20th Nov 2009 07:00
20 November 2009
Enegi Oil Plc
('Enegi' or 'the Company')
Interest Swap - Exploration Licence 1070
Enegi is delighted to announce that its wholly owned subsidiary, PDI Production Inc. ("PDIP") has entered into an agreement with Shoal Point Energy ("SPE") and Canadian Imperial Venture Corp ("CIVC") whereby PDIP will gain 100% interest in the St George's Group play on Exploration Licence 1070 ("EL1070"). Under the terms of the agreement Enegi will transfer its interest in the other play, an unconventional shale play, to SPE and CIVC.
The interest holders in Exploration Licence 1070 (EL1070) have entered into these agreements, in order to focus and facilitate activity on the Licence.
EL1070 is located in Port au Port Bay, East of Long Point and in the Gulf of St. Lawrence, West of Long Point. The Licence comprises 103,040 hectares (254,608 acres) in water depths of less than 100m. Targets within the Bay are reachable by directional drilling from onshore surface locations. Working interest holders in EL1070 include SPE, PDIP and CIVC.
Two principal play types are recognized in EL1070 which, equally, have the potential to yield significant discoveries. These are:
a) The conventional structural play in the middle Ordovician platform carbonates of the St. George's Group which has produced hydrocarbons at Garden Hill South, located approximately 40 km to the SSE along trend where PDIP recently resumed operations as announced on 3rd November 2009;
b) An unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point Formation which produced oil in historic wells on Shoal Point and which produced hydrocarbons shows while drilling both the Hunt PanCanadian Shoal Point K-39 well and the more recent SPE Shoal Point 2K-39 / 2K-39Z well.
Among the interest holders, there was considerable debate on the relative merits of the two plays with no clear preference acceptable to all parties emerging. In the interest of allowing proponents of either play to pursue the play of their choice, an interest swap agreement has been signed in which CIVC and SPE will transfer all of their respective interests in the St. George's Group to PDIP who in turn will transfer all of its interest in the Green Point Formation to CIVC and SPE. In this way, every company is able to maximize its interest in the play of its choice and pursue its development as rapidly and efficiently as possible.
Following the drilling of the 2K-39/2K-39Z earning well by SPE and the implementation of the new swap agreement, the interests in the EL1070 are as follows:
|
Strata to the base |
Strata below the base |
|||||||
|
of the Green Point Formation |
of the Green Point Formation |
|||||||
|
SPE |
68.50% |
0.00% |
||||||
|
CIVC |
31.50% |
0.00% |
||||||
|
PDIP |
0.00% |
100.00% |
||||||
In the Competent Person's Report issued for the Company's IPO, the following prospective resources were allocated to the Shoal Point lead which is contained within the St. George's Group:
|
All figures in mmboe |
||||||
|
Lead |
P90 |
P50 |
P10 |
Mean |
Probability of Success |
Risked |
|
Shoal Point |
7.9 |
21.7 |
58.6 |
29.5 |
11% |
3.2 |
Hence, by undertaking the interest swap the Company has increased its risked prospective resources in the Shoal Point lead to those figures show above, or by 2.1mmboe.
Alan Minty, CEO of Enegi commented:
"We are delighted to have reached this agreement with our partners. This transaction will enable us to focus and develop the play of greatest interest to us. We believe the St George's play is very prospective and offers some good opportunities for us which we look forward to exploring further."
ENQUIRIES:
|
Enegi Oil |
Tel: + 44 161 817 7460 |
|
Alan Minty, CEO |
|
|
Cenkos Securities |
Tel: + 44 207 397 8900 |
|
Joe Nally Stephen Keys |
|
|
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 25 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 and Lourdes.
Related Shares:
NUOG.L