Interim Results

ENEGI OIL PLC

Trading symbols:

London Stock Exchange: ENEG

31st March 2011

Enegi Oil Plc

('Enegi' or 'the Company')

Interim results for the six months ended 31 December 2010

Enegi, the western Newfoundland focused oil and gas company, announces its results for the six months ended 31 December 2010.

·; The Company realised the assets that were held as security

·; The Company has de-listed from the Bourse de Luxembourg

·; The work-over programme on the PAP#1 well began in August 2010

·; In February 2010 the Company was granted an Onshore Licensing Option for an area of 495km2 in western Ireland

·; The PAP#1 well is currently able to produce at 200bopd part way through the programme and prior to the implementation of the acid frac

·; The Company continues to explore ways of diversifying its interests so as to avoid concentration risk

CHAIRMAN'S STATEMENT

I am pleased to report on the progress made by Enegi Oil Plc. ("Enegi" or the "Company" together with its subsidiaries (the "Group")) for the 6 months ended 31 December 2010 and to provide an update on those activities that have occurred since the period end.

The period on which we are reporting has been focused on developing a strategy for the Group that most appropriately reflects its current financial situation and provides it with the best basis from which to develop long-term growth in value for shareholders. The decisions that have been taken by management in previous years; purchasing CIVC Creditor Corporation's interests in the Group's assets and acquiring a 100% interest of a specific play on EL1070 to name two; can be clearly seen to contribute to the refining of Enegi's corporate strategy.

Learning from the events of the past, the principal change to strategy has been the avoidance of risk-concentration where a single negative outcome event may significantly impact shareholder value. With that in mind the Board structured a regional development play with Dragon Lance Management Corporation ('DLMC'). The agreement consists of DLMC committing to complete a work-over on the GHS PAP#1 well to obtain a 40% interest in that well, the workover having already commenced. It also includes the drilling of a further well on PL2002-01 and the undertaking of a seismic programme and the drilling of a test well on EL1070. The total cost of these operations, which will be borne by DLMC, will run into tens of millions of Canadian dollars and will secure long-term activity on our assets in western Newfoundland.

As part of the initial stages of the regional development play we are beginning to see the results of the workover at GHS PAP#1 which, due to its importance to the future of the Group is being performed diligently to generate maximum benefit for shareholders. The initial results appear promising and we have been informed by our farm-in partner that after the implementation of the first part of the programme we can reasonably expect the well to be able to produce at a sustainable rate of 200 bopd. Clearly, the results of the well are important to the long-term future of the Group and we are reliant upon achieving commercial production but the sustainable rates notified to us by our farm-in partner are, we believe, sufficient for the Group to achieve its long-term plans. Results from further stages of the workover indicate that they have been successful in improving the connectivity between the wellbore and the reservoir, which if maintained, would be expected to result in higher achievable production rates.

Other benefits that management saw from the regional development play were that it would allow the Company to keep the Group's cost base low and allow the Group to seek new opportunities to expand its portfolio of assets under a second key refinement of its strategy, which is in the short-term to undertake low capital investment approaches to increasing the value of exploration assets. The implementation of this element of the strategy commenced with the award of an Onshore Petroleum Licensing Option which covers an area of approximately 495 sq. kilometers in County Clare in western Ireland. The reason for acquiring this acreage is that it lies within the same fault system trend as the Group's acreage in Canada and based upon technical studies we believe that it has the potential to contain shale gas. Clearly, we are in the early exploration phase on this concept and will keep shareholders informed as activity commences.

In addition to securing the long-term value of the Group's assets we are continuing to work diligently to resolve the financial future of the Group. It was important to hear in October that the creditor arrangements of PDIP have mainly been satisfied, with just a few smaller arrangements remaining. Our intention remains to bring the well on stream as quickly as possible but without jeopardising the integrity of the work programme therefore the Company may require short-term bridging finance and, as shareholders would expect, the Board keeps the funding for the business under constant review and, as previously announced should the Company require short-term bridging finance, and if the Board deemed it appropriate, I remain prepared to support the Company again through interim funding.

Operational Review

Enegi Oil's principal business activities include the development and operation of hydrocarbon assets in Atlantic Canada and Ireland. The Company holds the hydrocarbon rights to an onshore petroleum lease, PL 2002-01 (the "lease"), and two offshore exploration licences, EL1070 and EL1116 (the "licences"), in western Newfoundland and an Onshore Petroleum Licensing Option ON11/1 in western Ireland (the "option"). The Company was established to exploit prospects identified within the lease and licences and has since added the option to its portfolio.

The lease contains the discovered field, Garden Hill South, as well as two other leads, Garden Hill Central and Garden Hill North and the licence EL1070 contains the Shoal Point prospect.

The option ON11/1 was issued in February 2011 for a period of two years and covers an area of approximately 495km2.

Garden Hill South

During the period, the workover anticipated as part of the regional development play commenced and results indicate that with other components of the programme yet to be implemented the well is able to currently produce at a sustainable rate of 200bopd. The data also indicates that the workover has been successful in improving the connectivity between the wellbore and the reservoir, which if maintained, would be expected to result in higher achievable production rates.

Garden Hill Central and North

Garden Hill Central and North are 100% owned and operated by PDIP. As part of the larger review which the Company is currently undertaking, the timing of planned 2D seismic work covering the Garden Hill Central and Garden Hill North structures is being reconsidered. Although this survey was originally scheduled to take place in the fourth quarter of 2008, weather and technical delays have pushed the programme back.

Shoal Point

In November 2009, the Group's operating subsidiary, PDIP, entered into an interest swap agreement with Canadian Imperial Venture Corporation and Shoal Point Energy on EL1070. Under the agreement, PDIP acquired a 100% interest in the more conventional St. George's Group play in exchange for its interest in the less conventional, shallower shale play.

In August 2010, as part of the aforementioned regional development plan, PDIP agreed to enter into a farm-out agreement on Shoal Point. Under the terms of the agreement, the farm-in partner will commence a seismic programme that will cover the prospective areas of EL1070. The intention is for a minimum of 40% of the seismic to be shot in 3D, although this will be subject to environmental considerations and permitting issues. The farm-in partner will also drill a new well to test the productivity of the Aguathuna Formation located offshore, which contains the conventional Shoal Point prospect, assuming 100% of the total cost, risk and expense associated with the seismic programme and the drilling of the new well in return for a 70% interest in EL1070.

EL1070 was due to expire in January 2011 but will remain in force until such time as the drilling of a well is being diligently pursued and for so long afterward as may be necessary to determine the existence of a significant discovery based on the results of that well. Our partners in EL1070 commenced operations on 3K-39 well prior to the expiry of the licence.

EL1116

Management are still considering the best way to advance the development of EL1116 and will update shareholders once the plan has been determined.

ON11/1

In February 2011, the Company was awarded an Onshore Petroleum Licensing Option covering an area of 495km2 in western Ireland. The option allows the Company to undertake a work programme in the Clare Basin which is within the same fault system trend as the prospects and discovery in the Group's Newfoundland regional play. Based on technical studies that have been carried out, the Company believes that the Clare Basin has the potential to contain shale gas and updates will be provided as the work continues.

PDIP

During the period PDIP continued to work with its creditors and has recently informed the Company that the majority of creditor arrangements have been satisfied.

Financial Review

The accounts for the period have been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union using accounting policies that are consistent with those stated in the 2010 Annual Report and Accounts.

The Company reports a loss of £461,000 for the period, an increase of £123,000 over the corresponding period in 2009. This is mainly due to a decrease in revenue of £101,000, although this has been partially offset by the production of some oil as a result of the workover, which is currently stored in tanks at Garden Hill South, and work performed on identifying opportunities consistent with the Company's updated strategy including work necessary to acquire the Onshore Petroleum Licensing Option in western Ireland.

Group net assets as at 31st December 2010 were £5,644,000 (2009: £4,603,000). The issue of share capital of £1,456,000 is mainly responsible for this movement. In addition, the Group continues to make advances in reducing the amount of debt that it owes.

Outlook

The initial results of the workover at Garden Hill South appear to indicate that, upon completion, we can expect a positive final outcome which will provide the Company with a strong basis from which to develop.

The Company continues to look at new opportunities that are consistent with the Group's investment criteria and will update shareholders as and when these opportunities develop.

Alan Minty

Chairman

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOW

NOTE: These statements have been prepared under International Financial Reporting Standards as adopted by the European Union using accounting policies consistent with those in the last Annual Report.