ENEGI OIL PLC
AIM ticker: 'ENEG'
OTC ticker: 'EOLPF'
1 February 2012
Enegi Oil Plc
('Enegi' or 'the Company')
Garden Hill South Operational Update
Further to the release dated 12 January 2012, Enegi is pleased to announce that, based on analysis performed to date and accounting for advice received from an independent consultant reservoir engineer, the Company believes the PaP#1-ST-#3 well ("the Well") can be flowed continuously at controlled rates without damaging the productivity of the Well.
Accordingly, the Company intends to flow the Well continuously for approximately 14 days to gather additional data before commencing the bullhead acid squeeze. Additional personnel have already been recruited to run on-site operations on a 24 hour basis.
Results from injecting the chemically-conditioned crude oil down the Well have now been processed and the required quantity of chemicals and acid to be used for the bullhead acid squeeze, along with appropriate injection rates and pressures, have been determined. In addition, Schlumberger has left certain pieces of equipment onsite in order to facilitate the commencement of the bullhead acid squeeze as soon as practicable after the Well has been flowed.
Following completion of the workover, the Company intends to complete a new resource report to update the Competent Person's Report prepared in 2007.
Alan Minty, CEO of Enegi Oil Plc., commented:
"This additional step in the workover will provide valuable data. We are very excited about the future as the workover continues to gather pace and our activities rapidly come to fruition. Further updates will follow as we execute the programme."
Enegi Oil Tel: + 44 161 817 7460
Alan Minty, CEO
David Parry, Director Tel: + 1 604 568 0733
Cenkos Securities
Jon Fitzpatrick Tel: + 44 207 397 8900
Neil McDonald Tel: +44 131 200 9771
College Hill Tel: + 44 207 457 2020
Nick Elwes
www.enegioil.com
Facebook (Enegi Oil PLC)
Twitter (@enegioil)
Qualified Persons
The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a member of the Advisory Board of Enegi. Mr. Rajgopaul has over 29 years experience in the petroleum industry.
The Company
Enegi Oil Plc is an independent oil and gas company. Current operations are focused on opportunities around the Port au Port Peninsula in Newfoundland, Canada and the Clare Basin in County Clare, Ireland. The Port au Port Peninsula is located in western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having been discovered on a number of occasions. The Clare Basin is located in western Ireland and initial technical studies show that it has the potential to contain shale gas.
