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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

10 April 2014

Enegi Oil Plc

("Enegi" or "the Company")

Update on Marginal Field Initiative

Enegi, the independent oil and gas company, is pleased to provide an update on its marginal field initiative through its joint venture, ABT Oil and Gas ('ABTOG'), with Advanced Buoy Technology (ABTechnology) Limited ("'ABT'). This update provides further information on the development of the Fyne field and details of the restructuring of ABTOG.

Fyne Field

The development of the Fyne Field continues in line with expectations. Along with our partner, Antrim, a new Environmental Statement ('ES') was submitted to the Department of Energy and Climate Change ('DECC') at the end of March. Antrim, as operator, has posted the ES on its website (http://www.antrimenergy.com/files/Fyne_SIFT_Concept_ES_Version_A.pdf). The ES provides the means of submitting to the regulatory authority, statutory consultees, non-government organisations and the wider public the findings of an assessment of the likely effects on the environment of the activities proposed during the life cycle of the Fyne Field Development. The submission of the ES is a key milestone in the development of the Fyne Field with the next being the submission and approval of the Field Development Plan ('FDP') on which work is suitably advanced for meeting the deadline of late summer 2014.

Upon review of the ES, it should be noted that the development solution chosen for the Fyne Field has now been altered from the production buoy to the Self-Installing Floating Tower ('SIFT'), a solution available to ABTOG through its strategic partnership with GMC Ltd. The need to switch to the SIFT solution was anticipated by management towards the end of 2013 but the final decision was taken recently as part of discussions with DECC regarding the FDP and reflects both the particular engineering complexities of the Fyne Field and the fact that using the production buoy solution would have required reliance upon the provision of long-lead time, subsea equipment. The impact of these items would have been to make the development schedule too tight.

Importantly, the strong returns originally anticipated remain unaltered as a result of the change in the development solution and the indicative economics suggest returns that are in keeping or in excess of industry norms. The change in development solution should not therefore be interpreted as any deficiency in the production buoy solution, rather as demonstrative of the inherent flexibility of the marginal field initiative business model and its ability to adapt to the most appropriate solution for field development on a case-by-case basis.

Restructuring of ABTOG

Negotiations continue with partners with the aim of providing specific industry endorsement to the marginal field initiative. Through that engagement it has become evident that ABTOG needs to be restructured to allow potential partners to become involved without affecting their own business model and risk profile. The business model that ABTOG purports is an integrated model in which the venture seeks to garner returns from both the hydrocarbon assets and the delivery of the solution in the form of a facility, that being presently either a production buoy or SIFT. The strong, established companies in the industry can be clearly delineated between those who own and operate hydrocarbon assets, and those that provide services to those operators, whether that be through the provision of services or equipment. Clearly, successful companies will not become engaged in a venture that alters the perception of their business model with stakeholders and customers.

ABTOG must be able to provide an offering that allows potential partners to become involved in areas of the venture that is complimentary to their business model. Consequently, ABTOG intends to establish two subsidiary companies referred to here as ABTOG Equity Co. and Marginal Field Development Co. ABTOG Equity Co. will seek to acquire hydrocarbon interests which it will develop in conjunction with its partners. Marginal Field Development Co. will provide solutions to potential partners, both internally to ABTOG Equity Co. and externally to operators. Currently, ABTOG holds 100% of the equity in each company, and Enegi retains its interest in each entity through its holding in ABTOG.

By restructuring ABTOG in this way, companies can either become aligned to field equity risk, service and solution provision or an integrated model (through ABTOG) depending upon their own risk profile and business model. When the restructuring is complete, a further update will be provided.

Alan Minty, CEO of Enegi, commented:

"I am delighted with the progress that has been made in advancing the development of Fyne. The completion and submission of the ES was a big milestone and work continues at pace to conclude arrangements for FDP submission and approval.

The restructuring of ABTOG has been arrived at after engagement with industry at all levels including operators, service providers and financiers. Its adoption will create a structure better aligned to the industry enabling us to maximise the potential of ABTOG."

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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 buoyant solutions, which are appropriate and change the development economics of a 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 Block in Jordan with its partner Korea Global Energy Corporation.