8th Oct 2008 07:00
ENEGI OIL PLC
Trading symbols:
London Stock Exchange: ENEG
Bourse de Luxembourg: GB00B29T9605
8 October 2008
Enegi Oil Plc
('Enegi' or 'the Company')
Update on Garden Hill South drilling program
Enegi, the western Newfoundland focused oil and gas company, is pleased to provide an update on its drilling program at Garden Hill South.
Garden Hill South is an onshore oil discovery that is 100% owned and operated by PDI Production Inc. ('PDIP'), the Company's 100% owned Canadian operating subsidiary. Previous production tests from Garden Hill South to date have produced over 24,000 barrels of high quality crude with a gravity of approximately 51° API. TRACS International has estimated that GHS contains mean unrisked resources of 8.6 mmboe.
PDIP took delivery of Nabors Rig 45 during the summer and commenced the re-entry of the PAP#1 well on 13 August 2008 with the main objective being the completion of a horizontal sidetrack. The first aspect of the program was to test the integrity of the existing well casing and cement bond in the main well bore. This was completed by 31 August. PDIP then abandoned PAP#1-ST#2 as required by the Department of Natural Resources in preparation for the drilling of a horizontal side track, PAP#1-ST#3. This was completed on 22 September.
Drilling of the horizontal side track commenced on 27 September at 2,284 meters. PAP#1-ST#3 has currently been drilled to 2,820 meters in the Winterhouse Formation and is expected to have a Measured Depth on completion of 4,448 meters, equal to a True Vertical Depth of 3,450 meters. The drilling program is expected to be completed within the next 45 days.
The PAP#1-ST#3 well is targeting the Aguathuna Formation, a dolomitized limestone formation of the Early Ordovician St. George Group. The Aguathuna Formation was penetrated by the PAP#1 well and the PAP#1-ST#2 well in two separate locations both of which produced oil.
The Company commissioned two external reports and one internal report on the horizontal sidetrack which forecast that the well should produce between 2,000 and 2,500 barrels/day plus associated gas for the first year. Taking into account these levels of production and long term price estimates, Enegi expects to be self-financing by the end of 2008.
Alan Minty, Chief Executive Officer of Enegi, said: "We are very excited about the progress we are making at Garden Hill South. The horizontal sidetrack has always been our primary focus and we should reach the target formation, the Aguathuna, within the next couple of weeks with production expected by the end of the year."
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Enegi Oil |
Tel: + 44 161 817 7460 |
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Alan Minty, CEO |
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Kevin McNair, CFO |
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Cenkos Securities |
Tel: + 44 207 397 8900 |
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Joe Nally |
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Stephen Keys |
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Fox-Davies Capital |
Tel: + 44 207 936 5200 |
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Daniel Fox-Davies |
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Richard Hail |
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College Hill |
Tel: + 44 207 457 2020 |
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Nick Elwes |
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Paddy Blewer |
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 as a petroleum engineer.
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 western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having previously been discovered there. The Group's assets include a proven discovery, Garden Hill South, and four prospects: Shoal Point, Garden Hill Central, Garden Hill North and Lourdes.
Related Shares:
NUOG.L