Operational Review and Update

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

13 June 2012

Enegi Oil Plc ('Enegi' or 'the Company')

Operational Review and Update

Enegi Oil, the independent oil and gas company, is pleased to provide the following operational update on its activities and the milestones that can be expected as a result of the work being undertaken.

HIGHLIGHTS:

PL2002-01 GARDEN HILL SOUTH, NEWFOUNDLAND*

·; Results to date indicate the PaP#1-ST#3 well ("the Well") is in contact with at least 61.5 million barrels of Stock Tank Oil Initially In Place ("STOIIP") and 117 BCF Gas Initially In Place ("GIIP").

·; Absolute Openhole Flow Potential ("AOFP") is expected to increase from 310 boepd.

·; Additional equipment has been purchased to enable the Well to flow at higher rates.

·; Testing of the Well continues, with data obtained used in the design of appropriate production facilities.

·; The Company is in discussion with appropriate regulatory bodies to progress applications for approvals required for production facilities.

·; Updates on performance of the Well expected in the short term.

PL2002-01 GARDEN HILL CENTRAL AND NORTH, NEWFOUNDLAND*

·; The Company has regulatory approvals for a defined seismic programme covering the Garden Hill Central and Garden Hill North structures.

·; Seismic programme will provide input into the location of suitable drilling targets, with Garden Hill Central likely to be the first of the two structures to be drilled due to its size.

·; Update expected in Q4 2012.

GREEN POINT SHALE, NEWFOUNDLAND*

·; The Company continues to review the extent of the Green Point Shale over its onshore lease, PL2002-01, and offshore licence, EL1116.

·; The work programme being undertaken by Shoal Point Energy Ltd. ("SPE") will be closely monitored and any implications on the prospectivity of the Green Point Shale in the Company's acreage assessed.

·; Update expected in Q3 2012.

EL1070, NEWFOUNDLAND*

·; The work programme currently being undertaken by SPE will result in an application for an SDL over EL1070, allowing the Company more time to pursue development of the conventional Shoal Point lead.

·; The Company has already contacted SPE to clarify the current timetable for the process.

EL1116, NEWFOUNDLAND*

·; The Company is evaluating existing seismic lines to define a suitable appraisal programme to assess the prospectivity of the offshore sections of Garden Hill South and Garden Hill Central, which are thought to extend into EL1116.

·; The prospectivity of the St. George's Bay lead, originally mapped by Hunt Oil and with the potential to be approximately ten times the size of Garden Hill South, will also be assessed.

·; Update expected in Q4 2012.

LICENSING OPTION ON11/1, IRELAND

·; Enegi is required to submit a report to the Petroleum Affairs Division of the Department of Communications, Energy and Natural Resources by 30th November 2012.

·; Depending on the results of the initial assessment, the Company may apply for an exploration licence.

STRATEGIC PARTNERSHIP WITH ADVANCED BUOY TECHNOLOGY

·; The Company has submitted three applications for offshore UK blocks under the 27th Seaward Licensing Round organised by the Department of Energy and Climate Change (DECC).

·; The Company is currently reviewing the market for the application of buoy technology and making enquiries as to the appetite of other North Sea operators to adopt the technology on currently licensed assets.

·; Update on applications expected in Q4 2012.

OTHER COMMERCIALISATION ACTIVITIES

·; The Company has begun to review further opportunities to expand its asset portfolio.

·; Actions are being taken to determine the external interest in the Company's western Newfoundland assets and the Company is working on a data room that will allow potential farm-in partners the opportunity to assess the assets in more detail. No decisions have been made to adopt this strategy but the Company will assess all opportunities to maximise shareholder value.

·; The Company has increased the limit of the Equity Line Facility (the "ELF") from £7.5 million to £25 million to ensure access to capital in the event that its operating costs increase as a result of pursuing offshore assets in the UK North Sea.

\* The Company is currently updating its internal model of the hydrocarbon potential of its Newfoundland assets. The Company believes the assets are interlinked and once the model is complete, the Company will engage an appropriate independent body to review the model and produce a reserve and resource report that will be compliant with the Canadian NI 51-101 standards of disclosure for oil and gas activities. To expedite the assessments, individual reports will be produced for each of the assets where possible.

Alan Minty, CEO of Enegi Oil Plc., commented:

"The Company believes that the fundamental building blocks of the Company are as strong as they have ever been. The recent fund raise, combined with the well results from Garden Hill South, provides the Company with a strong financial base, which the Company has begun to leverage by reviewing further opportunities to expand its asset 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 Board of Enegi. Mr. Rajgopaul has over 31 years experience in the petroleum industry.

The Company

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.

PL2002-01 GARDEN HILL SOUTH, NEWFOUNDLAND

As announced by the Company on 14 May 2012, no pressure depletion has yet been observed in the reservoir in connection with the PaP#1-ST#3 well ("the Well"). This indicates that the Well is in contact with in excess of 61.5 million barrels of Stock Tank Oil Initially In Place ("STOIIP") and 117 BCF Gas Initially In Place ("GIIP"), with the Absolute Openhole Flow Potential ("AOFP") expected to increase from 310 boepd. Testing of the Well continues, with data obtained providing input into the design of appropriate production facilities, and the Company looks forward to providing further updates on the performance of the Well in the short term.

In addition, the Company has recently purchased a swabbing unit and associated equipment to enable the Well to be flowed at higher rates, by facilitating production at lower bottomhole flowing pressures. The Company is also in discussion with appropriate regulatory bodies and progressing applications for the necessary approvals so that it can quickly move into the production phase once testing is complete.

As well as providing input to facilities design, the test data will allow the Company to continue the development of its own internal model to assess the reserves and resources that it believes should be attributed to Garden Hill South. Once this model is complete, the Company will engage an appropriate independent body to review the model and produce a reserve and resource report that will be compliant with the Canadian NI 51-101 standards of disclosure for oil and gas activities.

PL2002-01 GARDEN HILL CENTRAL AND NORTH, NEWFOUNDLAND

The Company has regulatory approvals to conduct a defined seismic programme over the Garden Hill Central and Garden Hill North structures in its onshore lease, PL2002-01. The programme will provide input into the location of suitable drilling targets; due to its size, it is likely that Garden Hill Central will be the first of these two structures to be drilled. Updates are expected in Q4 2012.

In light of the results from Garden Hill South, the Company is currently updating its internal model of the hydrocarbon potential of Garden Hill Central and Garden Hill North. Once this model is complete, the Company will engage an appropriate independent body to review the model and produce a resource report compliant with NI 51-101.

GREEN POINT SHALE, NEWFOUNDLAND

The Company continues to review the extent of the Green Point Shale over its onshore lease, PL2002-01, and offshore licence, EL1116. Discussions are currently ongoing with AJM Deloitte, an independent geological consultant, who are to produce an NI 51-101-compliant report assessing the potential reserves of Green Point Shale on the Company's acreage. The Company expects to be in a position to provide an update in Q3 2012.

In addition, the Company will closely monitor the work programme announced by Shoal Point Energy Ltd. ("SPE"), which is targeting the Green Point Shale in the offshore licence EL1070, and assess any implications on the prospectivity of the Green Point Shale in the Company's acreage.

EL1070, NEWFOUNDLAND

The Company has received many requests from shareholders regarding the impact that the recent announcements of Shoal Point Energy Ltd. ("SPE") will have on Enegi's interest in EL1070, and would like to take this opportunity to provide a review and update.

On 20 November 2009, the Company announced that it had entered into an interest swap agreement over its offshore licence, EL1070, whereby Enegi would gain a 100% interest in the deeper conventional Shoal Point lead in exchange for giving up its interest in the shallower unconventional Green Point Shale play in EL1070. As such, the Company has an interest in having EL1070 retained under a Significant Discovery Licence ("SDL"), which would give more time to pursue development of the conventional Shoal Point lead.

The work programme currently being undertaken by SPE will result in an application for an SDL over EL1070 to the Canada-Newfoundland and Labrador Offshore Petroleum Board ("C-NLOPB"). The Company has already contacted SPE to clarify the current timetable for the process and will provide further updates as appropriate, taking into account any issues of confidentiality.

In the meantime, the Company continues to update its internal model of the Shoal Point lead to assess the resources that it believes should be attributed to this lead. Once this model is complete, the Company will engage an appropriate independent body to review the model and produce a reserve and resource report compliant with NI 51-101.

EL1116, NEWFOUNDLAND

The Company has recommenced its assessment of and exploration plan for its offshore licence EL1116. This involves the assessment of the prospectivity both of the offshore sections of Garden Hill South and Garden Hill Central, which are thought to extend into EL1116, and of the St. George's Bay lead, originally mapped by Hunt Oil with potential to be approximately ten times the size of Garden Hill South.

To facilitate the assessment, the Company is currently evaluating existing seismic lines to define a suitable appraisal programme. Updates are expected in Q4 2012.

Once complete, the assessment of the reserves and resources the Company believes should be attributed to the offshore portions of the Garden Hill South and Garden Hill Central leads and to the St. George's Bay lead will be incorporated into the Company's internal model, for review by an appropriate independent model and inclusion in an NI 51-101-compliant reserve and resource report.

LICENSING OPTION ON11/1, IRELAND

The Company continues to evaluate the opportunities afforded by Licensing Option ON11/1 in western Ireland ("the Option"). Enegi is required, as a condition of the Option, to submit a report to the Petroleum Affairs Division of the Department of Communications, Energy and Natural Resources by 30th November 2012, summarising its initial assessment of the lands covered by the Option.

Once the initial assessment has been completed, the Company will provide further updates. Depending on the results of the initial assessment, the Company may subsequently apply for an exploration licence.

STRATEGIC PARTNERSHIP WITH ADVANCED BUOY TECHNOLOGY

Further to the announcement of 14 March 2012, the Company would like to take this opportunity to provide an update on the manner in which its relationship with Advanced Buoy Technology (ABTechnology) Ltd. ("ABT") is progressing.

The Company has submitted three applications for offshore UK blocks under the 27th Seaward Licensing Round organised by the Department of Energy and Climate Change (DECC) ("the Licensing Round"), which closed on 1 May 2012. Since, as stated in the release dated 14 March 2012, Enegi has secured access to buoy technology under the strategic partnership with ABT, the Company's focus was on identifying and evaluating assets for which it considered that conventional development solutions may not be economically feasible.

Key criteria applied in selecting suitable blocks were a clear indication of the presence of hydrocarbons, a remoteness from available infrastructure that means a small, standalone development solution would be necessary, and a physical environment that would allow a buoy to be successfully implemented.

In addition, the Company is currently reviewing the market for the application of buoy technology and making enquiries as to the appetite of other North Sea operators to adopt the technology on currently licensed assets with a view to assessing the possibility of entering into a working relationship with ABT that extends beyond this Licensing Round. Further updates are expected in Q4 2012.

OTHER COMMERCIALISATION ACTIVITIES

The recent fund raise combined with well results from Garden Hill South provide the Company with a strong financial base and consequently the Company has begun to explore further opportunities to expand its asset portfolio. In the event Enegi decides to proceed with any of the opportunities, it will provide updates as appropriate.

In addition, to secure access to capital in the event that the Company's operating costs increase as a result of pursuing offshore assets in the UK North Sea, the Company has amended its existing Equity Line Facility of up to £7.5 million (the "ELF") with Dutchess Opportunity Cayman Fund ("Dutchess"). The ELF has been amended to increase the equity credit line to £25 million (the "Amendment"). The ELF and the Amendment have been arranged by First Columbus LLP, Dutchess's joint venture partner in the UK.

The Company is also taking actions to determine the external interest in its western Newfoundland assets, particularly as results from Garden Hill South have shown the prospectivity of the region. In this respect, the Company is working on a data room to allow potential farm-in partners the opportunity to assess the assets in more detail. Shareholders can be assured, however, that Enegi has not made any decisions in this area and management are only ensuring that all avenues for value maximisation are considered.

The Company would also like to announce that, in order to ensure strong brand recognition going forward, the name of its wholly owned subsidiary, PDI Production Inc., has been changed to Enegi Oil Inc.