Issue of Equity and Directors Holding

Enegi Oil Plc

('Enegi' or 'the Company')

Issuance of Shares/ Director Holding

As announced on 29 October 2010, companies, including Risk Management Research Institute Limited, controlled by Alan Minty, Chairman and Chief Executive of the Company (the "RMRI Companies), have provided services to Enegi, including geological, financial, legal and administrative services. These services were provided under the terms of the consultancy agreement dated 1 October 2007 (the "Consultancy Agreement") referred to in the Company's Admission Document. It was also announced that the invoices from the RMRI Companies for services rendered between 31 December 2009 and 30 September 2010, which amounted to £548,000, and also interest free interim funding, which amounted to £909,000, were to be satisfied by the Company issuing new ordinary shares in Enegi to Alan Minty or his connected companies. The terms of these arrangements have now been agreed:-

1. 3,491,473 new ordinary shares have been issued to the relevant RMRI Companies in full and final settlement of the invoices (which equates to an average issue price of 15.7 pence per share and was determined by reference to the mid market price of the Company's ordinary shares on the dates of the relevant invoices from the RMRI Companies); and

2. 4,636,904 new ordinary shares have been issued to the relevant RMRI Companies in full and final settlement of the interim funding (which is an effective issue price of 19.6 pence per ordinary share). The number of shares to be issued in respect of the satisfaction of the interim funding is equal to the number of shares that were sold by the RMRI Companies to provide the interim funding.

As a result, the Company has issued in aggregate 8,128,377 new ordinary shares in the Company to the RMRI Companies. Alan Minty has a controlling interest in the RMRI Companies and, as such, these arrangements constitute a related party transaction for the purposes of Rule 13 of the AIM Rules. The Directors, excluding Alan Minty, consider, having consulted with Cenkos Securities plc, the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Following this transaction and admission of the new shares, Alan Minty will have an interest in 14,937,288 ordinary shares in the Company, representing 17.0 per cent. of the Company's enlarged issued share capital.

An application for admission of the new ordinary shares has been made and Admission is expected to occur at 8.00am on 31 December 2010. RMRI Companies continue to provide services to Enegi under the terms of the Consultancy Agreement. In order to preserve cash in the Company, the Company may elect to settle future invoices from RMRI Companies through the issue of new ordinary shares. If this does occur, such arrangements would constitute a related party transaction for the purposes of Rule 13 of the AIM Rules and a further announcement would be made.

In conformity with the FSA's Disclosure and Transparency Rules, the Company notifies the market of the following:

Following Admission of the new ordinary shares on 31 December 2010, the Company's issued share capital consists of 87,827,996 ordinary shares with a nominal value of 1 pence each, with voting rights.

The Company does not hold any ordinary shares in Treasury.

The above figure of 87,827,996 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.