Enegi Oil Plc is an independent oil and gas group whose strategy is to identify, develop and operate hydrocarbon opportunities initially focussed on the proven petroleum region of western Newfoundland, Canada. The Company is pleased to announce its admission to trading on AIM and the Bourse de Luxembourg today (“Admission”).
Enegi will be admitted to trading at a placing price of 181p and is raising approximately £15.0 million, including the proceeds of a subscription by an investor into PDIP shortly before Admission (the “PDIP Subscription”) gross of expenses. On Admission the Company will be capitalised, at the placing price, at approximately £55 million. Cenkos Securities plc is Enegi’s Nomad and joint Broker and Fox-Davies Capital is joint Broker.
Key points:
• The placing proceeds (including the proceeds of the PDIP subscription) will be used to carry out the Group’s work programme to acquire new or additional working interests in oil and gas assets which have been identified and are being evaluated by the Group and provide general working capital for the Company.
• Enegi’s management team has extensive expertise both in the oil and gas industry as well as the Atlantic Canada arena.
• The Group’s key geographical area of focus is eastern Canada, an area of which the management team have significant detailed knowledge and believe is underexploited. The Group’s portfolio and area of activity is currently focussed around the Port au Port Peninsula, western Newfoundland, originally held through Enegi’s subsidiary, PDIP, which the Company acquired immediately prior to Admission.
• The Group’s portfolio comprises: Shoal point, a potentially sizeable play where drilling has commenced; Garden Hill South, an oil and gas discovery where the Group will be drilling an appraisal and production well in late 2008; and Garden Hill Central and Garden Hill North over which the group will acquire 115km of onshore seismic data in 2008. Net resources on a P50 basis for the group are 13.1 mmboe (Information supplied by TRACS).
The Group’s strategy will be to:
• focus on the appraisal and development of assets which can be managed through to production;
• look to acquire additional assets where they believe the Group’s management team can add value through their technical and commercial skills; and
• focus on Canada, which has a well established petroleum industry, access to the skills required to develop Enegi’s assets and a stable economic and political environment.
The Group’s work programme for 2008 involves the drilling of 2 wells: the exploration well on Shoal Point and a horizontal production well on Garden Hill South.
Enegi expects to achieve commercial production and bookable reserves in 2008 and plans are being developed to ensure the oil can be exported; these plans will be implemented using local labour and should generate significant benefits for the region.
Alan Minty, CEO, commented:
“We are delighted with the response that we have received during our fund-raising roadshow. We have an exciting portfolio of assets in an underexploited region and our admission to AIM and the Bourse de Luxembourg will enable us to move forward in our development and provide us with the funding required to carry out our strategy whilst also taking full advantage of the opportunities that we believe are inherent in a consolidating oil and gas industry.
We are now looking forward to delivering value to shareholders and the communities in which we work.”
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