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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

14 May 2012

Enegi Oil Plc

('Enegi' or 'the Company')

Garden Hill South Operational Update

The Company is delighted to announce that the latest results from testing of the PaP#1-ST#3 well ("the Well") indicate that the connected oil and gas in place associated with Garden Hill South is in excess of 61.5 million barrels of Stock Tank Oil Initially In Place ("STOIIP") and 117 BCF Gas Initially In Place ("GIIP"), with the Absolute Openhole Flow Potential ("AOFP") expected to increase from 310 boepd.

McCaffrey Consulting Services Ltd., an independent consultant engaged by the Company, has advised that results from the last series of testing indicate:

·; the Well is in contact with a larger than anticipated reservoir. Despite producing from the Well since commencement of a flow test on 3rd February 2012, there are no signs of pressure depletion in the reservoir. Had the mean connected oil and gas in place been at or below 61.5million STOIIP and 117 BCF GIIP, as estimated in Enegi's 2007 Competent Persons Report ("the CPR") for the onshore and offshore portion of Garden Hill South, pressure depletion would have been observed;

·; as part of the test programme the Well was maintained for a period at a high constant bottomhole pressure of 228 atmospheres (3,350 psi) by using a 6/64" choke. Even heavily choked, the Well flowed at 156 boepd. Recently, up to 1,360 boepd was achieved when fully opened for 3 hours for an initial flush. The AOFP on an energy equivalent basis is at least 310 boepd at the sandface and is expected to increase after load water is flowed out;

·; load fluid/water continues to be produced with the oil, with water cut averages around 15 to 20%. The trend, however, suggests that the Water Oil Ratio ("WOR") is declining as the load fluid is recovered. It is anticipated that oil flow will be enhanced after the bulk of the load water is produced;

·; the initial analysis of the post flow test pressure build-up suggests that the effective producing length of the Well's horizontal leg has likely doubled, compared to pre-stimulation, to approximately 400m;

·; the amount of gas being produced with the oil during the post stimulation flow test was reasonably stable at a Gas Oil Ratio ("GOR") of approximately 300m3/m3, compared to GORs of over 2000m3/m3 when the Well was flowed at higher drawdown levels pre-stimulation. Higher drawdowns at the sandface could enhance oil flow by providing "natural" gas lift. Therefore, allowing the flowing bottomhole pressure to drop further would enhance flow, but at the expense of liberating more gas;

·; oil flowrates can be enhanced further by using equipment, such as a swabbing unit, to produce at lower bottomhole flowing pressures.

Forward Programme

To accurately assess the reserves associated with Garden Hill South, signs of pressure depletion at the reservoir are required. In addition, further testing is required to determine the effect of flowing at lower pressures, which is expected to result in natural gas lift and a declining WOR. Therefore, the Well will be flowed further to provide the required data.

The data will allow the Company to establish good production practices, which include setting the production rate at which the Well should be allowed to flow and the optimum management of the Well. The Company intends to move quickly into the production phase once regulatory approval is secured and the testing is complete.

Enegi is also pleased to note the announcement by Shoal Point Energy Ltd. ("SPE") on the 3rd May 2012 that up to 49.4 billion barrels of oil (Undiscovered Petroleum Initially-in-Place) exists in the Green Point Shale in offshore western Newfoundland. As indicated in the CPR, the source rock for the Company's discovery and conventional leads are believed to be the Green Point Shale located offshore. Therefore, confirmation of such a significant volume of oil not only reaffirms the presence of a large and active petroleum system in the Port au Port Peninsula, but also reaffirms the confidence the Company has in the quality and size of the source rock and therefore the prospectivity of Enegi's assets.

Further updates will follow as the programme is executed.

Alan Minty, CEO of Enegi, commented:

"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."

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Qualified Persons

The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a member of the Advisory Board of Enegi. Mr. Rajgopaul has over 29 years experience in the petroleum industry.

The Company

Enegi Oil Plc is an independent oil and gas company. Current operations are focused on opportunities around the Port au Port Peninsula in Newfoundland, Canada and the Clare Basin in County Clare, Ireland. 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.