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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

3 October 2013

Enegi Oil Plc

("Enegi" or the "Company")

Continuing Development of ABT Oil & Gas

Enegi is pleased to provide this update on the operational and commercial progress being made by ABT Oil and Gas ("ABTOG") (its joint venture with ABT Technology ("ABT")).

Highlights:

· ABT has entered into an exclusive agreement with GMC Limited ("GMC") to expand the buoyant development solutions of ABTOG;

· The new offering provides a self-installing, buoyant offshore platform (the "Platform") on which numerous elements of functionality can be provided including production systems and drilling equipment;

· The Platform is complementary to the production buoy (the "Buoy") in that it can have a different operating envelope to the Buoy;

· Like the Buoy, the Platform is scalable, re-deployable, and can be unmanned, meaning that it can significantly reduce the capital and operational costs of an offshore oil and gas development;

· ABT and GMC have agreed that the technology should be commercially developed through ABTOG;

· ABTOG has appointed Stephen Baird as Chief Executive Officer ("CEO");

· ABTOG has also appointed a Commercial Director and Business Development Director.

As stated in previous announcements ABTOG's strategy is to independently pursue the development of oil and gas assets. ABTOG is focusing on assets that can be acquired at a discount to prevailing market rates due to currently being considered marginal because the asset is stranded by either size, location, water depth or lack of available infrastructure. Ultimately, each of the aforementioned factors either individually or in combination means that the development of the asset is not currently considered to be commercial using conventional development solutions. After conclusion of the agreement between ABT and GMC, ABTOG now exclusively possesses a second solution which may be used to develop smaller oil and gas assets and has expanded the operating envelope for its solutions.

Alan Minty, CEO of Enegi, commented:

"ABTOG's market presence is increasing. Along with ABT, after considering both the size of the opportunity and the interest that we have had from the market, we decided that ABTOG should develop its own management team to prevent its growth from being checked.

We are delighted to have attracted someone of Stephen's expertise to lead ABTOG. We believe that his experience of both the inner workings of oil and gas companies and the construction of large scale assets mean that he is ideally suited to the role."

Stephen Baird, CEO of ABTOG, commented:

"I am delighted to have joined ABTOG. I have been particularly attracted by the uniqueness of the business model and the potential that it offers. ABTOG's ability to create significant value from assets which are believed to have limited value offers the potential for extraordinary returns.

We are pleased to be partnering with GMC whose development solution increases the operating envelope of ABTOG's solutions and provides significant savings over conventional development solutions. The addition of GMC's Platform solution is a direct response to the opportunities that we have identified and developed. We look forward to working with GMC."

GMC's Platform

GMC's self-installing, buoyant offshore platform combines proven and in-use technologies from deep water spars and compliant structures. The solution provides a harsh environment, highly stable platform upon which to host modular drilling and production facilities as a cost effective alternative to other conventional development solutions. The system can also provide storage for produced oil either on the sea bed or within the buoyant structure, or have the facilities to export produced oil and gas to nearby infrastructure.

The system takes advantage of standard and repeatable low cost manufacturing techniques, is self-installing and where possible can be operated unattended during the production phase of a project. These advantages create a significant cost reduction and therefore provide a commercial solution to develop small and isolated oil and gas fields. The system is also highly flexible and can be easily redeployed with alternative topside modules installed in order to meet the operating requirements of follow-on fields.

Senior Appointments at ABTOG

After noting the interest from both the markets and operators in ABTOG its shareholders, Enegi and ABT, have commenced the appointment of an independent management team within ABTOG. The primary appointment is that of Stephen Baird as CEO, with the roles of Commercial Director and Business Development Director having also been filled.

Stephen has extensive experience in both public and private companies. For the last 15 years he has focused on the oil and gas industry having been Vice President of Special Projects at Heritage Oil before moving on to set up Sea Dragon Offshore. Stephen was Chairman and Chief Executive of Sea Dragon Offshore, who owned and operated two sixth generation semi-submersibles. At Sea Dragon he was responsible for all aspects of developing two of the largest offshore drilling rigs, at that time, worth in excess of $1.6bn from their inception, through design, financing, sales and operation. Since 2009 he has been running Hicog (Heavy Industry-Construction Oil and Gas) which makes and manages a range of PE and PIPE investments as well as provides executive level consultancy and leadership services. Stephen remains Chairman of Sea Dragon Offshore, of which Hicog is the majority shareholder, and is also currently a Non-Executive Director of Emergent Asset Management Limited, a specialist emerging markets focused hedge fund.

Stephen, as CEO, will be responsible for the implementation of strategy through the everyday running of ABT Oil & Gas including the sourcing of opportunities with the Business Development Director and seeking financing for current and future projects.

About GMC

GMC is a global engineering and offshore project management company founded in 1990 with a head office in Reading and further offices in Aberdeen, Houston, Rio de Janeiro, Beijing and Singapore. GMC provides a unique combination of innovative engineering and operational expertise to deliver cost effective solutions for its customers worldwide. GMC has completed projects in all the major offshore basins around the world and has often pioneered new developments in emerging markets, where innovation, responsiveness, and cost effectiveness are often the key drivers.

GMC's customers include National and International Oil Companies, large and small Independents, as well as many worldwide engineering companies. GMC has a diverse range of services and products, delivering all phases of an offshore project, varying from specific engineering tasks to turnkey EPIC projects.

Generally, GMC has extensive experience and expertise in:

- Pipeline Design and Installation

- Design, Construction and Installation of Fixed and Floating Facilities

- Subsea Systems

- Drilling Systems

Specifically, in relation to the development of low cost solutions GMC, in partnership, has designed and constructed the Buoyant Tower for the Corvina field in Peru, details of which can be seen on the company's website at www.gmcltd.net.

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About Enegi

Enegi Oil Plc is an independent oil and gas company whose strategy to build a diverse portfolio assets with a strong emphasis on acquiring interests in marginal fields. These marginal fields are low risk highly-appraised projects and consequently the Company's entry cost will be low. Enegi will look to develop these assets utilising ABTechnology's buoy technology which is an appropriate solution and changes the development economics of the project. This is also expected to enable the early booking of reserves. The Company's current portfolio is made up of operations focused on opportunities around the Port au Port Peninsula in Newfoundland, Canada, the Clare Basin in County Clare, Ireland, the UK North Sea and Jordan. 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. The Company's licences in the UK North Sea have discovered hydrocarbons on them and have been selected based on buoy technology operating criteria. The Company has also entered into the highly prospective Dead Sea and Wadi Araba in Jordan with its partner Korea Global Energy Corporation.

About ABT Oil & Gas

ABT Oil & Gas is a joint venture company owned 50/50 by Enegi and ABTechnology. ABT Oil & Gas's strategy is to build a portfolio of marginal field opportunities which can be developed using using appropriate and proven technology. The application of the technology in developing marginal fields has the potential to significantly change the economics surrounding a project thus making it viable to develop. ABT Oil & Gas will only consider projects that are based upon discovered hydrocarbons, thus are deemed to be low risk, and will look to gain an interest in the project in return for providing an appropriate development solution. The Company's initial area of focus is on the UKCS.