3rd Dec 2008 07:00
Trading symbols:
London Stock Exchange: ENEG
Bourse de Luxembourg: GB00B29T9605
3 December 2008
Enegi Oil Plc
('Enegi' or 'the Company')
License award on adjacent parcel
Highlights:
Successful bid for nine year exploration license adjacent to existing petroleum lease
Secures offshore portions of Garden Hill South and Garden Hill Central
Risked contingent resources increased by 89% and risked prospective resources increased by 8%
Enegi, the western Newfoundland oil and gas company, is pleased to announce that it's 100% owned operating subsidiary, PDI Production Inc. ('PDIP') has been awarded further hydrocarbon exploration rights in the 2008 Call for Bids offered by the Canada-Newfoundland Offshore Petroleum Board (C-NLOPB). The successful bid was for an offshore parcel comprising 211,985 hectares which is adjacent to Petroleum Lease 2002-01 which PDIP currently holds on the Port au Port peninsula in Western Newfoundland.
The successful bid was based upon the PDIP committing to work expenditure of CAD$600,000 in exploring the parcels during the initial five-year period of a nine-year Exploration License. PDIP will need to lodge a deposit equal to 25% of this work commitment with the C-NLOPB which will be offset against future expenditure. If significant quantities of petroleum resources are discovered as a result of exploration work, PDIP may then seek a Significant Discovery License from the C-NLOPB. Any Significant Discovery Licenses issued in respect of lands resulting from the Exploration License will be subject to rentals which will escalate over time.
The Company believes that two of the structures that it has identified under Petroleum Lease 2002-01 extend offshore. These are Garden Hill South, which is currently being drilled, and Garden Hill Central. Garden Hill South is an onshore oil discovery that is 100% owned and operated by PDIP. Previous production tests from Garden Hill South to date have produced over 24,000 barrels of high quality crude with a gravity of approximately 51° API.
In a report dated April 2007, TRACS International, who provided the Competent Persons Report for the Company's IPO, allocated the following contingent and prospective resources to the offshore portions of Garden Hill South and Garden Hill Central:
|
All figures in mmboe |
||||||
|
Prospect/lead |
P90 |
P50 |
P10 |
Mean |
Probability of success |
Risked |
|
Garden Hill South (contingent) |
1.1 |
4.7 |
17.5 |
7.6 |
50% |
3.8 |
|
Garden Hill Central (prospective) |
1.4 |
3.4 |
4.8 |
3.0 |
21% |
0.6 |
|
Total |
10.6 |
4.4 |
||||
This represents an increase to the Company in risked contingent resources of 3.8 mmboe or 89% and an increase in risked prospective resources of 0.6 mmboe or 8%.
The Company will announce its work program for the parcel once it has reviewed all available seismic data.
Alan Minty, Chief Executive Officer of Enegi, said: 'The addition of this parcel to our portfolio is a key step in the development of the Company as it represents a significant increase in the hydrocarbon resources available for development. It also consolidates our position around the only discovered oil field in western Newfoundland.'
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Enegi Oil |
Tel: + 44 161 817 7460 |
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Alan Minty, CEO |
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Kevin McNair, CFO |
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Cenkos Securities |
Tel: + 44 207 397 8900 |
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Joe Nally |
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Stephen Keys |
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Fox-Davies Capital |
Tel: + 44 207 936 5200 |
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Daniel Fox-Davies |
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College Hill |
Tel: + 44 207 457 2020 |
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Nick Elwes |
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Paddy Blewer |
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 oil 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 western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having previously been discovered there. The Group's assets include a proven discovery, Garden Hill South, and four prospects: Shoal Point, Garden Hill Central, Garden Hill North and Lourdes.
Related Shares:
NUOG.L