RNS Number : 9188G
Enegi Oil PLC
09 February 2010
ENEGI OIL PLC
Trading symbols:
London Stock Exchange: ENEG
Bourse de Luxembourg: GB00B29T9605
9th February 2010
Enegi Oil Plc
('Enegi' or 'the Company')
AGM Operational Update
Enegi Oil is pleased to announce that at its Annual General Meeting held in Manchester on 9th February 2010 all the proposed resolutions were approved by shareholders.
At the Annual General Meeting, Alan Minty, CEO of Enegi Oil, made the following remarks on the Company's operations.
De-risking Assets
The Company has been working to de-risk its oil and gas assets. As previously announced, the company has:
· acquired EL1116, which contains the offshore portions of Garden Hill south and Garden Hill Central prospects;
· completed a deal whereby it gained 100% of the Ordovician portion of the EL1070 licence, which contains the Shoal Point prospect; and
· completed a deal whereby all liabilities and obligations to CIVC Creditor Corporation (CCC) have been removed, including those associated with PL2002-01, which contains the Garden Hill South PaP¿1-ST3 well
By completing these transactions, the Company has increased its net mean risked resources by 6.5 mmboe to 18.7 mmboe and the Company is now in complete control of its assets.
Review of Existing Seismic Data
The Company has also initiated a study to gain a greater understanding of prospects within its acreage. The Company has purchased some of the 2D seismic data that was shot over the Company's Garden Hill South (GHS) and Garden Hill Central (GHC) assets. The data is currently being re-processed using advanced methods to eliminate noise from the original seismic. The processed data will then be analysed with a view to determining the productive areal extent of GHS and GHC.
GHS Schedule
The Competent Persons Report (CPR) produced for the Company's IPO indicated that the PaP¿1 well is connected to at least 4.5 million barrels of oil, but that the connectivity to a large part of the volume is poor. Information gathered to date supports this, with substantial pressure drop being observed during production from the reservoir, and as a result, the well has not been able to produce continuously. The Company has been considering various solutions to improve the connectivity between the well and the reservoir.
Strip logs obtained from drilling the horizontal sidetrack (ST-3) indicate that the Aguathuna formation covers over 700 metres of the horizontal section, and indicates further extensive areas of porosity and permeability. A well stimulation programme is therefore expected to improve connectivity to the wellbore and result in continuous production.
In addition, analysis of data gathered when operations resumed on the well in early November 2009 indicates that installing a suitably designed submersible pump to assist flow from the reservoir may improve production. The well is currently undergoing a test programme to gather information on the ability of the reservoir to recover pressure and to produce at a stabilised flow rate.
Enegi's partner in the well, Dragon Lance Management Corporation, has given the Company a first draft of the schedule of operations for review. The schedule indicates that:
· the well will continue to be tested until April;
· the well will then be prepared for foam acid fraccing, the preparation phase is expected to take up to 15 days;
· following this, a coiled tubing unit will be rigged up to conduct logging followed by the foam acid frac, this phase is expected to take up to 20 days;
· the well will then be put on production and evaluated for 30 to 45 days.
Alan Minty, CEO of Enegi Oil commented:
"Last year we set in place a strategy of looking to de-risk our assets and we are delighted that this is now up and running. We expect the study that we have commissioned will further increase our understanding of the potential of our acreage. Results of the testing of the GHS PaP¿1 well will provide further guidance on what the next steps should be, as we endeavour to bring the well into continuous production. We look forward to updating shareholders as operations progress over the coming weeks."
Enegi Oil Tel: + 44 161 817 7460
Alan Minty, CEO
Cenkos Securities Tel: + 44 207 397 8900
Joe Nally
Stephen Keys
Fox-Davies Capital Tel: + 44 207 936 5200
Daniel Fox-Davies
College Hill Tel: + 44 207 457 2020
Nick Elwes
www.enegioil.com
Qualified Persons
The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a director of Enegi. Mr. Rajgopaul has over 25 years experience in the petroleum industry.
The Company
Enegi Oil Plc is an independent oil and gas group whose objective is the identification, development and operation of hydrocarbon opportunities. The Group's current operations are focused on assets on and around the Port au Port Peninsula in Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having previously been discovered there. The Group's assets include Garden Hill South, Shoal Point, Garden Hill Central, Garden Hill North and Lourdes.
This information is provided by RNS
The company news service from the London Stock Exchange
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