Enegi Oil reviews exploration options off Newfoundland

Enegi Oil has provided an update on activity in its EL11116 license offshore Newfoundland.

Offshore staff

LONDON – Enegi Oil has provided an update on activity in its EL11116 license offshore Newfoundland.

In December 2008, a subsidiary of the company (PDIP) was 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 ha (331 sq mi) which is adjacent to PL 2002-01 that PDIP currently holds.

Award was based on the company committing to expenditure of C$600,000 ($585,000) in exploring the parcel during the initial five-year term of a nine-year exploration license.

PDIP has lodged a deposit equivalent to 25% of this commitment with the C-NLOPB which will be offset against future expenditure.

If future exploration leads to discovery of significant quantities of petroleum resources, the company may then apply for a Significant Discovery License from the C-NLOPB.

Consultants TRACS International believe that two of the structures identified in PL 2002-01, Garden Hill South and Garden Hill Central, may extend offshore.

Enegi Oil is considering the best way to advance the development of EL1116 and will provide a further update once the plan has been determined.

12/22/2011

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