NUOG.L Regulatory News (NUOG)

Enegi Oil Plc

('Enegi' or 'the Company')

Interim results for the six months ended 31 December 2009

Enegi, the western Newfoundland focused oil and gas company, announces its interim results for the six months ended 31 December 2009.

Key Points:

·; PDIP concluded an agreement with a farm-in partner for the PAP#1 well

·; Raised £1.5 million via a share placing in September to meet working capital needs and complete farm-in agreement

·; Raised £1.3 million via a share placing in December to acquire in full the remaining interest of CIVC Creditor Corporation in the Western Newfoundland assets

·; On EL1070, PDIP acquired 100% interest in the St. George's Group play in exchange for its interest in the less conventional, shallower shale play

·; Further evaluation shows PAP#1 well capable of generating cyclical production - Company recommenced operations in November 2009

·; Recommencing operations has provided revenue and further invaluable data on the geology of Garden Hill South

Outlook:

·; Completion of work-over operation at Garden Hill South expected to enhance productivity

o Swabbing exercise taking place in the coming weeks (see separate announcement)

·; Identification of further opportunities

Alan Minty, Executive Chairman of Enegi Oil commented:

"The last six months has seen us get the Company into position for the future and start to get back to doing what we should be doing, developing hydrocarbon assets. Whilst the financial results don't reflect the work that the Enegi team have undertaken and achieved in the last six months; we are now reaching a time when the results of this work are beginning to show through in other ways. We look forward to being able to share further positive news and operational updates with our shareholders and delivering them the value that our assets have the potential to provide."

31st March 2010

Enquiries:

www.enegioil.com

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 leads: Shoal Point, Garden Hill Central, Garden Hill North and Lourdes.

Chairman's Statement

I am pleased to be able to report on the progress made by Enegi Oil during the six months ended 31 December 2009.

During this six month reporting period the Company has continued to stabilise itself after the disappointing results from the drilling of the horizontal sidetrack at its Garden Hill South asset.

The Group continued to examine the flow and shut in test data to determine various options for improving the flow rate at the well. As such PDIP has signed a farm-in agreement for the PAP#1 well. Under the terms of the agreement, the farm-in partner will gain a 30% interest in the well for a maximum expenditure of C$2.5 million (Canadian Dollars); an amount which the Directors consider to be adequate to carry out the planned work programme. The expenditure is expected to be used to initially log the well and then conduct a foam/acid fraccing operation which is anticipated to improve the production profile of the well.

It should be noted that despite the disappointing results the well has proved the presence of producible oil at the southern end of an identified trend. This trend contains a number of potentially drillable untested leads, including Garden Hill Central and Garden Hill North, within the lease acreage to the North East.

The results from the drilling programme had a significant impact upon the Group's operations. In addition to the effect on Enegi Oil, in February 2009, PDIP informed the parent company that it had been materially adversely affected (PDIP had liabilities in excess of its assets) by the results of the operations which had been expected to generate revenue for the Group going forward.

Consequently, the Board worked to reduce the Group's overheads with a number of staff, including three of the Company's Board members departing. In addition, PDIP has successfully worked to agree payment schedules with its creditors; with terms agreed with the majority of them.

The conclusion of these activities enabled the Group to assess its opportunities and financial needs, leading to the completion of a share placement, raising approximately £1.5 million in September 2009 which will continue to allow the Group to meet its working capital needs.

In order to continue to secure the future of the Group, a placing was also completed in December 2009 which raised a further £1.3million. The funds secured at that time were primarily used to purchase all the interests of CIVC Creditor Corp in the Group's oil and gas assets, including a 4% overriding royalty and the obligation to make future payments of over C$1.0million. As a result of this transaction any past or present breaches of the mortgages that covered the assets in favour of CIVC Creditor Corp were removed.

The Board still believe in the opportunities available in Western Newfoundland and as such have further consolidated the Company's position in the region with the interest swap agreement that it entered into 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.

Operational Review

Enegi's principal business activities include the development and operation of hydrocarbon assets in Atlantic Canada. The Company holds the hydrocarbon rights to an onshore petroleum lease, PL 2002-01 (the "Lease"), and two offshore exploration licenses, EL1070 and EL1116 (the "Licenses"), in western Newfoundland. The Company was established to exploit prospects identified within the Lease and Licenses.

The Lease was issued in April 2002 and has been extended until August 2012 upon the satisfaction of certain conditions, those which have fallen to date having been met. It covers an area of approximately 160km2. It contains the discovered field, Garden Hill South, as well as two other leads, Garden Hill Central and Garden Hill North.

The license EL1070 was issued in January 2002 for a total period of nine years and covers an area of approximately 1,000km2. The license contains the Shoal Point prospect and an unmapped lead, Lourdes. The license EL1116 was issued in January 2009 for a total period of nine years and covers an area of approximately 2,120km2.

Garden Hill South

During the period, the Company has continued to examine the flow and shut in test data to determine various options for improving the flow rate at the well. The data gained indicates that the well will produce now on an interval basis; whereby the well may be flowed then shut-in, allowing it to recharge the in-contact reservoir pressure, before repeating the process. The period between each interval and the expected production is currently not known. The Company also reviewed the potential for re-entering the sidetrack to physically stimulate the well; an option which is thought to provide a solution. As such PDIP has signed a farm-in agreement for the PAP#1 well. Under the terms of the agreement, the farm-in partner will gain a 30% interest in the well for a maximum expenditure of C$2.5 million (Canadian Dollars); an amount which the Directors consider to be adequate to carry out the planned work programme. The expenditure is expected to be used to initially log the well and then conduct a foam/acid fraccing operation which is anticipated to improve the production profile of the well.

Garden Hill Central and North

Garden Hill Central and North are 100% owned and operated by PDIP. TRACS International has estimated that Garden Hill Central and North have net mean unrisked resources of 24.6 mmboe and 8.3 mmboe respectively.

In August 2007, the Company commenced preparations for a 2D seismic programme covering the Garden Hill Central and North structures. This survey will provide additional information to better understand the two structures and determine initial drilling targets. Due to its size, Garden Hill Central is likely to be the first of these two structures to be drilled.

Although this survey was originally scheduled to take place in the fourth quarter of 2008, weather and technical delays have pushed the programme back. As part of the larger review which the Company is currently undertaking, the timing of this seismic work is now being reconsidered.

Shoal Point

In November 2009, the Group's operating subsidiary, PDIP, entered into an 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.

Two principal play types are recognised in EL1070 which, equally, have the potential to yield significant discoveries. These are:

a) The conventional structural play in the middle Ordovician platform carbonates of the St. George's Group which has produced hydrocarbons at Garden Hill South; and

b) An unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point Formation which produced oil in historic wells on Shoal Point and which produced hydrocarbons shows while drilling both the Hunt PanCanadian Shoal Point K-39 well and the more recent SPE Shoal Point 2K-39 / 2K-39Z well.

Among the interest holders, there was considerable debate on the relative merits of the two plays with no clear preference acceptable to all parties emerging. In the interest of allowing proponents of either play to pursue the play of their choice, the interest swap agreement was executed. By undertaking the interest swap the Company increased its risked prospective resources in the Shoal Point lead by 2.1mmboe.

PDIP

During the period PDIP has continued to work with its creditors to restructure the debt that remained after the disappointing drilling results at Garden Hill South and has now reached agreement with the majority of its creditors that generally involves a structured debt repayment schedule.

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 2009 Annual Report and Accounts.

The Company reported a loss of £338k for the period, a decrease of £2,195k over the corresponding period in 2008. This is mainly due to the result of the Board's drive to reduce the Group's overheads including the departure of a number of staff including three Board members.

In addition, PDIP has successfully worked to agree payment schedules with its creditors including the negotiation of significant discounts which will not be recognised in the financial statements until such time as the structured repayment schedule has been concluded.

Outlook

The next six months will provide the Group with the opportunity to generate revenue from Garden Hill South. While not currently able to provide a continuous revenue stream for the Group, the belief of the Board is that cyclical production can be generated. The Board is also confident that the planned farm-in operation and subsequent work programme will significantly enhance the productivity of the well.

The Group continues to look at new opportunities in the form of participation in licensing rounds, through farm-ins and asset or even private company acquisitions. We will update shareholders in the event that we successfully pursue an opportunity that meets the Group's investment criteria.

The Board believe that although the Company has gone through a difficult 12 months the next six months will see the hard work that everyone has put in be rewarded.

Alan Minty

Executive Chairman

31st March 2010

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED BALANCE SHEET

CONSOLIDATED CASH FLOW STATEMENT

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.