Company Update and Directors Shareholding

ENEGI OIL PLC

Trading symbols:

London Stock Exchange: ENEG

29 October 2010

Enegi Oil Plc

('Enegi' or 'the Company')

Company Update and Director's shareholding

Highlights:

·; Operations on the PaP#1 well in Garden Hill South continue with the arrival of a wireline unit and associated equipment and supplies;

·; The Company's Canadian operating subsidiary, PDI Production Inc. has informed the Company that the majority of its creditor arrangements have now been satisfied; and

·; The Company has raised approximately £500,000 by selling securities received from the institutional investor who failed to provide funds for subscribed shares.

The Company is pleased to announce that operations at Garden Hill South are continuing. Over the past number of weeks the Company's Canadian operating subsidiary, PDI Production Inc. ("PDIP"), and its regional partner, Dragon Lance Management Corporation ("DLMC") has been preparing the site for the arrival of the equipment that is to be used on the workover. Where appropriate, DLMC has been procuring equipment and supplies. The first stage of the workover is the use of wireline equipment to gather the last elements of information necessary to ensure the maximum effectiveness of the fraccing operation, which will be undertaken by a coiled tubing unit. This is now underway and we look forward to providing the market with further updates on its progress.

Further, the Company is pleased to announce that it has reached several milestones in securing its long-term future and ensuring that it is in a position to take advantage of the regional development play with DLMC as announced on 16 August 2010. Firstly, PDIP has informed the Company that the majority of its creditor arrangements have now been satisfied. Whilst there remain a small number of creditor arrangements outstanding, management are confident that these can be met through the Company's working capital.

As previously announced, the Company had initiated proceedings to exercise its rights under the security arrangement which it had in place with an institution that had failed to meet its obligations under the placing at the time of the Company's IPO. The Company is pleased to announce that it has sold the assets which were held as security and has received approximately £500,000. The sale of these assets took longer to implement than expected, given the current state of global financial markets and, at the same time, the Company has sought to gather as much information as possible to ensure the maximum effectiveness of the workover. As a result, it has been necessary for the Company to secure interim finance to ensure that the liabilities of Enegi and the creditor arrangements of PDIP could be met. As has taken place previously, services, including geological, financial, legal and administrative services, and also interim finance have been supplied by companies, including Risk Management Research Institute Limited, controlled by Alan Minty, the CEO and Chairman of Enegi (the "RMRI Companies"). The total amount of interim financing, which has been provided by the RMRI Companies to Enegi on a zero interest basis, amounts to £909,000 and invoices relating to services provided to Enegi between 31st December 2009 and 30th September 2010 amount to approximately £548,000. Certain RMRI Companies resourced this interim funding in part through the sale of 4,636,904 shares in the Company between 10 June 2010 and 16 September 2010. The sale of shares was instructed on four occasions and was executed on 26 days through 43 individual trades. Further details of the sales are set out in the Schedule to this announcement. Following these sales the RMRI Companies no longer have any shares in the Company. Alan Minty remains a holder of 6,808,911 shares in the Company, which represents 8.54 per cent of the Company's issued share capital. As took place in August 2009, it is anticipated that invoices from the RMRI Companies and the interim finance arrangements will be satisfied by the Company issuing new ordinary shares in Enegi to Alan Minty or his connected companies. The terms of such arrangement are yet to be agreed between the Company and Alan Minty (including the number of shares to be provided in settlement of such arrangements). In any event, it is likely that such settlement will constitute a related party transaction for the purposes of Rule 13 of the AIM Rules. Once an agreement has been reached on such arrangements, a further announcement will be made.

Alan Minty, CEO of Enegi Oil commented:

"While significant work has already taken place, I am delighted that the larger elements of the workover programme have now commenced. It is important for the future of the Company that this operation is performed to the highest standard after considering all available information and, while it seems that this programme is taking longer than expected, management are confident that the approach that has been taken is the right one and that the programme will be performed to generate the maximum value for shareholders.

It is critical for the long-term future of the Company that its creditor arrangements and liabilities are resolved so the news provided by PDIP is very welcome as it is now in a stable position to reap the full benefit of the regional development plan announced in August. This, coupled with the selling of the securities, provides the company with the working capital it needs to see the work programme through to its conclusion and beyond.

This announcement shows the continued commitment to the process of stabilising the Company. As stated in previous announcements management continue to explore other opportunities which it believes will enhance the Company."

Enegi Oil Tel: + 44 161 817 7460

Alan Minty, CEO

Cenkos Securities Tel: + 44 207 397 8900

Max Hartley

Stephen Keys

Fox-Davies Capital Tel: + 44 207 936 5200

Philip Davies

David Porter

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 29 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.

Schedule

RMRI Companies' sales with reference to percentage thresholds crossed