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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

23 December 2013

Enegi Oil Plc

("Enegi" or "the Company")

Operational and Corporate Update

Enegi, the independent Oil and Gas Company with a portfolio of projects located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan is pleased to provide the following update.

Operational Update - Western Newfoundland

Black Spruce Exploration ("BSE") has provided an update to the Company concerning its activities in western Newfoundland and how these may affect the work programme on the Company's assets that has been previously communicated. BSE has indicated that the commencement of the work programme at Garden Hill, together with drilling of a well on EL1116, is its operational priority and it is expected that the programme will commence in or around April, 2014. BSE is currently seeking to obtain the required permissions from the regulators and the work programme remains on schedule. The Company wishes to emphasise that the recently announced moratorium with respect to fracking has no effect on these operational plans, which are targeting conventional plays.

In order to ensure that the drilling rig to be used in Newfoundland is fit for purpose for all the planned wells, and in order to minimise downtime once the overall programme commences, BSE has been undertaking certain modifications to the drilling rig, and expect those modifications to take a further 8-10 weeks to complete. Following this, BSE intend to mobilise the rig to Newfoundland and obtain the final approvals required to commence the planned drilling programme at Garden Hill in accordance with the schedule. The Company expect further production from ST#3 in the meantime, and are currently in discussion with BSE on a plan to manage production during the upcoming drilling programme.

Corporate Update

ABT Oil & Gas ("ABTOG") has made rapid progress and, as stated in recent announcements, is now working on marginal field projects in the UK Continental Shelf (Fyne Field) and the North Celtic Sea (Dunmore and Helvick discoveries). Discussions also continue with other companies and further projects are expected to be secured in the coming months. Through the ABTOG JV, Enegi expect its activities associated with marginal field developments to become a dominant part of its activities. Recognising this aspect of Enegi's business, BSE informed the Company that it wished to maintain a clear delineation between BSE's activities in Newfoundland and the Company's increasing focus on its marginal field initiative. As such, BSE indicated to Enegi that it intended to divest the majority of its shareholding in Enegi, held through Foothills Northwest Holdings Corp. ("FNW"), an affiliate of BSE, and obtained as part of the placing announced by the Company on 24 July 2013.

Noting the potential value that these shares could have, as ABTOG's progress continues, the Directors of the Company have taken the decision to acquire 12,325,378 shares from FNW at a price of 7.25 pence. These shares will be placed into treasury.

In order to facilitate the acquisition of the shares referenced above from FNW, the Company has entered into a loan agreement for £1 million. Under the terms of the loan Enegi has the right to repay the loan:

• within six months for £1,120,000 in either cash or shares (at the prevailing market value); or

• after six months and within twelve months for £1,200,000 in either cash or shares (at the prevailing market value).

As part of the transaction, BSE has agreed to pay the drilling deposit of $250,000 to the C-NLOPB for the extension of EL1116 in advance of the drilling programme in 2014. The deposit is for the benefit of the Company and when released will be released to Enegi.

Alan Minty, CEO of Enegi, commented:

"We are pleased with the continued progress that our partner BSE are making, but still believe that the current share price in the open market significantly undervalues the Company and its achievements to date. As such, we are taking a number of actions to address this. One of which is to reduce the amount of outstanding shares in the open market when there is an opportunity to do so. We are pleased that in doing so, on this occasion, we are also able to assist BSE at the same time."

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About Enegi Oil

Enegi Oil Plc is an independent oil and gas company whose strategy is to build a diverse portfolio of assets with a strong emphasis on acquiring interests in marginal fields. These marginal fields are low risk highly-appraised projects and consequently the Company's entry cost will be low. Enegi will look to develop these assets utilising ABTechnology's buoy technology which is an appropriate solution and changes the development economics of the project. This is also expected to enable the early booking of reserves. 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 have discovered hydrocarbons on them 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.