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ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

11 April 2013

Enegi Oil Plc

("Enegi" or "the Company")

Update on Western Newfoundland

Enegi, the independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan, provides an update on its activities in western Newfoundland.

Highlights

·; At Garden Hill South, a sustained production process has been established;

·; Sale of oil from the site has recommenced as a result;

·; A CPR on the St. George's Bay prospect has been completed and confirms the viability of an exploration campaign and appraisal efforts within EL1116;

·; The CPR presents 'best case' prospective resources of 51.02 mmbo, an increase of 8.32 mmbo following the internal management estimates reported as part of the interim results;

·; The Company has concluded a loan of £525,000, less than that reported in the interim results, to act as bridging finance until cashflow recommences from the Garden Hill Field.

PL2002-01(A) - Garden Hill Field

As previously reported, Enegi have been working diligently to resolve operational issues experienced at the Garden Hill site and to upgrade site facilities. As a result of these ongoing efforts, a sustained production process has been established in advance of the proposed installation of artificial lift facilities. The process has been in operation for the last two to three weeks and the Company continues to monitor its effectiveness. Although the Company does not yet have sufficient data to comment on flow rates, the initial results are encouraging and lead us to believe that the process can ensure production is sustained. More detailed procedures and confirmation of the average flow rates that can be achieved and sustained on this basis, with the well and reservoir pressure continually managed to optimise both short and long term recovery, will be developed over the next few weeks based on observation and analysis as testing and production continues.

In the meantime, Enegi are also progressing the design and detailed evaluation of potential artificial lift solutions identified for the well, in order to deliver incremental increases in production. Sale of oil from the site has recommenced as a result of the sustained production process.

Alison Pegram, CEO of Enegi Oil Inc., commented:

"We are very pleased to have re-established production at site and to have identified and successfully implemented what we believe is a sustainable production process, after what has been at times a very frustrating year. We are particularly encouraged that we have achieved this even before installation of an artificial lift system, but we continue to investigate this as a means to incrementally increase production rates."

EL1116 - St. George's Bay Prospect

The Company can also provide an update on the work that it is undertaking on the St. George's Bay prospect that is located within the boundaries of EL1116. The Company has received the results of a Competent Person's Report ("CPR"), which was performed by Deloitte of Calgary.

The CPR was commissioned after the acquisition and interpretation by the Company's technical team of over 1,000 km of existing seismic data, as well as the logs from the previously drilled wells A-09, A-36 and PaP#1, and confirms the beliefs of the Company with regard to the St. George's Bay prospect. The structure is part of a trend that continues south west, offshore, from the Garden Hill Field in the Ordovician Carbonate platform, providing strong evidence of a regional petroleum trend that stretches south west from EL1070 (which contains the Shoal point lead).

The current understanding is that the A-09 and A-36, which targeted the St. George's Bay prospect and encountered tight, impermeable, dolomotised carbonate reservoir, were too far west of the Round Head Thrust to have been altered by hydrothermal fluids and therefore did not develop effective reservoir quality. To intersect effective reservoir, well locations should target the eastern flank of the anticline closer to the Round Head Fault.

Material conclusions drawn from the CPR are as follows:

·; The St. George's Bay prospect offers clear potential which:

o possesses a combination trap configuration of both structure and stratigraphic elements within a gentle roll over anticline bounded by two thrust faults;

o possesses a mature source rock with migration and reservoir fully confirmed; and

o makes it viable for an exploration campaign and appraisal efforts.

·; The prospect is estimated by Deloitte to contain:

The 'best case' prospective resources of 51.02 mmbo is an increase of 8.32 mmbo over those internal management estimates reported as part of the interim results released on 28 March 2013 and provides the Company with confidence regarding the internal process that the Company undertakes to assess its assets.

Further seismic data will be required to enhance the existing interpretation prior to the identification of targets for future drilling. The Company is therefore commencing the environmental assessment process to obtain the necessary permissions. This data is expected to cover both the St. George's Bay prospect and other identified leads on the Licence. Once the additional seismic data has been acquired a further CPR covering all areas of interest within the Licence will be commissioned.

Update on Financing

Further to the statement in the Company's interim results for the period to 31 December 2013, released on 28 March 2013, the Company has now concluded an agreement with Dutchess Opportunity Cayman Fund, Ltd ("Dutchess") pursuant to which Dutchess has agreed to make available a loan of up to £525,000 (the "Loan"), constituted by the issue of a Zero Coupon Loan Note of the Company in an aggregate principal amount of £603,750, to accelerate the development of the Company's short term production projects. In view of the positive impact of projected cashflows from the Garden Hill Field outlined above, Enegi has reduced the value of the Loan from the £900,000 previously reported.

Accordingly, Enegi has issued and allotted to Dutchess:

·; 6,000,000 ordinary shares of 1p each in security for the repayment of the Loan, such shares to be held in escrow until the Loan is repaid in full (the "Collateral Shares"); and

·; 350,000 ordinary shares of 1p each in settlement of an arrangement fee of £35,000 payable in respect of the Loan (the "Investor Shares").

The Loan shall be repaid in six equal tranches on a monthly basis for the six months immediately following the date of first drawdown. Following repayment of the Loan, Collateral Shares remaining in the escrow account will be returned to the Company and it is the Company's current intention to transfer such shares to treasury.

The issue of the Collateral Shares and the Investor Shares (together, the "New Ordinary Shares") is being carried out utilising the Company's current authority from its shareholders to issue shares for cash on a non pre-emptive basis. The New Ordinary Shares being issued will represent approximately 4.81 per cent of the enlarged issued share capital of the Company.

Application has been made to the London Stock Exchange for the New Ordinary Shares, which will rank pari passu with the Company's outstanding ordinary shares, to be admitted to trading on AIM, and admission is expected to become effective at 8.00 a.m. on 17 April 2013.

Following admission, the Company will have 132,023,582 ordinary shares in issue. The figure of 132,023,582 common shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company under the Financial Services Authority's Disclosure and Transparency Rules.

Alan Minty, CEO of Enegi, commented:

"Work continues apace on our assets in western Newfoundland. The identification and implementation of a sustained production process on the Garden Hill Field provides us with confidence that the field represents a strong element of our portfolio. Further data will hopefully demonstrate that the revenue that can be generated will make the Company self-sustaining.

I am pleased with the results of the CPR on the St, George's Bay prospect and it reaffirms the Company's belief in the opportunities presented by our land position in Western Newfoundland. Furthermore, it provides us with confidence that our internal assessment processes are suitable to assess our assets.

I look forward to the Company continuing to deliver the targets that we have set ourselves."

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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 29 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.