Entry into Dead Sea / WadiAraba Block, Jordan

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

13 December 2012

Enegi Oil Plc

('Enegi' or 'the Company')

Entry into Dead Sea / WadiAraba Block, Jordan

Enegi is delighted to announce that it has entered into an agreement with Korea Global Energy Corporation ("KGEC") in relation to a highly prospective project in the Hashemite Kingdom of Jordan.

KGEC is in advanced discussions with the Hashemite Kingdom of Jordan over a Production Sharing Agreement for the Dead Sea / WadiAraba Block ("the Block"). Enegi has agreed a Heads of Terms with KGEC under which it will be issued a 5% interest in the Block. 

Highlights:

·; Enegi has entered into a Heads of Terms with Korea Global Energy Corporation ("KGEC") under which it will be issued with 5% interest in the Dead Sea / WadiAraba Block.

·; KGEC is in advanced discussions with the Hashemite Kingdom of Jordan over a Production Sharing Agreement ("PSA") for the Block.

·; The content of the PSA has been agreed with and initialled by the Natural Resources Authority of the Hashemite Kingdom of Jordan (the "NRA").

·; Before the PSA becomes effective it must also be approved by the Board of Directors of the NRA, the Council of Ministers and ratified by the Parliament of the Hashemite Kingdom of Jordan.

·; The Company anticipates that this process will be complete in early 2013.

·; Enegi will provide technical and operational expertise to the development of the Block.

·; A number of wells have been drilled on the Block, and the presence of hydrocarbons have been shown (oil and gas shows).

·; Initial work programme will involve evaluation of technical data and the acquisition of new geophysical data.

·; Pursuant to the PSA at least three exploration wells should be drilled within four years.

·; KGEC has secured letters of intent with access to over US$100m from a number of reputable financial institutions to fund the exploration programme.

Alan Minty, CEO of Enegi, commented:

"This is an excellent opportunity for the Company and once ratification of the PSA has taken place Enegi will possess an interest in what we believe is a very exciting project. Our entry into this Block is consistent with our strategy of identifying interesting opportunities where we can bring our expertise into the partnership at minimal costs to our shareholders; thus de-risking our current portfolio.

This is a very exciting development for the Company and we look forward to working with KGEC and the Jordanian authorities on this Block.

The Company continues to review and appraise a number of interesting opportunities that are consistent with its strategy and we fully expect that, in addition to this transaction and the recent North Sea licence awards, further projects will be added to the Company's portfolio."

The Heads of Terms between KGEC and the Company have been signed in advance of final ratification in order to commence activity to establish the exploration and development programme. KGEC has secured letters of intent with access to funding of over US$100m from a number of reputable financial institutions to invest into new data acquisition and the drilling of the three exploration wells in four years that is required under the PSA.

Rationale for entering into the partnership

The Company's entry into Jordan through the partnership with KGEC on the Dead Sea PSA is in line with Enegi's strategy of acquiring opportunities which, in the Board's view, de-risk the Company's portfolio, require low capital investment from Enegi and access significant potential upside. The Board believes that this Block satisfies all aspects of the Company's strategy and also falls in line with our policy of working in geopolitically safe environments.

Details of the Dead Sea Block

The block consists of 6,800km2 of land adjacent to the Dead Sea. A number of wells have been drilled over a 40 year period testing two geological plays that run down the western edge of the block and proving the existence of hydrocarbons in the Block with oil and gas shows.

The planning for the development of the Block will review all the data that has been generated to date and KGEC assessment of the potential of the block will be reported in due course.

Enquiries:

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.

About Enegi

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, the Clare Basin in County Clare, Ireland and in the UK North Sea. 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. The Company's licences in the UK North Sea benefit from significant previous exploration investment, and have been selected based on buoy technology operating criteria.

About KGEC

Korea Global Energy Corporation ("KGEC"), is a company duly incorporated and registered in the Republic of Korea under number (456769) and represented by Mr. Cheongsig Park (Chairman). KGEC is an established vehicle designed to acquire, promote and sponsor hydrocarbons exploration, appraisal, development and production projects outside the Republic of Korea, through establishing affiliates, joint ventures and partnerships with reputable, esteemed and experienced technical companies in the oil and gas fields.