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25 Nov 2008 07:00
ο»ΏENEGI OIL PLC
Trading symbols:
London Stock Exchange: ENEG
Bourse de Luxembourg: GB00B29T9605
25 NovemberΒ 2008
Enegi Oil PlcΒ
('Enegi' or 'the Company')
Update onΒ Garden Hill South drilling program
Highlights:
Drilling has now commenced in the target formation
Hydrocarbons have been encountered
Drilling of the horizontal sidetrack willΒ be completed withinΒ 20Β days
Enegi, the western Newfoundland focused oil and gas company, is pleased to provide an update on its drilling program at Garden Hill South.
Garden Hill South is an onshore oil discovery that is 100% owned and operated by PDI Production Inc. ('PDIP'), the Company's 100% owned Canadian operating subsidiary. Previous production tests from Garden Hill South to date have produced over 24,000 barrels of high quality crude with a gravity of approximately 51° API. TRACS International has estimated that Garden Hill South contains mean unrisked resources of 8.6 mmboe.
Drilling of theΒ PAP#1-ST#3Β wellΒ commenced on 27 September. The PAP#1-ST#3 well is targeting the Aguathuna Formation, a dolomitized limestone formation of the Early Ordovician St. George Group.Β
On 31Β October,Β PAP#1-ST#3 penetrated the Aguathuna formation as prognosed. The vertical portion of the well has now been cased and drilling of the horizontal extension has commenced. The well has encounteredΒ bothΒ oil and gas in the formation.Β WhileΒ this is encouraging, the economic significance of these hydrocarbons is unclear at this time.
The wellΒ has been drilled to aΒ Measured DepthΒ of 3,975 meters and the Measured Depth on completion will be 4,448 meters. The drilling program is expected toΒ be completed within the nextΒ 20Β days. Once drilling has been completed, the well will be logged and a well testing programme undertaken.
Alan Minty, Chief Executive Officer of Enegi, said:Β "The presence of oil and gas within the Aguathuna formation is very exciting. We will continue drilling the horizontal side trackΒ with the expectation that PAP#1-ST#3 will be brought on to production following the well testing programme."
Enegi Oil Tel: + 44 161 817 7460
Alan Minty, CEO
Kevin McNair, CFO
Cenkos Securities Tel: + 44 207 397 8900
Joe Nally
Stephen Keys
Fox-Davies Capital Tel: + 44 207 936 5200
Daniel Fox-Davies
Richard Hail
College Hill Tel: + 44 207 457 2020
Nick Elwes
Paddy Blewer
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 25 years experience as a petroleum engineer.
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 western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having previously been discovered there. The Group's assets include a proven discovery, Garden Hill South, and four prospects: Shoal Point, Garden Hill Central, Garden Hill North and Lourdes.
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