VANCOUVER, Jan. 16 /CNW/ - Grove Energy Limited ("Grove") (TSX-V & AIM: GRV), the oil and gas exploration company with assets in Europe and the Mediterranean Margin, is pleased to announce the completion of its previously announced sale of the majority of its UK North Sea portfolio to EnCore Oil plc (LSE:EO.). Grove has retained a 10% interest in Block 42/13 and the surrounding licences and will participate in drilling the Block 42/13 structure located in the Southern Gas Basin of the UK North Sea. The 42/13 structure was mapped from 3D seismic data and was drilled in 1997 by Mobil. Well 42/13 -2 encountered a 140 metre gross gas column and studies indicate the potential for a significant resource volume in a very large structure.
Grove received 9.9 million ordinary fully paid shares of EnCore as consideration for selling its 30% interest in Blocks 21/22 and 21/28 in the Northern North Sea and 15% interests in Blocks 42/13 and 42/12, 42/14, 42/8 and 42/9 in the Southern North Sea. The EnCore shares received are expected to be admitted to trading on AIM on or about 22 January 2007 and are subject to a three month hold period; however, at present Grove has no plans to sell them.
Additional information about Grove and EnCore may be found at http://www.groveenergy.com and http://www.encoreoil.co.uk.
GROVE ENERGY LIMITED
"Glenn R. Whiddon"
Glenn R. Whiddon, Chairman
Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements including the potential for the Company's projects to experience technical or mechanical problems, geological conditions in the reservoir may not result in a commercial level of oil and gas production, changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
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Stock Exchange plc approves nor disapproves of the information contained
herein.
The information contained herein does not constitute an offer of securities for sale in the United States, United Kingdom, Canada, Japan or Australia.