EnCore calls off XEO flotation

EnCore Oil has cancelled the flotation of its new company, citing difficult market conditions due to Britain's recent decision to raise taxes for North Sea-focused oil and gas explorers. EnCore, which had earlier planned to float XEO Exploration, said the market's appetite for the UK North Sea had diminished ever since the tax raise was announced.

In April, EnCore said it was spinning off its exploration assets into XEO Exploration as it focused on its key projects in the North Sea.

In March, Britain unexpectedly raised a supplementary tax charge on North Sea oil and gas producers to 32 per cent from 20 per cent, to help to lower fuel duty for motorists.

EnCore's shares, which have lost about 42 per cent since the tax was announced, ended flat at 66.25p yesterday.