Clare Basin Operational Update

ENEGI OIL PLC

AIM ticker: 'ENEG'

1 December 2011

Enegi Oil Plc

('Enegi' or 'the Company')

Clare Basin Operational Update

Enegi is pleased to provide an update on its work programme relating to the Onshore Petroleum Licensing Option ("the Option"), covering areas of interest within the Clare Basin in Southern Ireland. This Option was awarded to the Company by the Department of Communications, Energy and Natural Resources ("the Department") in Ireland earlier this year.

Following the award of the Option, a preliminary field trip was undertaken (commencing Phase 1 of the work programme), during which outcrops of interest for further study were identified and initial investigations into the overburden and burial history through geological time were undertaken. Results and observations from that exercise have been analysed and used as a basis for the development of a more detailed prospecting programme for the region. The Company has also been in discussions with, and is close to reaching agreements with, various qualified contractors who will undertake the detailed programme of laboratory studies and analysis of the samples that will be required.

The Company is now in a position to proceed with Phase 2. This will commence with a further field study within the Option area and is a more focussed field trip which will revisit outcrops identified to the north of the area before the end of December 2011. The trip will involve detailed sampling and stratigraphic logging of outcrops of interest and will also identify further outcrops around the basin to increase data coverage. A similar study is planned for the south of the area in early 2012.

Samples collected during the field studies will be submitted for analysis and it is anticipated that the laboratory study and analysis programme will be completed within the first half of 2012. During this time, the Company will also continue with a detailed review of previous seismic data for the area, in preparation for basin modelling that will be undertaken once the results of the sample analysis are available. All results and analysis will be summarised in a report for the Petroleum Affairs Division of the Department, which is required to be submitted by 30th November 2012, under the terms of the Licensing Option awarded.

Further updates will be provided as the programme progresses.

Alan Minty, CEO of Enegi Oil, commented:

"We have spent some time, since the award of the Option and the initial field trip, developing a suitable programme of study and analysis and are pleased to now be moving ahead to the second phase of our work programme. Whilst this is still a very early stage, we believe that the Clare Basin area has great potential and are looking forward to seeing the results from our work programme, which we hope will confirm this."

www.enegioil.com

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.