Interim Results

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

28 March 2013

Enegi Oil Plc

("Enegi" or "the Company")

Interim Results for the six months ended 31 December 2012

Enegi, the independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan, today announces its interim results for the six months ended 31 December 2012.

Highlights:

·; Continued progress on delivering strategy of minimising risk concentration with further assets added in two new geographic regions:

o awarded two licences in the North Sea: both licences already contain either a discovery or a well defined prospect

o entered into the Dead Sea and Wadi Araba Block, Jordan

·; Successfully completed work programme on Clare Basin Option, Ireland, proving up potential of the region which was independently endorsed by Fugro Robertson ("FRL")

·; Since entering the Dead Sea and Wadi Araba Project, Enegi has continued to evaluate all of the available data associated with the project, including well logs and seismic data and remains convinced that this Project represents a major opportunity and is seen to be highly prospective

·; Consultants appointed with the mandate to obtain sustained production from Garden Hill Field ("GHF") following which decisions can be made as how best to increase production

·; Existing seismic data on the St George's Bay prospect in EL1116 has been acquired and re-evaluated with highly encouraging results; a CPR is being completed over the prospect

·; Further enhanced the opportunities from both of the Company's recently awarded North Sea licences through farming out to Azimuth Limited ("Azimuth") of a 50% interest in the acreage not containing the Malvolio prospect or the Phoenix discovery

·; The management team has evaluated the Company's portfolio of assets and estimates total resources of 132.1 mmbo of oil (2011: 49.5) and 1.49TCF of gas (2011: nil)

Outlook:

·; Applied for Exploration Licence over area covered by Clare Basin Option

·; Downhole pump to be installed at GHF which will allow the Company to incrementally increase production until an optimum stable production rate is achieved.

·; Actively seeking a farm in partner for EL1116 with a view to acquiring additional seismic data over the St George's Bay Prospect and other leads, with such work expected to be followed by a CPR over the Licence

·; SDL anticipated to be awarded on EL1070; once awarded the Company expects to commission a CPR over the project

·; Exploration programme on both North Sea Blocks to be commenced by Azimuth

·; CPR to be produced on Dead Sea and Wadi Araba Project

·; The management team continues to review and evaluate a number of opportunities and is focussed on projects that have the potential to deliver near term production

·; Partnership with ABT continues to assess further opportunities in the UKCS

Alan Minty CEO of Enegi commented:

"This has been a period of unprecedented activity for the Company in progressing our existing assets, adding to our portfolio and continuing to evaluate further opportunities. Excellent progress has been made on our existing portfolio in Newfoundland and Ireland and we are delighted to have entered into the North Sea and Jordan and believe these projects offer excellent potential.

The management team has also continued to work on improving the Company's understanding of its current portfolio and we have internally reviewed the potential value of each of the Company's projects. This process further endorses our belief of the inherent value of our portfolio. We believe that the work we are carrying out in the coming year across our portfolio will go some way to unlocking that value for the benefit of shareholders.

Through its strategy and the team involved, the Company has transformed itself over the last 18 months and expects to continue that in the coming period. This year could prove to be the most significant in the Company's history and we look forward to updating our shareholders as we continue to develop our portfolio."

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Qualified Persons

The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a member of the Advisory Panel of Enegi. Mr. Rajgopaul has over 30 years' experience in the petroleum industry.

Chairman's Statement

Introduction

I am very pleased to report on the progress the Company has made over the last 6 months. A number of very significant developments have taken place during this period which I believe have helped to reposition and enhance the value of the group. Whilst I recognise that this has yet to be reflected in our share price, I am confident that the market will begin to appreciate the value inherent in the Company's portfolio of exploration and development assets that we have already, and are in the process of assembling. I am now very optimistic about the prospects for our business and the purpose of this Statement is to provide shareholders with further information on the Company's recent achievements and the quality of the assets we have secured and am confidence that the heavy discount the market is currently applying to the value of our assets can and will start to reduce.

From announcements made over the past 15 months, you will be aware that the management team has been implementing a defined strategy underpinned by a number of fundamental objectives. This has been based around the avoidance of risk concentration (from a geographical and investment perspective) and expanding the number of projects in the portfolio where there is scope for significant value creation. Underpinning this strategy is a clear focus on building a portfolio of high quality assets that are capable of being developed. It is important that such projects have the inherent value needed to raise capital for further development and that the expectations of future value can be fully realised. High quality assets attract partners and generate deal flow, such as swaps and farm in arrangements, that will help to refine and broaden the portfolio still further. While we still have some way to go, the strategy is now clearly taking shape as the business moves from being focused around a single asset to one with an attractive mix of offshore and onshore assets in mature hydrocarbon regions where there is scope to add real value with minimal capital investment. While the Company intends to maintain a balanced portfolio across the asset lifecycle, effort is being applied to increase the producing assets and this will continue as a major objective because of the positive impact such assets can have on Company value and the flexibility provided to internally fund near-development projects.

Changes have also been made in the senior management team to ensure the 'portfolio strategy' can be effectively implemented. Strong partnerships within the oil and gas sector supplement our ability to expand the portfolio and collaboration with ABT introduces technology that allows access to opportunities which may not exist for other parties. This approach is delivering the portfolio expansion and its value can be seen in the recent North Sea license awards, a deal in Jordan, under the terms of which Enegi will be recompensed for the work that the Company carries out on the project, and completion of the preliminary assessment of the Clare Basin license. Work has also continued on the Newfoundland assets and a specialist company has been appointed, after a considerable information gathering exercise, with the mandate to obtain sustained production following which decisions can be made as how best to increase production.

The assets in Newfoundland are important to the Company and in addition to GHF, there are other licenses which require continuous diligence to maintain and advance. Shareholders should not be concerned by a lack of updates on a particular asset; sometimes delays are systemic because of the industry we are in, but often they are entirely necessary to ensure all stakeholder risks are understood and mitigation takes place.

Similarly, concluding deals takes time, and can also be subject to delays outside of the Company's control, but a methodical and meticulous approach to due diligence is vital to ensure that the appropriate projects are added to the portfolio under the correct terms. What the Company has is not, I believe, a measure of what we might achieve in the relatively short term and this is a great source of confidence for me personally.

I commenced this Chairman's Statement with the opinion that I believe the Company is undervalued; I hope that I have provided justification why that is the case. I firmly believe that, in time and with the right communications strategy, we can alter the market's perception and unlock significant value for shareholders. In that regard, the Company has appointed a Director of Communications and the frequency of announcements has increased; this rate will continue to accelerate.

In the meantime, I hope the summary of activities in this Chairman's Statement will enable shareholders and other parties to understand why I am so confident of the Company's future, an opinion I hope they will share.

Portfolio update

As outlined in the Company's full year results Enegi has continued to implement its strategy of building a balanced portfolio. Management consider this to be a key for the business and that it is imperative that the Company has exposure to a number of assets and is not over reliant on one area or project.

During the period under review the Company has delivered on this strategy and has entered two new prospective regions, namely the North Sea and Jordan. The Company believes that these two regions offer very real opportunities with significant upside for shareholders and the Company going forward.

This strategy and the Company's intention to deliver it are also evidenced by the recent farm out agreements in relation to its two North Sea Blocks. These transactions with Azimuth have not only brought in a partner with great exploration expertise in the area, but also mean the Company will, in each case, have a significant interest in a funded exploration programme that will assess the potential of the Blocks, as well as retaining its original interest in the development of a known prospect and discovery.

In line with the Company's stated strategy, the management team continues to review and evaluate a number of opportunities and amongst them they are pursuing projects that have the potential to deliver additional near term production alongside the Company's existing assets.

Current assets overview

Internal review of projects

During the period the Company has carried out considerable work to further its understanding of each of the assets in the Company's current portfolio and to identify and commence suitable work programmes. As part of this process, the team undertook to evaluate each of the assets with a view to ascertaining the value that could potentially be attributable to them.

Tables 1 and 2, below, show the management team's current understanding of the hydrocarbon potential of the Company's current portfolio of assets.

Table 1: Statement of Company Oil Resources

Table 2: Statement of Company Gas Resources

The work that has been undertaken is evident from the tables above and the Company has moved from net resources attributable to the Company of 49.5 mmb of oil 12 months ago to net resources attributable to the Company at the balance sheet date of 132.1 mmb of oil and 1.49TCF of gas, an excellent achievement. It should be noted that we have not included any resources attributable to the former licence, PL2002-01 (other than those that can be attributed to PL2002-01(A)), as the licence area has been reduced by the regulator, a decision that the Company is challenging.

This research has highlighted a number of key points:

·; that the value attributable to the Company is spread across our portfolio;

·; that we require further production from new projects in order to balance our portfolio; and

·; it reinforces my own, and management's belief, that the Company is significantly undervalued.

At this stage, the above are management estimates only but we will now undertake a process of independently verifying the hydrocarbon potential of the asset portfolio.

In addition, the Company has established primary objectives to be achieved by the management team over the next 18 months which include:

·; addition of at least one additional production asset;

·; increase further contingent and prospective resources;

·; leverage high working interests to expand the portfolio;

·; undertake detailed analysis of existing geotechnical data in UKCS;

·; establish the Dead Sea reserve position and submit a seismic and drilling programme to the NRA in Jordan;

·; achieve sustainable production and prove up additional resources in the adjacent licence areas in western Newfoundland; and

·; strengthen and broaden management team.

Through the achievement of these and other objectives, we believe the Company will be in a far stronger position.

The remainder of this statement provides more detail on our existing portfolio as well as information on the interim statements, management changes and details of a short term lending facility that will allow us to accelerate the development of our short term production plans.

Ireland

The Company is delighted with the progress that has been made on its Clare Basin project. Enegi was awarded an Onshore Licensing Option (the "Option") over the area in February 2011 and since then the Company successfully completed an extensive work programme which included the procurement and evaluation of existing technical data and new geological data collected to develop a provisional assessment of the potential of the area. The results of the work programme indicated that given the maturity, thickness and buried depth of the shale, the whole area under the Option remains prospective for shale gas.

In order to gain a greater understanding of the region the Company also engaged Fugro Robertson ("FRL") to prepare an independent estimate of in place resources within the acreage. This report by FRL, details of which were outlined in the Company's announcement of 30 November 2012, further endorsed the management team's belief that the Clare Basin has a strong investment profile. As also required under the work programme Enegi submitted a report to the PAD summarising the studies and analysis that the Company has carried out.

Following the submission of the report to the PAD at the end of November the Company completed its work programme over the Option. Given the results of the work programme and the management team's view of the potential of the Clare Basin, Enegi, as announced on 21 February, has applied to the Petroleum Affairs Division of the Department of Communications, Energy and Natural Resources ("PAD") for an Exploration Licence over the area covered by the Option. The PAD has since notified the Company that it has received its application and will evaluate it with the final award of the Licence being subject to the findings of the further research that is being carried out by the Environmental Protection Agency. The Company has been assured by the PAD that in the meantime, its rights under the previous licencing option will remain in place.

Jordan

During the period the Company also announced that it had entered into the Dead Sea and Wadi Araba project in Jordan partnering with Korea Global Energy Corporation ("KGEC"). The Company, as Duty Holder, has gained a 5% carried interest in the Project whilst providing technical and operational expertise towards the development of the project.

The area covered by the project is approximately 6,800km2 and is equivalent in area to 34 North Sea Blocks. A large number of wells have been drilled over a 40 year period testing two geological plays that run down the western edge of the project and proving up the existence of hydrocarbons across the project with both oil and gas shows.

Since entering the project, Enegi has continued to evaluate all available data associated with the project including well logs and seismic data. The Company also expects to complete a CPR on the project in the coming months.

As outlined in the Production Sharing Agreement ("PSA") proposed for the project, the forward work programme requires at least three exploration wells to be drilled within the first four years. In order to fund this, as the project progresses following completion of the CPR, KGEC has secured letters of intent with access to over US$100 million from a number of reputable financial institutions. Enegi will provide technical and operational expertise to develop the project. Under the terms agreed with KGEC, Enegi will be recompensed for the work that the Company carries out on the project.

Final ratification of the PSA, following the recent Cabinet approval, is expected from Parliament of the Hashemite Kingdom of Jordan shortly.

Newfoundland

Considerable progress has continued to be made across all our Newfoundland assets.

PL2002-01(A)

On PL2002-01(A) the Company has engaged an E&P consultancy who specialise in the development and enhancement of production operations. The team also have experience in petroleum engineering and artificial uplift, and its mandate is to get sustained production from GHF following which decisions can be made as how best to increase production. Extensive feasibility work has already been undertaken by the team who have worked with numerous oil and gas majors and independents on a variety of projects concerned with production lift operations, well management, facilities management, operations management and completions both on and offshore.

The team will be updating the Company within the next few weeks and the Company will provide a more detailed update post that. 

Operations at site continue in the meantime with a focus on maintaining integrity, improving facilities and preparing for further future upgrades.

Whilst the Company continues to safely and conscientiously operate the reduced Lease area, as renewed on 10 August 2012, Enegi continues to seek a review of the decision by the Department of Natural Resources of the Provincial Government of Newfoundland and Labrador to only grant a Lease renewal over a small portion of PL2002-01. Enegi continues to be convinced that the data that the Company provided, with the help of FRL and which was also verified by AJM Deloitte, indicates that there is a continuous reservoir across the Lease which supports the case for renewal of a larger area. The Company will provide further updates in the future on the process.

EL1116

On EL1116, 2,000km of existing seismic data on the St George's Bay Prospect has been acquired and re-evaluated with highly encouraging results. Based on the Company's internal review, utilising Enegi's recently updated seismic and well database for the region by the determination and volumetrics method, the Company consider the recoverable resource range for the St George's Bay Prospect to be 17 - 131 MMBBL based upon a STOIIP range of 175 - 417 MMBBL. The Company has also engaged independent consultant AJM Deloitte to review these results and produce a CPR for the St George's Bay Prospect.

Further seismic data will be required prior to the identification of targets for future drilling and the Company is therefore commencing the environmental assessment process to obtain the necessary permissions. The Company is also in discussions with a view to seeking a partner for the acquisition of the planned additional seismic data. This data is expected to cover both the St. George's Bay prospect and other identified leads on the Licence. Once the additional seismic data has been acquired a further CPR covering all areas of interest within the Licence will be commissioned.

EL1070

On EL1070 the Company is encouraged to hear that Shoal Point Energy ("SPE") and Black Spruce Energy ("Black Spruce") have mobilised a rig and intend to complete a drilling programme and apply for a Significant Discovery Licence ("SDL") over EL1070. The award of the SDL will allow Enegi to evaluate and develop the "Deep Rights" it holds in the Licence area.

The Company is also continuing to update its internal reservoir model and once the SDL has been awarded over the acreage Enegi intends to commission a CPR over the project.

North Sea

Last year the Company applied, with its partner ABTechnology ("ABT"), for three licences in the 27th Seaward Licensing Round in the UKCS. The licences that the Company applied for were identified as those which, in the Company's opinion, were most suitable to be further developed using buoy technology as conventional development solutions may not be economically feasible.

In October the Company was delighted to announce that it had been offered two of these licences by the Department of Energy and Climate Change ("DECC"). These licences were Block 22/12b containing the Phoenix Discovery and Block 3/23 (split - southern section) containing the Malvolio Prospect. Both these licences are viewed as having reduced risk through the clear indication of the presence of hydrocarbons and the previous exploration and appraisal drilling that has taken place on the licences. They have not been developed due to the limiting economics, a situation that we believe can be rectified by the application of buoy technology.

On the Phoenix Block (22/12b), the Company has already secured 250km2 of 3D data processed to PSTM and PostSTM as required under the work programme. The Company will now carry out in-house interpretation, subsurface analysis and reservoir modeling to determine the full range of recoverable reserves for the Phoenix discovery.

Geologically, the Phoenix field is a low-relief dip closed structure that lies on the Forties-Montrose High, located between the Nelson Field 16km to the northwest and the Montrose Field 12km to the southeast. The Phoenix reservoir is on trend with the Forties, Montrose and Nelson fields and has been proven to contain many similar properties to these fields, as well as the Arbroath and Arkwright fields which have been also identified as analogous to the Phoenix discovery. All of these analogues share the same Palaeocene sandstone formation and have produced light sweet crude with an API range of 38 - 42°. Recovery factors across the fields have ranged from 57% for the Forties field to 34% to the Arkwright field. Permeability and porosity levels across these fields are also considered to be very good, leading to significant flow rates being achieved from these fields. Analysis of logs from the discovery well, 22/12a-10, drilled by Shell in 2004, demonstrate that the reservoir quality is very good to excellent with average effective porosity of 24% and pay average of 29%. Fields in the surrounding area are producing from this formation and have similar reservoir properties.

The remaining acreage in the Block contains a lead and a prospect known as "Lead A" and the "Manx Prospect" respectively. A review of the Phoenix field internally produced a preliminary minimum STOIIP estimate of 15MMBBL, based on a defined structural closure and the oil-water-contact (OWC) encountered by well 22/12a-10.

The Company continues to work on fulfilling its obligations for Block 3/23(split), which contains the Malvolio prospect, and will provide an update on that project in due course.

Since the period end the Company has also completed the farm out of areas of both Blocks to Azimuth Limited ("Azimuth"), a specialist E&P Company with extensive knowledge and expertise in the region. Under the terms of the farm outs Azimuth will gain a 50% interest in the exploration areas of both blocks, i.e the areas of the Blocks that are not covered by the Phoenix Discovery or the Malvolio Prospect. In order to gain this interest on each Block Azimuth will assess the hydrocarbon potential of the exploration areas and will fund all the associated geological, geophysical and reservoir analysis costs in the first 12 months, following the signing of the agreement. These exploration programmes are expected to further define the additional prospectivity of both Blocks. This work will also include agreed geological, geophysical and reservoir analysis work over the Malvolio and Phoenix areas.

These farm outs ensure that the Company retains its original interest in the development of the Phoenix Discovery and the Malvolio Prospect, whilst also having a significant interest in a funded exploration programme across the remaining acreage of the Blocks. The Company looks forward to providing updates on this exploration programme as it progresses.

The Company with its partner ABTechnology continues to also assess further opportunities in the UKCS which may be suitable for further development using buoy technology.

Financials

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 2012 Annual Report and Accounts.

The Company reports a loss of £1,454,000 for the period, an increase of £587,000 over the corresponding period in 2011. This is primarily due to the Company increasing the scope of its activities during the period. During the reporting period the Company have completed a significant work programme on the Clare Basin in Ireland, commenced operations in two new regions, UK North Sea and Jordan, and spent considerable effort reviewing other projects that management believe will come to fruition in the coming months.

Group net assets as at 31st December 2012 were £6,014,000 (2011: £5,174,000).

To accelerate the development of the Company's short term production projects, the Company is in the process of concluding an agreement with Dutchess Capital whereby Enegi will secure a loan of up to £900,000. Under the terms of the loan Enegi will issue shares which will be held in escrow by Dutchess, as security, which the Company will have the option to utilise in order to pay back Dutchess at a 15% premium to the loan. Enegi expect to repay this loan within the next six months.

Management / Board

The Board also announces today that Derek Cochrane has reverted to his former role as a Non-Executive Director of the Company in order to spend greater time pursuing his other interests. The Board would like to thank Derek for his contribution to the Company as COO and look forward to working with him as a Non - Executive Director, and continuing to utilise his expertise across the Company's portfolio. The Company has already initiated the process of appointing a suitable replacement for Derek.

The Company is also delighted to announce that Tejvinder Minhas, Company Secretary, has been appointed to the Board as an Executive Director with immediate effect. Tejvinder, who is a Chartered Secretary and has been with the Company for 6 years, has extensive expertise advising on commercial, contractual, legal and compliance matters and has previously worked as a Commercial Manager within the oil and gas sector. Under paragraph (g) of Schedule 2 of the AIM Rules there is no further information required to be disclosed regarding the appointment of Mr Minhas.

Outlook

This has been a period of unrivalled activity for Enegi. The Company has added further highly prospective assets in two new geographic regions to its portfolio as well as continuing to progress its existing asset base. Our objective remains to build a balanced portfolio; production is required to fulfill this and the Board are confident of adding this to the portfolio this year.

The next few months promises significant activity with work programmes across all aspects of the Company's portfolio which are designed to further prove up the potential that the management team believe and have shown is inherent across its portfolio. The Company's internal valuation has shown what the Company's potential value could be, and through the forthcoming work programmes and opportunities that Enegi are evaluating, the Company is confident that the current discount to NAV that Enegi's shares are trading at will reduce.

Enegi has transformed itself over the last 18 months and the management team believe that this year can be equally significant in the development of the Company. The Company is in the best position it has ever been, a position from which the Board expects to deliver significant value as the Company progresses each of its projects. 2013 could prove to be a very significant year for Enegi.

Alan Minty

ChairmanCONSOLIDATED 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.