Operational Update

ENEGI OIL PLC

Trading symbols:

London Stock Exchange: ENEG

Enegi Oil Plc

('Enegi' or 'the Company')

Operational Update

Dragon Lance Management Corporation (DLMC), the Company's partner in the development of its Newfoundland regional play, has provided the Company with an update of operations on the PaP#1 Garden Hill South (GHS) well.

The pressure results from the ongoing chemical soak are positive. The pressure recovery rate is twice that observed prior to commencement of the work-over. The bottom hole pressure of the well is also higher than it was when the work-over commenced and is continuing to increase. The results are an indication of improved connectivity between the well bore and the reservoir, which if maintained, would be expected to result in higher achievable production rates. However, if the well is flowed before additional work has been undertaken, DLMC has advised that there is a risk of ingress of mobile solids, wax and asphaltene that would adversely affect the improved connectivity. This risk can be reduced by improving connectivity between the well bore and reservoir further before the well is flowed, and by appropriate engineering as the work programme continues.

Given the positive results observed from the chemical soak, the plan is to undertake a second high pressure chemical soak with the intent of improving connectivity even further. This second chemical soak would involve chemicals and acid being injected down the wellbore at a significantly higher pressure than that of the original soak. Planning for the second chemical soak is already underway. Further updates will be provided as work-over operations continue.

Over the past few weeks, significant effort has also been expended to optimise the chance of retaining Exploration License 1070 under a Significant Discovery Licence, the lower portion of which Enegi Oil, through their wholly owned subsidiary PDI Production Inc, hold a 100% interest.

10th February 2011

Alan Minty, CEO of Enegi Oil, commented:

"The good pressure recovery rates observed from phases of the work programme completed to date are encouraging. To ensure the best outcome for the well, we now need to take into account all of the data available to us in diligently and prudently planning our future work programme. We are also pleased to see work progressing on EL1070, as this activity helps in the de-risking of our Newfoundland regional development play as a whole."

Enquiries

Enegi Oil Tel: + 44 161 817 7460

Alan Minty, CEO

Cenkos Securities Tel: + 44 207 397 8900

Stephen Keys

Beth McKiernan

Fox-Davies Capital Tel: + 44 207 936 5200

Philip Davies

David Porter

College Hill Tel: + 44 207 457 2020

Nick Elwes

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 29 years experience in the petroleum 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 Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having previously been discovered there. The Group's assets include Garden Hill South, Shoal Point, Garden Hill Central, Garden Hill North.