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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

30 March 2012

Enegi Oil Plc

('Enegi' or 'the Company')

Interim results for the six months ended 31 December 2011

Enegi, the western Newfoundland focused oil and gas company, announces its results for the six months ended 31 December 2011.

·; Data collected suggests that the well can be flowed on a continuous basis

·; The Company believes it has a potentially large Green Point Shale play across its assets

·; Agreement signed with Advanced Buoy Technology (ABTechnology) Ltd. to apply for licenses in the UK North Sea under the 27th Seaward Licensing round organised by the Department of Energy and Climate Change (DECC)

·; The Company continues to execute early stage prospecting programme in County Clare, Ireland

·; Strengthened management team and Board providing the Company with further significant industry and business related experience

·; Strengthened Advisory Panel to assist in the Company's decision making process

·; Results from the bullhead acid squeeze on the PAP#1 well at Garden Hill South are expected shortly

·; The Company will be applying for licences in the UK North Sea under the 27th Seaward Licensing Round organised by the Department of Energy and Climate Change (DECC) pursuant to the strategic partnership with Advanced Buoy Technology (ABTechnology) Ltd.

·; The Company continues to implement its strategy of avoiding risk concentration

Alan Minty, Chairman & Chief Executive Officer of Enegi commented:

"Enegi has made significant progress during the period not only with the PAP#1 well but also building a portfolio of opportunities which offer considerable potential for the Company to grow from a number of sources.

We are encouraged by the initial results on the workover on Garden Hill South which indicate that upon completion we can expect a positive final outcome which will provide the Company with a strong basis from which to develop. We look forward to furthering our understanding of the unconventional Green Point Shale play on our acreage and the strategic partnership with ABTechnology also has significant potential and opens up an asset class to Enegi which can deliver value to the Company over a relatively short time scale.

During the next few months, we believe, the value of the opportunities we have will become increasingly more obvious."

Enegi Oil

Alan Minty, Chairman & CEO Tel: + 44 161 817 7460

David Parry, Director Tel: + 1 604 568 0733

Cenkos Securities

Jon Fitzpatrick Tel: + 44 207 397 8900

Neil McDonald Tel: + 44 131 220 9771

College Hill

Nick Elwes Tel: + 44 207 457 2020

Alexandra Roper

www.enegioil.com

Facebook (Enegi Oil PLC)

Twitter (@enegioil)

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.

CHAIRMAN'S STATEMENT

As reported in previous Chairman's statements, Enegi Oil plc. ("Enegi Oil" or the "Company" together with its subsidiaries (the "Group")) has continued to make consistent and significant progress over the six months to 31 December 2011, with our share price increasing sharply since the year end. I would like to take this opportunity to expand upon some of the key milestones that have been achieved during the interim period and since the year end.

We continue to develop our assets in western Newfoundland. After a considerable amount of work, the Company believes it has evidence of a large, continuous petroleum system that crosses its entire acreage, composed of areas covered by EL1116, PL2002-01 and EL1070 (deep zone). Our focus is therefore directed at work programmes that will provide a greater understanding of the discovery and leads in our acreage and will ultimately identify the next drill locations. The current workover on our discovery well, the PaP#1-ST#3 well (the "Well"), is expected to justify further investment into the region by demonstrating commerciality.

We are pleased to report that after a series of workovers of the Well, beginning with the chemical soak last year and culminating in the recent acid squeeze by Schlumberger, that data suggests that the Well can be flowed on a continuous basis and will be sufficient to cover all site costs, that is, we believe that the Well is economic and commercial to operate. This is a significant milestone and we believe the production rate will increase even further once the production testing phase has been completed with the injected chemical and spent acid flowed out. This augurs well for the future financial stability of the Group. In this respect, we also note that the activities by Shoal Point Energy Ltd. (SPE) in acreage adjacent to the Company's, in which SPE are targeting an unconventional shale play known as the "Green Point Shale", have attracted significant investment and activity into western Newfoundland.

We watch the progress of SPE's work programme on EL1070 with keen interest for two reasons. Firstly, should the work programme and its subsequent Significant Discovery License (SDL) application be successful, the Company will have an SDL on the deep zone following the interest swap agreement in November 2009. Secondly, the Company believes it has a potentially large Green Point Shale play across its assets, of which a majority may be onshore as opposed to the offshore portion SPE is currently targeting, in excess of that announced in May 2010. The Company has already commenced an in-house assessment of the potential of the play as a preliminary step prior to commissioning work by external consultants.

Based on the presence of a large live petroleum system on our acreage and the confidence that the Well is economic, the Company can now work to conclude a Regional Development Plan which incorporates EL1116, PL2002-01 and EL1070.

Furthermore, and after many months of negotiations, the Company has entered into a strategic partnership with Advanced Buoy Technology (ABTechnology) Ltd. to apply for licenses in the UK North Sea under the 27th Seaward Licensing round organised by the Department of Energy and Climate Change. The strategic partnership opens up an asset class which we believe has significant potential and that the Company previously could not access, that is, discoveries that are considered uneconomic or marginal under conventional development methods. Furthermore, as these are discovered fields a great deal of the exploration risk has already been eliminated, there is the potential to unlock significant value in a relatively short time when compared to conventional exploration and development. 

The Company continues to execute its prospecting programme in County Clare, Ireland, following the award of an Offshore Petroleum Licensing Option covering an area of 495km², with a view to assessing the value of this acreage.

The portfolio of opportunities that now exist for the Company, illustrates a significant potential for growth from a number of sources and this diversification of risk is to the credit of the management team. During the next few months, I believe, the value of the opportunities will become more obvious resulting in a corresponding increase in shareholder value.

Operational Review

Enegi's principal business activities include the development and operation of hydrocarbon assets in Atlantic Canada and Ireland. The Company holds the hydrocarbon rights to an onshore petroleum lease, PL2002-01 (the "lease"), and two offshore exploration licences, EL1070 and EL1116 (the "licences"), in western Newfoundland and an Onshore Petroleum Licensing Option ON11/1 in western Ireland (the "option"). The Company was established to exploit prospects identified within the lease and licences and has since added the option to its portfolio.

The lease contains the discovered field, Garden Hill South, as well as two other leads, Garden Hill Central and Garden Hill North and the licence EL1070 contains the Shoal Point prospect.

The option ON11/1 was issued in February 2011 for a period of two years and covers an area of approximately 495km2.

·; Garden Hill South

The PAP#1 well at Garden Hill South has recently undergone a bullhead acid squeeze which preliminary analysis suggests has been successful. The data suggests that connectivity to the reservoir has improved significantly with the effective producing length of the PaP#1-ST#3 well more than doubling and fluid mobility increasing by approximately nine times.

The well will now be put on a long-term production test to acquire detailed information about its productivity.

·; Garden Hill Central and North

Garden Hill Central and North are 100% owned and operated by PDI Production Inc., the Company's operating subsidiary. As part of the larger review which the Company is currently undertaking, the timing of planned 2D seismic work covering the Garden Hill Central and Garden Hill North structures is being reconsidered. Although this survey was originally scheduled to take place in the fourth quarter of 2008, weather and technical delays have pushed the programme back.

·; Shoal Point

In November 2009, the Group's operating subsidiary, PDIP, entered into an interest swap agreement with Canadian Imperial Venture Corporation and Shoal Point Energy on EL1070. Under the agreement, PDIP acquired a 100% interest in the more conventional St. George's Group play in exchange for its interest in the less conventional, shallower shale play. 

In August 2010, as part of the aforementioned regional development plan, PDIP agreed to enter into a farm-out agreement on Shoal Point. Under the terms of the agreement, the farm-in partner will commence a seismic programme that will cover the prospective areas of EL1070. The intention is for a minimum of 40% of the seismic to be shot in 3D, although this will be subject to environmental considerations and permitting issues. The farm-in partner will also drill a new well to test the productivity of the Aguathuna Formation located offshore, which contains the conventional Shoal Point prospect, assuming 100% of the total cost, risk and expense associated with the seismic programme and the drilling of the new well in return for a 70% interest in EL1070.

EL1070 was due to expire in January 2011 but will remain in force until such time as the drilling of a well is being diligently pursued and for so long afterward as may be necessary to determine the existence of a significant discovery based on the results of that well. Our partners in EL1070 commenced operations on 3K-39 well prior to the expiry of the licence.

·; EL1116

Management are still considering the best way to advance the development of EL1116 and will update shareholders once the plan has been determined.

·; ON11/1

In February 2011, the Company was awarded an Onshore Petroleum Licensing Option covering an area of 495km2 in western Ireland. The option allows the Company to undertake a work programme in the Clare Basin which is within the same fault system trend as the prospects and discovery in the Group's Newfoundland regional play. Based on technical studies that have been carried out, the Company believes that the Clare Basin has the potential to contain shale gas.

To obtain greater understanding of the potential of the area a preliminary field trip has been undertaken to develop a detailed prospecting programme for the region. This programme will involve detailed sampling and stratigraphic logging of outcrops of interest, a detailed review of existing seismic data for the area and sample analysis. It is expected that this will be completed in the next few months in time for submission of a report to the Petroleum Affairs Division of the Department of Communications, Energy and Natural Resources by 30th November 2012.

Financial Review

The accounts for the period have been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union using accounting policies that are consistent with those stated in the 2011 Annual Report and Accounts.

The Company reports a loss of £867,000 for the period, an increase of £406,000 over the corresponding period in 2010. This is primarily due to the Company increasing the scope of its activities during the period. Three new Directors were appointed to the Board at the beginning of October and as the Company has been able to stabilise its position it has sought to increase its activities particularly at Garden Hill South where we are awaiting an indication of the long-term productivity of the PAP#1 well.

Group net assets as at 31st December 2011 were £5,174,000 (2009: £5,644,000).

Board and Advisory Panel

During the period the Company has also bought significant industry and business related expertise to the Board and Management Team which will enable Enegi to commercialise its opportunities more effectively. Frank Jackson and Derek Cochrane have been appointed Non-executive Directors and David Parry and Damian Minty have also joined the Board as an Executive Director and Chief Financial Officer respectively.

To assist the Company in realising value from its opportunities an Advisory Panel has been created. The purpose of the Advisory Panel will be to provide the Company with access to a number of highly respected industry professionals across a broad range of disciplines that will be able to advise the Company as it implements its plans both in terms of buoy technology and its hydrocarbon assets. This is headed up by Barath Ragjopaul, who stood down from the Board during the period to start up this Panel. We are also delighted to welcome the recent additions to the Advisory Panel of Dr. Mike Bowman and Anastase Maragos who bring further significant knowledge and expertise into the Company ensuring we have timely, Company aligned advice.

Outlook

The Board is confident that the initial results of the workover at Garden Hill South will demonstrate that, upon completion, the process will achieve a positive final outcome which will provide the Company with a strong basis from which to develop.

The Company continues to look at new opportunities that are consistent with the Group's investment criteria, such as the strategic partnership with Advanced Buoy Technology (ABTechnology) Ltd. and will update shareholders as and when these opportunities develop.

Alan Minty

Chairman

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOW

NOTE: These statements have been prepared under International Financial Reporting Standards as adopted by the European Union using accounting policies consistent with those in the last Annual Report.