Enegi increases funding line
THE chief executive of Manchester-based oil & gas exploration firm Enegi Oil Alan Minty has said “the building blocks of the company are as strong as they have ever been” as he reported on the progress of its key sites.
The firm said that testing at its most advanced well, Pap#1 at Garden Hill South in Newfoundland, Canada, is continuing and that data being collected will be used in the design of its production facilities.It is also progressing with applications to build a production site at the well, which is in contact with at least 61.5m barrels of oil and 117 billion cubic feet of gas.
“The recent fund raise, combined with the well results from Garden Hill South, provides the Company with a strong financial base, which the Company has begun to leverage by reviewing further opportunities to expand its asset portfolio,” said Minty.
Enegi is also to begin seismic studies at Garden Hill Central and North and will report on its findings in the final quarter of 2012.
The firm said it is beginning talks “to determine the external interest in the company’s western Newfoundland assets”, with a view to potential investments from farm-in partners.
“No decisions have been made to adopt this strategy but the Company will assess all opportunities to maximise shareholder value,” it said.
It added that it has increased the limit of an equity line facility from £7.5m to £25m to ensure it has the funds in place if operating costs increase should it decide to purchase assets in the North Sea.
It is currently reviewing its partnership with Advanced Buoy Technology, which could help with North Sea explorations. Enegi has submitted three applications for exploration licences for blocks of offshore territories under the North Sea.
Meanwhile, the firm said it is required to submit a report to authorities in Ireland of its findings in its search for shale gas in West Clare by November 30.
“Depending on the results of the initial assessment, the company may apply for an exploration licence,” it said.
