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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

29 May 2013

Enegi Oil Plc

('Enegi' or 'the Company')

Joint Venture with ABTechnology

Enegi, the independent oil and gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan is pleased to announce that, following the initial success of the strategic partnership between Enegi and Advanced Buoy Technology (ABTechnology) Limited ("ABT"), the Company has now entered into a formal Joint Venture agreement ("JV") with ABT.

ABT is the proprietor of technology which utilises unmanned buoys to access offshore reserves to depths of 600ft, the development of which is either restricted or not otherwise economically viable.

Under the terms of the JV, Enegi and ABT will work together globally to secure and develop interests in stranded, offshore oil reserves which can be accessed utilising ABT's technology. By using ABT's unmanned buoy technology, the directors believe that significant returns can be generated on such marginal and otherwise uneconomic fields. Accordingly, it is expected that the technology will allow the JV partners to secure reserves, which would otherwise not be available to farminees, at a cost which is substantially below the cost of accessing reserves which can be developed using conventional methodologies. Discussions have been initiated with a number of operators whose assets meet the criteria for the application of ABT's technology.

The buoys are typically fundable through nonrecourse project equipment leases and similar instruments. Enegi is working with its advisors to develop lines of credit which will be secured on the reserves and the equipment itself, so as not to encumber its other assets nor require calls on its shareholders for further capital.

Frank Jackson, non-executive director of Enegi Oil commented:

"The JV provides Enegi with a unique opportunity to accelerate the growth of its asset portfolio by providing a cost effective means to access unrecognised, high value oil assets which are currently considered to be stranded or marginal despite in many cases being fully appraised. The JV partners are appraising projects which are available and appropriate to the technology and are currently unable to be economically developed by conventional production systems. This JV will enable its partners, Enegi and ABT to secure bookable reserves, at a relatively low cost, building a niche but growing position in the upstream sector without taking on any excessive exploration and appraisal risk or extraordinarily additional capital exposure.

We already have a good working history with ABT. Last year, we successfully worked together to obtain two offshore licences in the 27th UK Seaward Licencing Round, by proposing the use of an unmanned buoy as the development solution. This new agreement strengthens the ties between the two companies.

Unmanned buoy technology, which is based on existing and proven processes, is particularly suitable for unlocking the value from marginal and stranded offshore fields that are considered uneconomic to develop using traditional production systems. Access to this technology will significantly enhance our competitive position in the market for such assets, allowing us to secure interests in well appraised and therefore geologically low risk fields at comparatively low costs.

In the current climate where rising oilfield service costs mean that increasingly larger fields are becoming uneconomic to develop, we believe that buoy technology will make a significant impact. The JV has already had significant interest from a number of parties looking to obtain access to the buoy technology. We are confident that the JV will help Enegi gain substantial oil and gas reserves."

Highlights of the JV agreement:

·; Enegi and ABT have entered into an exclusive 50/50 JV to identify and gain interests in marginal field opportunities that are suitable for development using buoy technology

·; In return for providing access to ABT's innovative buoy technology solution the JV plans to farm in to assets gaining a significant interest from the current licence holders

·; Given the low risk nature of the assets under consideration through these farm ins both companies will gain bookable proven and probable ("2P") reserves

·; Under the JV, Enegi and ABT will receive 50% each of the farm in interest gained in each asset

·; Enegi will finance the projects through the front end engineering design ("FEED") phase with ABT providing exclusive access to ABT's buoy technology

·; This exclusive agreement will continue for a minimum initial term of three years. Enegi will have an exclusive first right of refusal to purchase the entire issued and to be issued share capital of ABT on terms to be agreed, should ABT shareholders choose to sell their interests in ABT

·; Each JV partner will also have an exclusive first right of refusal to purchase the other's share in a particular project should that party choose to sell its share in a project

·; The initial focus of the JV will be the UK continental shelf

·; Through this JV, Enegi and ABT will look to build a portfolio of interests in proven low risk assets which can be developed using buoy technology

·; Wood Group PSN, the international energy services company, remain a strategic partner of ABT and will continue to commercialise and ensure deliverability of the unmanned buoy technology

·; ABT's unmanned buoy solution utilises proven low cost technology which has already attracted a significant interest from a number of parties

Marginal field opportunity

The directors believe that marginal fields offer a very significant opportunity globally with some 579 fields1 already identified worldwide which could potentially be developed using unmanned buoy technology, with recoverable reserves on these identified fields varying between 5 - 30 MMboe. To date the largest concentration of known suitable fields is in the North West European Continental Shelf. In the North Sea currently there are 88 fields2 with < 15MMboe which the Company believes no conventional offshore unit can currently develop economically and a total of 116 fields2 with < 30MMboe. The UK market is also expected to grow further as infrastructure is decommissioned which will potentially create more stranded assets which are able to be easily accessed with the buoy technology. Buoy technology is also expected to provide a solution for less mature regions due to the lack of available infrastructure. The economics of using buoy technology provides the current field operators with a solution to accessing reserves, and thus revenues, which may otherwise remain undeveloped to both the licence holders operating the assets as well as governments.

Whilst the initial focus of the JV will be the UK continental shelf, significant interest in ABT's technology has also been seen internationally with a number of companies showing an interest in utilising these buoys on their licences. The JV will also investigate these opportunities in time.

1 Source: Infield Systems Limited

2 Source: IHS

Developing a portfolio of farm in opportunities

Through this JV, Enegi and ABT expect to build a significant portfolio of low risk, proven assets. Confirmation of the economic viability of a project through the completion of a FEED will allow the JV partners to book reserves, unlocking considerable value for both companies in a relatively short timeframe. Following this, the JV will seek to gain Field Development Plan ('FDP') approval and develop suitable assets through to production using the ABT buoy solution.

ABT

ABT has exclusive global rights to a range of buoy technologies which provide an innovative solution to develop marginal fields which are considered uneconomic to develop using existing conventional solutions. ABT uses proven technology to create an unmanned buoy which sits just below the surface of the water housing production and processing equipment. The oil produced is then stored in a seabed storage facility before being collected by a tanker. The ABT solution is operable in water depths between 60-600 metres with oil production rate of between 1,000 to 20,000 bpd and an API of between 14-50o API. This solution can be economic with recoverable reserves in place of between 5 and 30 MMboe.

The resultant effect of this is that the ABT solution is a low cost solution that significantly reduces the capital and operational costs for developing marginal fields, considerably enhancing the value of the project to licence partners leading to the development of an asset which may have otherwise not happened.

www.abtechnology.com

Strategic rationale

This JV brings together Enegi's operational expertise with ABT's unique buoy solution enabling two companies to take advantage of the opportunity to provide an economic solution to marginal fields. Given the substantial number of marginal fields, the reserves present in them and the considerable interest that has already been shown from E&P companies globally in this solution, the Company believes that substantial value will be accrued to the JV partners through developing these marginal assets. These marginal fields are low risk projects which will deliver significant reserves, value and future revenues to both Companies in a relatively short timeframe.

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About Enegi

Enegi Oil Plc is an independent oil and gas company whose strategy is to create an oil and gas company with a diversified portfolio of assets across the E&P value chain. 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 benefit from significant previous exploration investment, 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

ABTechnology is a private company that has been established to develop solutions using buoy technology for the oil and gas industry primarily in the North Sea but also internationally. Through this technology the Company can provide cost effective solutions for offshore oil and gas fields that are currently considered marginal or sub economic using conventional development methods. Due to their versatile nature buoys can generate significant capital and operational cost savings over traditional offshore structures such as vessels, semi-submersibles and fixed platforms. This means that the buoys can significantly improve the returns of a project, whether they are used independently or as part of a larger project, radically changing the economics of the project.

ABTechnology also has a strategic partnership with Wood Group PSN ensuring the timely delivery of future projects.

www.abtechnology.com