Garden Hill South Operational Update

Enegi Oil Plc

('Enegi' or 'the Company')

Garden Hill South Operational Update

Dragon Lance Management Corporation (DLMC), the Company's partner in the development of its Newfoundland asset regional play, has provided the Company with an update of operations on the PaP#1 Garden Hill South (GHS) well.

Operations on the PaP#1 well in GHS are progressing well and results so far have exceeded expectations.

Highlights:

• Part of the work-over plan has been completed and the well is now capable of sustained production of 200 bopd;

• The well is capable of sustained production of 300 bopd if a pump or artificial lift was installed;

• DLMC expect production rates to improve further as the work-over plan progresses.

As part of the work-over plan, the well tubing section has undergone a chemical cleanup using wax and asphaltene stabilizers. The Company is pleased to announce it has been informed that a sustainable rate of 200 bopd is now achievable. As indicated in the news release dated 31st March 2010, the well is economic at around 60 bopd.

DLMC also attempted to perform a swabbing test on the well, but were unable to do so. Each time the fluid head was swabbed off, the well would start flowing oil and gas making it impossible to conduct ongoing swabbing operations.

Whilst performing the chemical cleanup of the well tubing section, the well underwent a pump simulation using the wireline. Results of the simulation indicate that the well, in its current state, should be able to produce at a sustainable rate of 300 bopd with the installation of a pump or artificial lift.

Next, chemicals will be injected into the producing formation, and will be allowed to soak for approximately 14 to 20 days to clean up the tubing-reservoir interface.

Given the improvements in production rates observed, which were achieved using only production optimisation techniques, DLMC expect production rates to improve further as the work-over plan progresses. Further updates will be provided as work-over operations continue.

DLMC has also advised the Company that a separate investment vehicle, Fire Horse Energy Limited (FHEL), has been set up to hold and invest in assets and activities contemplated by the PL2002-01 and PaP#1 GHS well farm-in agreements between DLMC and PDIP, the Company's wholly owned operating subsidiary. The Company has approved the assignment of DLMC's interests in PL2002-01 and PaP#1 GHS well farm-in agreements into FHEL. DLMC will continue to manage all aspects of operations.

Alan Minty, CEO of Enegi Oil commented:

"The update from DLMC is very welcome and confirms our long held belief in the potential of GHS. These are exciting times for the Company and we look forward to receiving and providing the market and our investors with further updates, as we continue to benefit from DLMC's practical and operational experience."

18 November 2010

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.