1,888,670
(Loss)/profit for the year (5,883,474) 22,117,056 (5,176,786) 383,052 11,439,848
Other segment information
Non-current assets – 12,523,405 2,500,000 72,906 15,096,311
Current assets 1,386,253 15,738,099 – 32,052,768 49,177,120
Current liabilities (26,111) (2,037,517) (933) (1,142,559) (3,207,120)
Non-current liabilities (46,666) (2,631,175) – – (2,677,841)
Net assets 1,313,476 23,592,812 2,499,067 30,983,115 58,388,470
Capital expenditure
Intangible exploration and 
evaluation assets 367,968 1,087,063 76,127 – 1,531,158
Property, plant and equipment
– oil and gas assets – 1,133,832 – – 1,133,832
– other – – – 16,590 16,590
367,968 2,220,895 76,127 16,590 2,681,580
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. 36 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
2. Employee benefits
 2011 
£
 2010 
£
Salaries 1,492,580 1,550,707
Share-based remuneration charges 134,194 275,518
Social security costs 186,028 188,965
Social security costs on unrealised share option gains 553,244 750,649
Pension costs 191,348 219,910
Other payments 28,742 36,190
Gross staff costs 2,586,136 3,021,939
Capitalised and recharged to joint venture partners (665,355) (681,900)
Net staff costs in profit or loss 1,920,781 2,340,039
The average number of employees for the Group in the year to 30 June 2011 was 11 (year to 30 June 2010: 11).
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. In addition certain staff costs are charged to joint venture 
partners on a time allocation basis in respect of work done in the year. 
Details of Directors’ Remuneration, Directors’ Transactions and Directors’ Interests are set out in the part of the 
Directors’ Remuneration Report described as having been audited and form part of these financial statements.
3. Share-based remuneration charges 
All Employee Share-option Plan
The all employee share option plan is a grant of share options to all eligible employees on appointment and periodically 
thereafter. The share options are issued at market price on the grant date. The share options vest in equal amounts on the 
first, second and third anniversaries after the grant date and must be exercised within 5 years of the grant date or forfeited.
The expense recognised for share-based payments in respect of employee services received during the year to 
30 June 2011 is £134,194 (year to 30 June 2010: £275,515). At 30 June 2011 the provision for employer social  
security costs that would arise on the exercise of share options is £1,244,627 (30 June 2010: £760,937). 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share 
options during the year.
 
  2011
 No.
 2011
 WAEP
 2010
No.
 2010
WAEP
Opening balance 25,256,668 18.65 26,106,666 18.74
Granted during the year 250,000 94.625 – –
Exercised/lapsed during the year (2,458,624) 28.76 (850,000) 21.62
Outstanding at 30 June 23,048,044 18.40 25,256,666 18.65
The weighted average remaining contractual life of share options outstanding as at 30 June 2011 is 1.79 years  
(2010: 2.26 years). At 30 June 2011 19,711,882 (2010: 18,113,816) of the total number of share options outstanding 
could be exercised and these options had a weighted average exercise of 18.97 pence (2010: 21.20 pence).
The range of exercise prices for options outstanding at the end of the year was between 8.5 pence and 94.625 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 2011. No new options were issued in the year ended 
30 June 2010. 37
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
 2011
Dividend yield (%) –
Expected share price volatility (%) 81
Risk-free interest rate (%) 0.6
Expected life of option (years) 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.
No other features of options grant were incorporated into the measurement of fair value.
All employee cash settled share-based plan
The all employee cash settled share-based EnCore Performance Incentive Plan (EPIP) is an award of 9,350,000 
Performance units made to employees. The Performance Units will not achieve any value under the EPIP until certain 
performance hurdles and value creation criteria are met. These include a minimum share price hurdle of 60 pence 
combined with the completion of a significant asset or corporate sale. 
Once all appropriate share price hurdles and triggers have been met the amount paid will be calculated by reference to 
the increase in share price over the base share price of 40 pence per share. The amount of excess over the base share 
price will then be subject to a pro-ration factor of between 0.75 to 1.75, depending on the magnitude of the excess over 
the 60 pence hurdle price.
The resulting award will then be further pro-rated to reflect the proportion that any significant asset sales proceeds relate 
to EnCore’s total market capitalisation. In the event of a change of control or sale of the Company no further pro-ration 
will take place.
In accordance with IFRS 2 management are required to measure the fair value of any potential liability at each reporting 
date. This process includes making assumptions about a number of matters including the likelihood of a significant asset 
or corporate sale occurring. At the grant date management determined that no material liability existed as the chance 
of the plan paying out was remote. At the 30 June 2011 management considered whether a pay out under the plan 
was probable and again concluded that any potential liability was immaterial. In light of the events described in note 25 
management reviewed this decision and concluded that the sequence of events that led to the Offer to acquire EnCore 
Oil plc by Premier Oil plc occurred after 30 June 2011 and the judgement made not to recognise any charge in the 
accounts at that date was still correct.
Assuming the scheme becomes effective and all performance units issued under the terms of the EnCore Performance 
Incentive Plan are paid out using the price of 70 pence per EnCore Share in the calculation required under the terms of 
the plan, a cash payment of £3.3 million will become due together with £0.4 million of Employers’ National Insurance.
4. Auditor’s remuneration
  2011 
£
 2010 
£
Fees payable to the Company’s auditor for the audit 
of the Company and consolidated financial statements 37,000 31,500
Fees payable to the Company’s auditor for other services
– audit of Company’s subsidiaries pursuant to legislation 14,000 12,500
– corporate finance services 48,000 –
– other assurance services 18,000 13,000
Total auditor’s remuneration 117,000 57,000
The auditor’s remuneration is shown net of VAT. 38 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
5. Impairment write down – exploration costs
 2011 
£
 2010 
£
Total impairment write down – exploration costs 361,916 12,364,888
In the year ended 30 June 2011 £0.4 million was written off the carried value of intangible oil and gas assets. The bulk  
of this charge related to UK Offshore assets with immaterial amounts written off African and Irish assets. 
In the year ended 30 June 2010 £6.8 million was written off the carried value of certain UK onshore assets; £4.9 million 
from the value of our Irish offshore assets and £0.7 million from the value of other assets. The Irish assets were 
measured through value in use. Value is use is based on, amongst other things, estimates of reserves, capex and 
operating expenditure together with the use of a pre-tax discount rate of 10%.
6. (Loss)/gain on sale of subsidiary
 
Year ended 
30 June 2011 
£
Year ended 
30 June 2010
£
Sale consideration 100,000 39,239,760
Less deductions:
Expenses of sale – (446,332)
Net proceeds 100,000 38,793,428
Net assets at sale
Intangible oil and gas exploration assets (126,749) (17,480,479)
Working capital balances – (97,750)
(126,749) (17,578,229)
Transfer from foreign currency translation reserve –
(Loss)/gain on sale (26,749) 21,215,199
In August 2010 the Company completed the sale of its interest in EnCore (E&P) Limited to Egdon Resources plc. 
EnCore (E&P) Limited held certain onshore French licences. This sale was the final part of a larger transaction signed in 
March 2010 and completed in July 2010 which involved the sale of assets in return for a material equity stake in Egdon.
In August 2009 the Company sold its interest in the Breagh field offshore UK. The interest was held in two wholly owned 
subsidiaries of the Company. The transaction was effected through the sale of the wholly owned EnCore (SNS) Limited, 
which was contained a 14 per cent. interest in the Breagh field offshore UK for a consideration of £39.2 million and 
the sale of a one percent. interest by the other subsidiary for a consideration of £2.7 million (see note 7 below). The 
purchaser of both parts was RWE Dea UK SNS Limited. 
7. Gain on sale of intangible exploration and evaluation assets
Year ended 
30 June 2011
Year ended 
30 June 2010
Sale consideration – 2,695,026
Less deductions:
Expenses of sale – (29,900)
Net proceeds – 2,665,126
Less carried value of asset – (961,670)
– 1,703,456
In August 2009 the Company sold a one percent. interest in the Breagh field offshore UK for a consideration of 
£2.7 million (see note 6). 39
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
8. Finance income
 2011 
£
 2010 
£
Bank interest receivable 297,648 288,942
Interest on loan to associate Company 78,082 –
Total finance income 375,730 288,942
9. Finance costs
 2011 
£
 2010 
£
Bank charges 3,250 3,606
Unwinding of discount on decommissioning provision – 7,341
Total finance costs 3,250 10,947
10. Other gains and losses
 2011 
£
 2010 
£
Foreign currency (losses)/gains (621,488) 1,474,552
Gain on sale of tangible fixed assets 3,166 1,465
Total other gains and losses (618,322) 1,476,017
11. Taxation
 2011 
£
 2010 
£
Current taxation – –
Deferred taxation 252,929 1,888,670
252,929 1,888,670
The tax credit arising in the year to 30 June 2011 reflects the revaluation of the deferred tax balance to reflect changes 
in corporation tax rates and the reversal of deferred tax balances on UK Onshore assets sold to Egdon Resources (see 
note 15). The deferred tax on the UK Onshore assets was created on the fair value adjustments to intangible oil and gas 
assets resulting from acquisitions in the year to 30 June 2008 and the period to 30 June 2007.
The tax credit arising in the year to 30 June 2010 reflected the reversal of deferred tax balances created on the fair value 
adjustments to intangible oil and gas assets following the sale of Breagh (see note 6), and the impairment of certain UK 
Onshore licences (see note 5).  40 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
11. Taxation continued
The credit for the year can be reconciled to the profit per the statement of comprehensive income as follows:
  2011 
£
 2010 
£
Pre-tax (loss)/profit (2,728,339) 9,551,178
Tax at the UK corporate tax rate of 26% (2010: 28%) 709,368 (2,674,330)
Tax effect of items which are not deductible/chargeable for tax (256,398) 4,805,614
Excess of potential capital allowances over depreciation 9,478,635 (1,320,905)
Tax effect of Supplementary Corporate Tax 49,214 108,893
Increase in UK tax losses not recognised (9,980,819) (919,272)
Reversal of timing differences (252,929) (1,888,670)
Tax (credit)/charge for the year (252,929) (1,888,670)
Unrecognised deferred tax asset
 2011 
£
 2010 
£
Tax losses 22,773,893 11,777,898
Accelerated capital allowances (14,808,479) (5,735,149)
7,965,414 6,042,749
Deferred tax assets in respect of losses have not been recognised as their future recovery is uncertain or not currently 
anticipated. Ring fence losses of £31.3 million are included within the potential deferred tax asset at the rate considered 
likely to apply when the groups upstream assets are developed.
The Supplementary Corporation Tax rate of 62% (2010 50%) has been applied to ring-fence losses and capital 
allowances, while the normal Corporation Tax rate of 26% (2010: 28%) has been applied to the non ring-fence losses 
and capital allowances.
12. (Loss)/earnings per ordinary share
Basic (loss)/earnings per share amounts are calculated by dividing net (loss)/earnings for the year by the weighted 
average number of ordinary shares outstanding during the year.
Diluted (loss)/earnings per share amounts are calculated by dividing the net (loss)/earnings for the year by the weighted 
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares 
that would be issued on the conversion of all the potentially dilutive ordinary shares into ordinary shares. 
The following reflects the income and share data used in the basic and diluted earnings per share computations:
 2011 
£
 2010 
£
(Loss)/earnings for the year (2,475,410) 11,439,848
 2011 2010
Basic weighted average number of shares 291,883,626 296,152,537
Dilutive potential ordinary shares:
Share options and warrants – 3,162,779
Diluted weighted average number of shares 291,883,626 299,315,316
As there is a loss in the year ended 30 June 2011, there is no difference between the basic and diluted earnings per share. 41
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
13. Intangible assets – exploration and evaluation fixed assets
 UK Onshore 
 £
 UK Offshore 
£
 Other 
£
 Total 
£
Cost:
At 1 July 2009 7,782,286 15,240,350 7,589,579 30,612,215
Additions 367,968 1,087,063 76,127 1,531,158
Reclassified to asset held for sale (8,150,254) – (283,589) (8,433,843)
At 30 June 2010 – 16,327,413 7,382,117 23,709,530
Additions – 19,525,773 56,167 19,581,940
At 30 June 2011 – 35,853,186 7,438,284 43,291,470
Accumulated amortisation:
At 1 July 2009 90,752 3,278,076 – 3,368,828
Impairment write down 6,800,000 525,932 5,038,956 12,364,888
Reclassified to asset held for sale (6,890,752) – (156,839) (7,047,591)
At 30 June 2010 – 3,804,008 4,882,117 8,686,125
Additions – 305,749 56,167 361,916
At 30 June 2011 – 4,109,757 4,938,284 9,048,041
Net book value at 30 June 2011 – 31,743,429 2,500,000 34,243,429
Net book value at 30 June 2010 – 12,523,405 2,500,000 15,023,405
Net book value at 1 July 2009 7,691,534 11,962,274 7,589,579 27,243,387
The amounts for intangible exploration and evaluation assets represent active exploration projects. These amounts will 
be written off to profit or loss 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.
14. Property, plant and equipment
Oil and gas assets £
Cost:
At 1 July 2009 4,149,180
Additions 1,133,832
Reclassified to asset held for sale (5,283,012) 
At 30 June 2010 –
Additions –
At 30 June 2011 –
Net book value at 30 June 2011 –
Net book value at 30 June 2010 –
Net book value at 1 July 2009 4,149,180
Oil and gas assets at 1 July 2009 represented costs to date on the Ceres development, UK North Sea block 47/9c. 
In March 2010 the Group announced the signing of agreements with Egdon Resources plc for the sale of the group’s 
onshore assets (onshore UK and onshore France) together with its interest in the Ceres gas field, in return for a material 
equity stake in Egdon. Ceres was reclassified as held for sale at 30 June 2010. 42 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
14. Property, plant and equipment continued
Other property plant and equipment
 Leasehold
 improvements 
£
 Vehicles 
£
 Fixtures and
 equipment 
£
 Computer 
hardware and
 software 
£
 Total 
£
Cost:
At 1 June 2009 14,908 45,321 5,486 30,642 96,357
Additions – 14,735 – 1,855 16,590
Disposals – (12,551) – – (12,551)
At 30 June 2010 14,908 47,505 5,486 32,497 100,396
Additions 49,344 – 13,768 18,615 81,727
Disposals – (10,411) – – (10,411)
At 30 June 2011 64,252 37,094 19,254 51,112 171,712
Accumulated depreciation:
At 30 June 2009 14,908 21,581 5,454 29,891 71,834
Depreciation charge for the year – 13,609 – 1,172 14,781
Disposals – (9,125) – – (9,125)
At 30 June 2010 14,908 26,065 5,454 31,063 77,490
Depreciation charge for the year 7,776 11,069 3,561 2,416 24,822
Disposals – (10,411) – – (10,411)
At 30 June 2011 22,684 26,723 9,015 33,479 91,901
Net book value at 30 June 2011 41,568 10,371 10,239 17,633 79,811
Net book value at 30 June 2010 – 21,440 32 1,434 22,906
Net book value at 1 July 2009 – 23,740 32 751 24,523
15. Investments 
 2011 
£
 2010 
£
Investments accounted for using equity method
Associated Company: Egdon Resources plc
Cost at acquisition 6,352,449 –
Share of gain for the year 1,198,144 –
7,550,593 –
Unlisted investments
Oil Barrel.com 50,000 50,000
7,600,593 50,000 43
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Investment in associate
In July 2010 the Company announced the completion of the sale of the Group’s onshore assets together with its 
interest in the Ceres gas field, in return for 39,200,000 ordinary shares in Egdon Resources plc representing 29.998 
per cent of the enlarged share capital of Egdon. As a condition of the transaction the Company has representation on 
Egdon’s Board. Egdon is listed on the London Alternative Investment Market. The market value of the shares held at 
30 June 2011 was £6.1 million based on a share price of 15.62 pence per share.
Aggregate amounts relating to associate
 Estimate of position 
at 31 July 2011 
£’000
Assets 23,000
Liabilities 3,000
Revenues 2,250
Gain 4,000
Due to the timing of the year end of the associate, Egdon Resources plc, audited financial information has not been 
made available to the Group. As a result an estimate has been made of the result for the period based on historic 
publicly released financial information and updates on individual projects. The carrying value of the individual projects has 
also been assessed based on publicly available information.
The actual result for Egdon for this period may be different to our estimate and consequently an adjustment may be 
required in our future accounts.
Unlisted investments
The Group holds 50,000 preference shares in Oil Barrel.com a subsidiary of Rivington Street Holdings plc, a listed 
Company. Fair value at 30 June 2011 and 2010 is £50,000.
16. Other receivables
 2011 
£
 2010 
£
Prepayments 148,638 76,476
Loan due from Egdon Resources Plc 1,000,000 –
Amounts owed from joint venture partners 321,302 258,584
Sundry 75,817 247,860
VAT recoverable 488,489 56,575
 2,034,246 639,495
The loan due from Egdon Resources plc attracts interest at 10 per cent per annum. 44 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
17. Restricted cash
 2011 
£
 2010 
£
Cash held in escrow 3,089,148 10,684,802
Restricted cash at 30 June 2011 includes £1,570,170 of cash held in an escrow account under an arrangement with 
a drilling contractor relating to the Company’s share of the cost of drilling the Cladhan well completed in mid 2011. A 
further £1,248,748 is cash held in an escrow account under an arrangement with a drilling contractor relating to the part 
of the Company’s share of the cost of drilling the Tudor Rose well and £270,230 relates to cash held in escrow accounts 
under arrangements with a drilling contractor relating to the part of the Company’s share of the cost of drilling the 
Catcher wells completed in 2011.
Restricted cash at 30 June 2010 included £8,539,528 ($12,869,923) being part of the consideration for the sale of the 
Breagh field (see note 6), which was held in an escrow account for a period of 12 months from completion of the sale as 
security against warranty or indemnity claims by the purchaser. The cash was released in August 2010.
A further £1,656,976 is cash held in an escrow account under an arrangement with a drilling contractor relating to the 
part of the Company’s share of the cost of drilling the Cladhan well and £488,298 is cash held in an escrow account 
under an arrangement with a drilling contractor relating to the part of the Company’s share of the cost of drilling the 
Catcher well.
18. Cash and cash equivalents
 2011
£
 2010 
£
Cash at bank and in hand 15,252,080 31,183,559
Cash at bank earns interest at floating rates based on daily bank deposit rates and fixed interest through the limited use 
of short-term deposits. At 30 June 2011, the Group did not have any committed borrowing facilities.
At 30 June 2011 and 2010 cash was held with the following financial institutions:
 
 2011 
£
 2010
£
Royal Bank of Scotland 6,273,065 16,019,782
Scottish Widows 8,977,886 15,163,632
Petty cash 1,129 145
15,252,080 31,183,559 45
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Interest rate and currency risk
The interest rate and currency profile of the Group’s cash resources at 30 June 2011 and 30 June 2010 was as follows:
Sterling 
£
Euro 
£
US Dollar 
£
Total 
£
At 30 June 2011
Cash on deposit at floating interest rate 3,175,194 – – 3,175,194
Cash on deposit at fixed rate interest 12,007,759 – 65,531 12,073,290
Cash on deposit on which no interest is received – 2,467 – 2,467
Petty cash 1,129 – – 1,129
15,184,082 2,467 65,531 15,252,080
At 30 June 2010
Cash on deposit at floating interest rate 23,616,681 12,369 2,529,364 26,158,414
Cash on deposit at fixed rate interest 5,000,000 – – 5,000,000
Cash on deposit on which no interest is received 25,000 – – 25,000
Petty cash 145 – – 145
28,641,826 12,369 2,529,364 31,183,559
19. Asset held for sale
 2011 
£
 2010
 £
Intangible asset – 1,386,252
Field in production – Ceres – 5,283,012
Asset held for sale – 6,669,264
Provisions – (190,775)
Liabilities directly associated with assets classified as held for sale – (190,775)
– 6,478,489
In March 2010 the Group signed sale and purchase agreements with Egdon Resources plc for the sale of the group’s 
onshore assets (onshore UK and onshore France) together with its interest in the Ceres gas field, in return for a material 
equity stake in Egdon (see note 15). 46 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
20. Current liabilities
 2011 
£
 2010 
£
Trade payables 577,718 653,543
PAYE and Social Security 1,309,845 899,219
Accruals 2,155,621 921,921
Pension contributions 21,022 42,723
Amounts due to joint venture partners – 469,520
Other 30,878 29,419
 4,095,084 3,016,345
At 30 June 2011 the PAYE and Social Security creditor includes an amount of £1,244,627 (2010: £760,937) in respect 
of Employers National Insurance on unrealised gains on unexercised employee share options. This will become due 
when the options are exercised.
21. Provisions
£
Decommissioning provision at 1 July 2009 1,158,434
Unwinding of discount on Ceres decommissioning provision 7,341
Reclassified to asset held for sale (190,775)
Decommissioning provision at 30 June 2010 (975,000)
Released to income statement (207,037)
Utilised (767,963)
Decommissioning provision at 30 June 2011 –
At 30 June 2010 provision had been made for decommissioning costs relating to a UK North Sea interest. The 
decommissioning was completed in the current year and the excess provision was released to the income statement 
through the Impairment write down line. 47
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
22. Deferred taxation
£
Deferred taxation at 30 June 2009 2,872,582
Released on impaired assets (1,169,741)
Deferred taxation at 30 June 2010 1,702,841
Released on asset disposals (note 15) (81,342)
Revaluation to current corporation tax rate 26% (171,587)
Deferred taxation at 30 June 2011 1,449,912
The entire deferred taxation balance at 30 June 2011 and 2010 arose on the fair value adjustments to intangible oil  
and gas assets resulting from acquisitions in the year to 30 June 2008 and the period to 30 June 2007.
23. Obligations under leases
The Group has entered into two commercial leases on office property in London. These leases expire in January 2014 
and September 2015. 
During the year to 30 June 2011 payments under commercial property leases amounted to £142,323  
(30 June 2010: £60,860).
Future minimum lease payments under non-cancellable operating leases:
 2011 
£
 2010 
£
Within one year – 56,332
From one to five years 769,599 –
After five years – –
769,599 56,332 48 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
24. Equity structure
 No. £
Authorised – ordinary shares of 5 pence each 500,000,000 25,000,000
Ordinary shares
Allotted, called up and fully paid
At 1 July 2009 307,360,839 16,443,186
Own Shares repurchased and cancelled (17,123,975) (856,199)
At 30 June 2010 290,236,864 15,586,987
Shares issued for cash 2,458,624 122,931
At 30 June 2011 292,695,488 15,709,918
In the year ended 30 June 2011 2,458,624 ordinary 5 pence shares were issued for cash following the exercise of 
share options.
In the year ended 30 June 2010 the Company purchased 17,123,975 ordinary 5 pence shares in EnCore Oil plc at a 
total cost, including expenses, of £2,502,846. The shares were cancelled. The Capital Redemption Reserve includes 
an amount equal to the nominal value of the own shares purchased. The total cost of the share repurchases, including 
expenses, is deducted from returned earnings.
Contingent rights to the allotment of shares
(a) Share options
The Company has granted share options to subscribe for 5 pence ordinary shares as follows.
Period exercisable
Exercise price 
per share (pence)
Number of options 
unexercised
21 May 2003 to 20 May 2013 53.75p 500,000
13 April 2005 to 12 April 2015 23.5p 200,000
3 March 2007 to 2 March 2013 34p 4,094,709
14 March 2008 to 13 March 2012 17.0p 7,183,333
29 June 2008 to 28 June 2012 19p 640,000
13 August 2008 to 12 August 2012 17p 640,000
30 September 2008 to 29 September 2012 16.25p 300,000
9 January 2010 to 8 January 2014 11.25p 390,000
5 March 2010 to 4 March 2014 8.5p 8,850,000
6 May 2012 to 5 May 2016 94.625p 250,000
23,048,042 49
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
25. Post balance sheet events
On 5 October 2011 EnCore announced the details of a recommended acquisition by Premier for the entire issued and 
to be issued share capital of EnCore, to be effected by Court-sanctioned scheme of arrangement under Part 26 of the 
Companies Act 2006 (“Scheme”). 
Premier has received irrevocable undertakings from the EnCore directors to vote in favour of the Scheme in respect of 
their entire beneficial holdings totalling 21,692,984 EnCore shares, representing approximately 7.4% of EnCore’s issued 
share capital. In addition, EnCore’s largest shareholder, BlackRock Investment Management (UK) limited (“BlackRock”), has 
confirmed its current intention to vote in favour of the Scheme. As at 3 October 2011, BlackRock controlled voting rights in 
respect of 17,049,983 EnCore Shares, representing approximately 5.8 per cent. of EnCore’s issued share capital.
The undertakings will cease to be binding if (i) a Scheme document is issued and the Scheme has not become 
effective by the long stop date of 28 February 2012 and prior to that time Premier has not issued an offer document; 
or (ii) an offer document is issued before the long stop date and the offer lapses or is withdrawn without having 
become wholly unconditional. 
The Acquisition will extend to all EnCore Shares issued (whether upon the exercise of the options and/or the vesting 
of awards or otherwise) under the EnCore Share Option Plans before the Scheme becomes effective. Appropriate 
proposals will be made in due course by Premier to participants in the EnCore Share Option Plans. 
Assuming the Scheme becomes effective and all options issued under the terms of the All Employee Share Option Plan 
become exercisable, and assuming that all option shares that are in the money are exercised for cash at the price of 70 
pence per EnCore Share (other than the option shares held by the Executive Directors who have irrevocably undertaken 
to elect for the share alternative), new EnCore Shares will be issued generating approximately £1.4 million in cash receipts. 
Employers National Insurance will become payable on the realised gains and would amount to approximately £0.6 million. 
Assuming the Scheme becomes effective and all performance units issued under the terms of the EnCore Performance 
Incentive Plan are paid out using the price of 70 pence per EnCore Share in the calculation required under the terms of 
the plan, a cash payment of £3.3 million will become due together with £0.4 million of Employers’ National Insurance.
26. Related party transactions
The transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation.
At 30 June 2011 the Group had outstanding a loan receivable of £1 million from Egdon Resources plc, an associate 
Company. Interest receivable on this loan during the year was £78,082 and is included in finance income for the year. 
The remuneration of the Directors, who are the key management personnel of the Group, is set out in the part of the 
Directors’ Remuneration Report described as having been audited, on page 19 of these accounts and form part of 
these financial statements.
27. Commitments and contingent liabilities
2011 
£
2010 
£
Oil and gas expenditure:
Intangible exploration and evaluation assets 4,387,400 2,750,764
Contracted for 4,387,400 2,750,764
The above capital commitments represent EnCore’s share of obligations in relation to its interests in joint ventures based 
on current licence interest levels. 
The amount committed at 30 June 2011 represents sums due to drill the Tudor Rose exploration well in Q3 2011, 
acquire seismic data in the Catcher area in Q3 2011 and technical studies on the Cladhan project.
The amount committed at 30 June 2010 represents sums due to drill the Cladhan appraisal well in Q3 2010 and site 
surveys and borehole charges on near term drilling. 50 Notes to the Group Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
28. Financial instruments and risk management
Categorisation and fair value of financial instruments
The Group’s financial assets comprise cash and cash equivalents, other receivables and unlisted investments. The 
Group’s financial liabilities comprise trade and other payables. All of these are measured at amortised cost other than 
unlisted investments which are held at cost as no ready market value is available.
It is the Directors’ opinion that the carrying value of all of the Group’s financial assets and financial liabilities approximates 
their fair value.
Fair values
Set out below is a comparison by category of carrying amounts and fair values of all the Group’s financial instruments:
Carrying values Fair values
2011 
£
2010 
£
2011 
£
2010 
£
Financial assets
Cash and cash equivalents 15,252,080 31,183,559 15,252,080 31,183,559
Restricted cash 3,089,148 10,684,802 3,089,148 10,684,802
Unlisted investments 50,000 50,000 50,000 50,000
Other receivables 1,395,795 506,444 1,395,795 506,444
19,787,023 42,424,805 19,787,023 42,424,805
Financial liabilities
Trade and other payables 2,785,240 2,117,125 2,785,240 2,117,125
 2,785,240 2,117,125 2,785,240 2,117,125
Financial risk management
The Group’s operations expose it to a number of financial risks. A risk management programme has been established to 
protect the Group against the potential adverse effects of these financial risks. There has been no significant change in 
these financial risks in the year.
(a) Foreign currency risk
A portion of the Group’s assets, liabilities, expenses and commitments are located overseas and therefore denominated 
in foreign currencies. However, these assets are not seen to represent a significant portion of any of these categories. As 
such the Group is not currently materially exposed to the risk of fluctuating exchange rates. At 30 June 2011 the Group 
held £0.1 million of cash in US Dollars and an immaterial amount in Euros. The Group does not use hedging instruments 
to protect itself against the risk that exchange rates will move and therefore the Group is exposed to translation 
exposure on these cash balances. 51
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
(b) Credit risk
Credit risk is the risk that the Group runs in its relations with financial counterparties in the case of deposits of surplus 
funds, bank account balances and joint venture partner balances within other receivables.
The Group endeavours to limit the number of financial counterparties, which must possess a strong credit rating at 
least equivalent to BBB+ at Standard & Poor’s or the equivalent rating at Moody’s. The permitted exposure volume 
per counterparty is dependent on the counterparty’s credit rating and the maturity of the exposure. At the date of the 
statement of financial position £6.3 million is deposited with The Royal Bank of Scotland and £9.0 million with Scottish 
Widows. Restricted cash at the same date of £3.1 million with The Royal Bank of Scotland.
The Group’s accounts receivable are with joint venture partners in the oil and gas industry and associate Company and 
are subject to normal industry credit risks. The maximum exposure at the date of the statement of financial position is 
£1,321,302 (2010: £258,584).
(c) Interest rate risk
The Group is exposed to interest rate risk to the extent that changes in market interest rates impact the Group’s cash 
and cash equivalents that have a floating interest rate. At 30 June 2010 the Group had cash and cash equivalents of 
£15.3 million. A one per cent increase or decrease in the interest rate would increase or decrease finance income by 
£0.2 million per annum. The Company had no interest rate swaps or hedges at 30 June 2011.
(d) Capital management
The Group manages its capital to ensure that it remains sufficiently funded to support its business strategy and maximise 
shareholder value. The Group’s funding needs have historically been met through a combination of equity and portfolio 
management. Capital includes share capital, share premium, other reserves and retained earnings. The Group remains 
debt free at 30 June 2011, future funding needs may be met through debt or equity or a combination of the two. 52
EnCore Oil plc   Annual Report & Accounts 2011
Company Balance Sheet as at 30 June 2011
 Note
 2011 
£
 2010 
£
Fixed assets   
Intangible exploration and evaluation assets 3 – 469,429
Tangible assets 4 79,811 22,906
Investments 5 10,577,852 9,229,789
10,657,663 9,722,124
Current assets
Debtors 6 39,712,682 17,856,826
Restricted cash 7 470 8,685,116
Cash at bank and in hand 8 14,585,339 30,757,670
54,298,491 57,299,612
Creditors
Amounts falling due within one year 9 (1,897,302) (1,808,236)
(1,897,302) (1,808,236)
Net current assets 52,399,607 55,491,376
Net assets 63,058,594 65,213,500
Capital and reserves
Called up share capital 10 14,634,773 14,511,842
Capital redemption reserve 10 856,199 856,199
Share premium 45,739,257 45,155,131
Profit and loss reserve 1,828,365 4,690,328
Shareholders’ funds 63,058,594 65,213,500
Approved and authorised for issue by the Board on 5 October 2011, and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer
  53
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Company Accounting policies
Basis of preparation
The financial statements of the parent Company have been prepared under the historical cost convention in 
accordance with the Companies Act 2006 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 408 of the Companies Act the Profit and Loss Account of the Company is 
not presented separately. 
Expenditure on the discovery, appraisal, development and utilisation of oil and gas reserves
The Company accounts for oil and gas expenditure under the successful efforts method of accounting.
Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the Profit and loss 
account.
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.
Tangible assets
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. 
Depreciation is provided on all tangible assets categories at rates calculated to write off the cost, less estimated 
residual value based on prices prevailing at the balance sheet date, of each asset evenly over its expected useful life 
as detailed below:
Leasehold improvements over life of lease
Vehicles over three years
Fixtures and equipment over three years
Computer hardware and software over three years
The carrying values of tangible assets 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 and associate, are stated at cost and reviewed for 
impairment if there are indications that the carrying value may not be recoverable.
Foreign Currencies
Sterling is the reporting currency of the Company. Transactions in foreign currency are translated at rates of exchange 
ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into 
sterling at the rates of exchange ruling at the balance sheet date, with a corresponding charge or credit to the profit and 
loss account.
Share Issue Expenses and Share Premium Account
Costs of share issues are written off against the premium arising on the issues of share capital. 54
EnCore Oil plc   Annual Report & Accounts 2011
Company Accounting policies continued
Share-based Payments
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. 
The cost of cash settled share-based payment transactions is measured by reference to the goods and services acquired 
and the liability incurred at the fair value of the liability. Until the liability is settled, the Company measures the fair value of the 
liability at each reporting date and at the date of settlement, with any changes in value recognised in profit or loss for the 
period. Integral to this measurement exercise is the need for management to make assumptions about the likelihood of an 
event occurring that will give rise to a liability and this includes amongst other things the probability of a significant asset or 
corporate sale occurring.
Deferred tax
Deferred tax is recognised in respect of all timing differences between the treatment of certain items for taxation 
and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise 
required by FRS19.
Deferred taxation assets are only recognised if recovery without replacement by equivalent debit balances is considered 
more likely than not. Deferred tax balances  
are not discounted.
1. All Employee Share-option Plan
The all employee share option plan is a grant of share options to all eligible employees on appointment and 
periodically thereafter. The share options are issued at market price on the grant date. The share options vest in equal 
amounts on the first, second and third anniversaries after the grant date and must be exercised within five years of 
the grant date or forfeited.
The expense recognised for share-based payments in respect of employee services received during the year to  
30 June 2011 is £134,194 (2010: £275,515). At 30 June 2011 a provision of £1,244,627 (2010: £760,937) was  
made for employer social security costs that would arise on the exercise of the options. 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share 
options during the year.
 2011 
No.
 2011
 WAEP
 2010 
No.
 2010 
WAEP
Opening balance 25,256,668 18.65 26,106,666 18.74
Granted during the year 250,000 94.625 – –
Exercised/lapsed during the year (2,458,624) 28.76 (850,000) 21.62
Outstanding at 30 June 23,048,044 18.40 25,256,666 18.65
Notes to the Company Financial Statements 55
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Share options outstanding as at 30 June 2011 had a weighted average remaining contractual life of 1.79 years  
(2010: 2.26 years). At 30 June 2011 19,711,882 (2010: 18,113,816) of the total number of share options outstanding 
could be exercised and these options had a weighted average exercise of 18.97 pence (2010: 21.20 pence).
The range of exercise prices for options outstanding at the end of the year was 8.5 pence to 94.625 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 2011. No new options were issued in  
the year ended 30 June 2010.
 2011
Dividend yield (%) –
Expected share price volatility (%) 81
Risk-free interest rate (%) 0.6
Expected life of option (years) 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.
No other features of options grant were incorporated into the measurement of fair value.
All employee cash settled share-based plan
The all employee cash settled share-based EnCore Performance Incentive Plan (EPIP) is an award of 9,350,000 
Performance units made to employees. The Performance Units will not achieve any value under the EPIP until certain 
performance hurdles and value creation criteria are met. These include a minimum share price hurdle of 60 pence 
combined with the completion of a significant asset or corporate sale. 
Once all appropriate share price hurdles and triggers have been met the amount paid will be calculated by reference to 
the increase in share price over the base share price of 40 pence per share. The amount of excess over the base share 
price will then be subject to a pro-ration factor of between 0.75 to 1.75, depending on the magnitude of the excess over 
the 60 pence hurdle price.
The resulting award will then be further pro-rated to reflect the proportion that any significant asset sales proceeds relate 
to EnCore’s total market capitalisation. In the event of a change of control or sale of the Company no further pro-ration 
will take place.
Management measure the fair value of any potential liability at each reporting date. This process includes making 
assumptions about a number of matters including the likelihood of a significant asset or corporate sale occurring. At the 
grant date management determined that no material liability existed as the chance of the plan paying out was remote. 
At the 30 June 2011 management considered whether a pay out under the plan was probable and again concluded that 
any potential liability was immaterial. In light of the events described in note 12 management reviewed this decision and 
concluded that the sequence of events that led to the Offer to acquire EnCore Oil plc by Premier Oil plc occurred after 
30 June 2011 and the judgement made not to recognise any charge in the accounts at that date was still correct.
Assuming the scheme becomes effective and all performance units issued under the terms of the EnCore Performance 
Incentive Plan are paid out using the price of 70 pence per EnCore Share in the calculation required under the terms of 
the plan, a cash payment of £3.3 million will become due together with £0.4 million of Employers’ National Insurance.
2. Directors remuneration
Details of remuneration of the Directors of EnCore Oil plc are provided in the part of the Directors’ Remuneration Report 
described as having been audited, on page 19 of these accounts and form part of these financial statements. 56
EnCore Oil plc   Annual Report & Accounts 2011
Notes to the Company Financial Statements continued
3. Intangible assets – exploration and evaluation costs
 UK Onshore
 £
 UK Offshore 
£
 Other 
£
 Total 
£
Cost:
At 30 June 2009 1,379,225 6,046 84,764 1,470,035
Additions 148,270 – – 148,270
At 30 June 2010 1,527,495 6,046 84,764 1,618,305
Disposals (1,527,495) (6,046) (84,764) (1,618,305)
At 30 June 2011 – – – –
Accumulated amortisation:
At 30 June 2009 1,058,066 6,046 84,764 1,148,876
Impairment – – – –
At 30 June 2010 1,058,066 6,046 84,764 1,148,876
Disposals (1,058,066) (6,046) (84,764) (1,148,876)
At 30 June 2011 – – – –
Net book value at 30 June 2011 – – – –
Net book value at 30 June 2010 469,429 – – 469,429
4. Tangible assets
Leasehold
 Improvements
 £
Vehicles 
£
Fixtures and
 equipment 
£
Computer
 hardware and
 software 
£
Total 
£
Cost:
At 30 June 2009 14,110 45,321 40,945 26,403 126,779
Additions – 14,735 – 1,855 16,590
Disposals – (12,551) – – (12,551)
At 30 June 2010 14,110 47,505 40,945 28,258 130,818
Additions 49,344 – 13,768 18,615 81,727
Disposals – (10,411) – – (10,411)
At 30 June 2011 63,454 37,094 54,713 46,873 202,134
Accumulated depreciation:
At 30 June 2009 14,110 21,581 40,913 25,652 102,256
Depreciation charge for the year – 13,609 – 1,172 14,781
Disposals – (9,125) – – (9,125)
At 30 June 2010 14,110 26,065 40,913 26,824 107,912
Depreciation charge for the year 7,776 11,069 3,561 2,416 24,822
Disposals – (10,411) – – (10,411)
At 30 June 2011 21,886 26,723 44,474 29,240 122,323
Net book value at 30 June 2011 41,568 10,371 10,239 17,633 79,811
Net book value at 30 June 2010 – 21,440 32 1,434 22,906 57
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
5. Investments
Investment in
 associate 
£
Shares
 in Group
 undertakings 
£
Unlisted 
Non-Group
 £
Total 
£
At 1 July 2010 – 9,179,789 50,000 9,229,789
Additions 548,063 900,000 – 1,448,063
Disposal of subsidiary undertakings – (100,000) – (100,000)
At 30 June 2011 548,063 9,979,789 50,000 10,577,852
In July 2010 the Company announced the completion of the sale of the Group’s onshore assets together with its 
interest in the Ceres gas field, in return for 39,200,000 ordinary shares in Egdon Resources plc representing 29.998 
per cent of the enlarged share capital of Egdon. The UK Onshore assets were held in the Company and consequently 
it received 800,000 shares in Egdon in consideration for their sale. As a condition of the transaction the Company has 
representation on Egdon’s Board. Egdon is listed on the London Alternative Investment Market. Its share price at  
30 June 2011 was 15.62 pence valuing the Company’s holding at £6.1 million.
In September 2010 the Company created and funded XEO Exploration plc in return for 18,000,000 ordinary 5 pence 
shares. The Company holds 100 per cent of the issued shares of XEO. 
Shares in Group undertakings
A list of significant investments in subsidiaries is given below:
Name % Country of operation Country of registration
EnCore Exploration Limited 100 UK England & Wales
EnCore Natural Resources Limited 100 Western Sahara England & Wales
EnCore Petroleum Limited 100 UK England & Wales
EnCore North Sea Limited 100 UK England & Wales
EnCore Oil and Gas Limited 100 UK England & Wales
EnCore (NNS) Limited 100 UK England & Wales
EnCore (VOG) Limited 100 UK England & Wales
EnCore Gas Storage Limited 100 UK England & Wales 
EnCore Exploration Limited 100 Ireland Ireland
EnCore CCS Limited 100 UK England & Wales
XEO Exploration plc 100 UK England & Wales
The principal activity of all companies, other than EnCore Oil and Gas Limited, EnCore (VOG) Limited and EnCore CCS Limited which are 
dormant, is oil and gas exploration and evaluation and associated activities.
EnCore (E&P) Limited was sold in August 2010, for further details see note 6 to the Group Financial Statements. 58 Notes to the Company Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
6. Debtors
 2011 
£
 2010 
£
Other debtors 72,302 247,861
Prepayments 141,799 76,476
Amounts due from associate Company 1,000,000 –
Amounts owed by Group undertakings 38,059,013 17,448,433
VAT Recoverable 439,568 84,056
  39,712,682 17,856,826
7. Restricted cash
 2011 
£
 2010 
£
Cash held in escrow 470 8,685,116
At 30 June 2011 restricted cash comprised £470 held in an escrow account under an arrangement with a drilling 
contractor relating to the part of the Company’s share of the cost of drilling the Catcher well.
Restricted cash at 30 June 2010 included £8,539,528 ($12,869,923) being part of the consideration for the sale of the 
Breagh field, which was held in an escrow account for a period of 12 months from completion of the sale as security 
against warranty or indemnity claims by the purchaser. The cash was received by the Company in August 2010. 59
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
8. Cash and cash equivalents
 2011 
£
 2010 
£
Cash at bank and in hand 14,585,339 30,757,670
Interest rate and currency risk
The interest rate and currency profile of the Company’s cash resources at 30 June 2011 and 2010 was as follows:
Sterling
£
US Dollars 
£
Euro 
£
Total 
£
At 30 June 2011 
Cash on deposit at floating interest rate 2,509,071 – – 2,509,071
Cash on deposit on which no interest is received 12,007,758 – 64,914 12,072,672
Cash on deposit at fixed rate interest – 2,467 – 2,467
Petty cash 1,129 – – 1,129
14,517,958 2,467 64,914 14,585,339
At 30 June 2010
Cash on deposit at floating interest rate 23,204,719 2,515,437 12,369 25,732,525
Cash on deposit on which no interest is received 5,000,000 – – 5,000,000
Cash on deposit at fixed rate interest 25,000 – – 25,000
Petty cash 145 – – 145
28,229,864 2,515,437 12,369 30,757,670
9. Amounts falling due within one year
 2011 
£
 2010 
£
Trade creditors 371,534 456,789
Other taxes and Social Security 1,309,845 899,219
Accruals 143,886 144,528
Other 51,015 –
Pension contributions 21,022 42,723
Amounts owed to Group undertakings – 179,214
Amounts due to joint venture partners – 85,763
 1,897,302 1,808,236
At 30 June 2011 the PAYE and Social Security creditor includes an amount of £760,937 in respect of Employers 
National Insurance on unrealised gains on unexercised employee share options. This will become due when the 
options are exercised.
  60 Notes to the Company Financial Statements continued
EnCore Oil plc   Annual Report & Accounts 2011
10. Reconciliation of changes in shareholders funds
 Equity share
 capital 
£
 Capital
 Redemption
 Reserve
£
 Share
 premium 
£
 Retained
 earnings 
£
 Total equity 
£
At 30th June 2009 15,368,041 – 45,155,131 (2,087,909) 58,435,263
Profit for the year – – – 9,005,568 9,005,568
Own shares bought back (856,199) 856,199 – (2,502,846) (2,502,846)
Shared-based payments – – – 275,515 275,515
At 30th June 2010 14,511,842 856,199 45,155,131 4,690,328 65,213,500
Loss for the year – – – (2,990,421) (2,990,421)
Shares issued for cash 122,931 – 584,126 – 707,057
Shared-based payments – – – 128,458 128,458
At 30 June 2011 14,634,773 856,199 45,739,257 1,828,365 63,058,594
In the year ended 30 June 2011 2,458,624 ordinary 5 pence shares were issued for cash following the exercise of 
share options.
In the year ended 30 June 2011 the Company purchased 17,123,975 ordinary 5 pence shares in EnCore Oil plc at 
a total cost, including expenses, of £2,502,846. The shares have been cancelled. The Capital Redemption Reserve 
includes an amount equal to the nominal value of the own shares purchased. The total cost of the share repurchases, 
including expenses, is deducted from returned earnings.
For further information on movements in equity and share options see notes 3 and 24 to the Group financial statements.
11. 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.
At 30 June 2011 the Company had outstanding a loan receivable of £1 million from Egdon Resources plc, an associate 
Company. Interest receivable on this loan during the year was £78,082 and is included in finance income for the year. 61
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
12. Post balance sheet events
On 5 October 2011 EnCore announced the details of a recommended acquisition by Premier for the entire issued and 
to be issued share capital of EnCore, to be effected by Court-sanctioned scheme of arrangement under Part 26 of the 
Companies Act 2006 (“Scheme”). 
Premier has received irrevocable undertakings from the EnCore directors to vote in favour of the Scheme in respect of 
their entire beneficial holdings totalling 21,692,984 EnCore shares, representing approximately 7.4% of EnCore’s issued 
share capital. In addition, EnCore’s largest shareholder, BlackRock Investment Management (UK) limited (“BlackRock”), has 
confirmed its current intention to vote in favour of the Scheme. As at 3 October 2011, BlackRock controlled voting rights in 
respect of 17,049,983 EnCore Shares, representing approximately 5.8 per cent. of EnCore’s issued share capital.
The undertakings will cease to be binding if (i) a Scheme document is issued and the Scheme has not become 
effective by the long stop date of 28 February 2012 and prior to that time Premier has not issued an offer document; 
or (ii) an offer document is issued before the long stop date and the offer lapses or is withdrawn without having 
become wholly unconditional. 
The Acquisition will extend to all EnCore Shares issued (whether upon the exercise of the options and/or the vesting 
of awards or otherwise) under the EnCore Share Option Plans before the Scheme becomes effective. Appropriate 
proposals will be made in due course by Premier to participants in the EnCore Share Option Plans. 
Assuming the Scheme becomes effective and all options issued under the terms of the All Employee Share Option Plan 
become exercisable, and assuming that all option shares that are in the money are exercised for cash at the price 
of 70 pence per EnCore Share (other than the option shares held by the Executive Directors who have irrevocably 
undertaken to elect for the share alternative), new EnCore Shares will be issued generating approximately £1.4 million 
in cash receipts. Employers National Insurance will become payable on the realised gains and would amount to 
approximately £0.6 million. 
Assuming the Scheme becomes effective and all performance units issued under the terms of the EnCore Performance 
Incentive Plan are paid out using the price of 70 pence per EnCore Share in the calculation required under the terms of 
the plan, a cash payment of £3.3 million will become due together with £0.4 million of Employers’ National Insurance. 62
EnCore Oil plc   Annual Report & Accounts 2011
Notice of Annual General Meeting
EnCore Oil plc
Notice is hereby given that the Annual General Meeting of EnCore Oil plc (the “Company”) will be held at Glaziers Hall, 
9 Montague Close, London Bridge, SE1 9DD on 14 December 2011 at 2.00pm (or any adjournment thereof) for the 
following purposes:
Ordinary Business
To consider, and if thought fit, to pass the following resolutions, which will be proposed as ordinary resolutions:
1. To receive and adopt the Company’s audited accounts for the financial period ended 30 June 2011 together with the 
last Directors’ Report and Auditors’ Report on those accounts and the auditable part of the Remuneration Report.
2. To approve the Directors’ Remuneration Report for the financial period ended 30 June 2011.
3. To 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.
4. To re-appoint the following director who retires by rotation: 
Graham Doré
5. To re-appoint the following director who retires by rotation: 
Christine M.K. Wheeler OBE
6.  To re-appoint, as recommended by the Board of Directors of the Company (the “Board” or the “Directors”), Vivien 
Murray Gibney as an Non-Executive Director of the Company, who has been appointed to the Board since the last 
Annual General Meeting.
Special Business
To consider, and if thought fit, to pass the following resolutions, of which resolution 7 will be proposed as an ordinary 
resolution and resolution 8 will be proposed as a special resolution:
7. THAT the Directors be and they are hereby generally and unconditionally authorised pursuant to and in accordance 
with Section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to allot shares 
in the Company or to grant rights to subscribe for or to convert any security into shares in the Company up to a 
maximum aggregate nominal amount of £4,878,258.13, to such persons at such times and upon such conditions as 
the Directors may determine (subject to the Articles of Association of the Company) representing one third in nominal 
value of the ordinary share capital of the Company in issue, 
 provided that: 
 (i)  such authority shall expire at the conclusion of the Annual General Meeting of the Company in 2012 or, if earlier, 
on the date falling 15 months after the date of the passing of this resolution unless previously renewed, varied or 
revoked by the Company in general meeting;
 (ii)   such authority shall apply (A) in addition and without prejudice to any other authority under Section 551 of the 
Act granted pursuant to the passing of the special resolution considered at the general meeting of the Company 
(or any adjournment thereof) convened in relation to the scheme of arrangement under Part 26 of the Companies 
Act 2006 (in its original form or with or subject to any modification, addition or condition approved or imposed by 
the Court and agreed by the Company and Premier Oil plc) to effect the acquisition of the entire issued and to be 
issued share capital of the Company by Premier Oil plc (the “Scheme Authority”); and (B) except for the Scheme 
Authority, in substitution for all previous authorities pursuant to Section 551 of the Act (but without prejudice to 
the allotment of shares or the grant of rights to subscribe for or to convert any security into shares made or to be 
made pursuant to such authorities); and 63
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Registrars:
Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham, 
Kent 
BR3 4TU
United Kingdom 
Calls from within the UK: 0871 664 0300
*Please note that calls cost 10p per minute plus network extras,  
lines are open 8.30am-5.30pm Mon-Fri
Calls from outside the UK: +44 20 8639 3399
 (iii)  the Company may, before such authority expires, make offers or enter into agreements which would or might 
require shares to be allotted or rights to subscribe for or convert securities into shares to be granted after such 
expiry and the Directors may allot shares or grant rights to subscribe for or convert securities into shares in 
pursuance of such offers or agreements as if the authority conferred hereby had not expired.
8. THAT the Directors be and they are hereby empowered pursuant to Section 570 of the Companies Act 2006 (the 
“Act”) to allot equity securities (as defined in Section 560(1) of the Act) for cash as if Section 561(1) of the Act did 
not apply to such allotment, or applied to such allotment with such modifications as the Directors may determine, 
pursuant to the authority given by resolution 7 above or where the allotment constitutes an allotment of equity 
securities by virtue of Section 530(3) of the Act up to a maximum aggregate nominal amount of £4,878,258.13, 
representing one third in nominal value of the ordinary share capital of the Company in issue, 
 provided that: 
 
 (i)  such power shall expire at the conclusion of the Annual General Meeting of the Company in 2012 or, if earlier, 
on the date falling 15 months after the date of the passing of this resolution unless previously renewed, varied or 
revoked by the Company in general meeting;
 (ii)   such power shall apply in substitution for all previous powers granted to the Directors to allot equity securities as 
if section 561(1) of the Act did not apply but without prejudice to any allotment of equity securities made or to be 
made pursuant to such powers; and
 (iii)  the Company may, before such power expires, make offers or enter into agreements which would or might 
require equity securities to be allotted after such expiry and the Directors may allot securities in pursuance of 
such offers or agreements as if the authority conferred hereby had not expired.
For the purposes of this resolution 8: 
1. references to an allotment of equity securities shall include a sale of treasury shares; and 
2. the nominal amount of any securities shall be taken to be, in the case of rights to subscribe for or convert into shares 
of the Company, the nominal amount of such shares which may be allotted pursuant to such rights. 
By order of the Board
Eugene Whyms
Company Secretary
5 October 2011
Registered office:
54 Baker Street
London
W1U 7BU
United Kingdom
Tel: +44 (0) 20 7224 4546
Fax: +44 (0) 20 7935 1224
Registered number 3328217 64
EnCore Oil plc   Annual Report & Accounts 2011
Notes
1. In accordance with Articles 107 and 108 of the Articles of the 
Company one-third of Directors must retire from office and 
are eligible for re-appointment. These retiring Directors must 
be those who have been in office the longest since their last 
appointment or re-appointment. 
2. In accordance with Article 111 of the Articles of the 
Company no person unless recommended by the Directors 
or a Director retiring at the meeting shall be eligible for 
appointment to the office of Director at any general meeting 
unless notice has been given previously.
3. In accordance with Article 113 of the Articles of the 
Company, Vivien Murray Gibney must retire from office and 
is eligible for reappointment, having been appointed as a 
Director since the last Annual General Meeting.
4. Biographical details of the Directors and particulars of their 
service contracts with the Company are set out in the report 
and accounts.
5. Pursuant to Regulation 41 of the Uncertificated Securities 
Regulations 2001, the Company specifies that only those 
shareholders registered in the register of members of the 
Company as at 6.00 p.m. on 12 December 2011 and, if this 
Meeting is adjourned, at 6.00 pm on the day two days prior 
to the adjourned meeting, shall be entitled to attend or vote 
at the AGM in respect of the number of shares registered in 
their name at that time. Changes to entries on the relevant 
register of securities after that time shall be disregarded in 
determining the rights of any person to attend or vote at the 
Meeting or adjourned Meeting. 
6. Resolution 7, which is an ordinary resolution, authorises the 
Directors to allot unissued shares up to a maximum aggregate 
nominal value of £4,878,258.13. This authority expires at the 
conclusion of the 2012 Annual General Meeting or, if earlier, on 
the date falling 15 months after the date of the passing of the 
resolution unless previously renewed, varied or revoked by the 
Company in general meeting. 
7. If the shares are to be allotted using the authority under 
Resolution 7 and are to be paid for in cash, Section 561 of the 
Companies Act 2006 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’.
8. 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 
8, which is a special resolution, asks shareholders to waive 
their pre-emption rights, but only for equity securities having a 
maximum aggregate nominal value of £4,878,258.13, 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 2012 Annual General Meeting or, if earlier, on 
the date falling 15 months after the date of the passing of the 
resolution unless previously renewed, varied or revoked by the 
Company in general meeting.
9. The Directors have no present intention of utilising the 
authorities in resolutions 7 and 8. The Directors, however, 
consider it desirable to have the flexibility to respond, in 
the interests of promoting the success of the Company, to 
market developments and appropriate opportunities as they 
arise and recommend resolutions 7 and 8 accordingly. 
10. A holder of ordinary shares or their duly appointed 
representatives are entitled to attend, vote and speak at the 
Meeting. A member so entitled may appoint (a) prox(ies), 
who need not be (a) member(s), to attend, vote and speak 
on his/her behalf. 
11. A form of proxy which may be used to make such 
appointment and give proxy instructions accompanies this 
notice. A proxy need not be a shareholder of the Company. 
It should be completed and returned as soon as possible. 
To be valid, a completed proxy must be received by the 
Company’s registrar, Capita Registrars Limited, The Registry, 
34 Beckenham Road, Beckenham, Kent, BR3 4TU, at least 
48 hours before the Annual General Meeting. Completion 
and return of the relevant proxy enclosed herewith will not 
prevent a shareholder from attending and voting in person. 
12. Members are entitled to appoint a proxy in respect of some 
or all of their shares. Members are also entitled to appoint 
more than one proxy. A space has been included on the 
form of proxy to allow members to specify the number of 
shares in respect of which that proxy has been appointed. 
Members who return the form of proxy duly executed but 
leave this space blank will be deemed to have appointed the 
proxy in respect of all of their shares. 
13. Any person receiving a copy of this Notice as a person 
nominated by a member to enjoy information rights under 
Section 146 of the 2006 Act (a ‘Nominated Person’) should 
note that the provisions in Notes 10-12 above concerning 
the appointment of a proxy or proxies to attend the meeting 
in place of a member do not apply to a Nominated Person, 
as only shareholders have the right to appoint a proxy. 
However, a Nominated Person may have a right under an 
agreement between the Nominated Person and the member 
by whom he or she was nominated to be appointed, or to 
have someone else appointed, as a proxy for the meeting. If 
a Nominated Person has no such proxy appointment right or 
does not wish to exercise it, he/she may have a right under 
such an agreement to give instructions to the member as 
to the exercise of voting rights at the meeting. Nominated 
Persons should also remember that their main point of 
contact in terms of their investment in the Company remains 
the member who nominated the Nominated Person to 
enjoy information rights, or perhaps the custodian or broker 
who administers the investment on their behalf. Nominated 
Persons should continue to contact that member, custodian 
or broker (and not the Company) regarding any changes or 
queries relating to the Nominated Person’s personal details 
and interest in the Company, including any administrative 
matter. The only exception to this is where the Company 
expressly requests a response from a Nominated Person. 
Notice of Annual General Meeting continued 65
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
Notes continued
14. Members or those who do not have a form of proxy and 
believe that you should have one and wish to appoint 
more then one proxy and require additional forms should 
photocopy the form of proxy as required. 
15. A vote ‘withheld’ option is provided on the form of proxy 
to enable you to instruct your proxy not to vote on any 
particular resolution. However, it should be noted that a 
vote withheld in this way is not a ‘vote’ in law and will not be 
counted in the calculation of the proportion of the votes ‘For’ 
and ‘Against’ a resolution. 
16. Electronic proxy appointment through CREST:  
CREST members who wish to appoint a proxy or proxies 
through the CREST electronic proxy appointment service 
may do so for the AGM and any adjournments thereof by 
using the procedures described in the CREST Manual. 
CREST Personal Members of other CREST sponsored 
members, and those CREST members who have appointed 
a voting service providers, should refer to their CREST 
sponsor or voting service providers, who will be able to take 
the appropriate action on their behalf. 
17. In order for a proxy appointment or instruction made using the 
CREST service to be valid, the appropriate CREST message 
(a ‘CREST Proxy Instruction’) must be properly authenticated 
in accordance with Euroclear UK & Ireland Limited’s 
specifications and must contain the information required for 
such instructions, as described in the CREST Manual. The 
message, regardless of whether it constitutes the appointment 
of a proxy or an amendment to the instruction given to a 
previously appointed proxy must, in order to be valid, be 
transmitted so as to be received by the issuer’s agent (ID 
RA10) by the latest time(s) for receipt of proxy appointments 
specified in the notice of meeting. For this purpose, the time 
of receipt will be taken to be the time as determined by the 
timestamp applied to the message by the CREST Applications 
Host from which the issuer’s agent is able to retrieve the 
message by enquiry to CREST in the manner prescribed by 
CREST. After this time any change of instructions to proxies 
appointed through CREST should be communicated to the 
appointee through other means. CREST members and, where 
applicable, their CREST sponsors or voting services providers 
should note that Euroclear UK & Ireland Limited’s does not 
make available special procedures in CREST for any particular 
messages. Normal system timings and limitations will therefore 
apply in relation to the input of CREST Proxy Instructions. 
It is the responsibility of the CREST member concerned to 
take (or, if the CREST member is a CREST personal member 
or sponsored member or has appointed a voting service 
provider(s), to procure that his CREST sponsor or voting 
service providers take(s)) such action as shall be necessary to 
ensure that a message is transmitted by means of the CREST 
system by any particular time. In this connection, CREST 
members and, where applicable, their CREST sponsors or 
voting service providers are referred, in particular, to those 
sections of the CREST Manual concerning practical limitations 
of the CREST system and timings. 
18. The Company may treat as invalid a CREST Proxy 
Instruction in the circumstances set out In Regulation 35(5)(a) 
of the Uncertificated Securities Regulations 2001. 
19. If the Chairman, as a result of any proxy appointments, is 
given discretion as to how the votes the subject of those 
proxies are cast and the voting rights in respect of those 
discretionary proxies, when added to the interests in the 
Company’s securities already held by the Chairman, result 
in the Chairman holding such number of voting rights that 
he has a notifiable obligation under the FSA’s Disclosure and 
Transparency Rules, the Chairman will make the necessary 
notifications to the Company and the FSA. As a result, any 
member holding 3 per cent. or more of the voting rights in 
the Company who grants the Chairman a discretionary proxy 
in respect of some or all of those voting rights and so would 
otherwise have a notification obligation under the Disclosure 
and Transparency Rules, need not make a separate 
notification to the Company and the FSA.
20. As at 5 October 2011, being the last practicable date prior to 
publication of this notice, the Company’s issued share capital 
consists of 292,695,488 ordinary shares with a nominal 
value of 5 pence each with voting rights. The Company does 
not hold any ordinary shares in Treasury. 
21. 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 from 
15 minutes prior to its commencement until its conclusion:
 a)  A copy of the Memorandum and Articles of Association;
 b)  A statement of the interests and transactions of the 
Directors and their families in the share capital of the 
Company; and
 c) Directors’ service contracts and letters of appointment. 66
EnCore Oil plc   Annual Report & Accounts 2011
Glossary
API gravity
American Petroleum Institute scale used to express 
specific gravity of oils. Light oils have higher API gravity, 
greater than 30 API. 
Appraisal well 
A well drilled to determine the physical extent, reserves 
and likely production rate of a prior oil or gas discovery. 
bbl 
One barrel of oil; 1 barrel = 35 Imperial gallons (approx.), 
or 159 litres (approx.); 7.55 barrels = 1 tonne (approx.); 
6.29 barrels = 1 cubic metre. 
Block 
An areal subdivision of the UKCS of 10 minutes of latitude 
by 12 minutes longitude measuring approximately 10 x 20 
kms, forming part of a quadrant. Each quadrant is divided 
into a grid five Blocks wide and six deep, and numbered 1 
to 30 from NW to SE e.g. Block 9/13 is the 13th block in 
Quadrant 9.
Centipose
A measurement of the viscosity of oil. The lower the 
centipose, the more mobile the oil, the higher the 
centipose, the more resistive and less mobile the oil is. 
Commercial field 
An oil and/or gas field judged to be capable of producing 
enough net income to make it worth developing. 
Darcy (or Millidarcy)
A measurement of permeability when assessing the flow 
characteristics of a reservoir ie. the ability of the rock to 
transmit fluid through pore spaces. 
DECC
Department of Energy and Climate Change
Development phase 
The phase in which a proven oil or gas field is brought into 
production by drilling production (development) wells and 
installing the infrastructure necessary to bring the oil or 
gas to market.
Discovery 
An exploration well which has encountered hydrocarbons. 
Drill Stem Test
A procedure for assessing well productivity and collecting 
fluid samples from the well.
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. 
Gas Oil Ratio (GOR)
Volume of gas at atmospheric pressure produced per unit 
of oil produced.
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.
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.  67
EnCore Oil plc   Annual Report & Accounts 2011
Business Profile The Year in Review Governance Financial Statements Company Information
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, Trade 
Unions and SME’s aiming to secure the long-term future of 
the Industry in the UK.
Site Survey
A sea bottom survey of a potential drilling location.
UKCS 
United Kingdom Continental Shelf 
UKOOA
UK Offshore Operators Association 68
EnCore Oil plc   Annual Report & Accounts 2011
Directors, Officers and Advisors
Directors
Christine M. K. Wheeler OBE – Chairman
Alan Booth – Chief Executive Officer
Eugene Whyms – Chief Financial Officer & Company Secretary
Graham Doré – Exploration Director
James Clark – Commercial Director
Vivien Gibney – Non-Executive Director
Registered Office
Watson House
54 Baker Street
London
W1U 7BU
United Kingdom
Tel: +44 (0)20 7224 4546
Fax: +44 (0)20 7935 1224
www.encoreoil.co.uk
info@encoreoil.co.uk 
Incorporated and registered in England and Wales under 
the Companies Act under registration number 3328217
Registrar
Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU 
United Kingdom
Calls from within the UK: 0871 664 0300
Please note that calls cost 10p per minute plus network extras, lines 
are open 8.30am-5.30pm Mon-Fri.
Calls from outside the UK: +44 20 8639 3399
www.capitadeal.com 
Auditors
PKF (UK) LLP 
Farringdon Place
20 Farringdon Road
London 
EC1M 3AP
United Kingdom 
Tel: +44 (0)20 7065 0000 
Fax: +44 (0)20 7065 0650
www.pkf.co.uk
Nominated Adviser & Broker
Cenkos Securities plc
6.7.8 Tokenhouse Yard 
London 
EC2R 7AS
Tel: +44 (0) 20 7397 8900
Fax: +44 (0) 20 7397 8901
www.cenkos.com
Joint Broker
Westhouse Securities Limited
One Angel Court
London 
EC2R 7HJ
United Kingdom
Tel: +44 (0)20 7601 6100
Corporate Finance Fax: +44 (0)20 7796 2713
Sales/Dealing/Research Fax: +44 (0)20 7796 2476
www.westhousesecurities.com 
Legal Advisers
Dewey & LeBoeuf LLP
1 Minster Court
Mincing Lane 
London
EC3R 7YL 
United Kingdom 
Tel: +44 (0)20 7459 5000 
Fax: +44 (0)20 7459 5099
www.deweyleboeuf.com 
Photography
David Hares
Andy Wilson 69
EnCore Oil plc   Annual Report & Accounts 2011 EnCore Oil plc
EnCore Oil plc
Annual Report and Accounts 2011
Annual Report and Accounts 2011
Watson House
54 Baker Street
London
W1U 7BU
United Kingdom