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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

24 July 2013

Enegi Oil Plc

("Enegi" or "the Company")

Newfoundland Farm-In Completed and £2.018 million Placing

HIGHLIGHTS:

·; Completed definitive Farm-In agreement with Black Spruce Exploration

·; First well of multi-well drilling program to be drilled in PL2002-01(A)

·; Placing to raise £2.018m (before expenses) through the issue of 24,882,944 new ordinary shares at an average price of 8.11 pence per share

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, further to the Company's announcement on 12 June 2013, it has entered into a definitive Farm-In Agreement with Black Spruce Exploration ("BSE") in relation to Enegi's Newfoundland assets, PL2002-01(A), EL1116 and EL1070 (together "the Assets") ("the Farm-In").

Under the Farm-In, BSE will pay 100% of the costs associated with the execution of a multi-well drilling program over the Assets, to be implemented over two phases. Work has already commenced on defining a drilling program for a new well on PL2002-01(A), to be drilled this year following the anticipated arrival of BSE's drilling rig in Newfoundland in Autumn 2013. This new well will target and appraise the hydrothermally enhanced dolomite ("HTD") reservoir within the conventional, proven oil bearing Aguathuna Formation. The Aguathuna Formation has been proven to be oil bearing through previous drilling activity in the region, and most recently by the Company's producing well, PAP#1-ST#3.

In addition, the Company is pleased to announce that it has raised £2.018 million (before expenses) through a placing of 24,882,944 new ordinary shares of 1 pence each ("Ordinary Shares") with new investors at an average price of 8.11 pence per Ordinary Share.

Farm-In Details

BSE will pay 100% of the costs associated with the execution of a multi-well drilling program over the Assets, to be implemented over two phases.

Under Phase 1, BSE will drill four new wells and rework PAP#1-ST#3. The four new wells will consist of one exploration well on EL1116, one exploration well on EL1070, and two appraisal wells in PL2002-01(A). Subject to securing necessary regulatory approvals, BSE is required under the Farm-In to spud each Phase 1 well within six months of completion of the previous Phase 1 well. Upon drilling an exploration well in each of the Exploration Licences, BSE will earn a 50% interest in that respective Exploration License. BSE will be required to drill the two appraisal wells on PL2002-01(A) and rework PAP#1-ST#3 before earning a 50% interest in PL2002-01(A).

Under Phase 2, BSE will be able to drill seven additional wells to earn a further 10% working interest in the Assets.

The Company and BSE have also, under the Farm-In, agreed an Area of Mutual Interest ("AMI") under which both companies will have the right to participate in the acquisition of any AMI assets at a 60% interest to Enegi and a 40% interest to BSE. The participation rights will be adjusted to a 60% interest for BSE and a 40% interest for Enegi once BSE completes Phase 2.

PaP#4 Well

Phase 1 of the multi-well drilling program over the Assets will commence with the drilling of a new appraisal well in PL2002-01(A), provisionally called PaP#4, to be drilled this year following the anticipated arrival of BSE's drilling rig in Newfoundland in Autumn 2013.

The rationale for drilling PaP#4 is to penetrate a zone of enhanced reservoir quality that has been continuously recharging the pressure of, but is currently in poor connection with, the reservoir immediately adjacent to PAP#1-ST#3. As announced on 14th May 2012, McCaffrey Consulting Services Ltd. ("McCaffrey"), an independent consultant engaged by the Company, concluded that test data indicated PAP#1-ST#3 was in contact with in excess of 61.5 million barrels of Stock Tank Oil Initially In Place ("STOIIP"). Since then, PAP#1-ST#3 has been flowed significantly and there is still negligible reservoir pressure depletion. As such, the Company has internally updated the calculations originally completed by McCaffrey, which now indicates the Well is in connection with in excess of 100 million barrels STOIIP. Cumulative production from the existing Well, the previous ST#2 side-track and the original PaP#1 wellbore now totals over 37,500 BO and nearly 90,000 MMscf gas.

Over the coming weeks, the Company and BSE will work closely together to finalize the location of PaP#4. To facilitate this, it is noted that reservoir pressure modeling has revealed the presence of a partial barrier to flow, that is, a zone of restricted pressure recharge, at a certain distance from PAP#1-ST#3. This distance is consistent with the Company's geological model for PL2002-01(A), which has been independently verified by Deloitte of Calgary, which indicates PAP#1-ST#3 is on the edge of a zone of greater reservoir quality and connectivity, as a result of greater HTD development.

Placing

The Company is also pleased to announce that it has raised £2,018,500 ( before expenses) by way of a placing of 24,882,944 new Ordinary Shares ( "Placing Shares") with new investors at an average price of 8.11 pence per new Ordinary Share ("Placing Price") ("Placing"). The Placing Price is at a premium of approximately 12% per cent. to the closing bid market price on 23rd July 2013, being the last dealing day prior to this announcement.

13,445,378 of the Placing Shares have been purchased by BSE through their affiliate company Foothills Northwest Holdings Corporation pursuant to the Farm-In.

YA Global Master SPV Ltd ("YA") has subscribed for the remaining 11,437,566 Ordinary Shares, raising £818,500.00 before costs. Of the £818,500.00, Enegi has entered into an Equity Swap with YA in respect of £150,000.00. The period of the Equity Swap is 6 months. The Equity Swap element allows the Company to secure the potential upside arising from anticipated near term news flow.

The Equity Swap Agreement provides for payment to the Company of £25,000.00 via 6 monthly instalments as measured against a benchmark price of 7.78p per share ("the Benchmark Price"). If the measured share price exceeds the Benchmark Price, for that month, the Company will receive more than 100 per cent of the monthly settlement due on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. Should the measured share price be below the Benchmark Price, the Company will receive less than 100 per cent of the expected monthly settlement on a pro rata basis.

Under no circumstances can YA require Enegi to issue any additional shares pursuant to the Equity Swap, and YA and its affiliates are prohibited from holding any net short position in Enegi shares.

The net proceeds of the Placing are expected to primarily be used to facilitate the Company's initial work commitments under the Fyne Oil Field Farm-In as announced by the Company on 2 July 2013.

Application has been made to the London Stock Exchange for the Placing Shares, which will rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on AIM ("Admission"). It is expected that such Admission will occur at 8.00 a.m. on 30 July 2013. The Placing Shares will represent approximately 15.86 per cent of the Company's issued share capital immediately following Admission.

Following admission, the Company's issued share capital will consist of 156,906,526 Ordinary Shares, all with voting rights with no shares held in treasury. The total number of current voting rights in the Company will therefore be 156,906,526. This figure (156,906,526 Ordinary Shares) may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the Company.

Alan Minty, CEO of Enegi, commented:

"We are delighted to have entered into this Farm-In with Black Spruce. This agreement, as well as Black Spruce's other recent transactions, is hugely significant for the development of our Newfoundland assets and for the region as a whole.

We look forward to the multi-well drilling campaign, which is expected to kick off this year with the drilling of PaP#4, and to the significant increase in value such activity will add to our assets".

David Murray, CEO of BSE, commented:

"Our transaction with Enegi is a valuable addition to the land consortium that BSE has sought to assemble to become the leading player in Western Newfoundland. We believe that these assets will form the core of our portfolio in this region and look forward to working with Enegi and all our stakeholders to not only develop these assets, but to build Western Newfoundland into the oil and gas province that it has the potential to be."

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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 Panel of Enegi. Mr. Rajgopaul has over 30 years' experience in the petroleum industry.

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 Black Spruce Exploration Corp.

Black Spruce Exploration Corp., ("BSE"), with offices in Calgary, Alberta and St. John's and Corner Brook in Newfoundland, is an exploration and production company with property rights, licenses and interests in the province of Newfoundland and is a wholly-owned subsidiary of Foothills Capital Corp. (www.foothillscapcorp.com)

Black Spruce Exploration Corp. is making arrangements with its affiliated companies to bring a drilling rig, drill pipe, casing pipe, tubing pipe, heavy picker truck, hauling trucks and a skidding unit, machine lathes and other field support equipment from various affiliates of Foothills Capital Corp. in order to ensure that Black Spruce Exploration has the necessary equipment to safely and effectively properly drill and develop hydrocarbon energy reserves on the west coast of Newfoundland.

The board of directors of Black Spruce Exploration Corp. has over 100 years combined experience directly or indirectly in the energy sector, engaging in transactions that have ranged from $1 million to over $15.3 billion in value. Board members have worked for or with junior companies or large international players such as Conwest Exploration Inc., Alberta Natural Gas, Bayridge Resources Limited, HESS Corporation, Burlington Resources, Gulf Oil, EnCana, Exxon, Helmrich & Payne, Nabors Drilling, CNRL, UPRI, British Petroleum America, Shell, Southwest Energy, Chesapeake Energy, Talisman and Statoil.

Foothills Capital, under TRP Holdings, Corp., presently operates in the Bakken shale-oil formation through its subsidiary entity Bakken ND Pipe & Supply, LLC, which is located in Ross, North Dakota. The officers and directors have worked in other oil and gas shale formation plays throughout the United States, as well as in conventional oil and gas fields in the United States and Canada.