Encore Oil Shares Fall 48%

Shares in EnCore Oil were down by nearly 48 percent by 1500 GMT on Tuesday after the London junior AIM market-listed company said it may have to redesign its North Sea Esmond gas storage project.

Encore said early on Tuesday that preliminary pressure tests on the Esmond field gas storage evaluation well by field operator Star Energy showed the project to store gas under the North Sea would be more complex than expected.

"The results show the reservoir behaviour to be more complex than initially modelled and it will take some time to assess the impact on project design," EnCore's chief executive Alan Booth said.

"The results, whilst preliminary, indicate that ... parts may require a different engineering solution to that looked at to date."

Britain needs more gas storage sites to better cope with seasonal fluctuations in demand.

Author: Jo Amey