Annual Report and Accounts 2010 EnCore Oil plc 
EnCore Oil plc Annual Report and Accounts 2010
EnCore Oil plc
62–64 Baker Street 
London W1U 7DF 
United Kingdom
Telephone
+44 (0)20 7224 4546
Fax
+44 (0)20 7935 1224
Email
info@encoreoil.co.uk
Registered No.
3328217
www.encoreoil.co.uk Designed and produced by SampsonMay
Photography 
David Hares, Andy Wilson (Board); Egdon Resources plc.
Printed in England by
The Colourhouse
Contents
01  2010 Highlights
02  EnCore Oil at a Glance
03  Chairman’s Review 
04  Chief Executive’s Review
06  Operational Review 
10  Financial Review 
12  Board of Directors 
13  The EnCore Team 
14   Corporate Governance 
Statement 
16  Directors’ Report 
18  Remuneration Report 
21   Statement of Directors’ 
Responsibilities 
22   Independent Auditors’ Report 
23   Consolidated Statement  
of Comprehensive Income 
24   Consolidated Statement  
of Financial Position 
25   Consolidated Statement  
of Changes in Equity
26   Consolidated Statement 
of Cash Flows
27  Group Accounting policies 
27   Notes to the Group Financial 
Statements 
43  Company Balance Sheet 
44   Company Accounting policies 
44   Notes to the Company Financial 
Statements 
50  Notice of AGM 
54  Glossary 
55   Directors, Officers and Advisors 
EnCore Oil plc is an oil and gas exploration 
and production (E&P) company quoted on 
AIM in London under the ticker ‘EO.’.
Our principal strategy is to create shareholder 
value through successful exploration, appraisal 
and development of prospects and discoveries. 
Since our inception in 2005, we have drilled 
13 wells and have one more currently drilling. 
12 of the 13 completed wells have discovered 
oil or gas in varying quantities, and one was 
dry. A significant discovery was made this year 
at Catcher which will be further appraised over 
the next financial year.
We believe in monetising or exchanging of 
assets at the right stage in their lifecycle to 
best maximise value: this can be either before 
development sanction, especially where the 
development costs are significant, such as 
the Breagh gas discovery, or it may be once 
the field has been developed, for example the 
Ceres gas field. We have attempted to manage 
our portfolio so as to optimise our capital and 
risk exposure. We seek to be carried or pay 
minimal costs for exploration and appraisal 
drilling and farm out equity in order to do this. 
Our opportunistic approach has enabled us to 
acquire a balanced portfolio of offshore assets, 
based mainly in the UK Continental Shelf 
(UKCS) and a significant equity holding in  
AIM listed Egdon Resources plc (LSE: EDR). 
www.encoreoil.co.uk
1  
Focus on areas of proven expertise – 
offshore UKCS
2 
Balanced risk profile – broad portfolio 
of exploration and appraisal assets, 
minimise financial risk through farm out 
of equity for carry on wells
3 
Opportunistic approach – open to asset 
divestment and asset swaps. Consider 
stage of asset lifecycle as well as 
strategic position. 
For more information on our strategy, please 
view the ‘About Us’ section of our website: 
www.encoreoil.co.uk/about_us.asp
EnCore Oil plc Strategy EnCore Oil plc Annual Report and Accounts 2010 01
Operational Financial
Significant oil discovery at Catcher, 
up to 300mmbbls Oil in Place to date with 
substantial potential upside in the rest of 
the block 
One well and two side-tracks drilled during 
the period 
Completion of the sale of 15 per cent. 
interest in Breagh gas discovery to RWE Dea 
for a consideration of US$68.8 million
Agreement signed for divestment of 
onshore portfolio to Egdon Resources plc 
for 39.2 million Egdon shares (29.998 per 
cent. of Egdon share capital) plus £100,000 
cash, which completed post year end
Commencement of a share buy back 
scheme at less than inherent cash value  
per share – 17 million shares purchased 
for cancellation 
Strengthened Board of Directors with the 
appointment of a new Non-Executive 
Chairman, a Non-Executive Director and  
a new Executive Director 
> Operational Review p06
2010  
Highlights
Profit of 
£1 1.4m
for year ended 30 June 2010 
Cash of 
£41.9m
as at 30 June 2010 
£22.9m
gain on the sale of Breagh gas discovery
Debt free
> Financial Review p10
> Financial Statements p23 02 EnCore Oil plc Annual Report and Accounts 2010
EnCore Oil holds a balanced portfolio of offshore 
exploration and appraisal assets, mainly in the UKCS. 
14
licences
Northern North Sea 
3 licences
Central North Sea
6 licences
Southern North Sea 
9 licences
Celtic Sea 
2 licences
East Irish Sea 
1 licence
Western Sahara 
1 licence
EnCore Oil 
at a Glance
24
blocks or part blocks
290m
shares in issue (as at 30 June 2010)
17m
shares repurchased and cancelled  
(as at 30 June 2010)
1 1
employees including the Executive Directors
1 1
%
shares purchased and owned by 
Directors and staff
Our portfolio
UK Continental Shelf 
EnCore has interests in 11 offshore licences on the UK Continental Shelf
     EnCore  
Licence Block Type Equity Operator Location
P.1064 210/29a & 210/30a T 16.6% Sterling Resources Northern North Sea
P.1284 9/27a T 62.5% Fairfield Energy Northern North Sea
P.1687 9/27c P 100.0% EnCore  Northern North Sea
P.1430 28/9 & 28/10c T 15.0% EnCore  Central North Sea
P.1463 14/30a T 40.0% EnCore  Central North Sea
P.1689 14/29d (split) &  P 100.0% EnCore  Central North Sea 
 14/30c (split)
P.1655 15/21g (split) T 40.0% EnCore  Central North Sea
P.1243 48/1b & 48/2c T 25.0% EnCore  Southern North Sea
P.1335 43/13a T 100.0% EnCore  Southern North Sea
P.1674 48/1d (split) T 25.0% EnCore Southern North Sea
P.1475 113/29c & 113/30 T 50.0% Nautical East Irish Sea
Ireland 
EnCore holds two licences offshore Ireland
PEL 4/05 49/17 (part)  T 15.0% San Leon Energy Celtic Sea 
 49/22 (part) &  
 49/23 (part)
PEL 5/05 57/2 & part blocks T 12.5% San Leon Energy Celtic Sea 
 57/1, 48/26 & 48/27
Western Sahara 
EnCore holds a production sharing contract and assurance agreement for one block 
offshore Western Sahara
PSC Laguera PSC 100.0% EnCore  Western Sahara EnCore Oil plc Annual Report and Accounts 2010 03
Chairman’s 
Review
 “EnCore is the operator 
of Catcher and we are 
proud to be taking this 
important project forward. ”
Ten months ago, I took over the 
Chairmanship of EnCore from Mike Lynch 
who led the company from its inception  
until it was well established and financially 
strong. The Company had an experienced 
management team, a mixed portfolio 
of onshore and offshore assets mainly 
concentrated on the UKCS North Sea, 
a market capitalisation of around £46 million, 
significant cash resources and no debt. 
Looking at that Company today, the 
management team has been further 
strengthened, the onshore assets have been 
divested for a sizeable equity stake in a 
focused, growing onshore player, the offshore 
assets have delivered a significant oil 
discovery and the market capitalisation sits at 
around £161.8 million (as at 9 August 2010).
The discovery at Catcher and subsequent 
side-tracks are hugely significant for EnCore, 
our joint venture partners and the UK  
North Sea industry as a whole. Not since 
the Buzzard discovery in 2001, found by 
members of EnCore’s management team, 
has such a potentially significant UK North 
Sea oil discovery been made. Our current 
estimates put up to 300 mmbbls of Oil in 
Place at Catcher (including East and North) 
with significant further upside from the 
undrilled prospects on the block. With that 
in mind, the joint venture partnership has 
confirmed that we are to return to the Catcher 
area for two to four further exploration and 
appraisal wells as soon as a rig is available 
with a view to better determining the scale 
of the development required for the licence. 
Following this, preparations will be made to 
move the project through to field development 
plan (FDP) approval, anticipated to happen 
in 2011. EnCore is the operator of Catcher 
and we are proud to be taking this important 
project forward.
Moving on to the other event which has 
shaped EnCore over the last year, our  
asset divestment to Egdon Resources,  
an experienced onshore player, has now 
completed (post period end) and we look 
forward to actively assisting Egdon as they 
develop their portfolio. The Egdon transaction 
is a good example of the approach which 
we, as a company, can undertake when 
presented with such an opportunity. 
EnCore’s prime focus is the development of 
our offshore interests. Our onshore portfolio 
came about as part of our reverse takeover 
of Oil Quest Resources plc and while we 
have spent some time in trying to build 
recognition of the value in those assets, 
we determined that it was likely that only 
an onshore focused player could do so 
successfully. The Egdon transaction has 
given us the opportunity to realise some 
of the value in our portfolio, and hopefully 
continue to create further value through 
our shareholding as Egdon moves its 
assets forward.
Our Company remains cash rich and debt 
free, and more importantly, we are able to 
comfortably cover our proportion of costs 
on all foreseeable further exploration and 
appraisal drilling at Catcher, and the 
appraisal well currently drilling at Cladhan 
without the need to seek further funding. 
This leaves us in the very healthy position 
of having cash in the bank, owning 15  
per cent. and being operator of the very 
significant Catcher oil discovery in the 
Central North Sea, and having 16.6 per 
cent. of the Cladhan oil discovery in the 
Northern North Sea, though we have yet 
to determine its size.
Looking to the future, the near to medium 
term will be dominated by further work in 
the Catcher area to determine the scale 
of the discovery. Cladhan may also prove 
to be a commercial discovery and we await 
the results of the appraisal well. The gas 
storage marketing process is continuing 
and we will update the market accordingly 
when further information is available and, 
of course, further work on the other 
prospects in our portfolio is ongoing. 
I would like to thank you, our shareholders, 
for your continued support through these 
exciting times. In particular, I would like 
to thank the team at EnCore. It is rewarding 
to know that all the technical work on the 
Catcher block has been carried out in-house 
by the EnCore team which is a reflection 
of the talent within that small team. Finally, 
I would also like to thank my predecessor, 
Mike Lynch, for his dedication and 
commitment to the Company during his 
years of service and for leaving us a company 
well placed to take advantage of the 
opportunities which have since arisen. 
Christine M.K. Wheeler OBE 
Chairman 
9 August 2010  04 EnCore Oil plc Annual Report and Accounts 2010
2010 Review
I believe that 2010 has demonstrated  
that remaining focused on our strategy, 
even through tough times, has generated 
significant value appreciation for our 
shareholders. In 2009 we recognised that 
the market and business environment for 
small cap E&P companies had changed 
markedly since 2008. 
We made a conscious decision to preserve 
the capital we acquired from our Breagh 
sale, underpin our share price through 
implementation of a share buyback 
scheme, create a clear and transparent 
valuation for our onshore assets through 
our investment in Egdon, and to invest only 
where we saw opportunity for successful 
drilling to make a significant impact. 
We were especially fortunate that two key 
assets, Catcher and Cladhan both required 
only modest capital investment and that 
if either was successful could deliver 
a material change in our share price. I am 
happy to admit that our pre-drill estimate 
for the outcome of drilling at Catcher was 
wrong: it has turned out to be much larger 
and have much better oil and reservoir 
quality than we expected. 
The results of Catcher demonstrate that 
to be successful at exploration in the North 
Sea you need to have: a willingness to take 
risks, lots of patience, a healthy disregard 
for ‘accepted wisdom’ and last but not 
least, some good luck. I think we can now 
look forward to the coming year with a great 
deal of optimism and excitement.
The Year Ahead
Catcher
The results of drilling at Catcher have 
opened up a new play fairway in this area 
of the North Sea. We are especially excited 
at the number of additional prospects 
on the licence that appear to demonstrate 
similar seismic characteristics to our 
Catcher discovery. We intend to return 
to the Catcher block this autumn, or early 
next spring, dependent upon rig availability, 
to drill between two and four additional 
exploration and appraisal wells. 
Further success on the block would suggest 
a cluster of oil accumulations with potentially 
many hundreds of millions of barrels of oil 
in place. The low cost of drilling, the ability 
to use either semi-submersible or jack-up 
rigs, together with outstanding reservoir 
and oil quality would be likely to make this 
a highly valuable discovery, with potentially 
significant strategic importance. 
As operator I think EnCore is extremely well 
placed to progress the further exploitation 
of the block. Of course until we know more 
about the size and scale of the development 
project, it will be difficult to progress potential 
development options in any detail. I believe 
our team is uniquely well suited to the task 
ahead of us having been the management 
team that led the appraisal, Front End 
Engineering and Design, regulatory FDP 
approval and the subsequent development 
of the Buzzard Field between 2001 and 
2005. Buzzard is currently the largest field 
in the UKCS producing in excess of 
200,000 barrels per day. 
We believe that our very strong uncommitted 
cash position will ensure our ability to continue 
to capture significant additional value in  
the Catcher area for an extended period 
without the need for any additional funding.
Chief Executive’s 
Review
 “We can now look forward 
to the coming year with 
a great deal of optimism 
and excitement.” EnCore Oil plc Annual Report and Accounts 2010 05
Cladhan
At the time of writing, the Cladhan appraisal 
well has just begun. The well is being drilled 
as a side-track to the original discovery well 
to target a potential reservoir to the south 
of the currently established accumulation. 
The location was designed to minimise 
the cost of drilling in the failure case whilst 
enabling further side-tracking in the 
success case by drilling to a down dip 
location to establish the location of any 
oil-water contact. We expect the operations 
to complete within the next month, subject 
to any operational and weather delays. 
We believe that Cladhan also has the 
potential to make a significant impact on 
our valuation in the event of success as  
the upside reserves potential on Cladhan  
is very significant, whilst the commerciality 
threshold is quite low. 
Gas Storage
As Christine has mentioned, the marketing 
of our 100 per cent. owned Esmond gas 
storage project continues, and we will update 
shareholders when further information 
becomes available.
Exploration and Development Portfolio
During the year, we continued to progress 
the remainder of our portfolio. Last year 
we were all too aware of the lack of value 
recognition for, amongst other things, 
our Onshore UK and France licences and 
Ceres gas field. We subsequently achieved 
transparent value recognition for these 
assets through an innovative arrangement 
with Egdon Resources. We are currently 
examining how we might generate similar 
value recognition for our gas discoveries 
at Schull, Old Head of Kinsale and Cobra, 
as well as our UK exploration portfolio. 
There are a number of options that we 
believe may bring both the recognition of 
value, and also expose our shareholders to 
further activity and upside on these licences 
without significant further calls on our capital 
resources which will now be dedicated to 
Catcher and, if successful, Cladhan.
We recognise that the current environment 
for value creation in the UKCS remains 
challenging for smaller companies, although 
we are seeing the first signs of an easing 
in both debt and equity markets which will 
hopefully help. 
We are of the view that the UKCS will 
continue to provide unexpected significant 
discoveries, although many future 
exploration successes are likely to be made 
disproportionately by smaller players and 
new entrants to the North Sea. We hope 
that the relevant authorities will continue 
to encourage the entrance of new players 
and promote exploration for new 
accumulations by ensuring we have an 
economic and fiscal environment that 
encourages the recognition and appropriate 
reward for taking exploration risk. 
Additionally we need to ensure fair and 
speedy access to existing, often mature 
infrastructure. Unless this latter issue is 
addressed, and soon, then the undoubtedly 
significant benefits for the UK from the full 
exploitation of the UK’s indigenous natural 
resources is unlikely to be recognised. 
Alan Booth 
Chief Executive Officer 
9 August 2010 
 “ We were especially 
fortunate that Catcher 
and Cladhan both 
required only modest 
capital investment  
and that if either was 
successful could deliver 
a material change in  
our share price.” 06 EnCore Oil plc Annual Report and Accounts 2010
Catcher Drilling Programme
One well and two side-tracks were drilled 
during the period, all of which were on 
UK Central North Sea Block 28/9 which 
contained the Catcher prospect. All three 
wells were drilled using the Transocean 
Galaxy II heavy duty jack-up rig, in waters 
of just over 300 feet. EnCore is Operator 
of Block 28/9 and has a 15 per cent. 
interest in the Block.
The first well, 28/9-1 drilled the Catcher 
prospect and commenced in May 2010. 
This was a firm commitment well as part 
of the licence obligation, and resulted in a 
light oil discovery of a minimum 240 feet oil 
column with calculated net pay of 90 feet. 
The well reached a total measured depth 
(M.D.) of 5,219 feet with oil discovered in the 
target Cromarty sandstone level at 4,600 
feet M.D.. A potential oil water contact was 
also intersected at 4,840 feet M.D.. Analysis 
of the discovery indicated light oil with an 
API of approximately 30 degrees, a Gas  
Oil Ratio (GOR) of 280 scf/bbl, viscosity at 
reservoir conditions of 4 centipose, sand 
porosities of approximately 34 per cent. 
and multi-darcy permeability. 
A drill stem test was performed on well 
28/9-1 to determine flow rate characteristics 
but, although oil flowed naturally to the 
surface, due to a mechanical failure in the 
test string, a meaningful flow rate was not 
established. However, calculated flow rates 
and bottom hole and surface samples 
reaffirmed the next step to side-track 
to the Catcher East formation. 
The Catcher East side-track (28/9-1Z), 
the second well to be drilled during the 
period, side-tracked 0.5km to the east 
of the original Catcher discovery into a 
Lower Eocene Tay formation prospect. 
The purpose of this well was to determine 
the presence of hydrocarbons to the east 
and whether the two accumulations were 
linked. The well was drilled to 5,931 feet 
M.D. with no oil water contact encountered. 
A 236 feet oil column was discovered with 
a net pay of 82 feet. The pressure data and 
other results from this second well proved 
that Catcher and Catcher East were 
a contiguous accumulation. EnCore has 
estimated that up to 300 mmbbls of Oil 
in Place is present in Catcher, Catcher  
East and the as yet undrilled Catcher North, 
and there are a number of other significant 
structures on the block. 
The third well, started during the period 
and completed just after period end, was 
the 28/9-1Y Catcher South West Appraisal 
side-track. This side-track was drilled 
downdip from the original Catcher discovery 
to better understand the characteristics 
of the Catcher reservoir and to determine 
the presence of additional reservoir sands. 
The well reached 6,255 feet M.D. and 
discovered a 173 feet hydrocarbon column 
with a net vertical sand thickness of 121 feet. 
Additional sands were discovered and the 
results will be integrated into our ongoing 
evaluation of the Catcher accumulation. 
EnCore’s costs were carried by partners 
Premier Oil (uncapped) and Wintershall 
(capped) for the first well in the Catcher 
drilling campaign and cost to EnCore of the 
subsequent testing of the first well and two 
remaining side-track wells totalled less than 
£1 million. 
Post period end, during July and August 
2010, a number of site surveys have been 
carried out on the licence by Calegeo  
after which we intend to return to the 
Catcher area to drill between two and four 
exploration and appraisal wells. Discussions 
for a rig for this next phase continue and 
we expect to announce a rig contract in the 
coming weeks. 
Operational  
Review
 “ We intend to return 
to the Catcher area 
to drill between two 
and four wells. ” EnCore Oil plc Annual Report and Accounts 2010 07
Other Portfolio Activity
The sale to RWE Dea of our 15 per  
cent. interest in the Breagh gas field  
(UK Southern North Sea Block 42/13a) 
completed at the beginning of the period 
for a cash consideration of US$68.8 million. 
The details of the transaction were covered 
in some depth in our 2009 Annual and 
Interim Reports. 
In December 2009, the semi-submersible 
JW McLean rig was contracted to drill an 
appraisal well at Cladhan in UK Northern 
North Sea Block 210/29a & 210/30a 
(EnCore 16.6 per cent.). The well commenced 
post period end on 6 August 2010 and 
results are expected within the next  
month. The well will help us gain a better 
understanding of the extent and thickness 
of the Upper Jurassic reservoir sands to 
ascertain the commerciality of the discovery.
Post period end, we have also contracted 
Calegeo to carry out a site survey during 
summer 2010 over Block 14/30 in the 
UK Central North Sea (EnCore 40 per cent., 
Operator) which contains the Tudor Rose 
oil accumulation. Thorough technical work 
and evaluation has been carried out over 
the period and the outstanding issue now 
is one of oil quality and viscosity. We believe 
the oil to have an API of between 8.5 to the 
upper teens, although this can only be 
proved with a well. We believe the volume 
of oil in place at Tudor Rose to be in excess 
of 500mm barrels, as such there may 
be potentially commercially recoverable 
volumes if we can demonstrate suitable oil 
properties and productivity characteristics.
Strategy in action: 
Catcher
Blocks 28/9 and 28/10c 
were acquired in the 24th 
Licensing Round in 2007 
as a traditional licence 
award. Both blocks had 
previously been licensed 
but were undrilled. 
Our in-house technical 
team worked up the 
prospects on the licence 
which resulted in the 
identification of Catcher, 
Catcher East and a 
number of other similar 
structures. 
At the time of the licence 
award, we acquired 35 
per cent. of the licence 
and then, in line with  
our strategy minimising 
our capital and technical  
risk, we farmed out  
a proportion of equity 
reducing our equity to  
15 per cent. in exchange 
for being carried on part 
of our costs of the first 
well. We were carried  
for the remainder of our 
costs on the first well  
in exchange for taking  
the opportunity to 
Oilexco, who became 
Operator until they went 
into administration in  
early 2009. In line with  
our strategy of operating  
in order to maintain 
momentum, EnCore  
took over operatorship  
of the licence in May 
2009. Premier Oil acquired 
Oilexco’s equity in the 
same month.
The 28/9-1 well was 
drilled on the Catcher 
prospect in May 2010 
using the Transocean 
Galaxy II heavy duty 
jack-up rig. The well 
resulted in a significant 
light oil discovery of  
a minimum 240 feet oil 
column with calculated 
net pay of 90 feet. 
Although mechanical 
problems affected the 
flow rates, which would 
be overcome in any 
engineered development 
scenario, we proceeded 
with two side-tracks,  
one to the Catcher  
East prospect and one  
to appraise Catcher to  
the South West, both of 
which resulted in further 
oil discoveries. 
A further two to four 
exploration and appraisal 
wells are to be drilled 
hopefully in autumn 2010 
subject to rig availability. 
Catcher has the potential 
to be one of the largest 
UK North Sea finds in the 
last decade with a current 
estimate of 300 million 
barrels of Oil in Place  
and substantial potential 
upside on the block. 
The Galaxy II heavy duty jack-up rig on location at Catcher 08 EnCore Oil plc Annual Report and Accounts 2010
Elsewhere, we commissioned AMEC 
to carry out a conceptual study to look 
at development options on the Cobra 
discovery, in UK Southern North Sea 
Blocks 48/1b, 48/1d & 48/2c (EnCore: 
25 per cent., Operator). We are currently 
in discussions with infrastructure owners 
regarding potential export routes for  
Cobra gas before deciding upon the next 
steps with our partners. It is most likely  
that the development concept would  
be a normally unmanned platform with 
minimum facilities, linked by pipeline to  
the selected infrastructure. The 2008 well 
would be re-entered, to be completed as  
a production well after drilling a horizontal 
lateral with multiple fracture treatments. 
If development is sanctioned, subject to the 
tariff offer and positive project economics, 
along with availability of export capacity, 
first gas could be in Q4 2012.
Onshore Portfolio / Egdon Resources
The transaction with Egdon Resources plc 
was signed in March 2010 and completed 
post period end on 28 July 2010. This 
transaction has seen our onshore portfolio 
(onshore UK and onshore France) along 
with our interest in the Ceres gas field (UK 
Southern North Sea Block 47/9c, EnCore 
10 per cent.) transferred to Egdon in return 
for 39,200,000 ordinary shares in Egdon 
and £100,000 in cash upon completion of 
the transfer of the French licences. EnCore 
is now Egdon’s largest shareholder with 
equity of just under 30 per cent. of Egdon’s 
issued share capital, and Alan Booth,  
Chief Executive Officer of EnCore has been 
appointed to the Egdon Board of Directors 
as a Non-Executive Director. Other aspects 
of the transaction include the provision  
by EnCore of a £1.5 million loan facility to 
Egdon and the establishment of a Technical 
Services Agreement under which EnCore 
will provide Egdon with technical, commercial 
and accounting services, to be charged 
on a day-rate basis. EnCore has also made 
the commitment to retain its shareholding 
in Egdon for a minimum of 12 months from 
the date of admission to trading on AIM 
of the Egdon shares issued in consideration 
(29 July 2010), with orderly market 
provisions for a further 12 months. 
Strategy in action: 
Egdon Resources
Through our reverse 
takeover of Oil Quest 
Resources, we acquired 
a portfolio of 13 onshore 
UK licences. Offshore is 
our area of expertise and 
the onshore blocks 
remained overlooked 
in our portfolio. 
In line with our 
opportunistic approach, 
we approached Egdon 
Resources, our partner  
in the Kirkleatham 
licence, about the 
prospect of divesting  
our entire onshore 
portfolio into Egdon.  
We recognised Egdon  
as having the experience 
and commitment to 
develop into a leading 
onshore E&P player  
with the right skills and 
management team to 
help realise its ambition 
for growth. 
The deal was signed  
in March 2010 and 
completed post period 
end in July 2010. All of 
our onshore portfolio 
(onshore UK and onshore 
France) along with our 
interest in Ceres offshore 
gas development, which 
came on stream at  
the end of March 2010,  
has been transferred  
to Egdon in return for 
39,200,000 ordinary 
shares in Egdon and 
£100,000 in cash on 
completion of the  
French licence transfer. 
Operational  
Review continued
 “ EnCore is now Egdon’s 
largest shareholder  
with equity of just under 
30 per cent.”
Kirkleatham-4 well site on PEDL068 operated by Egdon Resources plc EnCore Oil plc Annual Report and Accounts 2010 09
The Ceres gas field commenced production in 
late March 2010 and initial results suggest that 
productivity will be in line with expectations.
Ireland
Progress on our Irish assets was limited during 
the period as the Operator, Island Oil & Gas 
plc was the subject of a takeover by San 
Leon Energy plc. We signed a collaboration 
agreement with Valhalla Oil & Gas Limited 
in December 2009 when the future of Island 
Oil & Gas plc was uncertain to allow us to 
exert additional control of our Celtic Sea 
assets. Pre-development studies were 
carried out during the period and discussions 
have taken place with infrastructure owner, 
Kinsale Energy, over prospective tariff 
arrangements for Old Head of Kinsale. 
Applications have been made by the 
Operator to the Petroleum Affairs Division 
(PAD) in Ireland for lease undertakings 
on the Schull (Exploration Licence 5/05, 
EnCore 12.5 per cent.) and Old Head of 
Kinsale (Exploration Licence 4/05, EnCore 
15.0 per cent.) licences to give the joint 
venture group a further period to reach 
a declaration of commerciality. 
In light of the lack of progress during  
the year, the discussions held over  
tariff arrangements and future project 
economics, we made the decision that  
our Irish assets have been impaired and as 
such, have taken a £4.9 million write down 
on the assets during the financial year. 
Gas Storage
During the period, we received the results 
of a reservoir simulation study carried out 
by Senergy, which confirmed the suitability 
of the Esmond field for gas injection and 
withdrawal in both the upper and lower 
reservoirs. The 2007 feasibility study  
from AMEC was also updated to take into 
account the changes in the development 
concept following the results of the 
November 2008 pressure test well on 
Esmond. Both these studies were done 
with a view to assisting the marketing of  
the project which began during the period. 
Jefferies has been commissioned to 
conduct the marketing process which 
is ongoing. 
Strategy in action: 
Breagh
We acquired our 15  
per cent. interest in  
Block 42/13a in the  
22nd Licensing Round  
as a promote licence 
which was subsequently 
converted into a 
traditional licence.  
Three wells were drilled 
on the licence by the  
joint venture group 
between the period  
from September 2007 
and January 2009,  
all of which discovered  
gas and proved up  
a significant gas 
accumulation in the 
Southern North Sea. 
Given the next stage in 
the further appraisal and 
development of the field 
would have required 
significant investment, 
in line with our strategy 
of minimising financial 
risk and divestment of 
assets at the appropriate 
stage in their lifecycle, 
EnCore, along with  
its five partners in the 
discovery, entered into 
negotiations for the sale 
of an aggregate 70 per 
cent. equity interest in 
the field. The transaction 
was announced on 
22 July 2009 whereby  
RWE Dea paid a cash 
consideration to EnCore 
Oil of US$68.8 million  
for EnCore’s 15 per  
cent. interest in the field. 
EnCore recognised a 
gain on its investment in 
Breagh of £22.9 million. 
The Ensco 85 jack-up rig on location at Breagh 10 EnCore Oil plc Annual Report and Accounts 2010
Gain for the Financial Year
The net profit for the year to 30 June 2010 
is £11.4 million (year to 30 June 2009  
loss of £1.5 million). The operating loss is 
£15.1 million (2009: £3.2 million) comprising 
administrative expenses of £2.7 million 
(2009: £1.9 million) and exploration costs 
of £12.4 million (2009: £1.2 million).
The operating loss has been offset by  
a total gain of £22.9 million arising on the  
sale of the Group’s interest in the UK North 
Sea gas field Breagh in August 2009.  
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 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 per cent. interest by the  
other subsidiary for a consideration of 
£2.7 million. The purchaser of both parts 
was RWE Dea UK SNS Limited.
The gain on the sale of subsidiary in the 
year ended 30 June 2009 of £1.2 million 
related to the disposal of EnCore Oil 
Nederland B.V. to TAQA Energy B.V. for 
US$5.5 million.
Net financial income in 2010 was 
£0.3 million (2009: £0.4 million). Foreign 
currency gains were £1.5 million in the  
year (2009: £0.1 million). The Breagh sale 
consideration included a significant element 
of cash denominated in US Dollars. Foreign 
currency gains reflected the weakening  
of sterling against the US Dollar during  
the period. We locked in much of this gain  
by selling US Dollars for sterling in the 
current year.
The gross administrative costs can be 
further analysed as follows:
2010 
£ million
2009 
£ million
Staff costs 3.0 2.1
Legal and professional 0.2 0.6
Office costs 0.1 0.1
Other 0.2 0.1
3.5 2.9
Gross administrative expenses, before 
capitalisation and recharges to joint  
venture partners, were £3.5 million (2009: 
£2.9 million). Staffing levels have again 
remained constant, however the significant 
increase in our share price in June 2010 has 
resulted in further provisions for employer 
social security costs arising on unrealised 
gains on unexercised share options. The 
charge for social security costs on options 
in the current year was £0.8 million whereas 
administration costs in 2009 reflected a 
credit of £0.2 million as the share price fell 
towards the end of that financial year and 
past provisions were reversed.
Capitalisation and recharge to joint venture 
partners of administration costs during  
the current year amounted to £0.8 million 
(2009: £1.0 million). Consequently, net 
administration costs in the profit and loss 
account were £2.7 million (2009: £1.9 million).
Staff costs includes £0.3 million (2009: 
£0.5 million) of IFRS 2 charges related 
to share options granted to Directors,  
staff and third parties. No new options  
have been granted since March 2009 and 
options issued in 2006 have now been 
fully expensed.
Exploration costs of £12.4 million principally 
relate to the write down of certain UK 
Onshore and Irish assets. In the case of  
the UK assets this followed progress on 
field economics and negotiations with 
Egdon regarding the asset sale completed 
in July 2010. The write down of the Irish 
assets reflects the poor progress during  
the year and the tariff discussions with the 
Kinsale infrastructure owners. Exploration 
costs in the year ended 30 June 2009 of 
£1.2 million reflects the write down of costs 
accumulated on the Esmond/Gordon Gas 
Storage project, £0.5 million, together with 
costs accumulated on licences/blocks that 
have been or are to be relinquished.
Financial Review
 “The Group ended the 
year with £31.2 million of 
cash and cash equivalents 
and a further £10.7 million 
of restricted cash. The 
Group remains debt free.” EnCore Oil plc Annual Report and Accounts 2010 11
Tax
The tax credit arising in the year to 30  
June 2010 reflects 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 2007 and the period to  
30 June 2006. These deferred tax balances 
reverse via the Consolidated Statement  
of Comprehensive Income when the asset 
is subsequently sold, as in the case with 
Breagh, or the asset is impaired, as is  
the case with the impairment of certain  
UK Onshore licences. This deferred tax 
movement is a non-cash item.
The Group has been advised that no tax 
liability should arise on the sale of EnCore 
(SNS) Limited (which held a 14 per cent. 
interest in Breagh) or on the sale of EnCore 
Oil Nederland B.V. owing to the availability 
of the Substantial Shareholders Exemption.
Statement of financial position
At 30 June 2010 the Group had net assets of 
£58.4 million (30 June 2009: £49.2 million). 
The most significant balances are intangible 
exploration and evaluation assets of £15.0 
million (2009: £27.2 million) and cash of 
£41.9 million (2009: £5.4 million).
The exploration and evaluation assets can 
be further analysed as follows:
2010 
£ million
2009 
£ million
UK onshore licences – 7 .7
UK offshore licences 12.5 11.9
Other 2.5 7 .6
15.0 27 .2
During the year to 30 June 2010, the Company 
incurred expenditure of £2.7 million (2009: 
£14.7 million) on its oil and gas properties 
principally in respect of the completion of 
the development of the Ceres field together 
with the costs of drilling the Catcher 
discovery well. Costs in 2009 reflected 
appraisal drilling on Breagh and Cladhan 
together with Ceres development costs. 
Other exploration and evaluation assets 
include interests in Ireland and Western 
Sahara. 
In July 2010 the Group announced the 
completion of the transfer of the Group’s 
onshore UK assets together with its interest 
in the offshore UK Ceres gas field to Egdon 
Resources plc. At 30 June 2010 the assets 
that form part of this transaction have been 
reclassified as held for sale. The single 
largest item within asset held for sale of 
£6.7 million is the carried cost of the Ceres 
development being £5.3 million.
Cash Flow
The Group ended the year with £31.2  
million of cash and cash equivalents (2009: 
£5.4 million) and a further £10.7 million 
of restricted cash (2009: Nil). The Group 
remains debt free.
Restricted cash at 30 June 2010 includes 
£8.5 million ($12.9 million) being part of the 
consideration for the sale of the Breagh 
field, which is 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. 
We anticipate this cash will be transferred 
to us in late August 2010.
A further £2.2 million is cash held in escrow 
accounts under arrangements with drilling 
contractors relating to the Company’s share 
of the cost of drilling the Cladhan well 
(£1.7 million) and Catcher well (£0.5 million).
In the year ended 30 June 2010 the 
Company purchased 17,123,975 ordinary 
5 pence shares in EnCore Oil plc, at less 
than the inherent cash value per share, 
at a total cash cost, including expenses, 
of £2.5 million. 
At 30 June 2010 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 mixture of fixed and 
variable rate accounts. Some use has been 
made of short-term deposits to enhance 
interest income. To date the duration 
of these deposits has not exceeded 
three months. 
At 30 June 2010 £28.7 million of cash  
was held in GB Pounds and £2.5 million  
in US Dollars. The majority of the restricted 
cash is US Dollar denominated. The Group 
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. 12 EnCore Oil plc Annual Report and Accounts 2010
1. Christine M.K. Wheeler OBE, 
Non‑Executive Chairman, Age 65
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. In 1994, Christine was 
awarded the OBE for services to the oil 
industry. Christine is now an independent 
consultant and in the past has held a 
number of positions including:
•  Chairman of an independent taxation 
advisory consultancy.
•  Head of natural resources division of 
Ernst & Young.
•  Advisor to the upstream clients of Arthur 
Young Chartered Accountants.
Christine is also a Non-Executive Director of 
Panoro Energy ASA, a Norwegian company 
having its focus on Brazil and West Africa.
2. Alan Booth, Chief Executive Officer, 
Age 52
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 OGIA and, post 
period end, has become a Non-Executive 
Director of Egdon Resources plc. He has 
previously been President of UKOOA from 
December 2003 – March 2005. He also 
subsequently served as a Director of Oil and 
Gas UK, was 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 and Company Secretary, 
Age 53
Along with Alan, Eugene co-founded EnCore 
in April 2005. He has over 20 years’ extensive 
industry experience in all issues of finance, 
tax, treasury, M&A and worldwide joint 
ventures. He has held positions including: 
•  Finance Director of EnCana (U.K.) Limited 
(now Nexen Petroleum U.K. Limited). 
•  Head of Group Finance, Group Audit 
Manager and Manager Financial 
Accounting at Enterprise Oil plc. 
Eugene is a trustee of the St. Christopher’s 
Fellowship, a London-based housing 
association and charity for the homeless.
4. Graham Doré, Exploration Director, 
Age 47
Graham has over 20 years’ experience in 
the oil and gas industry. Prior to joining 
EnCore in 2005, he held positions including:
•  Senior geologist with EnCana (U.K.) Limited, 
(now Nexen Petroleum U.K. Limited), 
where he generated and developed 
the Buzzard prospect leading to the 
discovery of the Buzzard field in 2001.
•  Geologist with Amerada Hess in the 
UKCS and Norway. 
Graham is a member of PESGB.
5. James Clark, Commercial Director, 
Age 59
James Clark has 35 years’ experience in 
tax and commercial roles with extensive 
experience of corporate and asset 
transactions across the oil and gas industry. 
Prior to joining EnCore in February 2006 
as Tax and Commercial Manager, James 
worked in a variety of tax roles for Enterprise 
Oil plc, Harrison Lovegrove & Co, and EnCana 
(UK) Limited (now Nexen Petroleum UK 
Limited). Earlier in his career, James worked 
as a researcher at the House of Commons, 
followed by the Inland Revenue, and then 
Ernst & Whinney. James was appointed a 
Director of EnCore Oil plc in October 2009.
6. L. Keith Hughes, Non‑ Executive 
Director, Age 59 
Keith Hughes, currently a partner at law firm 
Dewey & LeBoeuf, has more than 30 years 
of corporate transaction experience, centred 
in large part on the energy industry: debt and 
equity financings, mergers and acquisitions 
(including privatisations), and restructurings 
required by down cycles. He has also 
represented a number of independent 
petroleum companies in mergers and 
acquisitions involving both upstream and 
downstream operations, as well as in various 
project and acquisition financings. Keith was 
appointed a Director of EnCore Oil plc in 
October 2009.
4. 
2. 
6. 
Board of 
Directors
The EnCore Board of 
Directors has extensive 
experience in the oil and 
gas industry, both in the 
UK and worldwide.
3. 
1. 
5.  EnCore Oil plc Annual Report and Accounts 2010 13
8. 9. 10. 
7. 
11. 12. 13. 
7. Melanie Black, Office Manager
Melanie manages the office operations and 
provides financial accounting support. She 
has over 16 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 10 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 16 years’ experience  
in financial roles within the oil and gas 
industry. Previous roles include Group 
Financial Controller at Tandberg Television, 
Group Reporting Manager, then Vice 
President Finance USA at Enterprise Oil plc, 
and member of the oil and gas audit team 
at KPMG London. 
11. Peter Schwarz, Business 
Development Manager
Peter provides business development 
expertise and support for EnCore’s 
projects. He has over 30 years’ experience 
in the oil and gas industry, including working 
as a principal of his own consultancy, and 
various management roles with Amerada 
Hess, BG, and Marubeni.
12. Peter Williams, Group Technical 
Manager
Peter provides engineering expertise for 
EnCore’s projects and manages the 
engineering technical services in support  
of those projects. He has over 35 years’ 
experience as an engineer in the oil and gas 
industry, including working as a principal  
of his own consultancy, and roles with 
Enterprise Oil plc, Getty Oil (UK) 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 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.
The EnCore 
Team 14 EnCore Oil plc Annual Report and Accounts 2010
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 2010.
The Board
The Board comprises four Executive 
Directors and two Non-Executive Directors, 
Christine M.K. Wheeler OBE and 
L. Keith Hughes.
Each of the Directors has extensive 
knowledge of the oil and gas industry. 
Biographies of the Directors are set out 
on page 12 of this annual report.
The Board is accountable to shareholders 
for the formulation and delivery of the 
Group’s strategy. To achieve this, the Board 
directs and monitors the Group’s affairs 
within a framework of controls which  
enable risk to be assessed and managed 
effectively. The Board sets the Group’s 
strategy, ensures that sufficient resources 
are in place to achieve the strategy, 
and reviews management and financial 
performance. The Board also has 
responsibility for setting the Group’s core 
values and standards of business conduct 
and for ensuring that these, together with 
the Group’s obligations to its stakeholders, 
are understood by all employees.
The Board meets at least six times a year 
and as issues arise which require Board 
attention. The Board has a formal schedule 
of matters specifically referred to it for 
decision. In addition to those formal matters 
the Board will also consider strategy  
and policy, acquisition and divestments 
proposals, approval of major capital 
investments, risk management policy, 
significant financing matters and statutory 
shareholder reporting.
A statement of the Directors’ responsibilities 
in respect of the accounts is set out on 
page 21.
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 L. Keith Hughes. 
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 L. Keith 
Hughes. 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 L. Keith 
Hughes. It reviews and recommends to  
the Board the appointment of Directors.
Relations with Shareholders
Communications with shareholders are 
given high priority and there is regular 
dialogue with institutional investors, as well 
as general presentations to analysts at the 
time of the release of the annual and interim 
results. The Company maintains a website 
(www.encoreoil.co.uk) for the purpose of 
improving information flow to shareholders 
as well as potential investors. It contains all 
press releases, reports and accounts and 
extensive information about the Group’s 
activities. Enquiries from individual 
shareholders on matters relating to their 
shareholdings and the business of the 
Group are welcomed. Shareholders are 
also encouraged to attend the Annual 
Corporate Governance  
Statement EnCore Oil plc Annual Report and Accounts 2010 15
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 and Accounts 2010
The Directors submit their report together 
with the audited consolidated financial 
statements of EnCore Oil plc for the year 
ended 30 June 2010.
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 to set out in this report a fair review of 
the business of the Group during the 
financial year ended 30 June 2010 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 2 to 11 and 14 to 15.
Results and Dividends
The profit on ordinary activities after 
taxation amounted to £11.4 million 
(year to 30 June 2009 a loss of £1.5 million).
The Directors have not recommended 
payment of a dividend.
Directors
The Directors of the Company at the date 
of this report, and their biographical details 
are given on page 12.
In September 2009 Michael T. Lynch 
resigned as Chairman and Director of 
EnCore Oil plc. Christine M.K. Wheeler OBE 
replaced Michael T. Lynch as Chairman.
In October 2009 two new Directors were 
appointed. L. Keith Hughes, a partner at our 
legal advisors, Dewey & LeBoeuf became 
a Non-Executive Director and James Clark 
became Commercial Director having been 
with the Company since its inception as 
Commercial and Tax Manager.
In accordance with our Articles of 
Association and in keeping with best 
corporate governance practice of AIM-listed 
companies, the current Directors Alan 
Booth and Eugene Whyms will retire by 
rotation and will seek re-appointment to the 
Board of Directors of the Company at this 
year’s AGM. In addition L. Keith Hughes 
and James Clark, who were 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 18 to 20 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 290,236,864 
ordinary shares are issued and fully paid. 
During 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. 
These shares have been cancelled.
Directors’  
Report EnCore Oil plc Annual Report and Accounts 2010 17
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 8.66 25,140,723
Ingalls & Snyder 6.12 17 ,771,287
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 
5 August 2010, the broad distribution of the 
ordinary shares in issue was as follows:
% Shares
Institutions 44.6 129,483,105
Directors and staff 11.1 32,271,686
Other individuals 44.3 128,482,073
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 
Group at 30 June 2010 were equivalent to 
19 days’ purchases, based on the average 
daily amount invoiced by suppliers to the 
Group during the year.
Donations
During the year the Group made no 
charitable donations (2009 Nil).
Auditors
A resolution to re-appoint PKF (UK) LLP as 
auditors of the Company is to be proposed 
at the Annual General Meeting.
Going Concern
The financial statements have been 
prepared on a going concern basis.
Disclosure of Information to the 
Auditors
Each person who is a Director at the 
date of approval of this Annual Report 
confirms that:
So far as the Director is aware, there is  
no relevant audit information of which the 
Company’s auditors are unaware; and
The Director has taken all the steps that 
he or she ought to have taken as a Director 
in order to make himself or herself aware 
of any relevant audit information and to 
establish that the Company’s auditors are 
aware of that information.
This confirmation is given, and should 
be interpreted, in accordance with the 
provisions of s418 of the Companies 
Act 2006.
Signed on behalf of the Board by:
Eugene Whyms
Company Secretary
9 August 2010 18 EnCore Oil plc Annual Report and Accounts 2010
Information not subject to audit
The members of the Remuneration 
Committee are Christine M.K. Wheeler OBE 
and L. Keith Hughes. The Committee met 
twice during the year.
The main responsibilities of the Committee 
include:
•  determining and agreeing with the Board 
the remuneration policy for the Chief 
Executive, Executive Directors and senior 
executives;
•  reviewing the design of share incentive 
plans for approval by the Board and 
shareholders and determining the annual 
award policy to Executive Directors and 
senior executives under existing plans; 
and
•  within the terms of the agreed policy, 
determining the remainder of the 
remuneration packages (principally 
comprising salary and pension) for each 
Executive Director and senior executive.
The Chief Executive and other relevant 
executives are invited to attend meetings 
of the Committee but do not take part  
in any decision affecting their own 
remuneration.
The Group’s policy is to maintain levels 
of remuneration so as to attract, motivate 
and retain Executive Directors and  
senior executives of the calibre required  
to grow the business and enhance 
shareholder value.
There are four main elements of the 
remuneration package for Executive 
Directors and senior executives:
•  Basic annual salary
•  Benefits in kind
•  Pension arrangements
•  Incentive schemes including share 
options and performance incentive plan
Executive Directors’ Remuneration
Basic Salary
The basic salaries of the Executive Directors 
are reviewed annually with regard given 
to personal performance, Company 
performance, changes in responsibilities 
and competitive market practices. The 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  
and life assurance.
Pension Arrangements
The Company does not operate a pension 
plan. Each Executive Director is entitled 
to receive a payment equivalent to 15 per 
cent. of his annual basic salary into his 
private pension scheme.
Incentive Schemes
The Group has put in place two 
performance schemes to incentivise all 
employees of the Company, aid recruitment 
to the Company and enable all staff to 
benefit from the successful growth of the 
Company. The Group believes that the 
remuneration policy followed to date 
supports the achievement of EnCore’s 
strategic goals. Factors of this policy include 
a high proportion of the compensation 
package being performance-linked and a 
significant element of incentive pay being 
directly related to EnCore’s share price 
performance; both of which create a very 
strong alignment with shareholders.
The first scheme, the ‘EnCore Option 
Scheme,’ has been in place since the 
reverse takeover of Oil Quest Resources plc 
in March 2006; the second scheme, the 
‘Performance Incentive Plan,’ was put in 
place in July 2008.
Share Options
The EnCore Option Scheme is comprised 
of two parts: the basic share option scheme 
and a part which constitutes an Enterprise 
Management Incentive Plan under rules  
set out by HM Revenue & 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.
Remuneration  
Report EnCore Oil plc Annual Report and Accounts 2010 19
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 
there will be no pro-ration.
Following an asset or partial sale of the 
business the hurdle and base share  
prices will be rebased for the purposes of 
calculating any future performance related 
payments. Any awards are subject to the 
discretion of the Remuneration Committee.
Service Contracts and Letters 
of Appointment
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 12 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 L. Keith Hughes 
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.
Audited information
Directors’ remuneration
Remuneration in the year to 30 June 2010
Fees/base  
salary 
£
Benefits in  
kind 
£
Pension 
£
Total 
£
Year to 30  
June 2009 
£
Executive Directors
Alan Booth* 172,287 3,586 25,843 201,716 202,759
Eugene Whyms* 174,160 3,380 26,124 203,664 203,910
Graham Doré* 148,396 3,300 22,259 173,955 173,969
James Clark* (appointed 6 October 2009) 112,192 1,566 16,829 130,587 –
Non-Executive Directors
Michael T. Lynch (resigned 30 September 2009) 11,250 334 – 11,584 46,448
Christine M.K. Wheeler OBE 43,125 2,674 – 45,799 40,031
L. Keith Hughes (appointed 6 October 2009) 28,125 – – 28,125 –
Total remuneration 689,535 14,840 91,055 795,430 667,117
*After salary sacrifice
The IFRS 2 share-based remuneration charge in respect of the Directors’ share options for the year ended 30 June 2010 is £150,150 (2009: £245,989). 20 EnCore Oil plc Annual Report and Accounts 2010
Remuneration  
Report continued
Directors’ interests in the Share Capital of the Company
Ordinary Shares of £0.05 each At 30 June 2010
% of issued  
Ordinary Share Capital
Alan Booth 8,000,000 2.76
Eugene Whyms 7,400,000 2.55
Graham Doré 5,500,000 1.90
Christine M.K. Wheeler OBE 2,250,657 0.78
L. Keith Hughes 2,200,560 0.76
James Clark 2,110,327 0.73
27,461,544 9.48
No other loans or guarantees were given to the Chairman of the Board, Directors or related parties. The number of shares reported includes 
any shares held by children under the age of 18 of the named individual or by companies controlled by the individual.
EnCore Oil plc Share Option Scheme
Details of shares awarded to Directors under the EnCore Oil plc share option scheme are as follows:
Name of Director Granted Date granted
As at 30 June 
2009
Share price at 
grant date Exercise price
Exercisable  
from
1
Exercisable  
to
1
Alan Booth 1,390,000 03.03.06 1,390,000 £0.34 £0.34 03.03.07 02.03.11
1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
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 1,390,000 £0.34 £0.34 03.03.07 02.03.11
1,400,000 14.03.07 1,400,000 £0.17 £0.17 14.03.08 13.03.12
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 1,140,000 £0.34 £0.34 03.03.07 02.03.11
1,250,000 14.03.07 1,250,000 £0.17 £0.17 14.03.08 13.03.12
1,250,000 05.03.09 1,250,000 £0.085 £0.085 05.03.10 04.03.14
James Clark 640,000 03.03.06 640,000 £0.34 £0.34 03.03.07 02.03.11
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 02.03.11
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
Total 15,260,000 15,260,000
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 during the current year following 
the resignation of Michael T. Lynch. An award of 1,250,000 was made to James Clark in July 2008 prior to his appointment as a Director.
Performance units At 30 June 2010
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 2010 was 49.75 pence (30 June 2009: 16.25 pence) and the range during the 
year was 13.125 pence to 52.0 pence.
Christine M.K. Wheeler OBE
Chairman of the Remuneration Committee
9 August 2010 EnCore Oil plc Annual Report and Accounts 2010 21
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 estimates that are 
reasonable and prudent;
•  state whether the Group financial 
statements have been prepared in 
accordance with IFRSs as adopted by 
the European Union;
•  state, with regard to the parent Company 
financial statements, whether applicable 
accounting standards have been 
followed, subject to any material 
departures disclosed and explained 
in the financial statements;
•  prepare the financial statements on  
the going concern basis unless it is 
inappropriate to presume 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 and disclose with reasonable 
accuracy at any time the financial position 
of the Company and the Group and 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.
Statement of Directors’ 
Responsibilities 22 EnCore Oil plc Annual Report and Accounts 2010
We have audited the financial statements  
of EnCore Oil plc for the year ended 30 June 
2010 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 accounting 
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 auditors’ 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 auditors
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 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
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.
Opinion on financial statements
In our opinion:
•  the financial statements give a true and 
fair view of the state of the Group’s and 
the parent Company’s affairs as at 
30 June 2010 and of the Group’s profit 
for the year then ended;
•  the Group financial statements have been 
properly prepared in accordance with 
IFRSs as adopted by the European 
Union;
•  the parent Company financial statements 
have been properly prepared in 
accordance with United Kingdom 
Generally Accepted Accounting Practice; 
and
•  the financial statements have been 
prepared in accordance with the 
requirements of the Companies Act 
2006.
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
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 records have not 
been kept by the parent Company, or 
returns adequate for our audit have not 
been received from branches not visited 
by us; or
•  the parent Company financial statements 
are not in agreement with the accounting 
records and returns; or
•  certain disclosures of Directors’ 
remuneration specified by law are not 
made; or
•  we have not received all the information 
and explanations we require for our audit.
Nick Whitaker  
(Senior statutory auditor)
for and on behalf of PKF (UK) LLP, 
Statutory auditors
London, UK
9 August 2010
Independent Auditors’ Report 
to the Members of EnCore Oil plc EnCore Oil plc Annual Report and Accounts 2010 23
Consolidated Statement  
of Comprehensive Income
Year ended 30 June 2010
Note
2010
£
2009
£
Continuing operations
Impairment write down – exploration costs 5, 13 (12,364,888) (1,247 ,103)
Administrative expenses (2,756,601) (1,942,491)
Operating loss (15,121,489) (3,189,594)
Gain on sale of subsidiary 6 21,215,199 1,196,511
Gain on sale of intangible exploration and evaluation assets 7 1,703,456 –
Finance income 8 288,942 401,312
Finance costs 9 (10,947) (6,052)
Other gains and losses 10 1,476,017 90,301
Profit/(loss) before taxation 9,551,178 (1,507 ,522)
Taxation 11 1,888,670 –
Profit/(loss) for the period attributable to equity holders of the parent 11,439,848 (1,507 ,522)
Other comprehensive income
Exchange differences on translating foreign operations – 29,719
Foreign currency translation reserve released on sale of subsidiary – (42,737)
Other comprehensive income for the period – (13,018)
Total comprehensive Income for the period attributable to equity 
holders of the parent 11,439,848 (1,520,540)
Earnings/(loss) for the period per ordinary share (pence)
– Basic 12 3.9 (0.5)
– Diluted 12 3.8 (0.5) 24 EnCore Oil plc Annual Report and Accounts 2010
Note
2010
£
2009
£
Assets
Non-current assets
Intangible exploration and evaluation assets 13 15,023,405 27 ,243,387
Property, plant and equipment
– oil and gas assets 14 – 4,149,180
– other 14 22,906 24,523
Investments 15 50,000 50,000
15,096,311 31,467 ,090
Current assets
Other receivables 16 639,495 343,834
Restricted cash 17 10,684,802 –
Cash and cash equivalents 18 31,183,559 5,405,072
42,507,856 5,748,906
Assets held for sale 19 6,669,264 18,775,092
49,177,120 24,523,998
Liabilities
Current liabilities
Trade and other payables 20 (3,016,345) (1,829,703)
(3,016,345) (1,829,703)
Liabilities directly associated with assets classified as held for sale 19 (190,775) (954,416)
(3,207,120) (2,784,119)
Net current assets 45,970,000 21,739,879
Non-current liabilities
Provisions 21 (975,000) (1,158,434)
Deferred taxation 22 (1,702,841) (2,872,582)
(2,677,841) (4,031,016)
Net assets 58,388,470 49,175,953
Equity
Equity attributable to equity holders of the parent
Ordinary shares 24 15,586,987 16,443,186
Capital redemption reserve 24 856,199 –
Share premium 37 ,798,714 37 ,798,714
Other reserve 266,908 266,908
Foreign currency translation reserve (316,893) (316,893)
Retained earnings 4,196,555 (5,015,962)
Total equity 58,388,470 49,175,953
Approved and authorised for issue by the Board on 9 August 2010, and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer
Consolidated Statement 
of Financial Position
Year ended 30 June 2010 EnCore Oil plc Annual Report and Accounts 2010 25
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 2008 16,443,186 – 37 ,798,714 266,908 (303,875) (3,979,404) 50,225,529
Loss for the period – – – – – (1,507 ,522) (1,507 ,522)
Released on sale of subsidiary – – – – (42,737) – (42,737)
Currency translation – – – – 29,719 – 29,719
Total comprehensive income for 
the period – – – – (13,018) (1,507 ,522) (1,520,540)
Share option expense – – – – – 470,964 470,964
At 30 June 2009 16,443,186 – 37 ,798,714 266,908 (316,893) (5,015,962) 49,175,953
Profit for the period – – – – – 11,439,848 11,439,848
Total comprehensive income for 
the period – – – – – 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
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 2010 26 EnCore Oil plc Annual Report and Accounts 2010
Note
Year
ended 
30 June 2010
£
Year
ended 
30 June 2009
£
Cash flows from operating activities
Profit/(loss) before taxation 9,551,178 (1,507 ,522)
Depreciation 14 14,781 25,842
Share-based remuneration charges 3 275,515 470,964
Exploration costs written off 5, 13 12,364,888 1,247 ,103
Items shown as financing and investing activities (24,668,889) (1,690,704)
Operating cash outflow prior to working capital (2,462,527) (1,454,317)
Working capital adjustments 970,281 (398,587)
Cash used in operations (1,492,246) (1,852,904)
Cash flows from investing activities
Purchase of intangible exploration and evaluation assets 13 (1,531,158) (13,265,889)
Purchase of field under development assets 14 (1,133,832) (1,428,086)
(Increase)/decrease in restricted cash (10,053,829) 3,913,542
Purchase of property, plant and equipment 14 (16,590) (4,698)
Interest received 205,877 411,119
Proceeds from sale of property, plant and equipment 4,891 12,328
Proceeds from sale of intangible assets 7 2,665,126 –
Proceeds from sale of subsidiary 6 38,793,428 2,999,317
Net cash generated/(used) in investing activities 28,933,913 (7 ,362,367)
Cash flows from financing activities
Own shares repurchased 24 (2,502,846) –
Interest paid and bank charges (3,606) (2,452)
Net cash used by financing activities (2,506,452) (2,452)
Net increase/(decrease) in cash and cash equivalents 24,935,215 (9,217 ,723)
Cash and cash equivalents at start of period 5,405,072 14,526,541
Translation difference 843,272 96,254
Cash and cash equivalents at end of period 18 31,183,559 5,405,072
Consolidated Statement 
of Cash Flows
Year ended 30 June 2010 EnCore Oil plc Annual Report and Accounts 2010 27
Notes to the Group Financial Statements
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
In the current financial year, the Group has adopted International Financial Reporting Standard 8 ‘Operating Segments’, International 
Accounting Standard 1 ‘Presentation of Financial Statements’ (revised 2007).
IFRS 8 (revised) requires disclosure of information about the Group’s operating segments and replaces the requirement to determine primary 
and secondary reporting segments of the Group. Adoption of this Standard did not have any effect on the financial position or performance 
of the Group. The Group determined that the operating segments were the same as the geographical segments previously identified at 
30 June 2009 under IAS 14 ‘Segmental Reporting’.
IAS 1 (revised) separates owner and non-owner changes in equity. The statement of changes in equity includes only transactions with 
owners, with non-owner changes in equity presented in a single line. In addition, the standard introduces the statement of comprehensive 
income; it presents all items of recognised income and expense, either in one single statement, or in two linked statements. In addition IAS 1 
(revised) includes changes in the titles of the primary financial statements to reflect their function more clearly. The balance sheet is renamed 
a ‘statement of financial position’. 
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 1 First time adoption of IFRS
IFRS 2 Share-based payments (revised 2009)
IFRS 9 Financial Instruments: Recognition and measurement (revised 2009)
IAS 24 Related party disclosures (revised 2009)
IAS 32 Financial Instruments: Presentation (revised 2009)
IFRIC 14 Prepayments of minimum funding requirements
IFRIC 19 Extinguishing financial liabilities with equity instruments
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.
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 results of Group undertakings acquired during the period 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.
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. 28 EnCore Oil plc Annual Report and Accounts 2010
Group Accounting policies continued
Expenditure on the discovery, appraisal, development and utilisation of oil and gas reserves
The Group accounts for oil and gas expenditure under the successful efforts method of accounting.
Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the 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 the 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 three year useful life.
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.
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
Amounts owed from Joint Venture Partners 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.
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 29
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.
Taxation
Current tax is the expected tax payable on the taxable income for the period, 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 the profit and loss account 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 account, 
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 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. 30 EnCore Oil plc Annual Report and Accounts 2010
Group Accounting policies continued
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 account. Non-monetary items that are 
measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. 
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value 
was determined.
Consolidation
The assets and liabilities of foreign operations are translated at the rate of exchange ruling at the 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 the profit and loss account.
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 profit or loss account, as well as the disclosure 
of contingent assets and liabilities. Future events may lead to these estimates being changed. In particular, estimates are required when:
•  Assessing the need for and measurement of impairment of tangible and intangible fixed assets
•  Determining the fair value of share-based payments
•  Estimating decommissioning liabilities
•  Financial risk management
Oil and gas assets
Management is required to assess the oil and gas assets for indicators of impairment on at least an annual basis. Such reviews are carried 
out twice each year as part of our year end and half year closing process together with any time when there is a material change to the 
assets’ operating environment. Note 14 discloses the carrying value of tangible oil and gas assets. 
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.
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.
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 31
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 2010 and for the year ended 30 June 2009. 
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
Profit/(Loss) 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
Profit/(Loss) for the period (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 32 EnCore Oil plc Annual Report and Accounts 2010
1. Segment Information continued
2009
UK  
Onshore 
£
UK  
Offshore 
£
Overseas 
£
Unallocated 
£
Total 
£
Impairment write down – exploration costs (59,952) (1,187 ,151) – – (1,247 ,103)
Administrative expenses (207 ,819) (831,275) (207 ,819) (695,579) (1,942,491)
Operating loss (267 ,770) (2,018,426) (207 ,819) (695,579) (3,189,594)
Gain on sale of subsidiary – – – 1,196,511 1,196,511
Finance income – – – 401,312 401,312
Finance costs – – – (6,052) (6,052)
Other gains and losses – foreign currency gains – – – 90,301 90,301
(Loss)/profit before taxation (267 ,770) (2,018,426) (207 ,819) 986,493 (1,507 ,522)
Taxation – – – – –
Net (loss)/profit (267 ,770) (2,018,426) (207 ,819) 986,493 (1,507 ,522)
Other segment information
Non-current assets 7 ,691,534 16,111,454 7 ,589,579 74,523 31,467 ,090
Current assets – 18,866,877 – 5,657 ,121 24,523,998
Current liabilities (16,015) (2,524,676) – (243,428) (2,784,119)
Non-current liabilities (1,134,269) (2,896,747) – – (4,031,016)
Net assets 6,541,250 29,556,908 7 ,589,579 5,488,216 49,175,953
Capital expenditure
Intangible exploration and evaluation assets 404,610 12,654,379 206,900 – 13,265,889
Property, plant and equipment
– oil and gas assets – 1,428,086 – – 1,428,086
– other – – – 4,698 4,698
404,610 14,082,465 206,900 4,698 14,698,673
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. 
2. Employee benefits
2010 
£
2009 
£
Salaries 1,550,707 1,374,125
Share-based remuneration charges 275,518 470,964
Social security costs 188,965 166,066
Social security costs on unrealised share option gains 750,649 (174,034)
Pension costs 219,910 192,958
Other payments 36,190 90,462
Gross staff costs 3,021,939 2,120,541
Capitalised and recharged to joint venture partners (681,900) (734,026)
Net staff costs in profit or loss account 2,340,039 1,386,515
The average number of employees for the Group in the year to 30 June 2010 was 11 (year to 30 June 2009: 11).
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 33
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 period.
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 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 2010 is £275,515 
(year to 30 June 2009: £470,964). At 30 June 2010 the provision for employer social security costs that would arise on the exercise of share 
options is £760,937 (30 June 2009: £10,289). 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year.
Company and Group
2010 
No.
2010 
WAEP
2009 
No.
2009 
WAEP
Opening balance 26,106,666 18.74 16,913,334 24.69
Granted during the year – – 9,740,000 8.68
Exercised/lapsed during the year (850,000) 21.62 (546,668) 23.63
Outstanding at 30 June 25,256,666 18.65 26,106,666 18.74
The weighted average remaining contractual life of share options outstanding as at 30 June 2010 is 2.26 years (2009: 3.25 years). At 30 June 
2010 18,113,816 (2009: 16,366,668) of the total number of share options outstanding could be exercised and these options had a weighted 
average exercise of 21.20 pence (2009: 24.72 pence).
The range of exercise prices for options outstanding at the end of the year was between 8.5 pence and 53.75 pence. 
The fair value of equity-settled share options granted is estimated as at the date of grant using a Black-Scholes option pricing model, taking 
into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used for the 
years ended 30 June 2009. No new options were granted in the year ended 30 June 2010.
2009
Dividend yield (%) –
Expected share price volatility (%) 85
Risk-free interest rate (%) 0.5
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 there will be no pro-ration.
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 30 June 2010 and at the grant date management determined that the likelihood of an event arising is not probable and therefore no liability 
exists and consequently no charges have been recorded for this plan. 34 EnCore Oil plc Annual Report and Accounts 2010
4. Auditors’ remuneration
2010 
£
2009 
£
Fees payable to the Company’s auditor for the audit of the Company 
and consolidated financial statements 31,500 30,000
Fees payable to the Company’s auditor for other services
– audit of Company’s subsidiaries pursuant to legislation 12,500 21,000
– other services pursuant to legislation 13,000 12,750
Total auditors’ remuneration 57,000 63,750
The auditors’ remuneration is shown net of VAT.
5. Impairment write down – exploration costs
2010 
£
2009 
£
Exploration costs 12,364,888 1,247 ,103
Total impairment write down – exploration costs 12,364,888 1,247 ,103
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 in 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%.
The amounts written off during the year ended 30 June 2009 principally related to the costs accumulated on the Esmond/Gordon Gas 
Storage project, £0.5 million, together with costs accumulated on licences/blocks that have been or are to be relinquished.
6. Gain on sale of subsidiary
2010 
£
2009 
£
Sale consideration 39,239,760 3,046,747
Less deductions:
Expenses of sale (446,332) (47 ,430)
Net proceeds 38,793,428 2,999,317
Net assets at sale
Intangible oil and gas exploration assets (17 ,480,479) (1,831,107)
Working capital balances (97 ,750) (14,436)
(17,578,229) (1,845,543)
Transfer from foreign currency translation reserve – 42,737
Gain on sale 21,215,199 1,196,511
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 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 per cent. 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. It is anticipated that no tax 
liability will arise on the sale of EnCore (SNS) Limited.
The gain on sale of subsidiary at 30 June 2009 reflects the sale by the Company of its wholly owned subsidiary EnCore Oil Nederland B.V. 
whose only asset was a 10 per cent. interest in the Amstel field offshore Netherlands for a consideration of US $5.5 million, paid in cash. 
The purchaser was TAQA Energy B.V. It is anticipated that no tax liability will arise on the sale.
7. Gain on sale of intangible exploration and evaluation assets
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 per cent. interest in the Breagh field offshore UK for a consideration of £2.7 million (see note 6).
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 35
8. Finance income
2010 
£
2009 
£
Bank interest receivable 288,942 401,312
Total finance income 288,942 401,312
9. Finance costs
2010 
£
2009 
£
Bank charges 3,606 2,452
Unwinding of discount on decommissioning provision 7 ,341 3,600
Total finance costs 10,947 6,052
10. Other gains and losses
2010 
£
2009 
£
Foreign currency gains 1,474,552 89,585
Gain on sale of tangible fixed assets 1,465 716
Total other gains and losses 1,476,017 90,301
11. Taxation
2010 
£
2009 
£
Current taxation – –
Deferred taxation 1,888,670 –
1,888,670 –
The tax credit arising in the year to 30 June 2010 reflects 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 2007 and the period to 30 June 2006. These deferred tax 
balances reverse via the Consolidated Statement of Comprehensive Income when the asset is subsequently sold, as in the case with Breagh 
(see note 6), or the asset is impaired, as is the case with the impairment of certain UK Onshore licences (see note 5). 
The credit for the year can be reconciled to the profit per the statement of comprehensive income as follows:
2010 
£
2009 
£
Pre-tax profit/(loss) 9,551,178 (1,507 ,522)
Tax at the UK corporate tax rate of 28% (2009: 28%) (2,674,330) (422,106)
Tax effect of items which are not deductible/chargeable for tax 4,805,614 (204,032)
Excess of potential capital allowances over depreciation (1,565,946) (3,663,252)
Increase in UK tax losses not recognised (565,338) 4,289,390
Reversal of timing differences (1,888,670) –
Tax charge/(credit) for the year (1,888,670) –
Unrecognised deferred tax asset
2010 
£
2009 
£
Tax losses 8,115,919 11,385,220
Accelerated capital allowances (3,374,487) (9,456,885)
4,741,432 1,928,335
Deferred tax assets in respect of losses have not been recognised as their future recovery is uncertain or not currently anticipated. 
The non-capital tax losses of £8.1 million will be available when the Group’s upstream assets are developed.
The effect of the sale of onshore licences, and the Ceres gas field, to Egdon, which completed after 30 June 2010 would have reduced the 
unrecognised deferred tax asset by £0.9 million to £3.8 million. 36 EnCore Oil plc Annual Report and Accounts 2010
12. Earnings/(Loss) per ordinary share
Basic earnings/(loss) per share amounts are calculated by dividing net earning/(loss) for the period by the weighted average number 
of ordinary shares outstanding during the period.
Diluted earnings/(loss) per share amounts are calculated by dividing the net earnings/(loss) for the period by the weighted average number 
of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the 
conversion of all the dilutive potential ordinary shares into ordinary shares. 
The following reflects the income and share data used in the basic and diluted earnings per share computations:
2010 
£
2009 
£
Earnings/(loss) for the year 11,439,848 (1,507 ,522)
2010 
£
2009 
£
Basic weighted average number of shares 296,152,537 307 ,360,839
Dilutive potential ordinary shares: 
Share options and warrants 3,162,779 –
Diluted weighted average number of shares 299,315,316 307 ,360,839
As there is a loss in the year ended 30 June 2009, there is no difference between the basic and diluted earnings per share.
13. Intangible assets – exploration and evaluation assets
UK Onshore
£
UK Offshore
£
Other
£
Total
£
Cost:
At 1 July 2008 7 ,377 ,676 23,741,686 9,206,903 40,326,265
Additions 404,610 12,654,379 206,900 13,265,889
Reclassified to asset held for sale – (18,434,621) – (18,434,621)
Transfer to tangible oil assets – (2,721,094) – (2,721,094)
Disposal of subsidiary – – (1,831,107) (1,831,107)
Currency translation adjustments – – 6,883 6,883
At 30 June 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
Accumulated amortisation:
At 1 July 2008 30,800 2,090,925 – 2,121,725
Impairment write down 59,952 1,187 ,151 – 1,247 ,103
At 30 June 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
Net book value at 30 June 2010 – 12,523,405 2,500,000 15,023,405
Net book value at 30 June 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 the 
profit or loss account 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.
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 37
14. Property, plant and equipment
Oil and gas assets £
Cost:
At 1 July 2008 –
Transfer from intangible assets 2,721,094
Additions 1,428,086
At 30 June 2009 4,149,180
Additions 1,133,832
Reclassified to asset held for sale (note 19) (5,283,012)
At 30 June 2010 –
Accumulated amortisation:
At 1 July 2008 –
Impairment write down –
At 30 June 2009 –
Impairment write down –
At 30 June 2010 –
Net book value at 30 June 2010 –
Net book value at 30 June 2009 4,149,180
Oil and gas assets at 30 June 2009 represented costs to date on the Ceres development, UK North Sea block 47/9c. The project received 
Field Development Plan approval in October 2008 and the cost at that date was transferred from Intangible assets to oil and gas assets. 
The development was completed in March 2010.
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 (see note 19). 
Ceres has been reclassified as held for sale at 30 June 2010.
Other property plant and equipment
Leasehold 
improvements 
£
Vehicles 
£
Fixtures and 
equipment 
£
Computer  
hardware and 
software 
£
Total 
£
Cost:
At 1 July 2008 14,908 59,538 5,486 30,144 110,076
Additions – 4,200 – 498 4,698
Disposals – (18,417) – – (18,417)
At 30 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
Accumulated depreciation:
At 1 July 2008 11,998 11,195 4,245 25,398 52,836
Depreciation charge for the year 2,910 17 ,230 1,209 4,493 25,842
Disposals – (6,844) – – (6,844)
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
Net book value at 30 June 2010 – 21,440 32 1,434 22,906
Net book value at 30 June 2009 – 23,740 32 751 24,523 38 EnCore Oil plc Annual Report and Accounts 2010
15. Investments
2010 
£
2009 
£
Unlisted investments
Oil Barrel.com 50,000 50,000
50,000 50,000
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 2010 and 2009 is £50,000.
16. Other receivables
2010 
£
2009 
£
Prepayments 76,476 72,131
Amounts owed from joint venture partners 258,584 91,785
Sundry 247 ,860 133,949
VAT recoverable 56,575 45,969
639,495 343,834
17. Restricted cash
2010 
£
2009 
£
Cash held in escrow 10,684,802 –
10,684,802 –
Restricted cash at 30 June 2010 includes £8,539,528 (US$12,869,923) being part of the consideration for the sale of the Breagh field 
(see note 6), which is 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.
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
2010 
£
2009 
£
Cash at bank and in hand 31,183,559 5,405,072
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 2010, the Group did not have any committed borrowing facilities.
At 30 June 2010 and 2009 cash was held with the following financial institutions:
2010 
£
2009 
£
Royal Bank of Scotland 16,019,782 5,404,681
Scottish Widows 15,163,632 –
Petty cash 145 391
31,183,559 5,405,072
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 39
Interest rate and currency risk
The interest rate and currency profile of the Group’s cash resources at 30 June 2010 and 30 June 2009 was as follows:
Sterling
£
Euro
£
US Dollar
£
Total
£
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
At 30 June 2009
Cash on deposit at floating interest rate 3,354,236 37 ,214 13,231 3,404,681
Cash on deposit at fixed interest rate 2,000,000 – – 2,000,000
Petty cash 307 – 84 391
5,354,543 37 ,214 13,315 5,405,072
19. Asset held for sale
2010 
£
2009 
£
Intangible asset 1,386,252 18,434,621
Field in production – Ceres 5,283,012 –
Restricted cash – 340,471
Asset held for sale 6,669,264 18,775,092
Trade creditors and accruals – (235,487)
Provisions (190,775) –
Deferred taxation – (718,929)
Liabilities directly associated with assets classified as held for sale (190,775) (954,416)
6,478,489 17 ,820,676
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 which will be 
classified in the Group Statement of financial position as an investment in associate within Non-current assets. These assets and the related 
liabilities have been reclassified as held for sale pending completion of the transaction (see note 25).
The transfer to Egdon of the Group’s UK onshore licences and interest in Ceres was subject to the usual regulatory approvals from the 
Department of Energy and Climate Change (DECC); and approval from the joint venture partners on each licence and completed in 
July 2010. French regulatory consent will be required for the sale of the subsidiary holding EnCore’s French licences.
As at 30 June 2009 the Group classified its share of UK Offshore Licence P1230 containing block 42/13 Breagh; and Licences P1327 and 
P1328 containing further Breagh area blocks 42/8 42/9 42/14 and 42/12a as non-current assets held for resale. These interests are jointly 
held by two 100% owned subsidiary companies. The Group reported these items as assets held for sale and valued them at the lower 
of their carried amount or fair value, less costs to sell, which did not lead to an impairment loss in the year to 30 June 2009.
20. Current liabilities
2010 
£
2009 
£
Trade payables 653,543 326,529
PAYE and Social Security 899,219 63,594
Accruals 921,921 1,324,935
Pension contributions 42,723 21,248
Amounts due to joint venture partners 469,520 90,044
Other 29,419 3,353
3,016,345 1,829,703
At 30 June 2010 the PAYE and Social Security creditor includes an amount of £760,937 in respect of Employer’s National Insurance 
on unrealised gains on unexercised employee share options. This will become due when the options are exercised. 40 EnCore Oil plc Annual Report and Accounts 2010
21. Provisions
£
Decommissioning provision at 1 July 2008 975,000
Provision in respect of Ceres development 179,834
Unwinding of discount on Ceres decommissioning provision 3,600
Decommissioning provision at 30 June 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
At 30 June 2010 provision has been made for decommissioning costs relating to a UK North Sea interest. The provision for this liability has 
been based on an external estimate. The provision in respect of UK offshore field Ceres has been reclassified to asset held for sale (see note 19).
22. Deferred taxation
£
Deferred taxation at 1 July 2008 3,591,511
Transferred to asset held for sale (718,929)
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
The entire deferred taxation balance at 30 June 2010 and 2009 arose on the fair value adjustments to intangible oil and gas assets resulting 
from acquisitions in the year to 30 June 2007 and the period to 30 June 2006.
23. Obligations under leases
The Group has entered into a commercial lease on its head office property in London. This lease expires in January 2014 but has break 
clauses in years 2 and 3. 
During the year to 30 June 2010 payments under commercial property leases amounted to £60,860 (30 June 2009 £53,587).
Future minimum lease payments under non-cancellable operating leases:
2010 
£
2009 
£
Within one year 56,332 54,858
From one to five years – 62,334
After five years – –
56,332 117 ,192
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 2008 and 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
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 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.
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 41
Contingent rights to the allotment of shares
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 2006 to 2 March 2011 34p 5,663,333
12 June 2006 to 11 June 2011 22.75p 640,000
14 March 2007 to 13 March 2012 17 .0p 7 ,183,333
29 June 2007 to 28 June 2012 19p 640,000
13 August 2007 to 12 August 2012 17p 640,000
30 September 2007 to 29 September 2012 16.25p 300,000
9 January 2009 to 8 January 2014 11.25p 640,000
5 March 2009 to 4 March 2014 8.5p 8,850,000
25,256,666
25. Post balance sheet events
In July 2010 the Group announced the completion of the transfer of the Group’s onshore UK assets together with its interest in the offshore 
UK Ceres gas field to Egdon Resources plc. At 30 June 2010 the assets that form part of this transaction have been reclassified as held for 
sale (see note 19). As a result of the transaction the Group holds an equity investment in Egdon Resources plc classified as an Investment in 
associate within Non-current fixed asset.
26. Related party transactions
The transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation. 
The remuneration of the Directors, who are the key management personnel of the Group, is set out in the 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
2010 
£
2009 
£
Oil and gas expenditure:
Intangible exploration and evaluation assets 2,750,764 1,258,025
Contracted for 2,750,764 1,258,025
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 2010 represents sums due to drill the Cladhan appraisal well in Q3 2010 and site surveys and borehole 
charges on near term drilling.
The amount committed at 30 June 2009 represents sums due to complete the development of UK North Sea Block 47/9c Ceres. 42 EnCore Oil plc Annual Report and Accounts 2010
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.
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
2010 
£
2009 
£
2010 
£
2009 
£
Financial assets
Cash and cash equivalents 31,183,559 5,405,072 31,183,559 5,405,072
Restricted cash 10,684,802 – 10,684,802 –
Unlisted investments 50,000 50,000 50,000 50,000
Other receivables 506,444 225,734 506,444 225,734
42,424,805 5,680,806 42,424,805 5,680,806
Financial liabilities
Trade and other payables 2,117 ,125 1,766,109 2,117 ,125 1,766,109
2,117,125 1,766,109 2,117,125 1,766,109
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 2010 the Group held £2.5 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.
(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 £16.0 million is deposited 
with The Royal Bank of Scotland and £15.2 million with Scottish Widows. Restricted cash at the same date includes £8.5 million deposited 
with J.P . Morgan and £2.2 million with The Royal Bank of Scotland.
The Group’s accounts receivable are with joint venture partners in the oil and gas industry and are subject to normal industry credit risks. 
The maximum exposure at the date of the statement of financial position is £258,584 (2009: £91,785).
(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 £31.2 million; a one per cent. increase or 
decrease in the interest rate would increase or decrease finance income by £0.3 million per annum. The Company had no interest rate swaps 
or hedges at 30 June 2010.
(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 are met through a combination of equity and portfolio management. Capital includes share capital, 
share premium, other reserves and retained earnings.
Notes to the Group Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 43
Note
2010 
£
2009 
£
Fixed assets
Intangible exploration and evaluation assets 3 469,429 321,159
Tangible assets 4 22,906 24,523
Investments 5 9,229,789 17 ,272,580
9,722,124 17 ,618,262
Current assets
Debtors 6 17 ,856,826 35,989,422
Restricted cash 7 8,685,116 –
Cash at bank and in hand 8 30,757 ,670 5,374,300
57 ,299,612 41,363,722
Creditors
Amounts falling due within one year 9 1,808,236 546,721
Net current assets 55,491,376 40,817 ,001
Net assets 65,213,500 58,435,263
Capital and reserves
Called up share capital 10 14,511,842 15,368,041
Capital Redemption Reserve 10 856,199 –
Share premium 10 45,155,131 45,155,131
Profit and loss reserve 10 4,690,328 (2,087 ,909)
Shareholders’ funds 65,213,500 58,435,263
Approved and authorised for issue by the Board on 9 August 2010, and signed on its behalf:
Alan Booth Eugene Whyms
Chief Executive Officer Chief Financial Officer
Company Balance Sheet
Year ended 30 June 2010 44 EnCore Oil plc Annual Report and Accounts 2010
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 three year expected useful life.
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, are stated at cost and reviewed for impairment if there are indications that the 
carrying value may not be recoverable.
Foreign currencies
Sterling is the reporting currency of the Company. Transactions in foreign currency are translated at rates of exchange ruling at the 
transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling 
at the balance sheet date, with a corresponding charge or credit to the profit and loss account.
Share issue expenses and share premium account
Costs of share issues are written off against the premium arising on the issues of share capital.
Share-based payments
The 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 FRS 19.
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.
Notes to the Company Financial Statements EnCore Oil plc Annual Report and Accounts 2010 45
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 2010 is £275,515 
(2009: £470,964). At 30 June 2010 a provision of £760,937 (2009: £10,289) 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.
2010
No.
2010
WAEP
2009
No.
2009
WAEP
Opening balance 26,106,666 18.74 16,913,334 24.69
Granted during the year – – 9,740,000 8.68
Exercised/lapsed during the year (850,000) 21.62 (546,668) 23.63
Outstanding at 30 June 25,256,666 18.65 26,106,666 18.74
Share options outstanding as at 30 June 2010 had a weighted average remaining contractual life of 2.26 years (2009: 3.25 years). At 30 June 
2010 18,113,816 (2009: 16,366,668) of the total number of share options outstanding could be exercised and these options had a weighted 
average exercise of 21.20 pence (2009: 24.72 pence).
The range of exercise prices for options outstanding at the end of the year was 8.5 pence to 53.75 pence. 
The fair value of equity-settled share options granted is estimated as at the date of grant using a Black-Scholes option pricing model, taking 
into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used for the 
years ended 30 June 2009. No new options were granted in the year to 30 June 2010.
2009
Dividend yield (%) –
Expected share price volatility (%) 85
Risk-free interest rate (%) 0.5
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 there will be no pro-ration.
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 30 June 2010 and at the grant date 
management determined that the likelihood of an event arising is not probable and therefore no liability exists and consequently no charges 
have recorded for this plan.
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. 46 EnCore Oil plc Annual Report and Accounts 2010
3. Intangible assets – exploration and evaluation costs
UK Onshore
£
UK Offshore
£
Other
£
Total
£
Cost:
At 1 July 2008 1,184,722 6,046 84,764 1,275,532
Additions 194,503 – – 194,503
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
Accumulated amortisation:
At 1 July 2008 988,528 6,046 84,764 1,079,338
Impairment 69,538 – – 69,538
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
Net book value at 30 June 2010 469,429 – – 469,429
Net book value at 30 June 2009 321,159 – – 321,159
4. Tangible assets
Leasehold 
improvements 
£
Vehicles 
£
Fixtures and 
equipment 
£
Computer  
hardware and 
software 
£
Total 
£
Cost:
At 1 July 2008 14,110 59,538 40,945 25,905 140,498
Additions – 4,200 – 498 4,698
Disposals – (18,417) – – (18,417)
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
Accumulated depreciation:
At 1 July 2008 11,200 11,195 39,704 21,159 83,258
Depreciation charge for the period 2,910 17 ,230 1,209 4,493 25,842
Disposals – (6,844) – – (6,844)
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
Net book value at 30 June 2010 – 21,440 32 1,434 22,906
Net book value at 30 June 2009 – 23,740 32 751 24,523
Notes to the Company Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 47
5. Investments
Shares in Group 
undertakings
£
Unlisted  
Non-Group
£
Total
£
At 1 July 2009 17 ,222,580 50,000 17 ,272,580
Disposal of subsidiary undertakings (2,177 ,334) – (2,177,334)
Impairment (5,865,457) (5,865,457)
30 June 2010 9,179,789 50,000 9,229,789
Shares in Group undertakings
A list of significant investments in subsidiaries is given below:
Name % Country of operation Country of registration
EnCore Exploration Limited 100 UK England & Wales
EnCore Natural Resources Limited 100 Western Sahara England & Wales
EnCore Petroleum Limited 100 UK England & Wales
EnCore North Sea Limited 100 UK England & Wales
EnCore Oil and Gas Limited 100 UK England & Wales
EnCore (E&P) Limited 100 France England & Wales
EnCore (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
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 (SNS) Limited was sold in July 2009, for further details see note 6 to the Group Financial Statements.
6. Debtors
2010
£
2009
£
Other debtors 247 ,861 133,949
Prepayments 76,476 72,131
Amounts owed by Group undertakings 17 ,448,433 35,737 ,377
VAT Recoverable 84,056 45,965
17,856,826 35,989,422
7. Restricted cash
2010
£
2009
£
Cash held in escrow 8,685,116 –
8,685,116 –
Restricted cash at 30 June 2010 includes £8,539,528 (US$12,869,923) being part of the consideration for the sale of the Breagh field 
(see note 6), which is 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.
A further £145,588 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. 48 EnCore Oil plc Annual Report and Accounts 2010
8. Cash and cash equivalents
2010
£
2009
£
Cash at bank and in hand 30,757 ,670 5,374,300
Interest rate and currency risk
The interest rate and currency profile of the Company’s cash resources at 30 June 2010 and 2009 was as follows:
Sterling
£
US Dollars
£
Euro
£
Total
£
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
At 30 June 2009
Cash on deposit at floating interest rate 3,323,464 13,231 37 ,214 3,373,909
Cash on deposit at fixed interest rate 2,000,000 – – 2,000,000
Petty cash 307 84 – 391
5,323,771 13,315 37 ,214 5,374,300
9. Amounts falling due within one year
2010
£
2009
£
Trade creditors 456,789 326,529
Other taxes and Social Security 899,219 63,594
Accruals 144,528 119,335
Pension contributions 42,723 21,248
Amounts owed to Group undertakings 179,214 –
Amounts due to joint venture partners 85,763 16,015
1,808,236 546,721
At 30 June 2010 the PAYE and Social Security creditor includes an amount of £760,937 in respect of Employer’s National Insurance on 
unrealised gains on unexercised employee share options. This will become due when the options are exercised.
Notes to the Company Financial Statements
continued EnCore Oil plc Annual Report and Accounts 2010 49
10. Reconciliation of changes in shareholders’ funds
Equity share  
capital 
£
Capital 
Redemption 
Reserve 
£
Share  
premium 
£
Retained  
earnings 
£
Total equity 
£
At 1 July 2008 15,368,041 – 45,155,131 (2,223,210) 58,299,962
Loss for the period – – – (335,665) (335,665)
Shared-based payments – – – 470,964 470,964
At 30 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 30 June 2010 14,511,842 856,199 45,155,131 4,690,328 65,213,500
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 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 and warrants 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.
12. Post balance sheet events
In July 2010 the Group announced the completion of the transfer of the Group’s onshore UK assets together with its interest in the offshore 
UK Ceres gas field to Egdon Resources plc. At 30 June 2010 the assets that form part of this transaction have been reclassified as held 
for sale in the Group financial statements (see note 19 to the Group financial statements). As the Balance Sheet of EnCore Oil plc has been 
completed under UK GAAP , where such a reclassification is not accepted practice, the UK Onshore assets held by EnCore Oil plc that have 
been sold to Egdon Resources plc remain within Intangible Exploration and Evaluation Assets. As a result of the transaction EnCore Oil plc 
holds an equity investment in Egdon Resources plc classified as an Investment in associate. 50 EnCore Oil plc Annual Report and Accounts 2010
Notice of AGM
EnCore Oil plc
Notice is hereby given that the Annual General Meeting of EnCore Oil plc (the ‘Company’) will be held at the offices of Dewey & LeBoeuf, 
No. 1 Minster Court, Mincing Lane, London EC3R 7YL on 14 October 2010 at 2.00 p.m. (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 2010 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 2010.
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: 
Mr Alan Booth
5.  To re-appoint the following Director who retires by rotation: 
Mr Eugene Whyms
Special Business
To consider, and if thought fit, to pass the following resolutions, which will be proposed as special resolutions:
6.  To re-appoint, as recommended by the Board of Directors of the Company (the ‘Board’ or the ‘Directors’), James Anthony Clark 
as an Executive Director of the Company, who has been appointed to the Board since the last Annual General Meeting.
7 .  To re-appoint, as recommended by the Board, L. Keith Hughes as a Non-Executive Director of the Company, who has been appointed 
to the Board since the last Annual General Meeting.
8.  That in substitution for all existing authorities under Section 551 of the Companies Act 2006 (the “Act”) (without prejudice to the allotment 
of any relevant securities already made or to be made pursuant to such authorities), the Directors be and they are hereby generally and 
unconditionally authorised for the purposes of Section 551 of the Act to exercise all the power of the Company to allot relevant securities 
(within the meaning of that Section) up to an aggregate nominal amount of £4,837 ,281.05, to such persons at such times and upon such 
conditions as the Directors may determine (subject to the Articles of Association of the Company) representing one-third in nominal value 
of the ordinary share capital of the Company in issue and provided that this authority shall commence on the date of passing of this 
resolution and expire at the conclusion of the Annual General Meeting of the Company to be held in 2011 save that the Directors may 
before such expiry make an offer or agreement which would or might require relevant securities to be allotted after such expiry and the 
Directors may allot relevant securities in pursuance of such offer or agreement as if this authority had not expired.
9.  That the Directors be and they are hereby empowered pursuant to Section 570 of the Act to allot equity securities (as defined in 
Section 560 of the Act) pursuant to the general authority conferred by Resolution 8 herein, for cash as if the provisions of Section 
561 of the Act did not apply to any such allotment, provided that such power shall be limited to £4,837 ,281.05, representing one-third 
in nominal value of the ordinary share capital of the Company in issue and provided that such power shall after the passing of this 
resolution expire at the conclusion of the Annual General Meeting of the Company to be held in 2011 except that the Directors may 
during that period make offers or agreements which would or might require the allotment of securities after the expiry of such period 
and the Directors may allot securities pursuant to such offers or agreements as if such authority had not expired.
By order of the Board
Eugene Whyms
Company Secretary
9 August 2010 EnCore Oil plc Annual Report and Accounts 2010 51
Registered office: Registrars:
62–64 Baker Street Capita Registrars Limited
London The Registry
W1U 7DF 34 Beckenham Road
 Beckenham
Tel: +44 (0) 20 7224 4546 Kent
Fax: +44 (0) 20 7935 1224 BR3 4TU
Registered number: 3328217
 Calls from within the UK: 0871 664 0300
 *Please note that calls cost 10p per minute plus network extras.
 Calls from outside the UK: +44 20 8639 3399
Notes
1.  In accordance with Articles 107 and 108 of the Articles of the Company one-third of Directors must retire from office and be 
re-appointed. 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 63 – only the appointment of Directors in place of those retiring is ordinary business. Therefore the 
reappointments of Mr James Anthony Clark and Mr L. Keith Hughes are special resolutions.
4.  Biographical details of the Directors and particulars of their service contracts with the Company are set out in the report and accounts.
5.  Only those members registered on the Company’s register of members at:
 a)  6.00 p.m. on 12 October 2010; or
 b)  if this Meeting is adjourned, at 6.00 p.m. on the day two days prior to the adjourned meeting, shall be entitled to attend and vote 
at the meeting.
6.  Resolution 8, which is a special resolution, authorises the Directors to allot unissued shares up to an aggregate nominal value of 
£4,837 ,281.05. This authority expires at the conclusion of the 2011 Annual General Meeting. 
7 .  If the shares are to be allotted using the authority under Resolution 8 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 9, which is a special resolution, asks shareholders to waive their pre-emption rights, 
but only for securities having a maximum aggregate nominal value of £4,837 ,281.05, 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 2011 Annual General Meeting.
9.  Following the introduction of the 2006 Act shareholders are now permitted to appoint multiple proxies. A proxy form which may be used 
to make such appointment and give proxy instructions accompanies this notice. A proxy need not be a shareholder of the Company. 
It should be completed and returned as soon as possible. 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.
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 is enclosed with this document, and members who wish to use it should see that it is deposited, duly completed, 
with the Company’s registrar not less than 48 hours before the time fixed for the Meeting. Completion and posting of the form of proxy 
will not preclude shareholders from attending and voting in person at the AGM should they wish to do so. 
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.  52 EnCore Oil plc Annual Report and Accounts 2010
Notice of AGM
continued
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 7-9 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. 
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.  Such members should also read the instructions contained in the notes on the form of proxy. In order to facilitate voting by corporate 
representatives at the meeting, arrangements will be put in place at the meeting so that: 
 a)  If a corporate shareholder has appointed the Chairman of the meeting as its corporate representative to vote on a poll in 
accordance with the directions of all of the other corporate representatives for that shareholder at the meeting, then on a poll those 
corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate 
representative in accordance with those directions; and 
 b)  If more than one corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder 
has not appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be 
nominated from those corporate representatives who attend and who will vote on a poll, and the other corporate representatives 
will give voting directions to that designated corporate representative. Corporate shareholders are referred to the guidance issued 
by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (www.icsa.org.uk) for details 
of this procedure. The guidance includes a sample form of appointment letter if the Chairman is being appointed as described 
in (a) above. 
16.  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. 
17 .  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 October 2010 shall be entitled to attend or vote at the AGM 
in respect of the number of shares registered in their name at that time. Changes to entries on the relevant register of securities after 
6.00 p.m. on 12 October 2010 shall be disregarded in determining the rights of any person to attend or vote at the meeting. 
18.  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. 
19.  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.  EnCore Oil plc Annual Report and Accounts 2010 53
20.  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. 
21.  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.
22.  As at 9 August 2010, being the last practicable date prior to publication of this notice, the Company’s issued share capital consists 
of 290,236,864 ordinary shares with a nominal value of 5 pence each with voting rights. The Company does not hold any ordinary 
shares in Treasury.
23.  Documents on Display:
  The following documents are available for inspection during normal business hours at the Company’s registered office up to the date 
of the Annual General Meeting and will be available for inspection at the Annual General Meeting:
 a)  A copy of the Memorandum 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. 54 EnCore Oil plc Annual Report and Accounts 2010
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. 
bcf 
Billion cubic feet; 1 bcf = 0.83 million tonnes 
of oil equivalent. 
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.
Capex 
Capital expenditure. 
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, i.e. 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.
Dry hole  
A well which has proved to contain 
no hydrocarbons.
E&P 
Abbreviation for exploration and production. 
Exploration drilling 
Drilling carried out to determine whether 
hydrocarbons are present in a particular 
area or structure. 
Exploration phase 
The phase of operations which covers the 
search for oil or gas by carrying out detailed 
geological and geophysical surveys followed 
up where appropriate by exploratory drilling. 
Exploration well 
A well in an unproven area or prospect, 
may also be known as a ‘wildcat well.’
Farm in 
When a company acquires an interest in a 
block by taking over all or part of the financial 
commitment for drilling an exploration well. 
Field 
A geographical area under which an oil 
or gas reservoir lies. 
Fracturing 
A method of breaking down a formation 
by pumping fluid at very high pressures. 
The objective is to increase production rates 
of a reservoir. 
Gas field 
A field containing natural gas but no oil. 
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.
Mobile Drilling rig 
A drilling unit that is not permanently fixed 
to the seabed, e.g. a drillship, a semi-
submersible or a jack-up unit. Also means 
the derrick and its associated machinery. 
OGIA 
Oil & Gas Independents Association – an 
association of 34 independent oil companies 
active in the UKCS who share knowledge 
and experience of the UKCS business and 
regulatory climate and to press for changes 
where appropriate.
Oil 
A mixture of liquid hydrocarbons of different 
molecular weights. 
Oil & Gas UK 
A representative body with membership 
open to all companies active in the UK 
offshore oil and gas industry.
Oil field 
A geographic area under which an oil 
reservoir lies. 
Operator 
The company that has legal authority to 
drill wells and undertake production of any 
hydrocarbons found. The operator is often 
part of a consortium and acts on behalf 
of this consortium. 
PESGB
Petroleum Exploration Society of Great Britain.
PILOT 
A joint programme involving the Government 
and the UK Oil & Gas Industry Operators, 
Contractors, Suppliers, 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. EnCore Oil plc Annual Report and Accounts 2010 55
Directors, Officers and Advisors
Directors
Christine M.K. Wheeler, OBE Chairman
Alan Booth, Chief Executive Officer
Eugene Whyms, Chief Financial Officer
Graham Doré, Exploration Director
James Clark, Commercial Director
L. Keith Hughes, Non-Executive Director
Registered Office
62–64 Baker Street
London
W1U 7DF
United Kingdom
Tel: +44 (0)20 7224 4546
Fax: +44 (0)20 7935 1224
info@encoreoil.co.uk
www.encoreoil.co.uk
Incorporated and registered in England 
and Wales under the Companies Act under 
registration number 3328217
Registrar
Capita Registrars Limited
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire
HD8 0GA
United Kingdom
Calls from within the UK:  
0871 664 0300
*  Please note that calls cost 10p per minute 
plus network extras.
Calls from outside the UK:  
+44 20 8639 3399
www.capitadeal.com 
Auditors
PKF (UK) LLP 
Farringdon Place
20 Farringdon Road
London  
EC1M 3AP
United Kingdom 
Tel: +44 (0)20 7065 0000 
Fax: +44 (0)20 7065 0650
www.pkf.co.uk
Nominated Advisor & 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 Advisors
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  56 EnCore Oil plc Annual Report and Accounts 2010 Designed and produced by SampsonMay
Photography 
David Hares, Andy Wilson (Board); Egdon Resources plc.
Printed in England by
The Colourhouse
Contents
01  2010 Highlights
02  EnCore Oil at a Glance
03  Chairman’s Review 
04  Chief Executive’s Review
06  Operational Review 
10  Financial Review 
12  Board of Directors 
13  The EnCore Team 
14   Corporate Governance 
Statement 
16  Directors’ Report 
18  Remuneration Report 
21   Statement of Directors’ 
Responsibilities 
22   Independent Auditors’ Report 
23   Consolidated Statement  
of Comprehensive Income 
24   Consolidated Statement  
of Financial Position 
25   Consolidated Statement  
of Changes in Equity
26   Consolidated Statement 
of Cash Flows
27  Group Accounting policies 
27   Notes to the Group Financial 
Statements 
43  Company Balance Sheet 
44   Company Accounting policies 
44   Notes to the Company Financial 
Statements 
50  Notice of AGM 
54  Glossary 
55   Directors, Officers and Advisors 
EnCore Oil plc is an oil and gas exploration 
and production (E&P) company quoted on 
AIM in London under the ticker ‘EO.’.
Our principal strategy is to create shareholder 
value through successful exploration, appraisal 
and development of prospects and discoveries. 
Since our inception in 2005, we have drilled 
13 wells and have one more currently drilling. 
12 of the 13 completed wells have discovered 
oil or gas in varying quantities, and one was 
dry. A significant discovery was made this year 
at Catcher which will be further appraised over 
the next financial year.
We believe in monetising or exchanging of 
assets at the right stage in their lifecycle to 
best maximise value: this can be either before 
development sanction, especially where the 
development costs are significant, such as 
the Breagh gas discovery, or it may be once 
the field has been developed, for example the 
Ceres gas field. We have attempted to manage 
our portfolio so as to optimise our capital and 
risk exposure. We seek to be carried or pay 
minimal costs for exploration and appraisal 
drilling and farm out equity in order to do this. 
Our opportunistic approach has enabled us to 
acquire a balanced portfolio of offshore assets, 
based mainly in the UK Continental Shelf 
(UKCS) and a significant equity holding in  
AIM listed Egdon Resources plc (LSE: EDR). 
www.encoreoil.co.uk
1  
Focus on areas of proven expertise – 
offshore UKCS
2 
Balanced risk profile – broad portfolio 
of exploration and appraisal assets, 
minimise financial risk through farm out 
of equity for carry on wells
3 
Opportunistic approach – open to asset 
divestment and asset swaps. Consider 
stage of asset lifecycle as well as 
strategic position. 
For more information on our strategy, please 
view the ‘About Us’ section of our website: 
www.encoreoil.co.uk/about_us.asp
EnCore Oil plc Strategy Annual Report and Accounts 2010 EnCore Oil plc 
EnCore Oil plc Annual Report and Accounts 2010
EnCore Oil plc
62–64 Baker Street 
London W1U 7DF 
United Kingdom
Telephone
+44 (0)20 7224 4546
Fax
+44 (0)20 7935 1224
Email
info@encoreoil.co.uk
Registered No.
3328217
www.encoreoil.co.uk