Farm-out of Block 22/12b, UK North Sea

 ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

11 February 2013

Enegi Oil Plc

("Enegi" or "the Company")

Farm-out of Block 22/12b, UK North Sea

Enegi, the independent oil and gas company, is delighted to announce that it has reached agreement with Azimuth Limited ("Azimuth") with a view to farming-out part of Block 22/12b (the "Block"), in the UK North Sea, to Azimuth.

The Block contains the Phoenix discovery (the "Phoenix Area") with the remaining acreage on the Block being made up of potential exploration opportunities (the "Exploration Area"). Under the agreement, Azimuth, given their extensive exploration expertise, will earn a 50% interest in the Exploration Area in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis utilising existing seismic and well data in respect of both the Phoenix Area and the Exploration Area. The above transaction is subject to completion of documentation and all appropriate regulatory approvals.

Highlights:

- Enegi and ABTechnology ("ABT") will transfer a 50% interest in the Exploration Area to Azimuth, or its appointed affiliate

- In return, Azimuth agrees to undertake all the geological, geophysical and reservoir work to assess the hydrocarbon potential of the Exploration Area within the first 12 months of signing the agreement

- Enegi and ABT will retain a 100% working interest in the Phoenix Area

- The work to be undertaken also includes agreed geological, geophysical and reservoir analysis over the Phoenix Area

- Azimuth is a well-funded, rapidly growing E&P company backed by Seacrest Capital, a Bermuda based energy investment group. Azimuth has extensive technical capabilities and expertise of exploration projects and is focused on creating value rapidly through technical excellence

Alan Minty, CEO of Enegi Commented:

"This is the second farm-out agreement that we have completed with Azimuth and we are delighted to be working with them and have access to their extensive exploration expertise on both our North Sea assets.

Both deals are completely in line with our strategy of de-risking our portfolio whilst maintaining a significant interest in work programmes which we believe have the ability to deliver value to the Company for a minimal capital outlay.

These are very exciting times for Enegi as we progress our projects across our entire portfolio."

David Sturt, SVP of Azimuth commented:

"Azimuth is excited to be progressing its relationship with Enegi by entering into this agreement over the Exploration Area of Block 22/12b. The agreement between Azimuth and Enegi allows both parties to leverage their core strengths in creating value for their shareholders. The structure of the deal allows the full potential of the block to be realised by highly motivated and dynamic partners.

We believe that new technology and new concepts can unlock significant value in the North Sea, which contains substantial yet to find resources. We are actively exploring throughout the North Sea and West of Shetland and pursuing additional exciting opportunities to extend our portfolio.

Across its portfolio Azimuth is focused on creating value rapidly by combining the potential of new technology with extensive exploration experience. Co-operation between Azimuth and Enegi is excellent and we are excited to progress the exploration of Block 22/12b without delay."

Details of the Transaction

Enegi has reached agreement with Azimuth whereby Azimuth will gain a 50% interest in the exploration opportunities of North Sea Block 22/12b currently owned 100% by Enegi and ABT. The exploration opportunities on the Block are defined as the acreage outside the Phoneix Area which contains the Phoenix discovery.

On completion of the transaction Enegi and ABT will transfer a 50% interest in the Exploration Area to Azimuth. In return for gaining this interest, Azimuth will assess the hydrocarbon potential of the Exploration Area and fund all the associated geological, geophysical and reservoir analysis costs in the first 12 months, following the signing of the agreement. This also includes agreed geological, geophysical and reservoir analysis work over the Phoenix Area. In the event that Azimuth does not undertake the agreed geological, geophysical and reservoir work, the Azimuth interest will revert to Enegi.

The above transaction is subject to completion of documentation and all appropriate regulatory approvals.

As previously announced on 14 March 2012, ABT has an option on Enegi's working interest in the Block.

Rationale for the Transaction

This transaction is completely in line with the Company's strategy of building up a balanced portfolio and proving up potential across these assets for the minimum of capital outlay. Upon completion of this transaction, Enegi will have a significant interest in a funded exploration programme which will assess the potential of the exploration acreage on the Block as well as significant interest in the development of a discovery in a known hydrocarbon region.

If either of these programmes proves to be successful the Board believes they will have the potential to add significant value to shareholders.

In Azimuth the Company is also bringing on board a partner with expertise and knowledge of the region with access to enormous quantities of data and subsurface specialists. Azimuth are also specialists, with an extensive track record, in geological, geophysical and reservoir related analytical techniques, entirely complimentary to the Company's own focus and skills set.

Block 22/12b

Block 22/12b is located in the Forties-Montrose High area of the Central North Sea and contains the Phoenix discovery. A discovery well was originally drilled by Shell and showed a 30 ft oil column in the Forties Sandstone Member, a proven producer in nearby fields such as Forties, Nelson and Montrose. The discovery is a low relief dip closed structure in water depths of 295 ft. Internal estimates of unrisked STOIIP range between 15 and 99 MMBBL, with unrisked recoverable resources of between 9 and 51 MMBBL. DECC have classified the Phoenix field as a Significant Discovery, meaning that the field could have achieved flow rates in excess of 1,000 BOPD.

This licence was awarded to Enegi in the 27th Seaward Licensing Round for UKCS last October. Enegi applied for this licence based upon on the identification and detailed evaluation of assets which the Company viewed was suitable for buoy technology as conventional development solutions may not have been economically feasible.

www.enegioil.com

Facebook (Enegi Oil PLC)

Twitter (@enegioil)

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, the UK North Sea and Jordan. 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. The Company has also entered into the highly prospective Dead Sea and Wadi Araba in Jordan with its partner Korea Global Energy Corporation.

About Azimuth

Azimuth Limited is a specialist E&P Company based in Hamilton, Bermuda. The business is backed by majority-owner Seacrest Capital Ltd (a Bermuda based energy investment group) and partners.

Azimuth leverages the strength of its shareholders to acquire interests in prospective acreage worldwide and developing 'drill-ready' targets through robust geophysical and commercial analysis. Funding from Seacrest fuels Azimuth's global activities and ensures that the company is ready to advance its properties without delay. Azimuth has an extensive exploration portfolio in the UK, Norway, Ireland, Benin and Namibia.