North Sea Licence Awards

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

26 October 2012

Enegi Oil Plc

('Enegi' or 'the Company')

North Sea Licence awards

Enegi is pleased to announce that the Company has been offered two licences by the Department of Energy and Climate Change ("DECC") in the 27th Seaward Licensing Round for the UKCS. These offers will be the Company's first licences in the UKCS and the intention is to develop these in conjunction with ABTechnology ("ABT") and its buoy technology.

The applications for the two licences offered to Enegi were based on the identification and evaluation of assets which, in the Company's opinion, were suitable for buoy technology as conventional development solutions may not be economically feasible. Of greatest importance in selecting these assets was a clear indication of the presence of hydrocarbons, remoteness from available infrastructure meaning that a small, standalone development solution would be necessary, and a physical environment that would allow a buoy to be successfully implemented.

Highlights:

·; Enegi offered two licences in the UKCS:- Block 22/12b containing the Phoenix Discovery which showed a 30ft oil column- Block 3/23 (split - southern section) containing the Malvolio Prospect

·; Both licences have been identified as having reduced risk through previous exploration and appraisal drilling, but have not been developed due to limiting economics

·; Enegi's partnership with ABT provides the Company with access to technology that enables marginal fields to be economic

·; Upon final award, Enegi will be Operator of both Blocks with 100% interest

Alan Minty, CEO of Enegi, commented:

"Buoy technology is a game changing technology for the UKCS and we are delighted to have been awarded these blocks with a view to implementing it.

These licences, which were specifically identified, are all in the optimum operating envelope for ABT's buoy technology and we believe this technology offers the best chance of commercialising the discoveries and prospects that have already been identified on them.

Our entry in the North Sea and collaboration with ABT is absolutely in line with our strategy of creating a diverse portfolio of assets with reduced risk; where previous exploration and appraisal activities have proved up the presence of hydrocarbons, whilst the economics have previously prohibited development of these assets."

Details of the licences awarded

Block 3/23 (Split - Southern Section)

Block 3/23 is located in the south-west margin of the East Shetland basin and contains the Malvolio Prospect which is a Paleocene appraisal opportunity within the Upper Montrose Group sand. Well 3/23b-3, drilled by Chevron in 1988 on 2D seismic data, defines the extreme north west margin of the Malvolio Prospect, with oil observed in cuttings over shakers and later in the well log analysis. Further, recent seismic data reveals a strong amplitude anomaly down dip from the well significantly reducing risk on the Malvolio Prospect. Based on internal management assessment, and as submitted as part of the application to DECC, the "most likely case" unrisked STOIIP is 89 MMBBL with the minimum and maximum unrisked recoverable range between 8 and 95MMBBL. Malvolio is in water depths of 397ft and is 48km away from the nearest existing appropriate infrastructure, the Dunbar field; and as such is considered isolated.

The initial work programme will be to access additional well data and further 3D seismic with a view to confirming the geobody volume and thickening away from the original Malvolio well as well as confirming the feasibility of developing the block using buoy technology. Further prospectivity has been identified within the block which will be assessed as part of the overall appraisal of the licence area.

Block 22/12b

Block 22/12b is located in the Forties-Montrose High area of the Central North Sea and contains the Phoenix discovery. Discovery well 22/12a-10 was originally drilled by Shell in 2004 and showed a 30ft oil column in the Forties Sandstone Member, a proven producer in nearby fields such as Forties, Nelson and Montrose. The Phoenix Discovery is a low relief dip closed structure in water depths of 295ft with a company internal estimate of unrisked STOIIP range of between 15 and 99MMBBL, unrisked recoverable resources of 9 to 51MMBBL and many proven fields in the near vicinity. The discovery is 11.9 km North West of the Montrose oil field and 15.8 km South East of the Nelson oil field; and as such suitable infrastructure to develop this discovery is unlikely to be available. DECC classified the Phoenix field as a Significant Discovery which is defined as having or could have achieved flow rates in excess of 1000BOPD.

The initial work programme will be to access additional well data as well as further 3D seismic to determine the volumetric range of the Phoenix Discovery; as well as confirming the feasibility for developing the block using buoy technology to achieve commercial development. Further prospectivity has been identified within the block and this will be assessed as part of the overall appraisal of the licence area.

Buoy technology

Buoy technology has the potential to facilitate the development of smaller or remote fields which have been deemed "marginal" or non-commercial. This technology enables a reduction in capital and operational costs required in the development of the oil and gas fields, reducing the economic thresholds, making these fields commercial. Enegi's partnership with ABT, as announced on 14 March 2012, provides the Company access to this technology across these licences. Wood Group PSN are also a strategic partner of ABT, ensuring that projects can be delivered.

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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 29 years' experience in the petroleum industry.

Any reserve and resource estimates are based on Company internal estimates.

About Enegi

Enegi Oil Plc is an independent oil and gas company. Current operations are focused on opportunities around the Port au Port Peninsula in Newfoundland, Canada and the Clare Basin in County Clare, Ireland. The Port au Port Peninsula is located in western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having been discovered on a number of occasions. The Clare Basin is located in western Ireland and initial technical studies show that it has the potential to contain shale gas.

Glossary:

Bopd: Barrels of oil per day

MMBBL: Million barrels

STOIIP: Stock tank oil initially in place