Its good to see this share breaking the 9p mark. I am getting a good feeling about this share and I expect to see this rise continue quickly into double figures. I can't help thinking it has been held back by the usual summer slow downs but as we move into Autumn I back this to move back into blue territory on a more regular basis.
Canada and Ireland-focused oil and gas group Enegi Oil says that field studies on areas of interest within the Clare Basin in Southern Ireland have been 'extremely encouraging' and indicated higher-than-expected prospectively. Further testing is ongoing.
The firm also announced that it has appointed Derek Cochrane, currently a non-executive director, as Chief Operating Officer with immediate effect. "The appointment has the added benefit of strengthening the operational experience of Enegi as the company concludes its plans with respect to the PAP#1 ST#3 well and its Newfoundland regional development play," the company said.
I'm assuming you think hisotry will repeat itself? The antipaathy to development seen at Corrib predates the great tide of research showing that fracking is safe. The luddites of the Fracking Free Ireland campaign will look increasingly isolarted in a country which is desperate for economic development. Minty will be minted in due course.
ENEGI Oil (LON:ENEG) has told investors that it has hired Fugro Robertson to independently assess its potential shale resources in the Clare basin, onshore Ireland.
This comes as ENEGI received ‘extremely encouraging’ findings from its initial assessment of the project.
It said that total carbon analysis confirmed that the shale is a ‘rich source rock’ and it has an abundance of preserved organic matter. Separate analysis has also indicated that the shale is less mature than previously documented, and ENEGI says this enhances the potential for gas at depth.
"The latest results strengthen our belief in the potential of the Clare Basin,” chief executive Alan Minty said.
“We look forward to the results from Fugro, which will not only shape our plans for the area, but also give us an indication of the magnitude of resources that we could potentially book in future."
Fugro will carry out further testing on ENEGI’s behalf to get a fuller understanding of the shale prospectivity in the region. And it will prepare an estimate of the project’s in-place resources.
It is expected that the Fugro report will be submitted before the end of November.
"Since 2008 we have worked hard to increase the Company's resources and are delighted that the latest test results confirm that the connected oil in place associated with Garden Hill South is in excess of those stated in Enegi's CPR. We expect such efforts to be borne out in the next CPR due in the coming months. We believe that the latest results, the presence of a live petroleum system, and the size of the Green Point Shale justify further development activity in our acreage.
In addition, the results to date not only indicate that the Well is economic and would meet all the Company's current working requirements, but also that there is scope for improvement. Although further testing is required to confirm the extent of improvement, it is now beyond dispute that our Canadian assets have significant potential and value."
The SHP price is no indicator or an issue for us, as the funding and drill costs do not effect us one bit . The fact is this is excellent news for Enegi . In the fact that they are drilling EL1070 and have permission to frack and they are doing it next .It means the sdl for that block is back in play and closer than i thought it might be.
It means SHP are intent on proving up El1070 before they then move onto the other acerage and drill two further wells . So the sooner they get El1070 proved up and stimulated then the sooner they will get more funds/ farm ins to assist with the next two drills, it is their GHS basically and the catalyst to their success. The key is the permission to frack and the fact they are not moving the rig to drill either of the other wells, which i thought may have occured if the frack issue dragged on. This news in my opinion should have greater benefit to Enegi's share price than Shp , because we have no cost just the promise of a large farm in deal for the SDL golden ticket. We did see a bump in our own SP this afternoon and that is because this news trickled through . SHP are basically completely fund our golden ticket pass to a multi million dollar farm in agreement for a free drill into an area proported to contain the 'big oil' and thats the lower rights . Good bit of news , well i think so anyway
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