EnCore Stipulates Gas Storage, Postpones Demerger

The extraction works of the Esmond evaluation well, wich is to be maintained by Star Energy, is expected to begin in July 2008. It has become clear that the results of the forthcoming Esmond evaluation well will be critical to providing greater certainty on the value of the Esmond Gordon gas storage project.

As a result, the Board of EnCore has concluded that it is not in the best interests of shareholders to complete the previously announced demerger process at this time and consequently has decided to postpone the demerger until after the results of the forthcoming Esmond evaluation well.

In the meantime, as previously announced, the Board of EnCore is continuing to evaluate a range of options in relation to its gas storage business.