NUOG.L Regulatory News (NUOG)

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

15 July 2013

Enegi Oil Plc

("Enegi" or "the Company")

Newfoundland Update

Enegi, the independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan today provides the following update on its partnership in Newfoundland with Black Spruce Exploration ("BSE"). As announced on 12 June 2013, Phase 1 includes the drilling of three appraisal and development wells in PL2002-01(A), consisting of two new wells and a rework of the existing Garden Hill Field PaP#1-ST-#3 well.

The Company is pleased to announce that BSE have now concluded its technical due diligence review. Based on the results, the Company and BSE plan to drill at least one of the two new wells on PL2002-01(A) in 2013, after the arrival of BSE's drilling rig in western Newfoundland. This is anticipated to be in the Autumn of 2013.

The Company and BSE continue to work towards completing a definitive Farm-in Agreement ("the Farm-In"). As such the Letter of Intent, which initially provided for completion no later than 12 July 2013, has been extended. This will allow the parties to incorporate additional collaboration procedures to accelerate the planning and execution of a multi-well program over the Company's acreage in Newfoundland. The Company and BSE expect to conclude the Farm-In Agreement imminently and will advise when appropriate.

Alan Minty, CEO of Enegi, commented:

"We are delighted that BSE agree with the need to drill at least one new well on PL2002-01(A) in 2013. BSE undertook a rigorous due diligence review of the Company's technical data, using renowned experts in geology, geophysics, and reservoir engineering, and we are enthused that following this, BSE continues to share our long held view of the exceptional potential and prospectivity of our Newfoundland assets. 

By committing to drill up to 12 wells for a 60% interest in Enegi's Newfoundland assets under the Farm-In, and noting that the cost of each well will be significant, BSE has already demonstrated the inherent value of Enegi's Newfoundland assets.

We look forward to working with BSE and providing further updates as activity on our acreage accelerates." 

David Murray, CEO of BSE, commented:

"Based on the extensive data set that Enegi has acquired to date and the presence of a producing well in PL2002-01(A), with trade routes already established, we have taken the decision that it would be in the interest of all stakeholders to drill at least one well on PL2002-01(A) this year after the rig arrives in western Newfoundland this coming fall. Having already invested upwards of US$25 million in purchasing a drill rig, piping, and associated equipment, we believe this course of action has the highest potential in realising revenues in the shortest amount of time. 

The drill rig is currently being fitted out in Houston, with the intent to mobilise this to Newfoundland as soon as the fitting out process is completed and regulatory approval is secured." 

www.enegioil.com

Facebook (Enegi Oil PLC)

Twitter (@enegioil)

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.